1. MARKETING THE INDUSTRY SEGMENTS
4.06 Explain the food and beverage industry.

2. Food and beverage business: A business operated to prepare, serve, sell, or provide food for people to eat

3. Segments of the food and beverage industry
Commercial foodservice
Institutional foodservice
Foodservice in a consumer business

4. Commercial foodservice: Profit-driven businesses that compete for customers’ dollars by preparing, serving, selling, or providing food for immediate consumption
Fine dining operations
Fast food restaurants
Cafeteria operations
Buffet restaurants
Theme restaurants
Ethnic restaurants
Family restaurants
Catering operations

5. Fine dining operations
Service is concentrated and the ratio of servers to customers is high.
Dining is enjoyed over an extended period of time.
Chefs are highly qualified and their skills contribute to atmosphere.
These businesses are frequented by only a small percentage of population.
Customers are seated at tables, and a server takes guests’ orders.
Meal selections come from a set menu, with daily specials.
Food and service is of highest quality.
Prices are consistent with quality—high.
Atmosphere is important.
Food is cooked to individual order.

6. Fast Food/Quick Service
Facilities and operations are designed for faster service.
Counter service and/or drive-thru window service are provided.
Menu choices are minimal.
Food preparation time is quick.
The customer dining area is small.
Atmosphere does not encourage customers to linger over meals.

7. Cafeteria operations
Consists of a long serving line with menu items on display
Customers move their trays along the serving line and ask food servers to plate the item they select.
A hot line/side and a cold line/side are often provided.
Dining areas are large to serve large groups.
Customers get food items, take trays with them, and seat themselves.

8. Buffet Restaurants
Food is displayed on special tables that keep the food hot or cold.
Customers get up and down from their tables to get the food they want.
Servers clear the dirty dishes and may provide beverage service.
Buffet service is capable of handling large groups of people.

9. Theme Restaurants
Carry out a common theme throughout all parts of the operation; menu items, décor, servers’ uniforms, and sometimes music are factors in setting theme
“Total experience”

10. Ethnic Restaurants Most are independently owned.
Several notable successful chains
Serve needs of immigrants in the area and customers who want to try something new

11. Family Restaurants Cater to all members of the family
Relaxed setting, menu provides for all ages
Some have salad and dessert bars
Special menus for children
All-day menus

12. Catering Operations
Provide food, beverages, and service for special occasions
May have their own location and cater groups there, or they may cater to groups at other locations
Coordinate many details and must keep in close touch with the customer
Weather may impact outdoor activities

13. Institutional Foodservice: Foodservice that is provided to customers in an institution such as a hospital, prison, school, or the military
In-house foodservice
Contract foodservice

14. In-house foodservice: A foodservice operation that is run by the business itself

15. Contract foodservice: An institutional foodservice operation that is run by an outside foodservice agency

16. Foodservice in a consumer business
A food and beverage business sometimes operates within another business.
The food is not the main purpose of going to these attractions or locations, but it enhances the experience.
These businesses have characteristics of both institutional and commercial foodservice.
Examples: airports and sports arenas

17. Factors affecting location *Location is key factor in marketing mix
What are demographics of surrounding population?
Is there growth in immediate area?
What is existing public infrastructure?
Does the property/building have good access?
Is there enough parking?
Is the property visible from surrounding roadways?
Who are the competitors?

18. Foodservice Industry Trends
Americans eat approximately half of their meals away from home.
When dining at home, Americans want food items that are convenient and quick to prepare.
Take-out continues to be popular.
Consumers expect high-quality ingredients.
Theme restaurants make eating out entertaining, not just convenient.
Healthy choices are very important.
Technology has improved service.

19. Advertising in the food and beverage industry
Smaller operations can target local markets through local media.
National chains use television for broad exposure.
Magazine ads can target specific markets and geographic areas.
Billboards are used to direct tourists to businesses in the local area.

20. Personal selling in the food and beverage industry
Suggestive selling is important in any restaurant.
A server’s knowledge of the product and preparation methods helps the sales process and image of the business.
The one-on-one customer contact generates immediate feedback.

21. Sales promotion in the food and beverage industry
Toys in kid’s meals, t-shirts, and specialty glassware
Temporary plans incorporated to bring customers into the business
Rate cards and informal surveys
Table tents
Sales promotions are only as effective as the salesperson trying to sell them.