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Investigate the catering and hospitality industry

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1 Investigate the catering and hospitality industry
Unit 201 Investigate the catering and hospitality industry

2 Good afternoon dragons

3 Today I am looking for an investment of £5million….
For a 20% stake in my business……

4 Beau Joe Quisine

5 Our Aims: Customers can ‘Dine with beau-til-full’
For all your culinary needs, beautifully fulfilled These are the aims of our operation. The Beau Joe Quisine aims to satisfy the customer in all areas of the industry and give them a beautiful all round experience. Our slogan is, customers can ‘Dine with beau, til, full. Beautiful isnt it.

6 Joseph Quilter (bsc. Hospitality and culinary arts management)
Well trained Vast business experience WORLDWIDE Easy to work with, relaxed attitude Introduction to who I am: Well trained – at westminster kingsway catering college, achieved professional chef diploma and degrees in culinary arts and hospitality. Before moving to pied-a-terre on a full time basis aged 21. Here he progressed to head chef by the age of just 23 and he achieved culinary recognition amongst the elite by gaining the restaurant a third michelin star at the age of just 25, to the delight of his close friend and business partner shane osbourne. This gained him the prestigious caterer chef of the year award. Despite this he maintains his down-to-earth and easy going attitude that saw him, relate to the public throughout his career, and gain him a knighthood at the age of 29. Now age 30 I am the powerbase behind this operation that strives to become a global phenomenon.

7 Aims Today: Introduce the catering and hospitality industry
Outline the aims of my business proposition This is what I am to address today for you In order to persuade your investment.

8 Catering and Hospitality:
Hospitality and Catering The Hospitality sector is very vast and includes all businesses that provide food, beverages and/or accommodation services to the public. Hospitality: Is mainly the relationship between a guest and a host, it refers to the host being hospitable towards the guest. Catering: Providing food and related services to customers

9 The Structure of the catering and hospitality industry:

10 Sectors Public Commercial Definition of each What they consist of:
Public sector –cost sector operations which often have a non-profit-making focus, by minimising cost but achieving maximum efficiency. Many examples of this so called ‘welfare catering’ exist in the form of schools, prisons and hospital catering. Commercial – a profit sector operation whereby The provision of hospitality and catering is main purpose of the organisation, and making a profit is their aim. However over recent years the divide has become slightly more obscurred as more public sector bodys such as schools have outsourced their catering contracts to other companies who have come in and introduced new concepts which have made the services slightly more commercialised.

11 Establishments commercial
Restaurants Hotels Quick service Delicatessens Private clubs Chain catering Licensed houses Speciality restaurants Country houses B and Bs Airports and transport services Railway Holiday centres Motoring services Drive thrus Marine and ferries Contract catering Private catering Corporate hospitality Conferences and banqueting Outside catering Franchising Restaurants – There are around 65,000 restaurants in the UK, comprising of fast food chains, brasseries, fine dining, delicatessens and cafes and coffee shops. Hotels – There is estimated to be 22,000 hotels registered with tourist boards, ranging from budget hotels and B&Bs to group owned 5star hotels. The key features of hotels vary, from quality of service, to size of establishment, food offered and staffing levels. private clubs – have become more frequent especially in the citys of England. They aim to attract the high earners of the cities, especially in London where they can charge a high membership fee for an ‘exclusive’ and high quality dining experience. licensed houses and pubs – These have always been a trademark of the UK, there is believed to be 60-70,000 in the UK. As a sector it has experienced vast change over the years, being one of the biggest sufferers in the economic downturn, many had to close, but the demand for pubs has stayed strong and with changes in ownerships and structures many have stayed open and even capitalised on the current situation, and still 80% of pubs are small businesses run by tenants, licensees and owners either on a lease of freehouse basis. Food can vary from specialised foods such as carvery, to finger foods, gastro-pub style food or even a-la-carte luxury dining. 8/10 adults consider themselves pub goers, and 15million+ drink in a pub once a week, they serve over 1billion meals per year and food revenue is 20% of pubs overall revenue nowadays, no wonder a lot of business people are looking to invest in the pub trade. Airplane – during peak-season airline catering firms can produce up to 36,000 meals a day, and supply over 200 fully catered flights. It is a very rapid process and food is not held for long periods of time, making the whole market for this very unique. Airports in general offer a hospitality service 24hours a day every day of the year, ranging from coffee bars to food courts to speciality restaurants. contract catering – Has risen rapidly because of companies targeting markets in the leisure and public service industry. Companies such as Compass and Baxter and Storey have capitalised on this market to expand and provide for demand in industry. Franchising – One company pays a fee and some set-up costs in exchange for use of a name or brand that is well known by purchasers and thus can generate more business. An example of this is Compass Group who franchises burger king brand from its owner in exchange for a fee and a share of turnover. Corporate hospitality – a main feature for a lot of businesses nowadays, as it can help businesses build relationships with potential clients and to raise awareness of the business. It is also use to reward loyal customers and to enhance reputation. Eventia is the professional association for corporate events, and industry believed to be worth more than 700million a year.

