Major Segments Of The Restaurant Industry

What are the odds of building a successful restaurant franchise from the ground up and lasting three years? Like most restaurant groups around the country, BBQ Holdings’ four restaurant brands got hit hard by the pandemic — shelter-in-place orders and limitations on dining-room occupancy meant sales plummeted in March, April and May. At Famous Dave’s, an affordable barbecue concept with 125 locations mostly in the Midwest, and Granite City Brewery, a group of 18 restaurants in the Upper Midwest, staff stood idle and annual sales projected at $6 million per store started looking like half of that.

If one can find any positivity in 2020, it’s this: The inherent flaws in the American restaurant industry model (and how the media covers it) have been decried so widely and loudly this year that it seems all but impossible for its players to go back to business as normal.” The form and delineations of change may not have yet crystallized, but its essence is animate.

The restaurant industry is the industry of professional restaurants, bars, and other food service providers that allow customers to enter, order food, and eat on the premises. This term can be used in a number of different settings and can refer to just about any type of eatery, from the most expensive restaurants to fast-food locations. These can be standalone restaurants located as part of a plaza or as a remote location, or restaurants that can be attached to hotels or casinos. The restaurant industry is typically considered part of the hospitality industry and employs a number of different types of employees, from chefs and waiters to managers and bartenders.

Sims is a senior loan officer for Live Oak Bank’s franchise restaurant lending team. In this capacity he actively works with franchisees to create loan packages to meet growth needs. He previously served three years as a loan officer for Live Oak’s investment advisory team where he worked directly with advisors seeking to acquire or transition books of business. Sims joined Live Oak in July of 2013. Since then, he has spent time as a relationship manager, managing a portfolio nearing 100 loans, and time as an underwriter, where he underwrote over $100 Million worth of SBA deals. He received his BSBA from the UNC Kenan Flagler Business School.

This industry is divided into two groups: Those that prepare and serve food and those that produce and distribute food, equipment, and services needed by food providers. The most common example of the first group is restaurants. Restaurants employ front of the house people and back of the house people. The former includes bartenders, wait staff, hosts, and busboys. The latter includes chefs, cooks, managers, and dishwashers. Fast food restaurants limit their staff to food preparation people, managers, and cashiers. The trend of food trucks adds a mobile component to food service and requires just a few people to drive the truck, cook the food, and serve it through a window.

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