Restaurants Kinds and Characteristics

Broadly speaking, restaurants can be categorized into a number of categories:
1. Chain or independent (indy) and franchise restaurants. McDonald's, Union Square Cafe, or KFC
2. Quick service (QSR), sandwich. Burger, chicken, and so on; Convenience store, noodle, pizza
3. Fast casual. Panera Bread, Atlanta Bread Company, Au Bon Pain, and so on
Family. Bob Evans, Perkins, Friendly's, Steak 'n Shake, Waffle House
5. Casual. Applebee's, Hard Rock Caf'e, Chili's, TGI Friday's
6. Fine dining. Charlie Trotter's, Morton's Steakhouse, Flemming's, The Palm, Four Seasons
7. Other. Steakhouses, seafood, ethnic, dinner houses, celebrity, and so on. Of course, some restaurants fall into more than one category. For example, an Italian restaurant could be casual and ethnic. Leading restaurant concepts in terms of sales have been tracked for years by the magazine Restaurants and
Institutions.

CHAIN ​​OR INDEPENDENT
The impression that a few huge quick-service chains completely dominate the restaurant business is misleading. Chain restaurants have some advantages and some disadvantages over independent restaurants. The advantages include:

1. Recognition in the marketplace
2. Greater advertising clout
3. Sophisticated systems development
4. Discounted procurement

When franchising, various kinds of assistance are available. Independent restaurants are reliably easy to open. All you need is a few thousand dollars, a knowledge of restaurant operations, and a strong desire to
Succeeded. The advantage for independent restaurateurs is that they can 'do their own thing' in terms of concept development, menus, decor, and so on. Without our habits and taste change drastically, there is plenty of room for independent restaurants in certain locations. Restaurants come and go. Some independent restaurants will grow into small chains, and larger companies will buy out small chains.

Once small chains display growth and popularity, they are likely to be bought out by a larger company or will be able to acquire financing for expansion. A temptation for the beginning restaurateur is to observe large restaurants in big cities and to believe that their success can be duplicated in secondary cities. Reading the restaurant reviews in New York City, Las Vegas, Los Angeles, Chicago, Washington, DC, or San Francisco may give the impression that unusual restaurants can be replicated in Des Moines, Kansas City, or Main Town, USA. Because of demographics, these high-style or ethnic restaurants will not click in small cities and towns.

5. Will go for training from the bottom up and cover all areas of the restaurant's operation Franchising involves the least financial risk in that restaurant format, including building design, menu, and marketing plans, already have been tested in the marketplace. Franchise restaurants are less likely to go belly up than independent restaurants. The reason is that the concept is proven and the operating procedures are established with all (or most) of the kinks worked out. Training is provided, and marketing and management support are available. The increased likelihood of success does not come cheap, however.

There is a franchising fee, a royalty fee, advertising royalty, and requirements of personal personal net worth. For those lacking substantive restaurant experience, franchising may be a way to get into the restaurant business-providing they are prepared to start at the bottom and take a crash training course. Restaurant franchisees are entrepreneurs who prefer to own, operate, develop, and extend an existing business concept through a form of contractual business arrangement called franchising.1 Several franchises have ended up with multiple stores and made the big time. Naturally, most aspiring restaurateurs want to do their own thing-they have a concept in mind and can not wait to go for it.

Here are examples of the costs involved in franchising:

1. A Miami Subs traditional restaurant has a $ 30,000 fee, a royalty of 4.5 percent, and requires at least five years' experience as a multi-unit operator, a personal / business equity of $ 1 million, and a personal / business
Net worth of $ 5 million.

2. Chili's requires a monthly fee based on the restaurant's sales performance (currently a service fee of 4 percent of monthly sales) plus the greater of (a) monthly base rent or (b) percentage rent that is at least 8.5 percent of monthly sales .

3. McDonald's requires $ 200,000 of nonborrowed personal resources and an initial fee of $ 45,000, plus a monthly service fee based on the restaurant's sales performance (about 4 percent) and rent, which is a
Monthly base rent or a percentage of monthly sales. Equipment and preopening costs range from $ 461,000 to $ 788,500.

