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Owning and Managing a Restaurant

What are the main points of managing a successful restaurant?
I am thinking about getting into the restaurant business...how?!
How do I get people to do what I want them to do?
Can you give me some information on safe food handling practices?
What should I look for if I am considering buying a restaurant?
What is a reasonable salary to expect as a restaurant manager?
I am having a food cost problem...help!
How do I duplicate my success by opening a second location, or more?
What is a good bar cost?
I need information on creating a menu design.
How does a seasoned, professional restaurant manager deal with "burnout"?

I don't have a big advertising budget.  How can I market my restaurant?

Working in a Restaurant

I have been cooking for 15 years.  Tell me if I can make it my career.
I think I deserve a raise, can you help me?
What kind of education do you need to wait on tables? What does it pay?
I've been waiting tables for 10 years and I'm bored!

Eating Out

Should I tip at a wedding banquet?
Who are the largest fast food competitors?
How much should I tip for a buffet?


Answers - Owning and Managing a Restaurant

What are the main points of managing a successful restaurant?

1. Hire the right people. (Personality first, experience 2nd). Take care of them.
2. Good training procedures for new hires/ongoing training. (Include HAACP guidelines here for all depts.)
3. Always put quality before profit.
4. Establish good systems (sidework, food ordering, scheduling staff). When most hourly employees are asked, "What do you least like about your manager?" they answer, "Not consistent." Good systems will help you be consistent.
5. P&L (Profit & Loss Statement) Knowledge
6. Local Marketing knowledge.

7. Visit Dinersoft.com often!
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I am thinking about getting into the restaurant business...how?! I have management experience but no restaurant experience.

The first thing I would ask you if I were interviewing you is, "Are you sure you know what you are getting into?"

Do you mind 12-hour days, mostly on your feet? Does the thought of rolling up your sleeves and washing dishes for an hour bother you? Do you REALLY like the public all that much?

Still here? Start by accentuating your management skills. The restaurant business has too many waiters-turned-managers-by-default (not all negative, I was one!) and not enough people trained as managers. Convince the person interviewing you of that. Your ability to hire, train, coach and develop is what will land you a job in the business. Do not highlight the technical aspects of your previous job. If I were interviewing you, I would be fascinated by your background but very wary of your ability to deal with the kind of pressure a restaurant manager can face.

Think of examples from your life where you have:

* Dealt with an unhappy employee and turned it around.
* Overcome a customer's complaints/objections and made them happy.
* Been short-staffed and gotten through

These are the qualities/skills that will make you a good restaurant manager. Give examples in any interview you have.

For all the considerations someone may have of hiring "an outsider" like yourself, they are sure to have as many misgivings about promoting another hapless foodserver or bartender into a managerial role they are not ready for. Your job is to sell them on the fact that they are looking for a seasoned manager, who knows how to make good decisions and work hard to make the company successful.

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How do I get people to do what I want them to do? Their ideas and my idea of "getting the job done" is not always the same.

What a great question, one that I have struggled with ever since I achieved the dubious distinction of being a manager. I believe the answer comes in the following parts:

1. How do you communicate how you want something done?  The obvious problem is that how you and those you delegate to envision the outcome is different. The bridge between those two viewpoints is communication.  A few things about communication:
- It is filtered by what we want to hear.
- Words can be imprecise (e.g. If I say "clean the floor", my "clean" can be very different than your "clean".
- 9 times of 10 we don't hear what we think we hear, don't say what we think we say. (Ever hear of the "telephone game"?)

Solutions:
- Learn people's filters (including your own)
- Be precise: Instead of saying, "Please clean the floor soon." Say: "Please wash the floor until there are no more brown smudges like this one right here (point to it, or better, clean one section of floor yourself as an example) by 10:15 am. Come get me when it is done so I can tell you what a great job you did."
- Have people repeat back what you say. You will be shocked at what they say you said.

2. The "What can I get away with?" factor.

Unfortunately, not everyone is as perfectly conscientious as you or me, so you have to establish systems to follow up. One of the simplest is to always put the tag, "...and show me when you are done so I can tell you what a great job you did". Nothing promotes lazy, haphazard work more than lack of follow up, particularly when you don't catch them doing it right. I remember when I was a server, the first couple of times I cleaned the side station, man was it perfect! Then, after a few (dozen!) times my manager didn't check, well, as you can imagine my worked slipped in quality.