12 Establishments public sector
Prisons Armed forces Public catering Nhs Schools Residential establishments Business and industry catering (sometimes) Prisons – Sometimes run by contract caterers, but often run by the prison service. Usually prepared by prison officers or inmates. This enables training of skills and encourages employment in food production upon release. Armed forces – In barracks and in the mess and out on the fields/ships, catering is essential. Field cookery and naval cookery is often specialist, working with specific equipment in specific spaces requires a lot of skills and training. There main aims are to provide for the servicemen and women of the country and not to make a profit. But like any other sector, they too want to reduce costs and increase efficiency and they are taking on board more contract catering operations. Public catering – An operation to cover overheads by achieving maximum efficiency and minimising costs. Standards of cooking are equally good, though menus are different. These can exist in police canteens or other canteens nationwide. Nhs – They have a duty to ensure the best value and cost effectiveness exists in their catering operations. Over 300million meals are served each year, with over £500million being spent on food costs per annum. Different catering services exist within the NHS ranging from in house traditional kitchens, to food prepared outside and brought in frozen/chilled, to a new method whereby food freshly prepared and chilled is brought in and regenerated in pressure cookers – saving space. They are constantly looking for new developments for catering such as franchising and a 24hour service. Schools – first school meal service introduced in In April 2001, for the first time, minimum nutritional regulations were introduced and authorities were given budgets to meet these, In 2006 new standards were announced to cover all foods served and sold at schools. School meals are provided in one of three by a direct service organisation that is contracted in by the local authority, by a private contractor or by in house provision controlled by the school itself. Residential – these can include colleges, universities, halls of residence, nursing homes, hostels etc where all meals are provided. Nutritional balance of food is essential in most of these places and all needs of residents must be satisfied. Meals on wheels is also a provision of food to elderly people to their front door. Business and industry – although some industrial catering sectors are becoming commercialised. Some still seek to provide a catering service to staff without making a profit, simply enough to cover costs and overheads such as in oil or gas exploration rigs.

13 Operations Hospitality Accomodation food
The type of operation within the hospitality and catering sector can vary immensely Some can offer just hospitality, or only food, or only accommodation But more often than not they offer a combination of operations to the customer. Hotels offer, hospitality, accommodation and food to guests Restaurants offer both hospitality and food to guests Even in the public sector, in hospitals, hospitality, accommodation and food is all provided to patients.

14 Scope Soletrader Franchise Local Regional National Multi-national
International Partnership Examples of each: Soletrader – They are owned by one person, who can employ people and can keep all of the profits without keeping accounts – e.g. butcher, grocer, small burger catering van. Franchise – As mentioned earlier Compass group franchises the burger king brand from its owner in exhange for a fee and a proportion of turnover. Local – Regional – - cooks and partners are catering company who provide catering services for functions and corporate events for London and the south east. National – Pizza express – nationally recognised with over 300 restaurants across the UK Multinational – Krispy crème is a multinational company with businesses over america, uk and hong kong. International – Macdonalds worldwide in 119 countries has over 31,000 restaurants Partnership – Pride catering, is a catering company who offers partnerships with business and industry, schools and healthcare services.

