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Chapter 8: Restaurant Operations

Chef preparing food in a restaurant kitchen
Chef working in a restaurant kitchen. Photo by Kampus Production on Pexels

 

Chapter 9 Learning Objectives

Upon completion of this chapter, you should be able to:

  1. Identify and describe the key roles and responsibilities of front-of-house (FOH) and back-of-house (BOH) staff in a restaurant.
  2. List various restaurant service styles and how they cater to different guest expectations.
  3. Analyze restaurant management practices including financial management, human resource management, and quality control, that are essential for successful restaurant operations.
  4. Understand how different technologies, such as pos systems and reservation management software enhance efficiency and customer service in restaurants.
  5. Discuss strategies for customer interaction and service excellence
  6. Explain key financial management practices, such as budgeting, cost control, and revenue management, and their impact on a restaurant’s profitability.

Restaurant Management: An Overview

Working in food service takes a certain kind of individual. The industry itself can be very rewarding and a lot of fun, but it also requires people who like to work with other people, enjoy a fast-paced environment, and enjoy a lot of variety in their routine, as things often change from day to day and week to week. Likewise, restaurant management is hard work. Many factors influence the success of a restaurant – location, cost control and profit margin, sales and marketing strategies, staffing, customer service, and, of course, menu and food quality. Creating the right team, employing them in accordance with legal guidelines, and keeping up with the demands of the business are challenges that can be addressed by an experienced leader and food service manager.

The Restaurant General Manager

A restaurant general manager (GM) has a wide range of responsibilities that ensure the smooth and efficient operation of the establishment. The GM is the leader and primary decision-maker, overseeing both front-of-house (FOH) and back-of-house (BOH) operations. In this capacity, they are responsible for hiring, training, and managing staff, fostering a positive work environment that motivates employees and promotes high standards of service.

The GM also plays a crucial role in financial management, which includes budgeting, cost control, revenue management, and financial reporting.  Together with the executive chef, they are responsible for maintaining quality control and food safety standards, ensuring compliance with health regulations and consistently delivering high-quality food and service to customers. The GM also oversees customer relations, handling complaints and feedback to enhance the dining experience and build customer loyalty. Finally, the GM must be aware of industry trends and technological advancements, integrating new tools and practices to improve operational efficiency and stay competitive.

In most restaurants, the general manager oversees both the “front of house” and “back of house” operations. The front of house (FOH) refers to the customer-facing part of the restaurant; that is, all of the areas where customers are welcomed, seated, and served their food and drinks. Conversely, the back of house (BOH) refers primarily to the kitchen, but also includes the dishwashing area, food storage, and back office.

Here is a typical organization chart for a large restaurant:

A restaurant organization chart; details in caption.
A restaurant organization chart showing the owner at the top. Reporting to the owner is the general manager (GM). The GM oversees all front of house staff (host, servers, bussers), while the chef oversees all back of house staff (assistant chefs and line cooks and other kitchen staff.). Image Source: Toast (n.d.). “The Best Restaurant Organizational Chart Examples For Success”. Retrieved from: https://pos.toasttab.com/blog/on-the-line/restaurant-organizational-chart

Front of House: Staffing

Front of house jobs will vary from restaurant to restaurant, depending on size and service level but generally include the following roles:

The front of house manager oversees FOH staff and operations, ensures high levels of customer service and satisfaction, and manages the scheduling, training, and performance of FOH employees. Sometimes this role is filled by the general manager, who may also be aided by one or more assistant managers.

The host is responsible for greeting and seating guests, managing reservations and waitlists, and handling special requests and customer inquiries. They play a crucial role in a guest’s first impression of the restaurant. In some establishments, the host also processes payment transactions and handles takeout orders.

The server or waitstaff is key to ensuring customer satisfaction. They take orders, serve food and beverages, provide menu recommendations, answer questions, and handle guest complaints.

The bartender prepares and serves drinks, both alcoholic and non-alcoholic, engages with customers, takes bar orders, and manages bar inventory while maintaining cleanliness.

The busser or runner clears and sets tables delivers food from the kitchen to the dining area and assists servers in maintaining a clean and organized dining environment.

In fine-dining restaurants, a sommelier manages the wine list, assists with wine selections, provides wine recommendations and pairings, and oversees wine storage and inventory.

