The Restaurant Business

 week 6 (12/03/2025)

1. Impact of Government Policy on Restaurant Business Operations (Example: US Traiff)

1.1 Increased Food and Ingredient Costs

Tariffs on imported goods will directly increase the cost of key ingredients, particularly those that cannot be sourced domestically.

Example: Restaurants in the United States, such as Chipotle, rely heavily on Mexico's avocados, and tomatoes will be forced to bear the cost caused by the 25% tariffs.

Grains and Oils: Canada supplies over 90% of U.S. oats, critical for cereals and snack bars. Tariffs on Canadian oats could disrupt production for companies like General Mills, leading to price hikes. 

Alcohol and Beverages: Proposed 200% tariffs on European wine and spirits and retaliatory EU tariffs on U.S. whiskey could force restaurants and bars to adjust beverage menus or absorb higher costs

1.2 Supply Chain Disruptions and Operational Challenges

Inventory Delays: Tariffs will cause supply chain bottlenecks. For instance, perishable goods such as seafood imports or fresh produce. The risk of inventory loss and resource waste will be increased by customs delays or extra lead time caused by rerouting. 

Supplier Diversification: Restaurants constantly seek new suppliers to ensure smooth operation in a dynamic environment. However, the process is time-consuming and costly. 

1.3 Impact on Small vs. Large Businesses

Small Businesses: Independents, like Eat Together (大家食), operate on thin margins and face existential risks when tariffs disrupt niche supply chains. Many are increasing menu prices or reducing human resources.

Large Chains: Corporations like Tamjai Samgor (譚仔三哥) have more resources to reroute their sourcing channel. 譚仔三哥 may switch to paper takeaway packaging to offset plastic packaging costs.

2.Importance of Menu Planning and Design

2. Importance of Menu Planning and Design

2.1. Profitability Optimization

Cost Control: Strategic menu design can balance ingredient costs with pricing. For example, high-profit margin items like pasta or beverages are often highlighted with low cost and high turnover.

Upselling Opportunities: Combo meals or suggestive phrasing (e.g., "add truffle fries for $3") drive revenue.

2.2. Customer Experience Enhancement

Psychological Appeal: Descriptive language (e.g., "slow-roasted," "handcrafted") stimulates appetite and develops the brand image.

Visual Design: Clean layouts, high-quality images, and intuitive categorization reduce decision fatigue.

2.3. Brand Identity Reinforcement

Menus reflect a restaurant's ethos. A farm-to-table café might use rustic fonts and seasonal icons, while a fine-dining establishment employs minimalist elegance.

2.4. Operational Efficiency

Streamlined menus simplify inventory management and kitchen workflows. For instance, grouping dishes with shared ingredients reduces waste.

2.5. Adaptability to Trends

Menus must evolve with dietary trends (e.g., vegan, gluten-free) or cultural shifts, such as post-pandemic demand for QR code menus.

3.Real-life examples for each classification of restaurants

1. Independent Restaurants

Example: Kau Kee Food Cafe (九記牛腩)

A legendary noodle shop in Central specializing in beef brisket noodles, operating since 1920. Known for its rich broth and silky egg noodles, it remains family-run with no branches.

2. Chain Restaurants

Example: Café de Coral (大家樂)

A homegrown fast-food giant since 1968, serving Cantonese-Western fusion dishes like macaroni soup and roast meats. Affordability and efficiency make it a staple for locals.

3. Fine Dining

Example: VEA Restaurant

A Michelin-starred French-Cantonese fusion venue by Chef Vicky Cheng. Highlights include sea cucumber with caviar and cocktail pairings by mixologist Antonio Lai.

4. Theme Restaurants

Example: Under Bridge Spicy Crab (橋底辣蟹)

A seafood-centric eatery with a "bridge" theme, famous for garlic-chilli crab. Walls adorned with celebrity photos enhance its vibrant, thematic vibe.

5. Celebrity Restaurants

Example: Ho Lee Fook (口利福)

Co-owned by chef Jowett Yu, this trendy spot blends Cantonese flavors with modern techniques. Its neon-lit decor and dishes like "Ho Lee Duck" attract foodies and media attention.

6. Steak Houses

Example: Wooloomooloo Steakhouse

The Steak Room at Hotel Icon offers dry-aged options. Aims cook the freshest ingredients to perfection and serve them in an atmosphere that is intimate and welcoming

7. Casual Dining

Example: Tsui Wah Restaurant (翠華)

An iconic cha chaan teng (茶餐廳) chain offering affordable Hong Kong staples like milk tea and pork chop rice. The Wellington Street branch is open 24/7, perfect for post-night-out meals.

8. Casual Restaurants

Example: Arbor

A tranquil beacon rising above Central that provides a scintillating destination for nature-rich Nordic-Japanese gastronomy, fine wines, and the loftiest standards in hospitality.

9. Family Restaurants

Example: Pica Pica

Pica Pica is a contemporary tapas Bar featuring a modern take on classic Spanish dishes.

10. Ethnic Restaurants

Example: Pakeeza Food Restaurant

Serving nicely cooked curry soup, cheese naans and chicken biryani is the unique characteristic of Pakeeza Food Restaurant.

11. Quick-Service

Example: Burger Joys (Tai Yik House)

Specializes in American-style burgers.