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The Growth & Development of Food Service
Chapter 7
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Chapter 7 Objectives Describe the early development of food service in Europe and the United States. Describe the modern food service operations in America and Europe. Trace the development of franchising in the food service industry. Identify the role of management companies in the various segments of the industry.
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Emergence of Food Service
Denmark tribes cooked as early as 12,000 years ago First cabarets selling liquor and wine were established around 4000 BCE Themopolia provided hot food and drink in Rome Feudal Manors fed kings and their courts
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Emergence of Food Service (cont.)
Pre-cooked meals offered in London around 1200 1400’s brought utensils, glasses and linen Jacques Coeur brought turkey to France Olivier de Serres infused vegetables and potatoes Restaurant derived from French word restaurer, meaning to restore.
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Food Service In America
Objective 1
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Food Service in America
First tavern in 1634 by Samuel Cole First coffeehouse in 1670 in Boston Colonial Inns & Taverns Located near city centers Informal meeting place Stagecoaches brought new customers in 1740 French cuisine was popular at government dinners
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Food Service in America (cont.)
3 new restaurants emerged in 1820’s Sans Souci – French cuisine Niblo’s Garden – French cuisine Delmonico’s – Swiss cuisine 1800’s - had new events that affected industry 1803 – first ice refrigerator 1815 – industrial food service 1825 – use of gas store 1855 – first a la carte menu 1860’ – dishwasher, martinis, and rail dining cars
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Food Service in America (cont.)
The Cafeteria John Krueger - Swedish Smorgasbord First in California during the Gold Rush Employee, School & Hospital Sears Roebuck opened Seroco Restaurant 1849 began school lunch programs Florence Nightingale – dietician linking good health with nutritious foods
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Food Service in Europe Objective 1
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Food Service in Europe Influence from French and Chinese
A la carte menus – listed all items served Table d’hote or Prix Fixe menus – complete menu with all meals for fixed price Started with a 12 course meal which reduced to 6-8 and now today at 3-4 courses
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Modern Food Service in America
Objective 2
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Modern Food Service in America
20th Century was growth and change Hamburger in 1904 at St. Louis World Fair National Restaurant Association in 1919 A&W Root Beer Stand in 1919 Prohibition Inability to serve liquor / alcohol Speakeasies were developed Post-Prohibition people stayed away from hotel restaurants
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Modern Food Service in America (cont.)
Roaring 20’s and Great Depression Great economy until crash of 1929 Loss of Restaurants NRA Convention in 1937 in Chicago, IL Over 10,000 attended World War II and 1950’s 20 million meals to 60 million meals Rationing, Labor Shortages, Government Red Tape By 1950, industry was 3rd largest with $18 billion in Sales
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Modern Food Service in America (cont.)
1964 – No racial discrimination at Restaurants Use of computers to streamline service Minimum wage law Introduction of convenience foods Commissary Operations Freezing techniques from Birdseye Kitchenless Kitchens – Continental Airlines Culinary Arts Schools
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Modern Food Service in America (cont.)
Interest in Food & Wine increased Franchising and Chain Operation growth Cooking on T.V. Nouvelle Cuisine French said Europeans and Americans need to eat smaller portions and more fruits/vegetables
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Modern Food Service in America (cont.)
Food Festivals Annual affairs with growth each year Occurs in various large cities Exposure to local restaurants American Wine Wine with dinner was common Start of domestic wines Growing Trend for Young Adults
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Modern Food Service in America (cont.)
The 1980’s Still good revenues, but slowed growth Chains, Mexican food, and down home food School Food Service declines due to government budget cuts Rise of Mid-Scale chains with food and alcohol Later leveled off due to MADD Acquisitions continued
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Modern Food Service in America (cont.)
The 1990’s and Forward Consolidation Continues Outback / Carrabas Yum! Brands Landry’s by Tillman Fertitta
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Modern Food Service in Europe
Objective 2
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Modern Food Service in Europe
Just as diverse as America Dinner at Home is still important and formal Cultural differences including times to eat Institutional Catering is popular
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Modern Food Service in Europe (cont.)
Guest Expectations and Behavior Higher expectations due to home cooking Spend more time eating – 2+ hours Lower table turnover in restaurant Lower Income and higher prices so eat out less Government regulations on entertaining clients
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Modern Food Service in Europe (cont.)
The Work Force Different culture, history Government and Unions Requires more technical qualifications Employee Remuneration (compensation) Gratuity Included in Check Kept by operation to pay salary or trunked out Social Charges / Benefits are more costly Tips are nice but not part of salary 5% tip versus 18% here in US
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Modern Food Service in Europe (cont.)
Government / Union Contracts specify work and hours Regional Cuisines Distinctive per each region Most towns have Chinese food and pizzeria Now discovering “California Cuisine” Smaller meat portions and more vegetables Mayonnaise versus Ketchup
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Modern Food Service in Europe (cont.)
Physical Facilities Small to Large Uses more cutlery or utensils Less space between tables Outdoor seating Menu Prices High due to labor cost, low table turnover More extensive food preparations VAT Tax (value added tax) and gratuity included
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Franchising Developments in Food Service
Objective 3
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Franchising Developments
1950’s first business operated franchising Business Format Franchise Fully Integrated relationship Products Operating and Service Standards Trademarks Marketing and strategic planning Quality control Communication
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Franchising Developments (cont.)
80’s, 90’s and 21st century 80’s had international expansion 90’s on every continent but Antarctica Largest Franchises KFC, McDonalds, Subway, Burger King, Wendy’s Dunkin Donuts, Pizza Hut, Taco Bell, Domino’s Some are company owned stores Needs to be seamless so patrons cannot tell Unit Sales Revenues Used to be from new units but now saturated Menu Expansion and Marketing
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Franchising Developments (cont.)
Consistency Consumers expect same at all locations Standardization of the operation Quality Service Cleanliness Value Units were built for efficiency and easy to clean
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Franchising Developments (cont.)
Franchise Agreements & Relationships Franchise Council – 3rd party between franchisor and franchisee Renewal of franchise agreements were tough Franchisors had to protect their brand Standards were put into contracts Had a right to cancel contract without good cause Franchisees had to use trademarks, insignia, packaging and approved suppliers of franchisor
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Franchising Developments (cont.)
Quick Service Restaurant Employees May have no education or prior skills Franchisors set up training opportunities Regional Schools Advanced programs Motivating workers is difficult Repetitive job High turnover Typically younger people until recently
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Franchising Developments (cont.)
Franchising Problems Expansion by means of a standard formula Sambo’s went out of business Had employee benefit to be part owner Government ordered to quit program All employees left Lum’s of Miami Went into bankruptcy due to not dealing with issues
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Management Companies in Institutional Food Service
Objective 4
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Food Service Management Companies
Acts like a franchisor in many ways Largest Food Service Management Companies Compass Group Aramark Sodexho
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Food Service Management Companies (cont.)
Operations Recreational Food Service For Profit Sporting Venues Employee Food Service Cafeteria on-site for employees Ran like commercial restaurant Dining Room, Catering and Semipublic Efficient and Cost Effective
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Food Service Management Companies (cont.)
Operations Healthcare Food Service 3 main types Acute Care Hospitals Long Term Care Facilities Retirement Communities Turning to Contract Operators +Expertise and lower cost to operate +Reduces internal healthcare staff -Loss of control by healthcare, will they decrease quality -Dependence on operator by healthcare facility
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Food Service Management Companies (cont.)
Operations Educational Food Service Primary, Secondary Colleges and Universities Many offer their own food service however the trend is shifting
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