To create a positive guest experience, restaurant GM’s need to establish standard operating procedures, which are procedures designed to allow businesses to create consistency in workflows and job performance. Training of staff is another essential element. Staff should be prepared to understand guest concerns and be knowledgeable on menu offerings as well as service expectations. Servers must be trained to be problem solvers and empowered with the ability to provide exceptional recovery. The investment in training has the ability to provide benefits for not only the guest but the entire restaurant team.

Front of House: Guest Experience

One of the primary goals of a restaurant is to provide guests with an enjoyable dining experience. This experience extends beyond the food served and the price associated. Quality food is important. If guests don’t enjoy their meal, they won’t return. In fact, 68% of customers rank food quality as the most important factor when deciding where to dine, according to a 2022 trend report from TouchBistro.[1]

But quality food isn’t enough. Restaurant guests also want a satisfying experience at a restaurant, whether they are making a quick stop at the Dunkin drive-thru or celebrating an anniversary at an expensive, full-service restaurant.  Restaurants must strive to provide an atmosphere that is both welcoming and comforting. Restauranteur Danny Meyer is quoted in his book, Setting the Table as stating “food is secondary to something that matters even more. In the end, what’s most meaningful is creating positive, uplifting outcomes for human experiences and human relationships.” Meyer, the founder and CEO of Union Square Hospitality, created an entire organization of restaurants whose primary goal is providing the best possible service.

Good food coupled with a good experience leads to positive reviews. Restaurant reviews have been a part of the food and beverage sector for a long time. With the increase of online reviews by customers at sites like Yelp, Urbanspoon, and TripAdvisor and sharing of experiences via social media, operators are becoming increasingly aware of their web presence.[2] On one hand, these online platforms create readily available information to allow customers to find information on your restaurant. On the other hand, they create challenging environments where restaurants are unable to control their public presence. The freedom to create and provide reviews helps provide customer expectations but creates more responsibility for managers. Online presence and online reviews can single-handedly influence a customer’s choice of where they will dine. For this reason, all major restaurant operators carefully monitor their online reputation

Types of Meal Service

The style of meal service chosen by a restaurant impacts the its ability to make meaningful impressions on customers. There are many different styles of food service delivery, and it is important that an operation chooses the style that best meets its guests’ expectations. Types of service include table, buffet, cafeteria, and other services, including quick service and deli service.

Table service is traditionally provided to seated guests and is common with fine dining, casual dining, diners, bars, and pubs as well as many other establishments. Table service traditionally involves servers responsible for providing meals, maintaining guest experiences, and clearing tables at the conclusion of a meal. Table service can be organized into four categories including plate, family-style, cart, and platter.

Plate service is the most common service style and involves guest orders being taken at their table. The server then provides information to production staff. Items are prepared and delivered to the table by servers who also are responsible for maintaining tables during the guest’s dining experience. Plate service provides ample time for service staff to build a relationship with guests.

Family-style Service is increasingly becoming more common in dining establishments, particularly farm to table restaurants. Family-style service involves shared dishes served and distributed amongst a table of diners. Servers deliver ordered food to the table and guests are able to pass the items amongst themselves based on their desired choice. Family-style service provides an environment more closely related to dinner service at home.

Cart service is more commonly associated with fine dining experiences and incorporates a portion of tableside preparation. Although guests are seated and order as typically utilized with most table service, meals are delivered via cart and are commonly finished in the presence of the guest. This may include the selection of a specific cut of meat, the slicing of cooked meat, or the addition of a sauce to be served with a dish. Examples of cart service are common in French restaurants and can often be found in Mexican restaurants where guacamole is made tableside. The restaurant Rosa Mexicana, with locations expanding from Los Angeles to New York, is known for its signature guacamole en Molcajete.

Platter service is another form of table service with similarities to cart service. Platter service involves food being arranged specifically on a platter and brought out to tables for guests’ viewing. After unveiling food, servers are responsible for serving portions onto guest plates. Platter service is commonly associated with banquet service.

Buffet service involves food arranged and held under appropriate temperature standards while guests willingly come and choose as they prefer to select food items. Buffet service differs significantly from table service in the manner of food selection and service. Although guests are typically seated and utilize servers to order beverages and other necessities, guests freely choose and arrange meals on plates. Buffet services typically contain carving stations for select items. Buffet services are common for banquets and are commonly found in hotels as well as full-service restaurants. Some operations utilize buffet service specifically for brunch on weekends, while others utilize a buffet service daily.

