Dining out not only constitutes a big part of our needs in this busy life, but also is considered one of the most fun activities in which we can spend some time with friends and family without being worried about making food or doing the dishes afterwards! Many of us are continuously in search for new restaurants or new food places and maybe this is the reason that when it comes to starting a new business many people think of starting a restaurant.

When it comes to Franchises, many of us might think of fast food restaurants such as subway or McDonald’s. But the reality is that fast food is not the only food concept out there and subway or McDonald’s are not the only food franchises. There are some other food business concepts which have been also developed as franchise and are categorized under other groups than fast foods. Also there are so many other franchises to look at when you decide on which category of food business is suitable for your specific needs or interests. In this short blog post we try to introduce different categories of restaurants to give a general idea about how every restaurant is different in concept from the other one. Once you learn this, you will know the distinguishing factors of every type of restaurant (to some extent) and will be able to direct your search toward the one that fits you the best.

Restaurants are normally categorized based on the quality of food, pricing and the way food is prepared and served at the restaurant. Here are the most common groups in Restaurant industry:

Full Service Restaurants

Full service restaurants are those you would go for pleasure of eating a good food in a classy environment. In these restaurants, the guest is invited to be sited at the table by a host where the server will provide the guest(s) with menu and gets their order for food and drink. In addition to kitchen employees, almost always there are hosts, servers and bar tender(s) in these kind of restaurants. Full service restaurants are grouped into two categories of Fine Dining and Casual Dining. Here is a short explanation of both:

Fine Dining Restaurants

The most extravagant and luxurious restaurants are among fine dining category. Fine dining restaurants provide the best quality and service among all other types. These are restaurants with beautiful and unique decoration, benefiting from having the best chefs in their kitchen to serve special type of food to their customers. The main characteristics of these kind of restaurants are:

• Price: most of entrees in these restaurants are priced more than $20.
• Service: The best service among any other type of restaurant can be seen here. Servers are mostly trained and have very good information about different types of food and wines to share with their guests.
• Atmosphere: Fine dining restaurants present a unique ambiance and atmosphere to their customers. Lighting creates a relaxing (and sometimes romantic) ambiance, decoration is beautiful and music plays in the background. Overall the purpose of Fine Dining restaurants is to create a unique and memorable experience for the customers.
• Challenges: Bad economic condition takes its toll on these kind of restaurant severely as when people cannot afford eating out in this type of restaurant, they simply eliminate it from their dining budget. Also these restaurants should keep their quality and serving at the highest standard all the time.
• Benefits: One the benefits of owning these restaurants is that managers and servers are very experiences and strive to build a good professional reputation by working in these restaurants.

some of the well-known restaurants in this category are Wolfgang Puck, Morton’s and Ruth’s Chris.

Casual Dining

Casual dining restaurants offer dining with average price in a relaxed and casual environment. This category of restaurants are considered affordable for a larger group of people and its main goal is to bring also families to the restaurants. In most of these restaurants servers get food and drink order from  the guests although in some others the food is served as buffet and servers don’t get orders directly from the guests. Decoration, quality and service is not as prominent as in Fine Dining restaurants but still keep it good enough to fit into this group of restaurants. Some of the main characteristics of Casual Dining Restaurants are:

• Price: Food price in Casual Dining Restaurants are usually in the range of $10-$15, although the actual price is very dependent on the location of the restaurant. Price of main courses in these restaurants are barely exceed $20.
• Service: Guests are guided by the host into their table and server explains various items on the menu and get the order. Service is more on the casual side but still customers get professional and high quality service from the servers.
• Atmosphere: Atmosphere of Casual Dining Restaurants are more suitable for families and it is possible to see colorful walls decorated with framed pictures and posters. Similar to fine dining restaurants, causal dining restaurants might offer cuisine of a specific city or country or a mixture of that.
• Challenges: There is a high competition in Casual Dining market. Restaurants in this category may be in competition with both fine dining and fast causal restaurants depending on their menu. As a result, the center focus of marketing for restaurants in this category must be on what distinguishes them from the other competitors.
• Benefits: Casual dining restaurants can attract a wider group of diners compared to fine dining restaurants. These restaurants are attractive for families with children.

Some of the well-known restaurants in this category are Red Lobster, Macaroni Grill, Chili’s, Olive garden and California Pizza Kitchen.

 

Fast Casual Restaurants

Fast casual restaurants are between full service restaurants and fast foods. They are also called “quick casual” or “limited service” restaurants. Fast casual restaurants are recognized by their fast service and better quality. The general perceptions is that food with a better quality (but at reasonable price) is served in fast casual restaurants as opposed to the quality of food in fast food restaurants. Some characteristics of these restaurants are:

• Price: price of food in these restaurant generally ranges from$7 to $10. Fast Casual restaurants keep the menu as simple as possible.
• Service: Customers normally order food at the counter or with the cashier from the menu posted on the wall or printed on the paper. In some fast casual restaurants, the customer has the possibility of ordering and receiving the food first and paying afterwards. Similar to fast food restaurants, comfort and quick service is an important aspect of fast casual restaurants.
• Atmosphere:  Similar to any other restaurant in Fast Casual category, both menu items and restaurant atmosphere have influence over the performance of the restaurant. Some have very simple decoration while others use colors and posters to imply their casual style and create a different environment. Lighting and music can be effective in building the unique and casual ambiance in these restaurants.
• Challenges: Opposed to full service restaurants, these restaurants are faced with high employee turnover. The employee loyalty that can be found in full service restaurant does not exist in fast casual restaurant (and also in fast foods) and as a result frequent turnovers can have a negative effect on the success of restaurant.
• Benefits: It is possible to serve variety of food concepts in fast casual category (pizza, Greek food, Japanese food, etc.) and attract too many diners by offering reasonable food prices. Many of the fast casual restaurants serve alcoholic beverages and are able to gather friends and families together for dining and pleasure. General perception regarding getting better food quality in fast casual restaurants is very effective in the success of this concept compared to fast food restaurants.

Some of the well-known and new restaurants in this category are Panera Bread, MidiCi Pizza, and Baja Fresh and Chipotle Mexian Grill.

Quick Service Restaurants

Quick service Restaurants (QSR) are developed around the concept of quick serving and convenience. Fast Food Restaurants also fit in this category, although all quick service restaurants are not considered fast food. Quick service restaurants are characterized by simple decoration, inexpensive food and fast food preparation and serving. Some of the main characteristics of quick service restaurants are:

• Price: The most inexpensive foods is found in these restaurant and are normally less that $6. It is possible to combine different food items and beverage into a Combo package in these restaurants which normally costs less than when you buy each one separately.
• Service: one or more front desk with cashiers receive orders from the customers. Menu is available on the wall or is hung from the ceiling. It not uncommon for these restaurants to have a drive-thru for receiving the orders from car driver without needing him/her leaving his/her car.
• Atmosphere:  Quick service restaurant have the most simple decoration among any other type of restaurant. Chain restaurant of this category can barely invoke a feeling about the restaurant atmosphere in the mind and heart of their customers.
• Challenges: Similar to fast casual restaurants, these restaurants are faced with high employee turnover. Frequent changes in management and ownership of restaurant besides young labors’ tendency to change employer, has caused a high turnover rate in these restaurants. Coffee Shops are good example of this situation among quick service category.
• Benefits: Fast service and consistency are among the main reasons for the success of QSRs.

Some of the well-known restaurants in this category are Jamba Juice, Wendy’s, Taco bell, McDonald’s and Starbucks.