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The restaurant—From concept to operation
Pergamon
lnt. J. Hospitality Management Vol. 13 No. 2, pp. 189-190,1994 Copyright 0 1994 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0278-4319/94 $7.00+ 0.00
02784319(93)E00094
Book Review The Restaurant-From concept to Operation, 2nd edn by Donald E. Lundberg and John R. Walker, John Wiley, New York, 1993,364 pp. Hardcover. This book serves as an introduction to restaurant development. As the authors indicate, it provides a ‘blueprint’ for how to proceed in developing a restaurant. The authors guide the reader through the issues which must be addressed for one to analyse the market, identify a market niche, define the concept, then go through the planning and development phases to operation. The book provides an overview of those considerations which must be addressed at the initial phase of the restaurant development project, such as whether the property should be built from the ground up, whether an existing restaurant should be purchased, whether a franchise should be sought, or whether the investment should be limited simply to managing the operation. Concept development is explored in detail using practical examples. Elements, including the level of service, seating capacity, location criteria, and other factors, are identified as variables which the developer/operator must consider. A checklist is provided which serves to help the reader to plan accordingly and in a timely fashion. Menu design and layout are briefly addressed. The procedure for forecasting revenues, the most challenging aspect of any restaurant proposal, is discussed. The reader is introduced to the concept of budgeting expenses and to the format of the Uniform System of Accounts for Restaurants. Break-even analysis, cost controls, guest check controls as well as other financial management issues are presented. With regard to this section, the book might benefit from practice problems allowing the reader to learn the methodology discussed. The various sources of financing available for restaurant development are provided, but return on investment analysis is glossed over. Tax issues are presented, but given that tax laws change on a regular basis, this material will need to be updated frequently. Leasing and valuation as they relate to restaurant development are addressed. The formation of the business, along with the legal and tax implications of the various types of business structure are also presented. The book includes a section on human resource issues. Job analysis, the preparation of job descriptions, recruitment issues, discrimination laws, child labor laws, negligent hiring, testing of applicants and employees, drug use, training, liquor liability, leadership and motivation are briefly discussed. Since this topic is extremely broad in scope and subject to frequent change, the reader would benefit from a detailed lecture which would serve to further develop the issues. Another chapter deals with marketing for a restaurant operation. The various markets and the factors which motivate people to dine out are considered. The essential business function of developing a marketing plan is included in this section. An overview of 189
190
Book Review
advertising options, mailing lists, contribution pricing and promotional opportunities are presented. One chapter relates to the selection and maintenance of kitchen equipment; while another deals with health inspection, sanitation, bacterial growth, washing, food protection and food inspection. An overview of the purchasing of food is also presented in this book. Food specifications, grading standards, can cutting and storage issues are addressed. Another chapter deals with customer relations. Recognizing that laws change continuously, the authors provide a brief overview of relevant taxation laws, tip reporting, liquor liability, wage and hour laws, contract laws, and termination of employees. Given the importance of such issues and the changing nature of laws and regulations it is imperative that this subject be addressed by an expert who is knowledgeable about their current status. The authors are quick to point this out. This book provides a framework of the considerations relevant to the development of a restaurant operation. It is important for the reader to understand that the material is not meant to be used as a sole source of information in the process of planning a restaurant development. The extensive variety of subjects presented in the book prohibits an indepth analysis of any specific issue. For this reason, the book must be supplemented by a detailed lecture on the various subjects which would enable the student to more fully explore the issues outlined in the text. The entrepreneur actually planning to develop a restaurant operation would benefit from the useful checklists and timelines provided throughout the book. Reliance on the book as more than an outline, however, could prove detrimental because of the cursory nature of the contents. Instead, the entrepreneur would be well-advised to review the contents of the book to become familiar with the process of restaurant development, then seek competent counsel, particularly in matters of finance, operations management, tax and law. To the credit of the authors, this point is mentioned in the book. The book is well organized and easy to read. Each chapter begins with a listing of key terms and concepts and closes with a summary of the chapter contents, review questions and endnotes. Numerous checklists are provided which help the reader to recognize the issues to be addressed and to plan accordingly. A glossary is provided at the end of the book. A basic framework of a broad variety of issues which the developer/operator would need to address is presented in the book. The vast quantity of subjects included in the text, however, prohibits an extensive analysis of each. For this reason, the book is valuable as a beginning point upon which more detailed information can be researched. I would certainly recommend it for such purposes. Jane Boyd Ohlin Florida State University Tallahassee, Florida, U. S. A.