In short, follow up and praise 10 times more than you criticize.

3. Are your expectations realistic?

- When was the last time you worked on the line for seven hours and then cleaned the kitchen spotlessly? If you've done it recently, hooray! But whether you have or have not, I am sure there are some jobs you are asking people to do that are either impossible or just downright no fun (especially for the money they make!)

- Be aware that just because you can imagine it done doesn't mean it will be, or can be.

In conclusion, believe me I know there is nothing more frustrating than a bartender who you know made $300 in a night and then bailed out on wiping down the gaskets but the only reason that happens is because no one checked them the previous 3 months and so she figured no one cares.

If someone really skates out and obviously doesn't care, it is time to a) have a heart-to-heart talk then, b) document their lack of performance and make it crystal clear what you expect and, c) if no improvement is made: adios, flojo!

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Can you give me some information on safe food handling practices?

Here are the basics:

There are two types of food contamination: Bacterial and Chemical. Chemical is when some kind of chemical gets into the food (e.g., plates not washed properly, soap residue left on, or someone pours bleach into the salad dressing instead of vinegar)

Bacterial is what most HAACP (Hazard Analysis and Critical Control Points) programs try to prevent. Originally, the HAACP procedures were invented by NASA, to ensure the safety of the astronaut's food. Basically, what HAACP does is to focus on Critical Control Points along the food production line and prevent dangerous conditions from promoting bacterial growth.

Bacteria needs some essential factors to grow: Time, Temperature, Protein, Water (or moisture). In other words, serve food as quickly, as hot (or cold), and as dry as possible...and avoid meat! Of course, aged steak is one of the pleasures of life, so HAACP programs establish guidelines so we can all enjoy a nice cut of Porterhouse.

1. Buy from vendors with a Food Safety program.
2. Inspect all food deliveries (not just quality, check temeratures. In general, temperature of any food should be kept below 41 degrees and above 150 degrees. Some areas have more liberal allowances but these temps are the safest. Dry goods (no moisture!) do not apply.
3. Store within proper temperature ranges.
4. Train your staff in food-borne illness prevention.
* Proper hand-washing
* Proper service (use gloves, never touch eating/drinking surfaces, etc.)
* Personal hygiene
5. Pest Control
6. Chemical control (keep chemicals separate from food/drink).
7. Cooking procedures -- Always heat to proper temperature, know re-heating guidelines (basically, don't serve leftovers/always re-heat to 160 degrees, if cooking for second time).

Other resources for you:
http://vm.cfsan.fda.gov/~comm/nacmcfp.html
http://www.foodsafety.gov/

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What should I look for if I am considering buying a restaurant?

Questions to look into if you are purchasing a restaurant or franchise:

1. Is it profitable? They should have monthly, quarterly and/or yearly P&L's to peruse. Although you may get a bargain sale price if it is a "turnaround" situation, it is ALWAYS better to purchase something already making money.

2. Location, location, location... You can get traffic/population studies from Chamber of Commerce and Real Estate people. Don't underestimate the value of walking around local businesses in the area and asking how they are doing. Also, what they think of the property you are considering purchasing. You can often learn more from the average Joe on the street than by looking at dozens of reports.

3. Comp Sales. Is this year's sales better than last year's? This quarter to prior? In general, look to buy something on the way up, instead of something that has already had its day.

4. Staff. Hard or easy to attract talent? Turnover high or low? You don't want to buy your perfect little gold mine, only to find out you are spending all of your time just trying to staff it.

5. Past obligations. Did the original owner just print and send out $1,000,000 worth of coupons which you will now be responsible for? Any debts you are assuming. Lawsuits. Many potential problems can be avoided with a good lawyer.

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What is a reasonable salary to expect as a restaurant manager?

Your salary depends a lot on where you live but I would say a safe starting figure to give you would be somewhere in the 30 - 35K/year range, with a 3 - 5K raise at one year.