4. Pizza Factory Express Units (200 to 999 square feet) require a $ 5,000 franchise fee, a royalty of 5 percent, and an advertising fee of 2 percent. Equipment costs range from $ 25,000 to $ 90,000, with miscellaneous costs of $ 3,200 to $ 9,000 and opening inventory of $ 6,000.

5. Earl of Sandwich has options for one unit with a net worth requirement of $ 750,000 and liquidity of $ 300,000; For 5 units, a net worth of $ 1 million and liquidity of $ 500,000 is required; For 10 units, net worth
Of $ 2 million and liquidity of $ 800,000. The franchise fee is $ 25,000 per location, and the royalty is 6 percent.

What do you get for all this money? Franchisors will provide:

1. Help with site selection and a review of any proposed sites
2. Assistance with the design and building preparation
3. Help with preparation for opening
Training of managers and staff
5. Planning and implementation of pre-opening marketing strategies
6. Unit visits and ongoing operating advice

There are hundreds of restaurant franchise concepts, and they are not without risks. The restaurant owned or leased by a franchisee may fail even though it is part of a well-known chain that is highly successful. Franchisers also fail. A case in point is the highly touted Boston Market, which was based in Golden, Colorado. In 1993, when the company's stock was first offered to the public at $ 20 per share, it was eager bought, increasing the price to a high of $ 50 a share. In 1999, after the company declared bankruptcy, the share price sank to 75 cents. The contents of many of its stores were auctioned off at
A fraction of their cost.7 Fortunes were made and lost. One group that did not lose was the investment bankers who put together and sold the stock offering and received a sizable fee for services.

The offering group also did well; They were able to sell their shares while the stocks were high. Quick-service food chains as well-known as Hardee's and Carl's Jr. Have also gone through periods of red ink. Both companies, now under one owner called CKE, experienced periods as long as four years when real incomes, as a company, were negative. (Individual stores, company owned or franchised, however, may have done well during the down periods.) There is no assurance that a franchised chain will prosper.

At one time in the mid-1970s, A & W Restaurants, Inc., of Farmington Hills, Michigan, had 2,400 units. In 1995, the chain numbered a few more than 600. After a buyout that year, the chain expanded by 400 stores. Some of the expansions took place in nontraditional locations, such as kiosks, truck stops, colleges, and convenience stores, where the full-service restaurant experience is not important. A restaurant concept may do well in one region but not in another. The style of operation may be highly compatible with the personality of one operator and not another.

Most franchised operations call for a lot of hard work and long hours, which many people perceive as drudgery. If the franchisee lacks sufficient capital and leases a building or land, there is the risk of paying more for the lease than the business can support. Relations between franchisers and the franchisees are often strained, even in the largest companies. The goals of each usually differ; Franchisers want maximum fees, while franchisees want maximum support in marketing and franchised service such as employee training. At times, franchise chains get involved in litigation with their franchises.

As franchise companies have set up hundreds of franchises across America, some regions are planned: More franchised units were built than the area can support. Current franchise holders complain that adding more franchises serves only to reduce sales of existing stores. Pizza Hut, for example, stopped selling
Franchises except to well-qualified buyers who can take on a number of units. Overseas markets institute a large source of the income of several quick-service chains. As might be expected, McDonald's has been the leader in overseas expansions, with units in 119 countries.

With its roughly 30,000 restaurants serving some 50 million customers daily, about half of the company's profits come from outside the United States. A number of other quick-service chains also have large numbers of franchised units abroad. While the beginning restaurateur quite rightly concentrates on being successful here and now, many bright, ambitious, and energetic restaurateurs think of future possibilities abroad. Once a concept is established, the entrepreneur may sell out to a franchiser or, with a lot of guidance, take the form overseas through the franchise. (It is folly to build or buy in a foreign country without a partner who is financially secure and well versed in the local laws and culture.).