Front of House Technology Tools 

Within the operation, restaurants use a variety of technological services to impact their guest experience. Technology includes point-of-sale terminals, precheck terminals, self-service order entry kiosks, online ordering, etc. The usage of technology within a restaurant has the ability to store information in a database to create more effective, personalized service in the future. It has the potential to automate service and remove human error.

The majority of restaurants utilize Point of Sale (POS) Terminals, which are the basic hardware components of food service computer systems. Point-of-sale terminals allow a safe system to input and output orders, reconcile receipts, and compile data associated with sales. Terminals can be located at various locations throughout the restaurant and can be associated with payment terminals to create a cash control system. Terminals can be a touchscreen, keyboard, handheld, or magnetic strip operated.

Many POS systems are also integrated with reservation systems, such as Resy, Open Table, Toast, and TouchBistro. These systems often include customer relationship management (CRM) tools. These technology tools help restaurants collect guest contact info and other personal details, special requests and other information that enables the restaurant staff to provide a personalized experience and encourage loyalty.

Back of House: Kitchen Staff

Efficient kitchens are well-organized kitchens. Most kitchens are organized into stations or sections, with each responsible for preparing different food or menu items. All the stations together form what is called the line. Usually, each station on the line has a separate name, but job titles often reflect the experience and the skills of the cook. This can be a bit confusing. For example, in larger establishments the positions of first cook, second cook, and third cook are common, but the skills and qualifications of people with these job titles can vary from restaurant to restaurant. As well, many people call themselves a chef when they are in reality a cook in a restaurant or someone who has taken culinary training.

The traditional hierarchy of the kitchen is a system called the brigade, created in France in the 19th century by Auguste Escoffier. Although most modern restaurants do not follow the traditional brigade system to the letter, many of the positions in restaurants are still referred to using the French terminology. Read the full listing of job titles in the traditional brigade online. Below are description of key roles in modern restaurant kitchens:

Executive Chef:  The executive chef (or more informally called “exec”) coordinates the kitchen operations of at least one but more likely multiple restaurants.  A chef who oversees more than one kitchen may also be called a “corporate chef.”  Some responsibilities of the exec include but are not limited to, frequent communications with the owners/general managers, menu development, ordering the product, vendor negotiations, recipe cost control, labor percentage control, disciplinary actions for those under his/her previous, quality control, and customer interactions.  The exec is the face of the kitchen and will, most likely, have to represent the kitchen in the dining room from time to time.  An executive chef should always have a clean white coat in their office to put on when out in the dining room.

Chef de Cuisine: A chef de cuisine (or informally known as the chef) is a position that is more commonly found in establishments with European roots and where the executive chef is managing multiple locations and may not be available at all times.  The chef takes on all executive responsibilities in the absence of the exec and is able to make decisions without prior authorization.

Sous Chef: The sous chef is what is most commonly seen in the industry as the second in command.  They may also be charged with training new staff members.  It is not uncommon for the sous chef to walk the dining room in the absence of the executive chef or make executive-level decisions when needed.  A good sous chef should be able to work every station below them in case a cook has called out or some unforeseen circumstance forces them to take over.

Pastry Chef: The pastry chef is responsible for all things dessert.  The pastry chef will usually be in charge of creating menus, overseeing prep work, quality control, and at times customer service.  Executive pastry chefs are highly skilled and specialized individuals who have honed their craft. They may work alone, or they may have pastry cooks working under them.  This will depend on the size of the restaurant, the concept of the restaurant, and the volume of production.

Station or Line Cooks:  This is a broad term that is a “catch-all” for the restaurant industry.  Within this category, you find grill cooks (responsible for all grilled items), the fry cook (responsible for all fried items), pantry cook (responsible for cold preparations like salads and charcuterie), breakfast cook (responsible for breakfast service), line cook (responsible for all dishes utilizing the burners), etc.  Each of these station cooks has a specific job and menu items they are responsible for.