Some companies will pay more, so don't be afraid to ask for more. When I was hiring managers, I always respected candidates who asked for more than my initial offer...as long as they had the skills and work ethic to back it up.

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I am having a food cost problem...help!

Think of Food Cost as controlling the key areas where food is handled.

1. Ordering - Take accurate inventory. Establish a good system of what you should have on hand (pars) for each day of the week (adjust seasonally). Order what you need plus a little bit more (to cover unexpected traffic). Never order so much that you risk spoilage, or serving bad product.

2. Receiving - Check all product that comes in your back door. Check for quality, amount and accuracy of order (weigh it - you'd be surprised how many times a 25# box of tomatoes comes in at 22#'s!)

3. Storage - FIFO (First in, first out) - Rotate your product so oldest is used first. Cover, label, date, rotate.

4. Prep - Don't have cooks toss unused product into the garbage. Have it go into a clear plastic container first, so manager can check periodically to make sure usable product is not getting tossed.

5. Cooking - Use Recipes! If cooks are not using recipes, measuring cups, tablespoons, etc., they are wasting product.

6. Serving - Line cooks need to use measuring utensils, or be tested periodically on portion control. As much as possible, try to have pre-portioned servings on the line.

7. Waste Report - At the end of a shift, any product getting tossed should be recorded. Use this as a tool to try to improve each shift from the last, each week to the prior.

8. Servers - Train servers the importance of order accuracy. Repeat back customer's order. Review before sending to kitchen. Keep track of server errors and re-train if necessary.

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How do I duplicate my success by opening a second location, or more?

You want to duplicate your success?

Why?

Many of the most successful restaurateurs never have more than one establishment. That is because they get to control everything, from produce selection to hiring employees. And because the owner/operator invariably has the vision necessary to make these decisions, they are usually quality-oriented choices. Once you start replicating your "concept", it becomes...well, a replicated concept. You have to make manuals, document procedures, enforce standards -- all not bad things but where is the heart? Who is the leader?

That said, if you are hell-bent on expanding, make your most important task the hiring the people you employ to do it. Make sure they understand the vision and ideas that made your first attempt so successful. I recommend making your second location between 30 - 60 miles away from your first (depending on population density) so you don't compete with yourself but can also oversee both operations.

Don't franchise until you can show that you can successfully duplicate your success/sales/profits.

Take some of your best employees to open the second location, but leave your original spot with strong staff. Try to divide it evenly. You don't want the reputation of either restaurant to thrive at the expense of the other.

Find someone who has "grown a concept" successfully before and hire them or pay them as a consultant.

Common pitfalls (things to avoid):

Grow too fast - Depleting staff, falling into staff shortage situations.

Promoting too fast to keep up - taking your assistant manager from location one to open location two.

Re-inventing the wheel - If it works, don't fix it! Just because you have the opportunity to change when you open a second location (or more) think twice, your guests may like it the way it is, no matter that it's a pain in the a#$ for you.

Visions of Glory - As popular and wonderful as your location now it, further expansion does not guarantee great results. Make sure you have enough cash reserves to weather out a "soft opening".

Over-Marketing - Creating such huge sales in first weeks that you can't keep up with the mad throngs. Sure, a great problem but if you don't take care of each and every one of them, you will lose them for a long, long time. Rather, quietly open your doors, be overstaffed and slowly build your sales by word of mouth.

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What is a good bar cost?

Of course, much depends on what your price points are and what your mix is. Generally, under 20% bar cost is acceptable. Around 17% is great. If you are selling a lot of premium wines and don't mind a bit higher of a percentage in order to make more cash (margin), then even 30% is good. (e.g., 70% of a $100 bottle of wine is $70; 80% of a $10 bottle of Table Rot is only $8.00!)

In other words, try to beat 20% on the "cheap" stuff, but don't overprice your high-end/premium wines/liquors just to try and get a "good" percentage.

Percentages above based on the formula:

(Beginning Inventory + Purchases - Ending Inventory)=$Dollar Cost of Goods Sold ((Liquor/Beer/Wine (C.O.G.S.))

C.O.G.S. divided by Bar Sales = % Cost

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I need information on creating a menu design.

