Presentation on theme: "Food and Beverage Management"— Presentation transcript:
1Food and Beverage Management Chapter 1 – The Food Service IndustryFood and Beverage Management
2Eating is not optional The History of Food Service – First Restaurants were part of homes that sold rooms and food to travellersBy 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 ADIn the Americas – Cole’s Ordinary was among the first – Boston 1634
3Food and Beverage in the Modern Era 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.
4Freestanding Restaurants 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 “Harvey House” was the first chain of commercial restaurants and hotels in the U.S.Guilds of Innkeepers and Catering Operators. This was a soup vendor (the Original Soup Nazi!)– who sold his/her soup as “le Restaurant Divine” the “Divine Restorative”In 1878 Harvey started the first of his eating house-hotel establishments along the AT&SF tracks in Florence, Kansas. The rapid growth of the Harvey House chain soon followed.Fred Harvey is credited with creating the firstrestaurant chain in the United States. Harvey and his company also became leaders in promoting tourism in the American Southwest in the late 19th century. The company and its employees, including the famous waitresses who came to be known as "Harvey Girls", successfully brought new higher standards of both civility and dining to a region widely regarded in the era as "the Wild West". The popularity of the Harvey Girls grew even stronger in 1946, when Judy Garland starred in the film version of Samuel Hopkins Adams’ novel The Harvey Girls.
5Non Commercial Facilities BusinessMillsEmployee BenefitOffice Coffee ServicesHospitalsTherapeutic dietsSchoolsFood Service began in mid 1800’s
6Evolution of Food Establishments The automobile – drive in restaurants, drive through, etc. (A&W, Howard Johnsons)Quick Service and “Fast Food” (McDonalds, Burger King)“Fast” Casual FoodFood TrucksDelivery (Pizza, restaurant menus)Laundro BarsFood CourtsGrocery take out / sit down (Whole Foods)Home Meal replacements
7Basic Segments Commercial Food Service Operations – Non Commercial Food Service Operations
8Commercial Food Service Commercial Food Service Operations attempt to maximize profits primarily through the sales of Food and BeverageExamples:RestaurantsHotel F&B outletsOther – catering, food truck, carts, etc.
9Freestanding Eating and Drinking Places – Can Be independentCorporateChain and FranchiseStyles Include:Fine DiningCasual DiningFamily ServiceQuick Service
10Lodging Food Service Operations Full ServiceA La Carte Dining – Gourmet to FamilyCateringRoom ServiceCoffee shopsBarsLimited Service“Lobby Food Service”None
11Other Commercial Facilities Public CafeteriasBars, Taverns, LoungesIce Cream StandsCaterersFood carts and trucks
12Non Commercial Operations Operations offering Food and Beverage as a component of –but not the primary missionUsually focus on offering nutritious meals and minimize expenses related to Food and Beverage Operations
13Non Commercial Business Industry Healthcare Educational Leisure/recreationTransportation OrganizationsPrivate Clubs
15Organization of Commercial Operations Commercial Food Services – 3 main categoriesIndependentsChain RestaurantsFranchises
16Independants Chain Restaurants Owned by an owner or group with no chain affiliationMay have multiple unitsChain RestaurantsMulti Unit OrganizationsOften have the same menu, purchase cooperativelyMaybe owned by a Company, Franchise company, private owners(s)
17Advantages of Chain Restaurants Easier 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.
18Disadvantages of Chains Difficult to keep up with changing markets and economic conditionsBureaucracy creep slows and can hamper efficiencySingle bad event can damage the entire chain
19Franchises Special category of Chain Restaurants Franchisee pays a fee to for the right use the Name, Design and Business Methods of the FranchisorFranchisees are often local investorsMaybe be required to pay royalty fees on a percentage of revenue, advertising fees, sign rentals, food products etc.
20Advantages to Franchising Start up assistanceCompany training programsNational Advertising campaignsName Recognition, Food ConsistencyLower food cost with volume purchasingTested operating proceduresEmployee recruiting
21Disadvantages Strict Contracts Contracts tend to favor Franchisor Menu setDécor setSpecified production equipmentContracts tend to favor FranchisorLittle room to negotiateCo Branding – 2 franchises share facilities
22Non 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 counterpartsAdvantagesLarge Companies have greater resources to solve problemsCan save money through effective national negotiationsCan often operate at lower costsFaculty administrators can delegate to food service professionals
23Disadvantages to Contract Management Companies May assume too much control – effecting public imageSome people dislike the profit motivation in non profit type operationsConcerns of decreased food qualityOrganization may become too dependent on the CMC.
24The Future of Food Service Home Meal ReplacementsQSR – new foods and higher quality itemsMore entertainment in casual restaurantsMore offering in non traditional stores (7-11)Comfort foods, Fusion Cuisine, Healthy choicesGreen RestaurantsImproved Technologies
25Vocabulary A La Carte Menu Chain Restaurant Co-Branding Comfort Foods Commercial Food Service OperationFranchiseFranchiseeFranchisorGreen RestaurantHome Meal ReplacementIndependent OperationLobby Food ServiceNon commercial food service operationOffice coffee service