15 Size Workforce size Number of establishments Size of establishments
Different hospitality and catering companies can vary in size: In terms of workforce companies can be different, such as macdonalds which employs over 400,000 people worldwide down to a small restaurant which employs little over 10 staff to work in both front and back of house The number of establishments also determines size, for example macdonalds have over 31,000 restaurants worldwide, whereas soletraders own just one restaurant. Size of establishments also determines the size of an operation, some establishments such as small bistros are small and seat around 30covers, whereas other restaurants and food courts can seat well over 200covers at once. However the size of a place is not an indicator of success as it may never fill its capacity and smaller places may fill them twice over. Catering at big sporting events and festivals can account for well over 50,000 people.

16 Concept: A number of establishments and operations within the commercial sector. The first one to open will be ‘Le Beau Brasserie’ that can fit into different sectors of the market and get a wide customer base.

17 Details Start of as a small operation, offering quality food and dining experience to get a good reputation. Brasserie Holland Park, West Kensington Local produce Seasonality Niche video aspect My concept is for a Brasserie style restaurant that will serve local produce from around the UK, on menus designed around a main focus of seasonality. There will also be a niche aspect to my restaurant that will enhance the dining experience and also improve the success possibilities of my restaurant in the process The ingredients used to construct the dishes will be both delivered from farmers and producers all within the UK and also follow a seasonal trend The suppliers that the restaurant will use to get its UK produce from will vary. It will use farmers markets such as billingsgate fish market and borough market. The restaurant will also use uk suppliers such as watts farms (based in Kent), The kerrygold company food service, coastline produce limited market, and the british produce from covent garden market, as well as local butchers and cheese shops around London. The restaurant will also use localised gamekeepers from around surrey for the best seasonal game produce There will be a TV screen attached to or around each table which the customer will be able to view in between dishes. There will be interactive options on the tv screen which will allow the customers to select the dish that they are having. They then can play a short video clip over the tv screen. This takes the customer through step-by-step how their individual dishes are made by one of the chefs. It will also give information regarding where each ingredient came from to emphasise the locality aspect of ingredient sourcing and at the end, it will also suggest other dish ideas that the customers could try on the menu, by showing pictures of them, to try and persuade the customer to re-visit.

18 Why chose it picturesque location high professionals for during week
Evenings and weekends successful too Established area Can compete with local competition a la carte menu of British/French cuisine and other menus for special occasions 100 covers at one sitting Surrounding parkland Business lunches established high class area with one of the highest levels of disposable income throughout the whole of London. There area has a number of clientele whom regularly dine out around Kensington and Knightsbridge and thus the market is already there for casual dining restaurant to succeed as long as they have the quality and value for money The restaurant will offer excellent quality but with good value to the dining experience and also the nice aspect gives the restaurant an edge

19 Growth. Diversify the brasserie More brasserie outlets locally
Franchising? And then nationally Then move them abroad then across continents Growth is our main aim as a business, and we are looking for rapid development: Develop not just in food operations but across a variety of operations and establishments, with varied scopes and size. Diversify – takeaways – try to develop a method for allowing takeaway of a la carte foods, bbqs and events outside on the terrace if we can get a license, events and functions involving marquees in the park etc More locally around london e.g. the wealthy upmarket areas Franchising could be a key influence on success of our company as we can attain the use of a successful brand in order to enhance our sales, grow a national reputation and to attain more investment. Then move further north, to tap into the markets, in and around the UK Then france, italy and spain markets Then onto america, australlia, far east.