First, some resources:

Software
Menu Pro - www.menupro.com
(You can also print a pretty good menu just using normal Word Processing software if you know what you are doing and use quality paper.
Printing
Kenyon Press - www.kenyonpress.com
Other

Knowitallchef - An Askme.com expert who always gives good advice.

Some of my general "rules" when creating a menu.

K.I.S.S. (Keep it simple, stupid!) - Not much more irritating than trying to find what you like from a menu that tries to cater to everyone with every taste.
Highlight your featured items - Let your customers know what you are good at. Box or bold your best dishes/drinks.
Have some "loss leaders" - Put a few items that may not be a great food cost for you or high margin but will bring in folks who might otherwise shy away from your price structure.
Use descriptive adjectives. "Delicious, spicy, tangy..." (Don't get carried away...remember the KISS rule!)
People read from top to bottom/left to right. Put appetizers on top left, desserts on bottom right.
Make menu clear. Don't make customer hunt for entrees (should be center/top).
Get server input. If they keep getting the same questions (e.g. "What kind of salad dressing do you have?"), maybe you should make it more clear on your menu.
Don't scrunch. Keep open space on your menu.
Don't use more than 3 fonts. Preferably, only one or two. Otherwise, looks too busy/too hard to read.

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How does a seasoned, professional restaurant manager deal with "burnout"?  I don't see a lot of 35-year-old restaurant managers around...why not?!?

I may be the wrong person to ask, since I am on a hiatus (possible permanently) from the business due to the same problem. Let me use your question, though, to reflect on some causes and, I hope, careers.

1st, realize that there are reasons for your "burn out". The restaurant business is a tough business, and it is not getting any easier. As the consumer expects prices to stay competitive, it is difficult to attract and retain enough good help with the limited funds available for hiring. This usually leaves management picking up the slack. How many times, recently even, have you had to pitch in due to being "short on the floor", or "down a line cook"? This, along with an industry average of over 11-hour days, often six or seven-day work weeks takes it's toll. What other industry. finds it's management staff working a 65-hour week, and "pitching in" to help wash dishes?

While you may not single-handedly fix an industry-wide problem, there are steps you can take to better the quality of your job and your life:

Learn to say "No". If your boss is demanding too much of you, let him/her know. It is commendable to help with extra hours and pitching in when needed but you need to set limits to how much you are willing to be taken advantage of and don't cross the line.

Delegate. Do you always need to write the schedule, answer the phones, print the menus, polish the silverware (or whatever...), or can you have one of your employees do it? If it is too expensive to keep someone on to to a low-skilled or repetitive task, then you undervalue your skills as a manager. Instead of spending your time on a task someone else can do (perhaps even better than yourself!), let them do it while you figure out a way to bring in an extra dinner guest or two per night. That will pay for your labor, plus change!

Break up your routine. Do you always park in the same place at the restaurant? Do you have a set routine (enter, walk through the dining room, check the office, check the staffing...etc.)? Tomorrow, try parking in a different stall, entering through the back door, walking up to a cook and asking him how he's doing, giving one of your servers a pat on the back for doing great sidework yesterday and then go to your host desk and tell your host/ess that you are not going to bother them once tonight...it is their show!

Finally (sorry for the long wind!), it may just be that you are ready for something new. It is common these days, in more than just the restaurant industry, to have more than 1 or 2 careers. And, believe me, if you are talented enough to manage a restaurant, you are certainly qualified to manage people in any arena.

Perhaps you are getting a little down on yourself, perhaps feeling like you should be further along and not "just a restaurant manager". Having "survived" for as long as you have says a lot about your character, your stamina and your persistence. If you choose to stay in the F&B industry, those qualities will pay off, especially now as it is even more difficult for even the best of companies to find good managers.

And, if you leave, those qualities will go a long way towards your success in any other endeavor you choose to pursue.

As to what happens to all those 35+ - year-old managers? I don't know. Maybe they play around on the internet all day answering other people's questions!

lol...good luck!

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I don't have a big advertising budget.  How can I market my restaurant?

Best way to drive in guests? Great food and great service. Beyond that, make sure you and your managers try to talk with every guest that comes in.