The McDonald's success story in the United States and abroad illustrates the importance of adaptability to local conditions. The company opens units in illegally locations and closes those that do not do well. Abroad, men are tailor to fit local customs. In the Indonesia crisis, for example, french fries that had to be imported were taken off the menu, and rice was substituted. Reading the life stories of big franchise winners may suggest that once a franchise is well established, the way is clear sailing. Thomas Monaghan, founder of Domino Pizza, tells a different story. At one time, the chain had accumulated a debt of $ 500 million. Monaghan, a devout Catholic, said that he changed his life by renouncing his greatest sin, pride, and rededicating his life to '' God, family, and pizza. ''

A meeting with Pope John Paul II had changed his life and his feeling about good and evil as '' personal and abiding. '' Monaghan's case, the rededication worked well. There are 7,096 Domino Pizza outlets worldwide, with sales of about $ 3.78 billion a year. Monaghan sold most of his interest in the company for a reported $ 1 billion and announced that he would use his fortune to further Catholic church causes. In the recent past, most food-service millionaires have been franchisers, yet a large number of would-be restaurateurs, especially those enrolled in university degree courses in hotel and restaurant management, are not very excited about being a quick-service franchisee.

They prefer owning or managing a full-service restaurant. Prospective franchisees should review their food experience and their access to money and decision which franchise would be appropriate for them. If they have little or no food experience, they can consider starting their restaurant career with a less expensive franchise, one that provides start-up training. For those with some experience who want a proven concept, the Friendly's chain, which began franchising in 1999, may be a good choice. The chain has more than 700 units. The restaurants are considered family dining and feature ice cream specialties, sandwiches, soups, and quickservice meals.

Let's emphasize this point again: Work in a restaurant you enjoy and sometimes would like to emulate in your own restaurant. If you have enough experience and money, you can strike out on your own. Better yet, work in a successful restaurant where a partnership or proprietorship may be possible or where the owner is thinking about retiring and, for tax or other reasons, may be willing to take payments over time.
Franchisees are, in effect, entrepreneurs, many of whom create chains within chains.

McDonald's had the highest system-wide sales of a quick-service chain, followed by Burger King. Wendy's, Taco Bell, Pizza Hut, and KFC came next. Subway, as one among hundreds of franchisers, gained total sales of $ 3.9 billion. There is no doubt that 10 years from now, a listing of the companies with the highest sales will be different. Some of the current leaders will experience sales Declines, and some will merge with or be bought out by other companies-some of which may be financial giants not previously engaged in the restaurant business.

Services Marketing

Services marketing has incurred an explosive amount of scholarly research in the last 20 years, however since 1986 there has been no debate concerning the notion that services are distinct from products, and thus deserve a special approach, a set of concepts and a body of knowledge (Brown, Fisk, & Bitner, 1994). This essay will explain the distinguishing features of services marketing, giving examples where possible. It will begin by defining services marketing and giving some background knowledge on its divergence from product marketing. It will then examine the four characteristics of services, and then finish with an explanation of the extra P’s found in the services marketing mix.

In the last century there has been a large shift in marketing thought; evolving from a goods-dominated view, in which tangible output and discrete transactions were the focus, to a service-dominant view, in which intangibility, exchange processes, and relationships are central (Vargo & Lusch, 2004). Vargo and Lusch define services as the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself. Four idiosyncratic features of services will now be given, highlighting why services marketing is different from basic product marketing.

Arguably the most distinguishing feature about services is their intangibility. Services are defined in (Zeithaml, Bitner, & Gremler, 2006) as “deeds, processes, and performances”. None of these are physical objects in which a customer can take ownership of, even though during a service physical evidence will be apparent in the form of things like medicine the doctors prescribes to you, the photo taken of you riding the rollercoaster, or the food on your plate in a restaurant. This invisibility creates a number of issues for marketers. Firstly there is no stock, making it hard to manage supply and demand. Secondly services cannot be shown or displayed to customers, making it hard for marketers to advertise the quality of the service. And finally, because services don’t physically exist, there is difficulty in patenting them, making it easy for other firms to copy your service.