20 Opportunities for development
Bistros Hotels ‘Beau Lifestyle’ Health spas ‘Beau Palace’ Pub/bar Contract catering Fine dining ‘Beau Beverage’ ‘Beau dining’ Explain each operation and how each could be a success: Health spas – The market for health spas is forever expanding with the increased pace of lifestyles and busier lifestyles, people are looking to spas to other a relaxed break from such a hectic lifestyle Fine dining – There is an overwhelming demand for fine dining experiences, especially in London, which has overtaken Paris for its popularity and quality of restaurants and cuisine. More affluent members of society are willing to pay huge sums for a high quality dining experience. Despite the initial costs of such estbalishments being higher, the eventual reqards are huge with huge sums of money being spent on the food and wine. Pub/bar – pubs and bars have continued to boom throughout the economic downturn if they are located correctly. They are places which can have huge profits if positioned well - 8/10 adults consider themselves pub goers, and 15million+ drink in a pub once a week Hotels – Hotels have been one of the biggest boomers, because the tourism industry is continuously growing, despite the economic problems. People are coming from even further a field to visit London and the UK, from both the West and the East. The tourism industry is experiencing the fastest growth and thus the accommodation of these tourists is required in great numbers. Once a hotel has built a reputation with guests, it is common for many repeat visits by themselves or others who they have recommended it too. Contract catering – contract catering services are booming as a lot of companies look to outsource the catering duties to other companies to cut costs and to minimise the use of space. A contract catering company could serve businesses and industry throughout the UK on a variety of contracts. Bistros – These smaller establishments become increasingly popular in local communities. With good quality food and value, they can be highly successful as they are easily accessible by locals. The start up costs for such establishments are lower and thus have good business potential. Functions and private dining – In london in particular functions and private dining establishments are booming. Wealthy businessmen, chose to dine at private dining clubs where a membership fee is paid for the exclusivity. Also there has been an increase in functions with a growth in the amount of award dinners, and new concept launches, and large groups of people are brought together, and the catering for such events can incur large sums of money. Home catering – Private chefs are increasingly In demand as we as a nation look to entertain more at home and hold dinner parties. But more often than not the hosts don’t want to spend all day cooking and want to entertain their guests and thus hire trained chefs to cook a meal, for very high sums of money. This is a developing market which has a huge scope for growth and success. Catering school – A catering school would not necessarily initially be a profit making operation. Instead it could be utilised to train staff to our required standards for employment throughout our company businesses. Once it has gained a strong foothold in the education sector, it could look to charge fees which could help with profit boosting. Videos and products – As a further expansion for the company. The videos shown in our restaurants to the customers, teaching them about their food and the produce and how to produce it, could be sold. This not only boosts sales but also helps to stimulate the economy further through the passing on of these skills and knowledge. The Beau Joe Quisine will become a more globalised brand. Functions and private dining Contract catering Private in home catering Catering school Videos and products

21 Features of Different types of operation – Public sector operation vs commercial catering
Opening times Menu Pricing Locations Design staffing Public operations opening times vary, hospitals have varying mealtimes for patients, and armed forced do not have set meal times, commercial sectors usually open from unless they are open for breakfast service too. The menus are usually different. In public sector operations the meals are to fulfil a need and not make a profit, such as to feed the soldiers, to give correct foods to the poorly or elderly or to give children healthy lunches. Whereas menus in commercial restaurants are more relaxed and diverse, with a wide range of options Costs in public sector are usualy lower, and funded by grants and often prices are lower such as in schools because the main priority isn't to make a profit, whereas in commercial sectors, profit is the ultimate aim in order to achieve success and thus prices are carefully set so to achieve a mark up on the costs of each dish. Locations are different. Welfare related sector business are located near to where they are required e.g. at army barracks or in school or in hospital kitchens, whereas restaurants in commercial sector can locate anywhere, their main aim is to locate somewhere reasonable with regards to attracting the right clientel, without there being too much competition. Design of the premises also varies. Public sector businesses are designed to mass produce foods because they need to feed a lot of people, whether they be school children or those in hospital wards and thus large batches are cooked, and kitchens designed to carry this out, whereas in the commercial sector, restaurants are designed to be able to produce precise dishes on an a la carte menu. The staffing is also different. Those working in public sector catering such as schools and hospitals do not need as many high quality cookery skills, but do need hygiene training, whereas in the majority of restaurants, high quality cooking skills are paramount because the food is they key to the restaurants success. The commercial sector also employs a variety of waiting staff etc whereas the public sector don’t need these.

