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Index
Table of Contents
Acknowledgements
Author Biography
Introduction
Chapter 1: Successful Pre-opening Activities For a Restaurant Venture
TYPES OF BUSINESS ORGANIZATIONS
SELECTING THE RESTAURANT SITE LOCATION
NATIONAL RESEARCH
MARKET AREA RESEARCH
POPULATION AND DEMOGRAPHICS
COMPETITION
GOVERNMENT LAWS, REGULATIONS, AND LICENSES
OPENING THE RESTAURANT BANK ACCOUNT
INSURANCE
ORGANIZING THE PRE-OPENING ACTIVITIES
SERVICE PERSONNEL NEEDED
OTHER SERVICES AND SYSTEMS
HOW MUCH CHINA AND SILVERWARE TO ORDER
WORKSHEETS
NECESSARY MISCELLANEOUS RESTAURANT, RESORT & HOTEL SUPPLIES FROM A-Z
LAYOUTS AND FLOWCHARTS OF A TYPICAL FAMILY-TYPE RESTAURANT
Chapter 2: Basics Of Buying Or Leasing A Restaurant
DETERMINING THE RESTAURANT’S VALUE
THE VALUE OF OTHER ASSETS
GOODWILL
TERMS, CONDITIONS, AND PRICE
INITIAL INVESTMENT
LEASING AS AN OPTION TO GET STARTED
USING A LEASE BROKER
GETTING YOURSELF READY TO LEASE
THE POWER OF WORDS
CHANGING THE FACE OF YOUR SPACE
CLEARLY DEFINE WHO DOES WHAT
UNDERSTANDING YOUR LEASE AGREEMENT
LEASE VERSUS OWN
VARIOUS SITE CONSIDERATIONS BEFORE BUYING OR LEASING
NEW BUILDINGS VERSUS EXISTING BUILDINGS
LOCATION REQUIREMENTS
FACILITY REQUIREMENTS
SITE CHARACTERISTICS
TRAFFIC COUNT
Competition
Chapter 3: Creating A Successful Business Plan
WHY DO I NEED A PLAN?
GREAT RISKS, GREAT REWARDS
NO PROFITS, NO REASON
WHO SHOULD REVIEW YOUR BUSINESS PLAN
WHO WILL USE YOUR BUSINESS PLAN
WHO SHOULD WRITE YOUR BUSINESS PLAN?
BUT I ONLY WANT TO BE A RESTAURATEUR
WRITING ALTERNATIVES
SEARCHING FOR A BUSINESS PLAN WRITER
CONTRACTS AND AGREEMENTS
WHAT DOES A GOOD BUSINESS PLAN CONTAIN?
STANDARD BUSINESS PLAN FORMAT
Chapter 4: Steps To Secure Financing
DID YOU KNOW?
MONEY, MONEY, MONEY
LEARNING YOUR MONEY FORMULA
STAY ON THE RIGHT SIDE OF THE LAW
CAPITAL BUDGETING
THE MONEY IS OUT THERE
WHAT WILL YOU DO TO FINANCE YOUR DREAM?
