1. 7.01 Discuss food & beverage services.

2. Segments of food & beverage service industry - Concessions
Mobile carts or units that sell food and beverages
Vendors that sell food and beverages to attendees in seating areas
- Also called hawkers because they “watch fans like a hawk” for opportunities to make sale

3. Segments of food & beverage service industry – Counter Service
Similar to quick-service restaurants or food courts

4. Segments of food & beverage service industry – Full-Service
Sit-down, public eating places with services provided by a wait- staff
Suites are rooms with a view of event with seating and food & beverage services provided by full-service wait-staff

5. Segments of food & beverage service industry – Specialty Services
Includes combination of event and segment of the food & beverage industry
Example: Cinema Grill in Atlanta, Georgia combines dinner and a movie

6. History of food & beverage services
1. Harry M. Stevens-H.M. Stevens Concessions Company
Considered the “father of ballpark concessions”
Sold first program at a baseball game in Columbus, Ohio in 1887
Began by selling scorecards to crowds at racetracks, ballparks and arenas
Initialized the selling of hotdogs, soft drinks at sporting events
Became one of the seven largest concessionaires in the U.S

7. History of food & beverage services, cont..
2. Cretors & Company
a. Founded in 1885
b. Patented the process of popping corn in oil in 1893
c. Introduced first popcorn popping machine at World’s Columbian Exposition in Chicago, Illinois
d. Influenced the creation of machines for use in theaters

8. History of food & beverage services, cont..
3. National Association of Concessionaires - NAC
a. Founded in 1944 as association for recreation and leisure-time food & beverage service industry
b. Provides members and services who seek to increase standards of excellence in the food & beverage services industry with information

9. History of food & beverage services, cont..
c. Included are owners and operators from the following facilities:
i. Movie theaters
ii. Stadiums & arenas
iii. Zoos & aquariums
iv. Colleges & universities
v. Foodservice contractors
vi. Parks & recreation departments
vii. Amusement parks & family entertainment centers
viii. Ice skating rinks
ix. Roller skating rinks
x. Racetracks
xi. Bowling centers
xii. Outdoor facilities
xiii. Convention centers

10. Contracting food & beverage services
Contracting is an agreement between a venue and an external company that provides food & beverages services

11. Contracting food & beverage services - Advantages
Less time consuming
Responsibility of training and staffing food & beverage employees is assumed by the contractor
Financial liability for waste, spoilage, or other losses is transferred to the contractor
Responsibility of day-to-day operations is assumed by contractor

12. Contracting food & beverage services - Disdvantages
Venue gives up managerial control with staffing, inventory and merchandising
Less profit due to contractor fees

13. Self-operating food & beverage services
Involves owning or operating ones own food & beverage services
Also referred to as in-house operations

14. Self-operating food & beverages services - Advantages
Owners control decision-making process
Profits increased by cutting out middle-man

15. Self-operating food & beverage services - Disadvantages
Owner assumes all financial liability for waste spoilage or other losses
Owner responsible for training and staffing
Owner must have in-depth knowledge of complete operation

16. Costs of operating food & beverage services
1. Start-up costs are associated with initial venture of owning a business
For example: equipment, signage, utilities
2. Cost of goods sold include all costs associated with manufacturing products or purchasing goods for resale
For example: food, wrappers, condiments, paper products, and containers

17. Costs of operating food & beverage services, cont..
3. Operating expenses include costs associated with day-to-day operations of a business
Fixed operating expenses do not vary over a specified period of time
For example: insurance, rent or leases
Variable cost vary on a monthly basis
For example: supplies, utilities, advertising, and security

18. Factors affecting revenues from food & beverage services and sales
1. Attendance
2. Type of event
3. Weather
4. Team standing (winning or losing season)
5. Expenses
For example: start-up cost, cost of goods sold, and operating expenses
6. Per capita spending
Average money spent by each spectator