Other "Internal" items:

- Minimize waiting, quote waits accurately
- Make waiting for a table "fun" -- offer finger foods, cocktail service, etc..
- Improve service standards to improve table turn times (without hurrying guest).

Other (not-too-expensive) ways:

- Have theme nights
- Mail coupons (make sure you are staffed for redemption "wave")
- Fundraisers
- Community Involvement
- Concierge, taxi driver, porter and any other service personnel referrals (give them a free meal, ask them to refer people to your establishment when they are asked "Know any good places to eat around here?"

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Working in a Restaurant

I have been cooking for 15 years.  Tell me if I can make it my career.

While it is not ALL fun, it certainly is MOSTLY fun to be a cook. You should be aware, though, that many cook positions these days are more like rote assembly line work than the truly creative work I am sure you do in your home. 

Your second best option would be to focus on getting a job with a small, single-unit operation which has a limited (but open for creativity) menu. Be aware: Cleaning up after a dinner rush of 500 is quite different from stacking the dishes after a party of 5!

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I think I deserve a raise, can you help me? I have been a "hostess" for 4 years but also manage shifts and do a lot of administrative and banking duties.  I want a better job title and better pay.

I know it will take some guts (asking for a raise is never easy) but try to keep in your mind that (usually) they need you more than you need them.

You might take the approach of asking for a "review" or "appraisal" of your work. Tell your boss that you would like an official document, for your file of their assessment of your performance. Ask her to sit down with you to go over it. During this conversation, ask, as straightforwardly as possible, for a raise.

Outline the reasons you deserve a raise on a 3 x 5 card. Try to have the conversation during a time when you will not be interrupted, preferably away from the restaurant. I would not get stuck on the job title, but if that is important to you, then go for it. At the end of the review, ask them to set up some goals for you for six months from now. Agree to meet again at the end of the six months to discuss your performance and goal achievement. In other words, try to get this review process set up as a regularly-scheduled event, instead of something you have to ask for after you feel resentful.

When they give you your raise and promotion, send them a Thank you card.

If they do not give you a raise, there is either something about your performance you are not telling me, or they are crazy. 

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What kind of education do you need to wait on tables? What is the typical pay?

A high school education is helpful but not always a requirement or necessary. Some restaurants have minimum age policies, depending on alcohol service and/or labor laws in their state.

Pay scale is typically minimum wage, plus tips. Minimum wage varies from state-to-state for "tipped employees" (from $2.13/hour to $5.75/hour). Tips depend on the type of restaurant you work in and can range from $10-$20 per shift (5-8 hours) to $200 - $300+ per shift. The type of restaurant you work in depends much more on experience than education.

Academic skills needed: Basic math (add, subtract, multiply, divide, be able to calculate percentages), respectable grammar. Some computer skills MAY be necessary, depending on the type of P.O.S. (Point of Sale) system used, but those are usually taught to each employee as part of the training process.

A good place to begin, if just starting out, is by applying to a restaurant that is part of a large chain. With current unemployment figures, many of them are willing to train inexperienced food servers. These types of restaurants (Chilis, Macaroni Grill, Chevys, e.g.) can range in tips per shift from $30 - $100+.

A nice online resource, besides Dinersoft, for food servers (for "the real scoop" kinds of stuff) is www.stainedapron.com.

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I've been waiting tables for 10 years and I'm bored!  (I've been waiting tables for almost 10 years and I liked that a lot. Always fine dine, always 2-3bills a night, couple drinks in the bar next door, home, watching stupid after midnight shows, wake up almost at noon, some chores, shave, change, back to work...BOOM-30! Is there any way out or I'm gonna become one of those old-timers with colorless hair and eyes who able to talk about something only holding the tray at the table or stiff drink after-hours in the bar. Quit waiting tables? Right! Where you'll find entry level position that will pay G a week? Or any change is always good?)

Wow! You are describing my life exactly 10 years ago. I was waiting tables and turning 30, always flush with cash but never saving any money. Always with plenty of time on my hands but usually wasting it. On my 30th birthday, a question dawned: "Is this what I am going to be doing my whole life?"