AVAILABLE FINANCING SOURCES
OTHER FINANCING OPTIONS
Leasing Versus Buying
Deciding Whether to Lease or Buy
INVESTING IN YOUR DREAM
YOUR PERSONAL FINANCIAL HEALTH
BARTERING
NEITHER A LENDER OR A BUYER BE
BORROWING FROM FAMILY OR FRIENDS
LOAN AGREEMENTS
ASKING FOR A LOAN
THANKS FOR THE GIFT
YOUR LOAN PROPOSAL
FINANCIAL STATEMENTS
YOUR FINANCIAL STATEMENTS
HOW TO WRITE A LOAN PROPOSAL
HOW YOUR LOAN REQUEST WILL BE REVIEWED
Chapter 5: How to Analyze and Invest In a Restaurant Franchise
CHOOSING THE RIGHT FRANCHISE
FRANCHISES ARE NOT INDEPENDENT BUSINESSES
BECOMING A FRANCHISEE
BUYING AN EXISTING FRANCHISE
STARTING NEW
DOING YOUR RESEARCH
TERRITORIAL STRATEGIES
MULTI-UNIT FRANCHISING
RIGHT TO EXPAND
EXPANDING YOUR OPERATIONS
UNDERSTANDING YOUR PURCHASE OPTIONS
BUYING MULTIPLE UNITS
FRANCHISING ADVANTAGES AND DISADVANTAGES
FRANCHISING AND THE LAW
FRANCHISER CERTIFICATION
Chapter 6: Effective Restaurant Layout & Remodeling
PUBLIC AREAS IN YOUR RESTAURANT
OUTDOOR AREAS
PARKING
FIRST IMPRESSIONS
WINDOW DISPLAYS
USE SOME GREENERY
YOUR RESTROOMS
COUNTERTOP DISPLAYS
FRONT WORK AREAS
SHELVING
DEDICATED WORK AREAS
DELIVERY AREAS
LAST BUT NOT LEAST — YOUR OFFICE
THE BEST SEATS IN THE HOUSE
WAITING
MOOD SETTING
MAY I TAKE YOUR COAT?
DINING ALFRESCO
COLORS THAT COMPLEMENT
THE ANCIENT ART OF FENG SHUI
COMMISSIONING ARTISTS
MUSIC TO STIMULATE, SOOTHE, AND WOO
LET THERE BE LIGHT
CEILINGS
COVERING YOUR FLOORS
SEATING
SELECTING TABLES
SEATING AS DÉCOR
YOUR PROFIT CENTER
SEATING AS WORK (AND PLAY) AREAS
ACTING AS YOUR OWN DECORATOR
THE SMALLEST ROOM IN THE HOUSE
FRONT-OF-THE-HOUSE SUPPORT STATIONS
STREAMLINE YOUR BACK-OF-THE-HOUSE
KITCHEN DESIGN
YOUR CHEF’S OFFICE
PLENTY OF STORAGE
STORAGE
WASTE AND RECYCLING
WORKING (AND RESTING) BEHIND THE SCENES
CONSTRUCTION & RENOVATION
BUILDING PERMITS AND CODES
TRANSFORMING BUILDINGS INTO RESTAURANTS
NEW CONSTRUCTION TIMELINE
OPEN FOR BUSINESS DURING A RENOVATION
WORKING IN A CONSTRUCTION ZONE
CREATING ENVIRONMENTS THAT WORK WITH PEOPLE
WILL YOU HAVE ENOUGH DINING SPACE?
TRAFFIC AND WORKFLOW
MORE WORKFLOW ADVICE
Chapter 7: Basic Cost Control For Restaurants
COST CONTROLS ARE CRUCIAL
COST RATIOS
FOOD COST PERCENTAGE
CONTROLLING FOOD COSTS
YIELD COSTS
MENU SALES MIX
THE MENU ITSELF
PRICING
FINANCIAL ANALYSIS
INTERNAL CONTROLS
PURCHASING AND ORDERING
INVENTORY
LABOR PRODUCTIVITY
BEVERAGE CONTROLS
Chapter 8: Profitable Menu Planning
MENU STYLE
FORMATTING YOUR MENU
DEVELOPING THE MENU SELECTIONS
LIMITING THE MENU
TRUTH AND ACCURACY IN THE MENU
NUTRITIONAL CLAIMS ON MENUS
MENU SIZE AND COVER
MENU DESIGN SOFTWARE
COPYRIGHTING THE MENU
PRINTING THE MENU
RECIPE AND PROCEDURE MANUAL
ORDERING MANUAL
PROJECTING MENU COSTS
THE BEGINNING INVENTORY
Chapter 9: Dietary and Nutritional Guidelines
TEST PANEL
INTERNAL QUALITY CONTROL
TOOLS TO GAIN FEEDBACK
TIPS TO ASK THE RIGHT QUESTIONS
OPERATING PROCEDURES
CONDUCT A SELF REVIEW
FOOD SAFETY INSPECTIONS
HOW TO PREPARE FOR AN INSPECTION
PREPARING FOR AN INSPECTION
IMPROVE DIETARY SERVICES
CONSIDER FOOD ALLERGIES
Chapter 10: Choose The Proper Equipment
THE RIGHT EQUIPMENT FOR THE JOB
MAKING WISE EQUIPMENT PURCHASES
WHICH QUALITY LEVEL?
