Transcript

The Anatomy of a Successful Restaurant

THE ANATOMY OF A Successful Restaurant LOCATIONS OF AMERICA'S MOST SUCCESSFUL RESTAURANTS LISTED AREA FEW OF THE AWARD-WINNING RESTAURANTS IN THEIR AREA SAN FRANCISCO CALIFORNIA NEW ORLEANS, NEW YORK, NEW YORK CHICAGO, ILLINOIS LOUISIANA Alinea Eleven Madison Park State Bird Provisions Spiaggia The Publican August Cochon Per Se Zuni Cafe Le Bernardin Mission Chinese Food Bob Chinn's Crab Daniel Commander's Palace Bar Tartine La Taqueria House Momofuku Galatoire's Girl & the Goat Sparks Steak House Blackbird LAS VEGAS LAS VEGAS, NEVADA CHARLESTON, SOUTH CAROLINA NAPA VALLEY, CALIFORNIA MIAMI, FLORIDA Yardbird Southern Husk The French Laundry Joël Robuchon Guy Savoy é by José Andrés Table and Bar FIG Bouchon Bistro Joe's Stone Crab McCrady's Hominy Grill The Ordinary The Restaurant at Michael's Genuine Meadowood Food and Drink Terra MOST PROFITABLE RESTAURANTS IN AMERICA TOP-GROSSING STAND-ALONE RESTAURANTS IN THE U.S. (BASED ON EARNINGS FROM JUNE 2010 TO JUNE 2011 EXCLUDING ALCOHOL SALES AND NIGHTCLUBS) $24 MILLION • The restaurant earned 24 out of 30 for food from Zagat • Features 700 seats and 300 staff serving 2,500 meals a day • 3,000 pounds of fresh sea- food are flown in every day Bob Chinn's Crab House WHEELING, ILLINOIS $23.5 MILLION $23 MILLION $20 MILLION Grill on Main Sparks Steak House Tony's Restaurant HOUSTON, TEXAS EDGARTWON, MASSACHUSETTS NEW YORK, NEW YORK $19.2 MILLION $19 MILLION $18.7 MILLION Rockey's Restawrant NOVAŤO, CALIFORNIA Athenian Inn Joe's Stone Crab House SEATTLE, WASHINGTON MIAMI BEACH, FLORIDA $18.4 MILLION $17.4 MILLION $15.9 MILLION Bridgewater Grill Elizabeth on 31 t. SAVANNAH, GEORGIA Jeeves & Company GOLDEN, COLORADO SCOTTSBURG, INDIANA HIGHEST-GROSSING AND MOST PROFITABLE RESTAURANT INCLUDING ALCOHOL SALES $24 MILLION • 75% of revenue is in alcohol (vs. only 30% in most restaurants) • Appeals to convention goers during the week but appeals to the night club scene at night and on weekends Tao Las Vegas at the Venētian Resort Hotel Casino TYPE OF RESTAURANT & PROFIT Full-Service Restaurants OUT OF EACH DOLLAR, FULL-SERVICE Limited-Service Restaurants RESTAURANTS SPEND: •32% ON COST OF FOOD AND BEVERAGE •33% ON SALARIES AND WAGES OUT OF EACH DOLLAR, LIMITED-SERVICE .5-6% ON RESTAURANT OCCUPANCY RESTAURANTS SPEND: COSTS •32% ON COST OF FOOD AND BEVERAGE PROFIT MARGINS: •29% ON SALARIES AND WAGES • AVERAGE CHECK PER PERSON UNDER $15- 3% PROFIT • 8% ON RESTAURANT OCCUPANCY COSTS •PROFIT BEFORE TAXES IS 6% • AVERAGE CHECK PER PERSON FROM $15 TO $24.99 – 3.5% PROFIT • AVERAGE CHECK PER PERSON OVER $25 - 1.8% PROFIT TRUTH BEHIND RESTAURANT FAILURE RATES OF INDEPENDENT RESTAU. VERY LITTLE DIFFERENCE BETWEEN FAIL 57 2 % 26.16 % RANTS FAILED DURING THE RATES OF FRANCHISE CHAIN 1ST YEAR OF OPER ATION 45.39 % FAILED BY THE 2ND YEAR & INDEPENDENT OPERATOR FAILURE 67.4 % 59.74 % FAILED BY THE 3RD YEAR RESTAURANT DENSITY AND OWNERSHIP THE MORE RESTAURANTS THERE ARE IN THE AREA, .9919 TURNOVER HAD STRONG CORREL ATION THE MORE RESTAURANT OWNER TURNOVER THERE IS 22.69 % 23.03 % 5.4 % 6.32 % FOR EXAMPLE, AN AREA WITH RESTAURANT RESTAURANT DENSITY HAD A DENSITY HAD OW NER TURNOVER OWNER BUT AN AREA WITH TURNOVER ONLY % - RESTAURANT SEGMENT CUMULATIVE 3 YEAR RESTAURANT OWNER TURNOVER 86.81% 76.69% 70.00% 61.25% 57.88% MEXICAN SUBS & COFFEE & PIZZA CHICKEN BAKERIES SNACKS 53.13% 51.43% 45.00% 42.86% 38.46% CASUAL DINING ASIAN FAMILY DINING STEAK BUFFETS & CAFETERIAS 35.29% 33.70% 33.33% ITALIAN BURGERS SEAFOOD ELEMENTS OF RESTAURANT SUCCESS Choose a distinctive, Focus on one concentrated theme and develop it well well-researched concept Adapt desirable technologies, especially for record keeping and tracking customers Make decisions that make long-term economic sense tolution tee custor nance oal peo n Effectively and regularly communicate your values and objectives to your employees Manageman Educate managers and promote professional growth proces uelopment O peiteer eet dina lendership tuality a Maintain a clear vision, Create a cost-conscious mission, & operation strategies but be willing to amend them as necessary culture (including stringent record keeping) Make a substant ial time Create and build positive organization culture through consistent management commitment to the restaurant & to family (balance between work life & personal life) Maintain managerial flexibility Choose location carefully ELEMENTS OF RESTAURANT FAILURE Lack of documented strategy, mission, vision, and lack of organizational culture tostering success Inability or unwillingness to establish and formalize operational standards characteristics Frequent critical incidents, managing operations by "putting out Poor location choice fires" $4 Lack of match bet ween Lack of sufficient start-up restaurant concept and or operational capital location Lack of business experience or knowledge of restaurant operations Poor communication with consumers Negative consumer perception of value - price and product must Inability to maintain operational standards, especially sanitary mat ch standards Loss of authenticity at ethnic restaurants or loss Lack of differentiation or of conceptual integrity in distinctiveness general Underestimating competition Lack of operational performance evaluation systems Frequent changes in management and diverse views of mission, vision, Failure to maintain management flexibility and innovation and objectives Entrepreneurial incompetence; inability to operate as or recruit professional managers Non-controllable, external factors SOURCES http://www.econ.ucsb.edu/-tedb/Courses/ECIFO7/restaurantsfail.pdf http://smallbusiness.chron.com/average-profit-margin-restaurant-13477.html http://www.forbes.com/pictures/mfl145kkff/the-top-grossing-restaurants/#gallerycontent http://www.theatlantic.com/business/archive/2011/01/the-most-profitable-restaurant-in-america/68862/ htt p://www.forbes.com/sites/dorothypomerantz/2012/07/18/how-bob-chinns-crab-house-became-thehighest-grossing-r estaurant-in-the-u-s/

The Anatomy of a Successful Restaurant

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Know the secrets to success behind America's most established restaurants.

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Single Grain

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Food
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