Dishwasher: This station is where most everyone starts.  It doesn’t matter if you went to the best culinary schools in the world; when you walk into a restaurant for the first time, you will spend time in the “dish pit.”  The greats started here, and no one in the restaurant should be above rolling up their sleeves and helping with the dishwasher when they need it.  The dishwasher is in charge of maintaining the cleanliness of equipment, including pots, pans, plastic equipment tops, blades, sheet trays, hotel pans, plates, and silverware. They are tasked with keeping a steady flow of clean equipment available throughout service to be used by station cooks.  Without this, the service would come to a grinding halt. This is a hard job, and those who have worked it never take their dishwashers for granted.

SPOTLIGHT ON: Food Safety

Created by the National Restaurant Association Education Foundation, ServSafe training is a widely recognized certification program in the United States designed to educate restaurant workers and managers about food safety and sanitation practices. ServSafe training aims to prevent foodborne illnesses by educating food service employees on safe food handling, preparation, and storage practices. It is designed to meet the needs of various roles within the restaurant industry, from line cooks to managers. To learn more or register for a course, www.servsafe.com.

Restaurant Financial Management

The ability to accurately forecast sales and expenses is a necessary skill for a manager or owner to possess. In this section, we will look at ways to help you become more proficient in forecasting both your sales and expenses.

Forecasting

Using the history of past sales in a restaurant operation is critical for managers attempting to forecast future sales accurately. Three important figures to track in a foodservice operation’s sales history, in addition to overall sales, are customer count or number of “covers”, guest check average, and table turnover rate. These figures are likely part of a computerized sales and accounting system and can be saved for multiple years. Looking back at these records is often the basis for predicting future sales and customer counts. Guest check average is also useful in comparing performance from one time period to another or one unit to another. Guest check average, past customer counts, and sales are also critical to developing budgets and other plans for future operations.

Covers are simply the number of restaurant guests served during a specific time period. Calculating the guest check average is also quite simple:  it is just what it says, the average of what each guest spends. It is calculated by dividing the total food and beverage sales by the total number of guests (or covers) in a particular time period. Challenging owners, managers, and even servers to increase the guest check average over a period of time or during a particular meal period can be a way to motivate everyone in the operation to help increase revenue and grow the business.

Finally, table turnover rate indicates how frequently tables are occupied and turned over during a given period. When customers are seated promptly upon arrival, served efficiently, and the table is cleared quickly, the restaurant can serve more customers and generate higher revenue.

 

Customer-Related Restaurant Metrics

Guest Check Average measures the average amount spent by each customer. Increasing the average check size can boost overall revenue.

  • Formula: Total Sales / Number of Guests

Table Turnover Rate indicates how frequently tables are occupied and turned over during a given period. A higher turnover rate suggests efficient use of seating capacity.

  • Formula: Number of Guests Served / Number of Tables
  • Turnover rates can range from 45 mintues to three hours, depending on service level and party size.

Cost Control

Food and beverage costs combined are the single largest expense a restaurant owner, general manager, and chef have to manage. Food cost is typically 28-35% of total food sales, and beverages generally will be anywhere from 18-25% of total beverage sales, depending on whether alcohol, beer, wine, or soft drinks are sold. With the added expense area of labor, these three categories of controllable expenses are termed prime costs. If not properly analyzed for each and every shift, will make profitability difficult to achieve. Managers should also keep a close eye on other costs, but it’s really all about food and labor cost control (unless the business sells a lot of alcohol, but generally speaking, food sales account for 75-80% or more of total sales).

One of the ways to control food costs is the consistent use of a costed-out, standardized recipe. Each menu item should have a known cost, which is not only essential to cost control but also to product consistency and, therefore, quality. There are many different items that can potentially be made in any given restaurant. Each recipe will have a list of ingredients, the amount of each ingredient to use, and, of course, the manner in which to prepare it.  Each ingredient in the recipe can be costed out, and the total is used to determine the total cost for the menu item. The important thing to understand is that managers need to be aware of the cost of these menu items so they will know how much to charge for them in order to make them profitable.

Labor costs consist of salaries (management) and wages (hourly workers), as well as all payroll taxes, benefits, etc. A general target of 30% labor cost is commonly used in restaurants. Every day, managers should be trained to keep a critical eye on the schedules for each shift, and note whether staffing levels are appropriate or not. For example, too few servers may result in slow service, unhappy customers and a low table turnover rate. However, if too many servers are scheduled, each gets fewer tables and fewer tips, and this raises the restaurant’s expenses for the night.

