Tourism Economics

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Tourism Economics
Chapter 4 Restaurant Economics

• TRM 490
• Dr. Zongqing Zhou

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Chapter 4 Restaurant Economics(1)

• Overview
• About 25 of the 254.9 billion of restaurant
  sales in the US in 1992 can be attributed to the
  travelers (fifty miles away from home).
• Restaurant depends heavily on tourists for sales.
• Expansion abroad is the trend
• Restaurant chains dominate the restaurant sales
  (about 47 of the sales)

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Chapter 4 Restaurant Economics(2)

• Classification of restaurants
• Fast food
• Fast food chains
• Convenient stores
• Supermarket
• Pizza take-out stores (can be part of the fast
  food chains)
• Other kinds
• Family restaurants (many of them offer fast food
  service like a coffee shop)
• Dinner houses
• Fine dining restaurants
• Ethnic restaurants like Chinese and Mexico food
• Casual dining like Hard Rock Cafe

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Chapter 4 Restaurant Economics (3)

• Fast food restaurants
• 75.6 million sales in 1992 as compared to 98.8
  million sales for other types of restaurants
• The big fortunes in the food service business
  have been made in fast-food.
• Fast-food franchising builds on three
  well-established business phenomena
• Product standardization (cookie cutter approach)
• Economies of scale
• Mass marketing
• McDonald