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FOOD AND BEVERAGE MANAGEMENT Chapter 1 – The Food Service Industry
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Food and Beverage Management

Feb 25, 2016

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Chapter 1 – The Food Service Industry. Food and Beverage Management . Eating is not optional. The History of Food Service – First Restaurants were part of homes that sold rooms and food to travellers By the time of the Roman Empire, Inns were common. - PowerPoint PPT Presentation
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Page 1: Food and Beverage Management

FOOD AND BEVERAGE

MANAGEMENT

Chapter 1 – The Food Service Industry

Page 2: Food and Beverage Management

The History of Food Service –

- First Restaurants were part of homes that sold rooms and food to travellers

- By the time of the Roman Empire, Inns were common. - The Roman Catholic Church – first “Hotel Chain”- Inns and Alehouses in England as early as 1400 AD- In the Americas – Cole’s Ordinary was among the first –

Boston 1634

Eating is not optional

Page 3: Food and Beverage Management

The early 20th century saw the construction of large modern hotels

1950’s – many felt the quality of food and beverages had declined in hotels.

Today Food and Beverage is considered a prime profit center for many hotels.

Food and Beverage in the Modern Era

Page 4: Food and Beverage Management

Began in 1765 in Paris, France – the word restaurant derives from this establishment.

In the U.S. the first restaurant is generally accepted as Delmonico’s in New York City (1827). The group closed in 1923.

“Harvey House” was the first chain of commercial restaurants and hotels in the U.S.

Freestanding Restaurants

Page 5: Food and Beverage Management

Non Commercial Facilities Business

MillsEmployee BenefitOffice Coffee Services

HospitalsTherapeutic diets

SchoolsFood Service began in mid 1800’s

Page 6: Food and Beverage Management

The automobile – drive in restaurants, drive through, etc. (A&W, Howard Johnsons)

Quick Service and “Fast Food” (McDonalds, Burger King)

“Fast” Casual Food Food Trucks Delivery (Pizza, restaurant menus) Laundro Bars Food Courts Grocery take out / sit down (Whole Foods) Home Meal replacements

Evolution of Food Establishments

Page 7: Food and Beverage Management

Basic Segments Commercial Food Service Operations –

Non Commercial Food Service Operations

Page 8: Food and Beverage Management

Commercial Food Service Commercial Food Service Operations

attempt to maximize profits primarily through the sales of Food and Beverage

Examples:RestaurantsHotel F&B outletsOther – catering, food truck, carts, etc.

Page 9: Food and Beverage Management

Freestanding Eating and Drinking Places –Can Be independentCorporateChain and Franchise

Styles Include:Fine DiningCasual DiningFamily ServiceQuick Service

Page 10: Food and Beverage Management

Lodging Food Service Operations Full Service

A La Carte Dining – Gourmet to FamilyCateringRoom ServiceCoffee shopsBars

Limited Service“Lobby Food Service”None

Page 11: Food and Beverage Management

Other Commercial Facilities Public Cafeterias Bars, Taverns, Lounges Ice Cream Stands Caterers Food carts and trucks

Page 12: Food and Beverage Management

Non Commercial Operations Operations offering Food and Beverage

as a component of –but not the primary mission

Usually focus on offering nutritious meals and minimize expenses related to Food and Beverage Operations

Page 13: Food and Beverage Management

Non Commercial Business Industry Healthcare Educational Leisure/recreation Transportation Organizations Private Clubs

Page 14: Food and Beverage Management

Business / Industry Company canteens (Google), Vending

Healthcare Hospitals, Orphanages, Nursing Homes

Educational Institutions Schools, Universities, Senior meals

Private Clubs Country Clubs, Dining Clubs

Leisure and Recreational Arenas, Amusement Parks, Casinos, Bowling alleys

Transportation Companies Airlines, Trains, Ships

Others Prisons, Military, Religious, athletic facilities, Cruise Lines,

Page 15: Food and Beverage Management

Organization of Commercial Operations

Commercial Food Services – 3 main categories

Independents

Chain Restaurants

Franchises

Page 16: Food and Beverage Management

IndependantsOwned by an owner or group with no chain

affiliationMay have multiple units

Chain RestaurantsMulti Unit OrganizationsOften have the same menu, purchase

cooperativelyMaybe owned by a Company, Franchise

company, private owners(s)

Page 17: Food and Beverage Management

Advantages of Chain RestaurantsEasier to acquire cash, credit and long term

leasesScale affords the opportunity to make a

mistakeAbility to experiment (foods, décor, etc)Personnel advantagesCan afford specialists (finance, risk

managementBetter internal controls – can compare

results within units.

Page 18: Food and Beverage Management

Disadvantages of Chains

Difficult to keep up with changing markets and economic conditions

Bureaucracy creep slows and can hamper efficiency

Single bad event can damage the entire chain

Page 19: Food and Beverage Management

FranchisesSpecial category of Chain RestaurantsFranchisee pays a fee to for the right use

the Name, Design and Business Methods of the Franchisor

Franchisees are often local investorsMaybe be required to pay royalty fees on a

percentage of revenue, advertising fees, sign rentals, food products etc.

Page 20: Food and Beverage Management

Advantages to Franchising Start up assistance Company training programs National Advertising campaigns Name Recognition, Food Consistency Lower food cost with volume purchasing Tested operating procedures Employee recruiting

Page 21: Food and Beverage Management

Disadvantages Strict Contracts

Menu setDécor setSpecified production equipment

Contracts tend to favor Franchisor Little room to negotiate

Co Branding – 2 franchises share facilities

Page 22: Food and Beverage Management

Non Commercial Companies and Contract Management Companies As Pressures for cost containment mixed with lower

revenue, there is a need for non commercial operations to operate more like their commercial counterparts

Advantages Large Companies have greater resources to solve problems Can save money through effective national negotiations Can often operate at lower costs Faculty administrators can delegate to food service professionals

Page 23: Food and Beverage Management

Disadvantages to Contract Management Companies

May assume too much control – effecting public image

Some people dislike the profit motivation in non profit type operations

Concerns of decreased food qualityOrganization may become too dependent on

the CMC.

Page 24: Food and Beverage Management

The Future of Food Service Home Meal Replacements QSR – new foods and higher quality items More entertainment in casual restaurants More offering in non traditional stores (7-11) Comfort foods, Fusion Cuisine, Healthy

choices Green Restaurants Improved Technologies

Page 25: Food and Beverage Management

Vocabulary A La Carte Menu Chain Restaurant Co-Branding Comfort Foods Commercial Food Service Operation Franchise Franchisee Franchisor Green Restaurant Home Meal Replacement Independent Operation Lobby Food Service Non commercial food service operation Office coffee service