EQUIPMENT BUDGETING
EQUIPMENT LEASING
EQUIPMENT RENTAL
SHOULD I BUY USED EQUIPMENT/FIXTURES?
EQUIPMENT SUPPLIES
EQUIPMENT SPECIFIC TIPS
KITCHEN AND SERVICE EQUIPMENT
MAJOR EQUIPMENT
RANGES AND OVENS
GRILLS, SMOKERS, AND ROTISSERIES
REFRIGERATORS AND FREEZERS
DISHWASHERS
WASHER AND DRYER
SMALL EQUIPMENT
FOOD PROCESSING EQUIPMENT
EQUIPMENT FOR SERVING FOOD
EQUIPMENT FOR CATERING AND SPECIAL EVENTS
EQUIPMENT TO TRANSPORT FOOD
DISPOSABLE EQUIPMENT
ADDITIONAL EQUIPMENT
ADDITIONAL RESOURCES TO FIND EQUIPMENT
Chapter 11: Purchasing
Steps in the procurement process
PURCHASING OR ORDERING?
ORDERING TIPS
ESTABLISH SPECIFICATIONS
EVALUATE AND CHOOSE YOUR VENDORS
CREDIT
PRODUCT QUALITY
PRICE
DEALING WITH SUPPLIERS
THE CHANGING FACE OF DISTRIBUTORS
BUYER RESPONSIBILITIES
BUYER QUALIFICATIONS
ALTERNATIVE PURCHASING SYSTEMS
PURCHASING KICKBACKS AND GIFTS
BRANDS AND QUALITY
Chapter 12: Inventory, Receiving, and Storage
RECEIVING
EFFECTIVE RECEIVING
RECEIVING AND STORING SUPPLIES
RECEIVING TIPS
RECEIVING PROCEDURES
FOOD STORAGE
TYPES OF STORAGE
DRY STORAGE
REFRIGERATED STORAGE
DEEP CHILLING
FROZEN STORAGE
CLEANING PRODUCTS
ORGANIZE YOUR STORAGE AREAS
STORAGE SPOILAGE PREVENTION
INVENTORY
PERIODIC INVENTORY COUNT
PERPETUAL INVENTORY
DETERMINE INVENTORY LEVELS
ISSUING
Chapter 13: Food Buying Techniques
MEATS
PROPERTIES OF MEAT
THE MEAT MARKET
FROZEN MEAT
IDENTIFYING PORTIONS OF MEAT
PROCESSED MEAT
POULTRY
EGGS
SELECTING FRESH PRODUCE
THE PRODUCE MARKET
RERISHABLE ITEMS
PURCHASING PRODUCE
PROCESSED FOODS
METHODS TO PRESERVE PRODUCTS
CONVENIENCE FOODS
DAIRY PRODUCTS
Chapter 14: Food Cost Controls
CONTROLLING FOOD COSTS: STRATEGIES AND TIPS
GETTING ORGANIZED
FOOD SALES AND COSTS SURVEY
ESSENTIALS OF CONTROLLING FOOD COSTS
YIELD COSTS
MENU SALES MIX
THE MENU
Calculating Food and Drink Costs
ECONOMIZE WITHOUT REDUCING QUALITY
MANAGE COST — INCREASE SALES
OTHER COST-SAVING TIPS
FOOD-COST PROBLEM AREAS
FOOD COST PERCENTAGE
COST-CALCULATIONS — THE BASICS
WEIGHTED FOOD COST PERCENTAGE
RAISING PRICES
Chapter 15: Successful Kitchen Management and Control Procedures
KITCHEN PERSONNEL
KITCHEN PROCEDURES
KITCHEN CLEANLINESS
KITCHEN CONTROLS
Chapter 16: Essentials of Food Safety, HACCP, and Sanitation
HACCP DEFINED
WHY SHOULD YOU USE HACCP?