lnt. J. Hospitality Management Vol. 13 No. 2, pp. 189-190,1994 Copyright 0 1994 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0278-4319/94 $7.00+ 0.00
02784319(93)E00094
Book Review The Restaurant-From concept to Operation, 2nd edn by Donald E. Lundberg and John R. Walker, John Wiley, New York, 1993,364 pp. Hardcover. This book serves as an introduction to restaurant development. As the authors indicate, it provides a ‘blueprint’ for how to proceed in developing a restaurant. The authors guide the reader through the issues which must be addressed for one to analyse the market, identify a market niche, define the concept, then go through the planning and development phases to operation. The book provides an overview of those considerations which must be addressed at the initial phase of the restaurant development project, such as whether the property should be built from the ground up, whether an existing restaurant should be purchased, whether a franchise should be sought, or whether the investment should be limited simply to managing the operation. Concept development is explored in detail using practical examples. Elements, including the level of service, seating capacity, location criteria, and other factors, are identified as variables which the developer/operator must consider. A checklist is provided which serves to help the reader to plan accordingly and in a timely fashion. Menu design and layout are briefly addressed. The procedure for forecasting revenues, the most challenging aspect of any restaurant proposal, is discussed. The reader is introduced to the concept of budgeting expenses and to the format of the Uniform System of Accounts for Restaurants. Break-even analysis, cost controls, guest check controls as well as other financial management issues are presented. With regard to this section, the book might benefit from practice problems allowing the reader to learn the methodology discussed. The various sources of financing available for restaurant development are provided, but return on investment analysis is glossed over. Tax issues are presented, but given that tax laws change on a regular basis, this material will need to be updated frequently. Leasing and valuation as they relate to restaurant development are addressed. The formation of the business, along with the legal and tax implications of the various types of business structure are also presented. The book includes a section on human resource issues. Job analysis, the preparation of job descriptions, recruitment issues, discrimination laws, child labor laws, negligent hiring, testing of applicants and employees, drug use, training, liquor liability, leadership and motivation are briefly discussed. Since this topic is extremely broad in scope and subject to frequent change, the reader would benefit from a detailed lecture which would serve to further develop the issues. Another chapter deals with marketing for a restaurant operation. The various markets and the factors which motivate people to dine out are considered. The essential business function of developing a marketing plan is included in this section. An overview of 189
190
Book Review
advertising options, mailing lists, contribution pricing and promotional opportunities are presented. One chapter relates to the selection and maintenance of kitchen equipment; while another deals with health inspection, sanitation, bacterial growth, washing, food protection and food inspection. An overview of the purchasing of food is also presented in this book. Food specifications, grading standards, can cutting and storage issues are addressed. Another chapter deals with customer relations. Recognizing that laws change continuously, the authors provide a brief overview of relevant taxation laws, tip reporting, liquor liability, wage and hour laws, contract laws, and termination of employees. Given the importance of such issues and the changing nature of laws and regulations it is imperative that this subject be addressed by an expert who is knowledgeable about their current status. The authors are quick to point this out. This book provides a framework of the considerations relevant to the development of a restaurant operation. It is important for the reader to understand that the material is not meant to be used as a sole source of information in the process of planning a restaurant development. The extensive variety of subjects presented in the book prohibits an indepth analysis of any specific issue. For this reason, the book must be supplemented by a detailed lecture on the various subjects which would enable the student to more fully explore the issues outlined in the text. The entrepreneur actually planning to develop a restaurant operation would benefit from the useful checklists and timelines provided throughout the book. Reliance on the book as more than an outline, however, could prove detrimental because of the cursory nature of the contents. Instead, the entrepreneur would be well-advised to review the contents of the book to become familiar with the process of restaurant development, then seek competent counsel, particularly in matters of finance, operations management, tax and law. To the credit of the authors, this point is mentioned in the book. The book is well organized and easy to read. Each chapter begins with a listing of key terms and concepts and closes with a summary of the chapter contents, review questions and endnotes. Numerous checklists are provided which help the reader to recognize the issues to be addressed and to plan accordingly. A glossary is provided at the end of the book. A basic framework of a broad variety of issues which the developer/operator would need to address is presented in the book. The vast quantity of subjects included in the text, however, prohibits an extensive analysis of each. For this reason, the book is valuable as a beginning point upon which more detailed information can be researched. I would certainly recommend it for such purposes. Jane Boyd Ohlin Florida State University Tallahassee, Florida, U. S. A.