Another notable aspect about products is that on average they stay the same. If you buy a Ford Focus here in Australia, and then go and buy the same model in America, chances are they will both be exactly the same. Services are different in that they are heterogeneous, meaning they differ with each use. For example a wildlife tour will never be the same twice, not only because of the random and unpredictable nature of the animals, but the guide may be in a different mood, the weather will have changed, and there will be different customers each time. These factors make it harder to consistently give quality service, which is important to marketers because customers will have a particular set of expectations in mind, based primarily on what was promoted in the service and previous experiences in the particular industry.

Another distinguishable feature about services is the fact that it’s both produced and consumed at the same time, as opposed to products where customers do not see how the product is manufactured. A good metaphor for this is being at the theatre. Consumers can be compared to an audience, where they watch actors (employees) perform on stage (physical location like a business store) amongst props (physical objects like chairs, tables, pot plants etc). The actors are ‘live’ and performing (producing) at the same time as the audience are watching (consuming). This brings us to the concept of interactive marketing. In a service, operational staff carries out much of the marketing function (Klassen, Russel, & Chrisman, 1998), and marketers are left to the advertising and promotion.

The final distinction that differentiates services from products is their perishability. While some products perish very quickly (like water balloons), services simply cannot be stored, saved, resold or returned at all. Marketers main concern would be the procedure for when things do not go as planned. Customers cannot simply return the service and ask for another one; it is up to the service provider to offer the customer some kind of compensation. If passengers are forced to wait a long time for their flight, employees could provide free coffee and refreshments while they wait, in an attempt to make up for their failing service.

With product marketing the marketing mix includes the four P’s; product, price, place and promotion. Services use the same elements plus three more to help account for their unique nature.

Firstly there is people, which comprise of everyone that influences the buyer’s perceptions, including the buyer themselves. Customers have an active role in the production, and thus can influence the outcome of their own service or the service of others. For example a large family with screaming children interrupting a young couples romantic dinner at a restaurant.

Every person is important to the marketer, no matter how small their role may be. Consider an IT professional who installs computers in people’s homes. During that installation the buyer may form an opinion of the service provider as a whole based purely on that IT professionals performance. Sometimes a person is the sole service provider, for example a dentist or lawyer, making their performance and appearance critical to gaining a high perceived quality of service.

The sixth ‘P’ is physical evidence, which is the environment in which the service is delivered and where the firm and customer interact (Zeithaml, Bitner, & Gremler, 2006). It also includes any physical objects that assist in the delivery of the service. (Lehtinen & Lehtinen, 1991) define it as the environment and its instruments. With some services customers may find it hard to judge the quality of the service, especially with credence service’s like financial advisors or legal advice. It is crucial that marketing managers address consumer fears regarding risk that results before, during, and after consumption of credence services (Keh & Sun, 2008). Since the customer does not have the knowledge or experience to judge the actual service, they instead turn their attention to other things, including the physical evidence of service quality. This would usually come in the form of a professional looking workspace, however would change with each service provider. For example in a doctors surgery cleanliness would be expected.

Finally there is the service process, including the procedures, mechanisms and flow of activities by which the service is delivered (Zeithaml, Bitner, & Gremler, 2006). When purchasing a service, customers often have a set of expectations of the process of the service, and when these are not met, the perceived quality of service drops. For example in white water rafting a customer might be dissatisfied if, when they arrived, they were told they had to carry the raft to the top of the river first. The process is important because people participate in it, unlike products, where the process is behind doors.

Services represent at least 70% of the nation’s total GDP for at least 5 countries, including the United Kingdom and Australia, making it a hot topic for not only marketers, but anyone competing in the business world. Services are distinguished from products by four characteristics; intangibility, they are heterogeneous, there is simultaneous production and consumption, and their perishability. Services marketing differs from product marketing from the fact that three extra P’s are added to the original marketing mix; people, physical evidence and process.

A Short History Of The Motorcycle

Todays motorcycles are everywhere and there are lots of different classes or kinds of motorcycles as well. But the motorcycle, like the automobile, is a relative newcomer to the world stage.

The first motorcycle ever assembled was built by the German inventors Gottlieb Daimler and Wilhelm Maybach in 1885 in Bad Cannstatt in Germany. They were actually focusing more on the motor that was installed to power the two-wheeled contraption and not so much on creating a new kind of vehicle, but the resulting impact on motorized travel would be tremendous. There were earlier versions of steam powered bicycles, but this was the first petroleum powered motorcycle.