IMPLEMENTING HACCP
HACCP PROCEDURES
STORAGE OPTIONS AND REQUIREMENTS
PREPARING FOOD
COLD FOOD PRECAUTIONS
COOKING
SERVING AND HOLDING
SANITARY SELF-SERVICE
COOLING
REHEATING
CLEAN VERSUS SANITARY
A FIRST-RATE FACILITY
CROSS-CONTAMINATION CONCERNS
CONTROLLING BACTERIA
DANGEROUS BACTERIA
PERSONAL HYGIENE
Chapter 17: Safety and Risk Management
KITCHEN AND FOOD SAFETY
AGENCIES
FIRST AID AND SAFETY
FIRE
ACCIDENTS AND SAFETY
KITCHEN SAFETY
GOOD ERGONOMICS
THE AIR WE BREATHE
OTHER AVOIDABLE KITCHEN HAZARDS
REDUCING EMPLOYEE THEFT
REGISTER PRACTICES
GIVEAWAYS
SECURITY
CORRECT CASH-HANDLING PROCEDURES
REDUCING CUSTOMER FRAUD
KEEPING YOUR OWN HOUSE IN CHECK
ELECTRONIC SECURITY
Chapter 18: Successful Bar Layout, Set Up, and Location
OPENING A BAR — AN OVERVIEW
MARKET RESEARCH
THE COMPETITION
BAR LAYOUT (NUTS AND BOLTS)
SEATING
THE FRONT BAR
THE UNDER-BAR
CLIMATE CONTROL
CUSTOMER COMFORT
BAR RECIPE AND PROCEDURE MANUAL
LIQUOR AND BEER ORDERING
SETTING BAR PRICES
LEGAL ADVICE
MINORS CAN MEAN MAJOR LEGAL PROBLEMS
Chapter 19: Bar Service, Precautions, and Legalities
BAR PERSONNEL
BAR OPERATIONS
DESCRIPTION OF LIQUOR & ALCOHOLIC BEVERAGES
LIQUOR STOCKING AND ORDERING
POURING PROCEDURES
BAR RECIPE AND PROCEDURE MANUAL
SOME ENHANCING TOUCHES OF QUALITY
RECIPES
BAR TAB PROCEDURES
BAR SECURITY
INVENTORY CONTROLS
Chapter 20: Successful Wine Management
SERVING WINE PROPERLY
SERVING SPARKLING WINE AND CHAMPAGNE
SERVING BY THE GLASS OR BY THE BOTTLE
HALF BOTTLES AND DECANTERS
WINE SERVICE INNOVATIONS
CHOOSING TYPES OF WINE
THE LANGUAGE OF WINE
ORDERING WINE
Chapter 21: Management of Operational Costs and Supplies
OPERATIONAL CATEGORIES
ORDERING OPERATIONAL SUPPLIES
Chapter 22: Computers and Food Service Operations
FRONT-OF-THE-HOUSE COMPUTER SYSTEMS
STAND-ALONE SOFTWARE APPLICATIONS
ONLINE RESERVATION SYSTEMS
THE FUTURE OF COMPUTERS IN FOOD-SERVICE
THE EFFECTIVE USE OF E-MAIL
THE INTERNET AND THE WORLD WIDE WEB
Chapter 23: Managing the Dining Room and Waitstaff
PRE-SERVICE DUTIES
SETTING THE TABLE
SIDE WORK DUTIES
CLOSING DUTIES
SERVICE DUTIES
ELECTRONIC ORDERING SYSTEMS
TABLE SERVICE
GENERAL RULES FOR TABLE SERVICE
SUPERVISING THE SERVICE
Chapter 24: Increase Order Amount and Your Bottom Line
Make Changes to Your Menu and Layout
Countertop Displays
HEALTHY OPTIONS
Promoting Beverages
Food Allergies
Services To Impact Your Bottom Line
Take Care of the Children
Include Your Wait Staff in Menu Item Decisions
The Art of Suggesting Accompaniments
Delicious Desserts = Big Profits!