 

Key Restaurant Performance Metrics

 Food Cost Percentage shows the percentage of revenue spent on food ingredients. A lower food cost percentage indicates better control over food costs and higher profitability.

  • Formula: (Cost of Food Sold / Food Sales) * 100
  • Food costs should be around 30% of sales

Beverage Cost Percentage shows the percentage of revenue spent on beverage ingredients. A lower beverage cost percentage indicates better control over costs and higher profitability.

  • Formula: (Cost of Beverages Sold / Beverage Sales) * 100
  • Beverage cost percentage should be around 30% of sales

Inventory Turnover Ratio measures how efficiently inventory is managed by comparing the cost of goods sold to the average inventory. A higher turnover ratio indicates efficient inventory management, meaning the restaurant is selling and replenishing inventory quickly.

  • Formula: Cost of Foods Sold / Average Inventory

Labor Cost Percentage indicates the percentage of revenue spent on labor. Efficient labor management results in a lower labor cost percentage, contributing to higher profitability.

  • Formula: (Total Labor Costs / Total Sales) * 100
  • Labor cost percentage should be 20-35% of sales

While not specifically a financial metric, Customer Satisfaction Score (CSAT) measures customer satisfaction based on feedback and surveys. High customer satisfaction can lead to repeat business and positive word-of-mouth.

  • Formula: (Number of Satisfied Customers / Total Number of Customers) * 100
  • A good CSAT score typically falls between 75% and 85%.

Conclusion

Effective restaurant management requires a comprehensive understanding of both front-of-house and back-of-house operations, with a focus on maintaining high standards of service, food quality, and financial performance. From the role of the general manager to the coordination of kitchen staff, each element contributes to the overall success of the establishment. A well-organized kitchen, efficient purchasing, stringent food safety practices, and savvy financial management are essential components that underpin a thriving restaurant. Additionally, leveraging technology for POS and CRM systems can enhance guest experiences and operational efficiency. Ultimately, achieving excellence in restaurant operations involves continuous improvement, adaptability to industry trends, and a commitment to delivering exceptional dining experiences to guests.

Chapter 9 Key Takeaways: Restaurant Operations

  • Successful restaurant management requires a blend of interpersonal skills, financial acumen, and operational expertise.
  • Key factors influencing restaurant success include location, cost control, staffing, customer service, and menu quality.
  • The general manager (GM) oversees both front-of-house (FOH) and back-of-house (BOH) operations. Their responsibilities include hiring, training, managing staff, financial management, quality control, food safety, and customer relations.
  • Front of House staff roles include the FOH manager and/or assistant managers, hosts, servers, bartenders, bussers, and in fine-dining establishments, a sommelier.
  • Quality food and a satisfying overall experience are crucial for customer retention, while atmosphere and service also play a significant role in customer satisfaction.
  • Various meal service styles (table, plate, family-style, cart, platter, and buffet) cater to different guest expectations.
  • Point of Sale (POS) systems, reservation systems, and Customer Relationship Management (CRM) tools enhance operational efficiency and help collect guest information, personalize service, and encourage loyalty.
  • Kitchen Staff Roles include the Executive Chef, Chef de cuisine, sous chef, pastry chef, line cooks, and dishwashers
  • ServSafe certification educates employees on safe food handling, preparation, and storage practices to prevent foodborne illnesses.
  • Financial management and accurate forecasting of sales and expenses is essential for profitability.
  • Important metrics include customer count, guest check average, and table turnover rate.
  • Cost control focuses on food, beverage, and labor costs (prime costs).
  • Key Financial Ratios include food cost percentage, beverage cost percentage, inventory turnover rate, and labor cost percentage.

 

 

  1. Restaurant Business Magazine (2022). “Dine-in customers rank food quality a top priority when choosing a restaurant.” Retrieved from: https://www.restaurantbusinessonline.com/consumer-trends/dine-customers-rank-food-quality-top-priority-when-choosing-restaurant. ↵
  2. Kwok, L., & Yu, B. (2013). Spreading social media messages on Facebook. An analysis of restaurant business-to-consumer communications. Cornell Hospitality Quarterly, 54(1), 84-94 ↵
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Introduction to Hospitality & Tourism Copyright © 2024 by Maureen Peters Gittelman is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted.

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