22 Key influences on hospitality and catering industry
Social trends Tourism Media Consumer spending Key trends in the industry are influencing the catering and hospitality industry Social trends – Age demographics determine eating out patterns e.g category are more frequent dining out, but older adults are higher spenders. gender demographics that affect what goes on the food society e.g women eat out more than men, and are also the far more critical sex, and families spend less when eating out but the family market is growing, Location can also determine the eating out patterns e.g. london having largest eating out market, spend more and quality better Market trends can determine the eating out patterns too - Casual dining restaurants are booming, People are becoming more interested in the food they eat, Ethical food consumption in today’s market is a huge force, Convenience is also a major driver in the market because of the busier lifestyles and despite popular belief, People want better value in restaurants and food establishments not necessarily cheap food. Tourism – Tourism is key because with the increased number of tourists coming to the UK, they bring with them a different target market that businesses can try and tap into. They also bring their different needs and desires which establishments have to cater for such as halal meats for those from the far east and adapted menus for muslims etc. However tourism of english people also plays a role, as people travel abroad and gather new influences and ideas which they then input into their businesses and the industry and thus it is constantly expanding. Media – The media has a vast influence on the catering and hospitality industry. The media has an immense involvement in everyday life and people take note of media stories. The media covers stories such as locality of produce and ingredients, the effect on the environment, seasonal produce, gm crops, the safe killing of animals etc and all of these influence the nations desire to know more about their food and to see measures being put in place to counter these problems. Consumer spending – Consumer spending vastly affects the hospitality industry. Despite the economic downturn, people are just as willing to eat out and thus the demand for food and hospitality is still at the same level. The only change is the demand for better value, not necessarily cheaper, but good value so that the customer can be satisfied their money is being spent wisely. Consequently, There was a 10.6% increase in the trend of spending on out of home eating in the three years up til The uk food market includes 33% of expenditure on meals out of the home, and this is worth around 24-38bn. 70% of the adult population eat out at least once every three month and the richest 20% of the population spend a significant amount of disposable income on the casual dining experiences.

23 Main influences on The ‘beau’ concept
Age demographics Gender influences Location choice Market influences Locality of ingredients Seasonality Brasserie concept Age demographics - i must make my restaurant open and popular with all ages because although the majority of people in the, age category may be more frequent diners, i also must attract those in the older age groups because they are the higher spenders Genders influences - The combination of all these factors are important for my restaurant concept because, i must make sure my restaurant appeals to both sexes but also that it is attractive in its location and in its decor, so that women want to dine there and persuade their husbands to do so. However it is important that i also appeal to families with children as well as no children families because i want to have a wide target market so that anyone could want to visit my restaurant. Location choice - For these reasons, I intend to locate my restaurant within London, but not too central. By locating it further out from the centre, it will allow for more scenic views and thus a better dining experience for guests. By locating in London i can tap into the huge market of Londoners that chose to dine out frequently and also those that spend more on their casual dining experiences. The restaurant attracts an exclusively picturesque location, which business people may wish to utilise for entertaining their clients, because the restaurant offers a relaxed setting for their meal, away from the hustle and bustle of the inner city. The restaurant will also hopefully attract many people of an evening when there are most likely going to be couples and young city workers dining out with friends and family after work. Thus the restaurant aims to attract both business people and those dining out for pleasure within the local area. This will help to increase the profit potential of the restaurant and the more people that visit, the greater the awareness of the restaurant becomes and the greater the customer base becomes and thus even more potential income, which should help the restaurant to achieve its business and sales aims within the first year. Market influences - I must take all of the factors that affect choice of restaurant into account when designing my restaurant concept. Through this market research i can notice the clear trends within society and try and adhere to some of them where possible. I aim to have high quality food and this will be enhanced by the use of food in season. The use of seasonal food will also be accompanied by the use of locally produced food, which will tap in to the markets request for less food miles. I could try to include healthy options on the menu, but i believe that peoples need for enjoyment of their food, will lead them to choose food because of its quality and value and not just its healthy qualities. However i will try and bear healthy methods of cooking and certain healthier ingredients in mind when creating the menus, but this will be a minor contributing factor. Overall, i want to create a restaurant that does its utmost to offer value for money because this is one of the most important factors for many of the population, especially in a time of the credit crunch when people are willing to still spend money but on things they consider reasonable and worthy. Locality – The idea for choosing local produce is because it has become a huge market trend in the UK food market, and in the eating out market alone: ‘greener’ environment and air miles debates. freshness of the produce, contact with local producers, organic ingredients where possible, keep costs lower for the restaurant, works hand in hand with seasonal ingredients. Seasonality – The idea for creating the menu based around seasonality of ingredients is because it is allows the restaurant to thrive for a number of reasons. will be eco-friendly, ‘food miles’ will be reduced, seasonal produce is also in fact cheaper, use of local ingredients will also hopefully help support the local economy. the use of seasonal ingredients ensures that they have a higher quality Brasserie concept - increased in popularity over the past few decades, A brasserie restaurant offers an ambience that offers the best of both worlds, staff that are well trained with a formal service of high quality food, but the atmosphere will be far more relaxed than that of its fine dining counterparts. Hopefully we can create a restaurant that shows the public that it is aware of trends in the market but also one that adds something new to their dining experience, which will hopefully set us apart from competitors and enhance our chances of success in the heavily competitive restaurant industry, hence the niche aspect of TVs.