Chapter 25: Finding, Recruiting, and Hiring Great Employees
TRAINING
HIRING TRAINABLE RESTAURANT EMPLOYEES
WHAT TO LOOK FOR IN POTENTIAL EMPLOYEES
SCREENING POTENTIAL EMPLOYEES
INTERVIEWING
AVOIDING INTERVIEW-RELATED LAWSUITS
RECRUITING FOR TEAMWORK
THE FINAL SELECTION AND DECISION
EMPLOYEE HANDBOOK
Chapter 26: Training Employees
MANAGEMENT’S ROLE IN TRAINING
TEAMWORK
WHAT IS A TEAM?
TEAMBUILDING
BUILDING TRUST AND TEAM SPIRIT
TRAINING OTHERS TO BE TRAINERS
ROLE OF COMMUNICATION IN MANAGING YOUR STAFF
MAINTAINING PERFORMANCE STANDARDS
ANNUAL PERFORMANCE REVIEWS
HANDLING DIFFICULT EMPLOYEES
Chapter 27: Handling Employees Tips
WHO SHOULD READ THIS CHAPTER
WHAT IS A TIP?
WHY DO PEOPLE TIP?
WHAT? NO TIP?
TIPPING SIGNALS
RECEIVING TIPS
WAYS TO INCREASE YOUR TIPS
Chapter 28: Motivate Your Employees
CREATING JOB SATISFACTION
WHAT IS MOTIVATION?
EMPLOYEE MOTIVATION PROGRAM
RULES OF EMPLOYEE MOTIVATION
NO-COST WAYS TO RECOGNIZE EMPLOYEES
REWARD SUCCESS
HOW TO MAINTAIN GOOD EMPLOYEE RELATIONS
Chapter 29: Daily Leadership and Teambuilding
LEADERSHIP
What TYPE OF LEADER ARE YOU?
AUTHENTICITY — THE NEW LEADERSHIP BUZZ WORD
TIPS FOR LEADERSHIP SUCCESS
TEAMWORK
TEAMBUILDING
AN EFFECTIVE TEAM
AN EFFECTIVE TEAM LEADER
Chapter 30: Control Labor Cost Without Sacrificing Service or Quality
BUILDING YOUR TEAM — THE FOUNDATION OF SUCCESS
PEOPLE ARE ASSETS
MANAGEMENT COMMITMENT
HIRING TEAM MEMBERS
YOUR EMPLOYEE PACKAGE
WHERE TO FIND YOUR NEXT EMPLOYEES
A DIVERSE WORKFORCE
SELECTING THE RIGHT CANDIDATE
HIRING THE BEST PERSON FOR THE JOB
SAVING PAYROLL DOLLARS
OFFER THE RIGHT BENEFITS PACKAGE
TAX DEDUCTIONS AND CREDITS
TAKE ADVANTAGE OF BENEFIT DISCOUNTS AND SUBSIDIES
GOVERNMENT EMPLOYMENT PROGRAMS
DISABLED WORKER PROGRAMS
OTHER HELPFUL TAX-SAVERS
HIDDEN PAYROLL EXPENSE SAVINGS
SAVE MONEY IN EMPLOYEE TRAINING
YOUR TRAINING NEEDS
SETTING GOALS AND EXPECTATIONS
TRAINING PLANS
MEETINGS
CULINARY AND HOSPITALITY PROGRAMS
IN-HOUSE TRAINING PROGRAMS
ADULT EDUCATION
SCHEDULING YOUR STAFF
THE PRODUCTIVE WORKPLACE
Chapter 31: Public Relations For Your Restaurant
WHAT IS PUBLIC RELATIONS?