At the same time, my company asked me if I wanted to go back into management (I had been a manager previously and gotten "burned out").

I said yes.

Was it a good decision? Well, that depends on what day you ask. Waiting tables has a lot going for it but as you are realizing has a definite ceiling of advancement. There is a way out. The easiest is to go into restaurant management. Don't expect to be the best manager, learn from others, treat your employees with respect and you can go far.

Option B. Get your lazy butt back to school and learn something in the IS field. Programming, Network Administration, you name it. In 6 months to a year, you can learn a skill that will pay tons of money and give you the life I think you are looking for. Going to school is what waiting tables was invented for, so you can still work. Yes, you'll have to give up Oprah and The Price is Right.

You will have to get a little discipline, no matter what. No more just showing up at work after dragging a comb across your head in the car on the way to work. Stop drinking so much.

I just turned 40 a few months ago. Sometimes, I say, "Maybe I'll just chuck all of this and go back to being a waiter." It was not all bad. Then, I come to my senses.

Final advice: Do some soul searching. Discover what you really love to do and follow that. Don't wake up at 50, realizing you just blew half your life following someone else's dream. (Or am I just talking to myself?)

Follow up answer:  

A. You are most likely going to take a cut in pay, initially. I did but my "ceiling" went up and after a year made more than as a server (Plus, insurance, 401k, regular salary, vacations, etc.)

B. You CAN do better than "Denny's meets Jack-In-The-Box" outfits. If your present company won't put you in training (mistake on their part), then hit the pavement.

C. You may be "a joke" at first. Making the transition is always harder than you think. There is much more to being a good manager than writing schedules and drinking at the bar after every shift. So what? Do you want to learn or start at the top?

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Eating Out

Should I tip at a wedding banquet? (My father-in-law says to tip less.)

To be safe, it is appropriate to ask the management what the customary amount is. Some will even include the appropriate amount on the bill, which is to your benefit as well, as people can often over or under tip after a big event (especially depending on how much champagne is poured!)

I understand father-in-law's point: banquet service is not full service, so a lesser tip is ok.

Having been a server, I also know that banquets can be just as hard, if not harder, than tableside service. People can get more out of control, be more demanding and, especially in a situation where it is the most important day in someone's life, the expectations can be very high.

Why tip LESS for MORE expectations?

Bottom line? 10-15% MINIMUM. More, if it the service and food contributes greatly to a happy and memorable event.

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Who are the largest fast food competitors?

1. McDonald's, 18+ billion in (1998 yearly) sales, U.S., South America, Russia, Canada, Egypt, Germany, Hong Kong, Hungary, Italy, Japan, Netherlands, Saudi Arabia, Singapore, Sweden, Switzerland.

2. Burger King, 8+ billion in sales, U.S., South America, Australia, Bahrain, Guam, Denmark, Japan, France, South Korea, Germany,
Malaysia, Gibraltar, New Zealand, Hungary
Taiwan, Republic of Ireland, Thailand, Phillipines, Israel, Singapore, Italy, Jordan, Kuwait, Malta, Netherlands, Norway, Oman, Poland, Portugal, Qatar, Saudi Arabia, Spain, Sweden, Switzerland, UK, Turkey, UAE.

3. Taco Bell (if you combine Taco Bell, KFC and Pizza Hut, as Tricon Global Restaurants, then they are #1 with 14+ Billion in sales), 5+ Billion in Sales, Asia Pacific, the Americas (Canada, the Caribbean, Latin America and South America), Europe with 19% and the South Pacific.

4. Wendy's, 4.9 Billion in sales, Greece,
Hungary, Iceland, Kuwait, Saudi Arabia,
Switzerland, United Kingdom, Latin America,
Guam, Hawaii, Indonesia, Japan, New Zealand,
Philippines.

5. Pizza Hut, 4.8 Billion in Sales, Asia Pacific, the Americas (Canada, the Caribbean, Latin America and South America), Europe with 19% and the South Pacific.

Rounding out the top ten:

6. KFC 4.2 Billion
7. Subway 3.1 Billion
8. Hardee's (CKE) 2.4 Billion
9. Domino's 2.3 Billion
10. Arby's 2.1 Billion

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