24 Importance to UK economy of the industry
Employments Contribution to economy English produce etc The Hospitality and catering industry is vital for the UK economy: It is one of the fastest growing industries in the UK Even despite the economic situation in the country. Tourism is booming and the leisure industry is the biggest and fastest growing industry in the UK as a consequence of this, because the industry is worth close to £1billion There is close to 3million people employed in the industry across Britain alone. Thus it contributes immensely to the economy at a time where unemployment levels are at a high. Hotels employ around 250,000 people, near to 1million people are employed in the pub trade and restaurants employ 500,000 full- and part-time staff. The scope for employment is huge in the industry with full, part time and contracted staff and career opportunities ranging from regional to international job opportunities. It thus contributes immensley to the economy, providing jobs and thus a stable income, which can be used as disposable income to further stimulate the industry and the economy further (multiplier effect). Local produce is also influenced by this industry. More and more companies are starting to use local produce as the public are becoming increasingly concerned by the environmental and economical problems of food miles. By importing all of the produce from abroad we would contribute to global warming harming the environment and we would continue to see a decline in our economy. Instead, the businesses in this industry are increasingly looking to local producers, or at least producers within the UK, and this helps to stimulate the UK economy and help traditional english values.

25 Importance to UK economy of ‘Beau Joe Quisine’.
Employment Local economy British produce Employment – Beau Joe Quisine, is a vital tonic for the current employment situation that the UK has. It will look to employ close to 50 staff in ‘le beau brasserie alone’. Which will help to assist in the lowering of unemployment levels. Then through the expansion of the business both regionally and nationally, we can further help the unemployment level, by hiring more people in London and then further North where unemployment has hit especially hard. Also through the diversification into other sectors of the economy such as health spas, hotels and other venues; the company can employ even more people, and take on the skilled workforce that is not being utilised in the current economic plight. One of the most important impacts of Beau Joe Quisine is the potential for the hospitality training: Once the business has experienced some success we shall hopefully be able to open the catering school which will enable us to train unemployed members of the public new skills which will enable them to seek employment within the industry with us or elsewhere and further stimulate the economy. Local economy – All of this employment will help to booster the economy nationally because each new employed member of staff will have more money to spend, this disposable income will find its way back into the economy whether it be through the tourism industry, or retail industry etc, and this will help the economy to grow. The niche aspect of the videos about the food at the beau brasserie, will hopefully enable people to cook more at home, invest in seasonal produce and local produce to which will boost the economy further. British produce – As the main focuses of the beau brasserie and Beau Joe Quisine concept are seasonality and local produce, the economy will be vastly influenced by our company. With the opening of first the brasserie, and then the associated businesses, the local producers will see sales of their produce rise rapidly which will stimulate their sales profits and this in turn will help to stimulate the whole of the UK economy with a domino effect. It will help increase awareness of local produce to customers and this increased popularity will see a huge boost to the economy through local suppliers and produce growers, rather than see the money wasted on imports, which only harms the environment which we need for most foodstuffs anyways.





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