HOW TO APPLY YOUR PR PLAN
BUILDING AND SUPPORTING STRONG MEDIA RELATIONS
WHAT’S NEWS
PR IS DIFFERENT FROM ADVERTISING
LAUNCHING A CAMPAIGN
SPECIAL EVENTS
THE VALUE OF LOYALTY
EMPLOYEE RELATIONS IS ALSO PUBLIC RELATIONS
TALKING TO YOUR COMMUNITY
PLANNING FOR THE UNFORESEEN
Chapter 32: How To Keep Customers Coming Back For More
CUSTOMERS FOR LIFE
A WORD OF CAUTION
KNOW WHAT YOUR PATRONS WANT
PAY ATTENTION AND DELIGHT CUSTOMERS
WORD OF MOUTH
INCENTIVES
PEOPLE, PEOPLE, PEOPLE
STAFF
Chapter 33: Promote Your Restaurant On the Internet
DEVELOP AN INTERNET PLAN
WHAT TO PUT ON YOUR WEBSITE
HIRING A WEB DESIGNER
WEB DESIGN MISTAKES TO AVOID
WEB HOSTING
MARKETING YOUR WEBSITE
ONLINE PUBLIC RELATIONS
INTERNET ADVERTISING
WEB SUMMARY
Chapter 34: Add Catering to Your Restaurant
SKILLS NEEDED IN THE CATERING BUSINESS
ASSESS YOUR SKILLS PROFILE
TYPES OF CATERING
THE BEST OF BOTH WORLDS
CATERING FOR BUSINESSES
SOCIAL EVENT CATERING
MANAGING THE EVENT
HANDLING INQUIRIES
MEETING WITH THE CLIENT
QUOTES AND CONTRACTS
CANCELLATIONS AND REFUNDS
PAPERWORK
STAFFING
EQUIPMENT
MARKETING
CONCLUSION
Chapter 35: Internal Bookkeeping
ACCOUNTING SOFTWARE
SECTION 1: ACCOUNTS PAYABLE
SECTION 2: REVENUE ACCOUNTS AND RECONCILIATION
SECTION 3: PAYROLL
Chapter 36: Successful Budgeting and Profit Planning
PROJECTING THE OPERATIONAL BUDGET
Chapter 37: How To Prepare the Monthly Audit and Cost Projections
DEFINING THE ACCOUNTING PERIOD
COMPUTING THE ENDING INVENTORY
COMPLETING THE BUDGET
ANALYZING THE COMPLETED BUDGET
VARIATIONS IN GROSS PROFIT
BUDGETING & PROFIT PLANNING
Chapter 38: Perform an Internal Audit On Restaurant and Bar Operations
PRE-AUDIT PLAN
BALANCE SHEET EXAMINATION
LOANS TO SHAREHOLDERS — AUDIT TECHNIQUES
PROFIT AND LOSS STATEMENT EXAMINATION
Chapter 39: Basics of Selling a Restaurant
STRATEGIES FOR SELLING
LOOKING FOR THE RIGHT BUYER
PASS YOUR BUSINESS ON
SELLING YOUR BUSINESS TO YOUR EMPLOYEES
DECIDING NOT TO SELL
CLOSING YOUR DOORS FOR GOOD?
SO, YOU STILL WANT OUT?
Case Studies
Ali Amundson
Jay Johnson
Roy B. Assad
Stephanie Morley
Jaime Miller
Glossary of Terms
Appendix
Manufacturers Reference
State Restaurant Associations
Journals & Trade Publications
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