Not long afterward in 1894 the very first production motorcycle went on sale as the Hildebrand & Wolfmüller motorcycle. It wasn’t long after that before several of the bicycle companies of that time got into the act and started selling versions of what was essentially motorized bicycles. However, as horsepower increased, the engines started to outgrow the bicycle frames that were used as their carriage.

The most popular motorcycle company before World War 1 was Indian motorcycle. After the war, Harley Davidson took over the number one spot until 1928 when DKW became the leading motorcycle manufacturer in the world. For a few years after World War 2 BSA took over as the largest motorcycle producer until 1955 when NSU Motorworks who had started out as a knitting machine company in 1884 became the dominant manufacturer for the next couple of decades.

Then in the 1970s the Japanese companies Honda, Kawasaki, Yamaha, and Suzuki made their entrance into this field, changed the face of the industry, and quickly became the dominant motorcycle suppliers to the world from then on. Since the 70s Honda has held the title of the world’s largest motorcycle maker. Today, the big four motorcycle makers have penetrated practically every motorcycle market in the world, and they are highly regarded as makers of high quality motorcycle products.

In recent years some of the older motorcycle brands like the Indian have regained popularity with Harley Davidson being the most successful by far.

Do You Know Your Objectives in Networking?

Networking is Much More Than Socializing

Casual networkers view networking as a form of socializing without focus and without goals. Effective networkers view it as a process of relationship building with very clear goals and objectives.

Business networking, like any other business activity, must be a productive use of time. To maximize your networking effectiveness, you should therefore clearly define your goals and objectives.

Following are some of the most common objectives for business networkers:

Broaden your exposure in the marketplace and create a positive impression on as many people in your business community as possible.

Identify those who might be prospects for your products or services

Build relationships with those who offer products or services that might be of value to you or your clients.

Build relationships with those who might become referral or strategic partners.

Build relationships with those who are influential in your business community.

Build relationships with those who can further your career.

Build relationships with those who might provide business counsel or become advisors or mentors.

Those with whom you network are experts in their fields. They can answer questions about their area of specialization, share their business experience and knowledge, and may in some instances become mentors. No one can know all there is to know about business and the advice of others can at times be extremely valuable. Networking at trade association expos and conferences will allow you to meet executives from other companies who might some day be your employer or be able to recommend you for an opening they have heard about. Earning the respect of those in your local community can lead to offers when positions become available. We have all heard the idiom: “It is not what you know, it is who you know that counts.” Building relationships with the most influential members of your business community is a key to your success.

Referral partners are individuals who are able and willing to send you referrals in exchange for your help sending referrals to them. To find them at a networking event, you must have carefully thought through who the best referral partners for you might be. You must also have a strategy for turning a casual meeting into an opportunity to develop the relationship. As a business person you and the firm for which you work have needs for a wide variety of products and services. Networking is an effective way of meeting those who provide these products and services in your local community. Your customers also need a variety of products or services for business and personal use. If you can direct them to reputable providers of those services, you will be more valued as a resource and their loyalty will be enhanced. Keeping your client’s needs in mind as you meet others at networking events, should be a habit you develop.

Most view this as the primary objective of networking. To identify prospects and create sales opportunities, you must be prepared to describe your business and its benefits clearly and succinctly. You must also be ready to qualify “suspects” and, if necessary, present your Unique Selling Proposition. The goal of an initial networking contact is not to close a deal, it is to create a follow up opportunity. Networking is an extremely effective way of creating awareness in your business community. For many start up companies, it is the only form of marketing that can be afforded. Fortunately, networking can also be the most effective form of marketing available.

Most business professionals view networking as a means of marketing their business, but overlook some of the other objectives that may be equally or even more important. Too much emphasis on selling at networking events can leave a negative impression. If you want to make a positive impression, make sure the discussion centers on them, not you.

What goals and objectives have you set for your networking activities? Which are most important? How will you measure your success? Like any other business activity, you must approach your networking with goals and a plan to achieve them.