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HA442 : The Class : Overview : Why People Own : Why People Own

Why People Own

Some Of The Reasons WHY
People Decide To Go Into The Restaurant Business

Potentially Profitable

A properly run food service operation can generate great profits. Profits can run from 5% to 15% of sales. Fast food operations generally make a lower profit per sale but have higher sales volume. Fine dining operations generally serve less people so they need to make a higher profit person.

Since the majority of goods produced at food service operations are consumed and paid for when produced there is a quick return on the money. There is less of a need of large amounts of inventory to run the business equating to quicker inventory turnover.

On the flip side, a poorly run food service operation can lose plenty of money. A restaurant is one of the few businesses where there are potentially more chances or ways to lose money then there are to make money. There are many aspects of foodservice such as the handling of cash and the perishability of many of the products that you sell that make restaurants touch to run profitly.

Opportunity for Creativity

The presentation of food in fine dining food service operations can be a work of art. The owning and operating of one's own business allows for more personal expression then if working for someone else.

The ability to be your own boss:

Some people view the opportunity of working for themselves as a great plus to a career. The hours in food service tend to be long. Working for yourself there is great relationship between the amount of time you work and your compensation.

Some people feel if you have to work so many hours you might as well be working for yourself

Easy business to get into: low barriers to entry.

The range of food service operations goes from a hot dog cart to a fine dining restaurant. The cost to purchase and start a smaller operation is relatively low compared to the cost of running other business.

Used food service equipment can be purchased at a much lower price than new equipment. The amount and cost of inventory is also lower.

The skill level required to run a foodservice business can also be lower. Quick service [fast food] operations require less knowledge than a fine dining gourmet type operation.

Peoples' Love of Dining Out

People need to eat Regardless of the state of the economy people need to eat. Many people view dining at a food service establishment as something they deserve after working all week.

People go out to eat for more than to simply nourish themselves. They purchase service along with the meal. The service being the purchasing and preparation of the the food, the plating and bringing to the table, and the cleaning up of the dishes and pots and pans at the conclusion. After a hard day or week at work more and more folks feel they deserve a treat. Many view going out for a meal such a treat.

Fast pace / Never a Dull Moment

The pace in most restaurants is fast and many people thrive on the pace and excitement. This is an attraction to some whose prior job was working in an office.

Social Factors

Managing / owning a food service operation is very sociable. The opportunity to interact with people on a nightly basis is enticing to some. The job also the manager the opportunity to be visible in the community.

To complete this Topic successfully, please complete the following activities in the order shown below:

GROUP ASSIGNMENT 1: Discuss the reasons why you are considering a career in food service


You should now:

Go on to The Customer Service Module
Go back to Overview of the Food Service Industry

Send E-mail to Dr. Rande or call (520) 523-1710


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