Foodservice Management Fundamentals

Dennis Reynolds is the Ivar B. Haglund Endowed Chair in Hospitality Business Management at Washington State University. Previously, he was the J. Thomas Clark Professor of Entrepreneurship and Personal Enterprise at Cornell University's School of Hotel Administration. Kathleen W. McClusky, MS, RD, FADA, is Director of Patient Satisfaction at Morrison Management Specialists in Atlanta, Georgia. She has also served as the president of her state's Dietetic Association and as an adjunct professor at Russell Sage College.

• PREFACE ixAcknowledgments xiiiAbout the Authors xivPART 1: THE FOODSERVICE INDUSTRY 1CHAPTER 1 THE FOODSERVICE INDUSTRY 3History 4Segmentation 11Industry Statistics 15Managerial Implications 16CASE IN POINT: The College Experience 17CHAPTER 2 THE FOODSERVICE BUSINESS 21What Makes the Foodservice BusinessUnique? 22Key Characteristics 22Trends 23Business Lifecycle 23Understanding the Marketplace 25Value from the Customers’ Perspective 28Managerial Implications: Maximizing Opportunities in the Competitive Marketplace 33CASE IN POINT: Restaurant No. 2 35PART 2: THE MENU 39CHAPTER 3 MENU PLANNING AND DEVELOPMENT 41Philosophy 42Planning 43Menus in Onsite Foodservice 50The Art of Menu Development 65Sustainability in Menu Planning 66Managerial Implications 69CASE IN POINT: The Handwritten Menu 71CHAPTER 4 RECIPE STANDARDIZATION, COSTING, AND ANALYSIS 73Recipe Standardization 74Recipe Costing 83Recipe Analysis 84Managerial Implications 85CASE IN POINT: Recipe, What Recipe? 88CHAPTER 5 MENU PRICING 91Pricing Approaches 92Menu Psychology 95Extending Menu Philosophy 104Menu Engineering 105Managerial Implications 107CASE IN POINT: The $47 Burger 108PART 3: THE FOODSERVICE OPERATION 111CHAPTER 6 FACILITIES PLANNING, DESIGN, AND EQUIPMENT 113Planning 114Design and Layout 118Equipment 124Corporate Responsibility 126Managerial Implications 127CASE IN POINT: Trash Cans 130CHAPTER 7 FOOD SANITATION AND SAFETY 133Foodborne Illness 134Biological, Chemical, and PhysicalHazards in Food 138Foodborne Illness Prevention 140Workplace Safety 149Material Safety Data Sheets (MSDS) 151Managerial Implications 152CASE IN POINT: Food Safety at the Nursing Home 156CHAPTER 8 SUPPLY CHAIN MANAGEMENT 159Purchasing 160Distribution Channels 163Supplier Selection 165Methods of Buying 168Forecasting 169Managerial Implications 173CASE IN POINT: Purchasing in University DiningServices 176CHAPTER 9 FOOD MANAGEMENT 179Receiving 180Storage Management 185Inventory Management 189Production Management 198Managerial Implications 201CASE IN POINT: The Automotive Plant 203PART 4: GENERAL MANAGEMENT 207CHAPTER 10 FINANCIAL MANAGEMENT 209Accounting Overview 210Financial Statements 215Analyzing Financial Statements 223Cost Concepts 228Budgeting 230Managerial Implications 234CASE IN POINT: You Can’t Take Percentages to the Bank 236CHAPTER 11 CUSTOMER SERVICE 239Style and Philosophy 240Measurement 248Quality and Standards 253Service Failure and Recovery 256Managerial Implications 258CASE IN POINT: Pineapple or Pickle—Who’s to Say? 259CHAPTER 12 MARKETING 263The Science of Marketing 264Social Marketing 265Strategic Marketing 265Service Marketing 271Marketing and Unit-Level Operations 272Branding 274Managerial Implications 276CASE IN POINT: The Entrepreneurial Baker 278CHAPTER 13 HUMAN RESOURCE MANAGEMENT 281What Is the Job? 282Finding, Hiring, and Keeping the Best People 287Staffing and Scheduling 295Compensation 298Managerial Implications 300CASE IN POINT: New Employees or NewMotivational Techniques? 302CHAPTER 14 LEADERSHIP AND MANAGEMENT 305Leadership’s Evolution 306Leadership versus Management 311Supervision 315Leadership Development 318Ethics 318Managerial Implications 321CASE IN POINT: Daphne’s Dilemma 324PART 5: ADVANCED MANAGEMENT 327CHAPTER 15 INTERNAL CONTROL 329Why Is Internal Control Necessary? 330Conditions Conducive to Fraud and Embezzlement 333General Principles 334Identifying Employee Theft 341The Best Deterrent 343Managerial Implications 344CASE IN POINT: Pennies, Nickels, and Dimes 346CHAPTER 16 OPERATIONAL ANALYSES 351Revenue Management 352Cost-analysis Techniques 358Operational Analysis Techniques 359The Pareto Principle 363Managerial Implications 364CASE IN POINT: Sales and Labor 368CHAPTER 17 BEVERAGE MANAGEMENT 371Beverage Industry Overview 372Responsible Beverage Alcohol Service 377Beverage Control 381Staff Training 388Managerial Implications 390CASE IN POINT: The Fake ID 393CHAPTER 18 THE FUTURE OF THE FOODSERVICE INDUSTRY 395Lessons from the Past 396Forces for Change 398Predictions by Segment 402Technology in 2050 407CASE IN POINT: The Traditional Family-styleRestaurant 411INDEX 415

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