Post on 17-Dec-2015
Food and BeverageFood and Beverage
Largest of the 5 sectorsBrings in about $24 billion annually in
Canada according to the Canadian Tourism Human Resource Council
Approximately 775,000 in 2006Training ground for many people
beginning their careers
HistoryHistory
Restaurants have existed since the 1500s
Fork first introduced in 1533First restaurant in the US opened in
1827Antoine’s opened in New Orleans in
1840 and is still in operation today
Two DivisionsTwo Divisions
Commercial food services – 78% of market share - primary business is the service of food and drink E.g. Restaurants, fast food outlets, clubs, bars,
pubs, etc. Non-commercial food services – 22% of the
market share - found where the primary business is not the service of food and drink E.g. airports, museums, hospitals, schools,
retirement homes, the military, recreational camps, etc.
Casual DiningCasual Dining
Luxury of fine dining is being replaced by casual dining
More casual atmosphere – plants, natural wood, earth tones
Smaller and more intimate restaurantFewer menu items to choose from
TakeoutTakeout
Represents 50% of industry’s total growth
Busier lives, more two income families mean more takeout
Grocery stores offering more ready-to-eat foods to compete with take-out
Dining Out with ChildrenDining Out with Children
Children often influence where the family eats
Restaurants cater to children with a children’s menu (hamburgers, hot dogs, fries, etc)
Crayons and menu that doubles as a game or colouring page
Child friendly play area
ServiceService
Tops the list of reasons a consumer returns to a restaurant
Important for management to know what customer satisfaction is
Restaurant surveys can indicate customer satisfaction
NutritionNutrition
More choice for side dishes – salads instead of fries
A lot of people are watching what they eat now, but most “treat themselves” when eating out
Restaurants recognize diet trendsResearch shows that most people eat what
they want and “get back on track” the next day
Allergy AwarenessAllergy Awareness
More people are developing food allergies
Ingredients should be available upon request
Allergens include: MSG, peanuts, nut oils, preservatives
Responsibility of the restaurant staff to identify all ingredients in a dish
Legal IssuesLegal Issues
New alcohol laws Drinking-and-driving legislation
New smoking lawsDesignated smoking room (DSR)No Smoking
IndependentsIndependents
Owned by one or two individualsFlexible businessOwners can easily change menus or
décorCan be risky – huge personal
investment80% bankrupt in 5 years
Multi-Unit CorporateMulti-Unit Corporate
Corporate headquarters provide leadership, control and planning
Managers trained by corporationOperate independently – but must
follow company policy and meet quotasExamples: Lone Star, Boston Pizza
FranchiseFranchise
Advantage of a brand name product, national advertising, training
Disadvantage of high franchise fees, pay % of monthly revenue to company, no flexibilityExamples: McDonalds, Tim Hortons
Commercial Food ServiceCommercial Food Service
Haute CuisineElegant and expensiveHighly trained staff, exemplary service,
exclusive clienteleRestaurant has beautiful silverware, crystal
goblets, fresh linen tablecloths and napkins, exotic flowers
Food is cooked daily by chef and sous-chef
Commercial Food ServiceCommercial Food Service
Fine DiningUnique and exciting foodHighly trained wait staffCostly table settingsNot as exclusive as Haute Cuisine
Commercial Food ServicesCommercial Food Services
DiningBistros – casual dining, simple decorFamily style – found in suburbs or tourist
attractionsSpecialty – serves one kind of foodEthnic – specialize in national dishesTheme – theme more important than the foodBuffet – customers help themselves to the
food
Commercial Food ServicesCommercial Food Services
Limited Service RestaurantsCoffee houses – Tim Hortons, StarbucksCafeterias – similar to buffet, but portions
are presetFast Food – customer does some of the
work: locating napkins, condiments, straws, place to sit, and clean up
Commercial Food ServicesCommercial Food Services
Drinking EstablishmentsPubs – typical of an English barBarsLoungesClubs
Non-commercial Food Non-commercial Food ServiceService
Social and contract caterersMajor suppliers to the airlines, bus and
rail systems, recreational camps, museums, historic sites, sports arenas, special events
E.g. Cara Operations, Compass Group
Tourism and the Food Service Tourism and the Food Service IndustryIndustry
Tourism Sales Dependent Restaurants – earn more than 50% of their sales revenues from tourists
Example: McDonald’s across from train depot in Banff
Tourism Profit Dependent Restaurants – earn 20-50% of their sales revenues from tourists
Location is key, must be close enough to a major highway, attraction, high traffic shopping, accommodations