AOHT Principles of Hospitality and Tourism Unit 3, Lesson 7 The Food and Beverage Industry Copyright © 2007–2014 National Academy Foundation. All rights reserved.

The food and beverage industry has three parts What do you think are the differences between the three parts? RestaurantsConcessions Catering

Differences between the three parts Restaurants are businesses that serve food for purchase. There is an incredible variety of them: diners, cafés, sushi and tapas bars, Italian bistros, delicatessens, fancy French ones, and everything in between. Concession stands offer food for purchase at events. You have probably seen a concession stand at a movie theater or basketball game. Catering brings the restaurant to the guest, instead of asking the guest to come to the restaurant. A catering company brings the food, tables, silverware, and so on, to a specific location, whether it is a wedding in a park, a party in someone’s back yard, or a fundraising dinner at a museum.

Food trucks are a new trend They can serve restaurant-quality food They are casual like a concession stand They bring the food to the people, like a caterer Food trucks combine elements of all three parts of the industry: Have you ever eaten at a food truck?

Food trucks are a new trend You’ve probably heard people talk about the “roach coach” style of food truck. It serves greasy, unhealthy food, isn’t very clean inside, and is not a great place to eat. But in the last few years, more and more people have been using food trucks as a new way to bring the food to the people. Today, there are many food trucks that have outstanding health and safety ratings and serve gourmet food. A lot of these chefs took their ideas from ethnic “street” foods that are served in different parts of the world, or they combined different cuisines to create their own unique flavors (Korean tacos, for example). Some food trucks specialize in one specific thing—waffles, for example, or sushi or cupcakes. These food trucks frequently cater to people who work in office buildings in downtown areas, and they may announce where they are going to be by using Twitter or Facebook. Food trucks can be a great way for an entrepreneurial chef to start a restaurant without all the expenses of a “real” restaurant in a building. A food truck is also a good opportunity for a restaurant to cater less formal events such as tailgating, holiday, or birthday parties.

In the hospitality industry, restaurants are classified as quick service, midscale, or upscale Can you guess which photo shows which type of restaurant?

Quick service, midscale, or upscale Quick-service restaurants are also called are fast-food restaurants. They offer limited menus that are prepared quickly. They usually have drive-thru windows and takeout. Some quick-service restaurants offer a place to sit down and eat, as in the top photo above Midscale restaurants offer full meals at a medium price that customers perceive as good value. They can be full service, buffets, or limited service, with customers ordering at the counter and having their food brought to them.Frequently called: sit-down restaurants because they are designed for people to eat sitting at tables or scale restaurants family style, because they are typically casual enough for families with small children to be comfortable. Upscale restaurants are what you might picture as a “fancy” restaurant. They offer gourmet or high-quality cuisine at a high-end price. They offer full service and have a luxurious atmosphere

Restaurants may also be classified by ambiance or food types being served How would you describe or classify the restaurants shown here?

Ambiance The ambiance means the atmosphere or environment of a particular place—the kind of feeling it inspires This picture shows an outdoor café. The café’s ambiance will be affected by where the restaurant is located—a sidewalk café in the middle of a city will feel different from a beachside café in a small town. Cafés may serve a wide variety of food, so a café is characterized by its ambiance rather than by its menu.

Ambiance The picture on the left shows a pub, often called a tavern, bar, or brewery. They specialize in beer. In the United States, they typically serve an American menu of burgers, sandwiches, soup and salad, along with a wide variety of beers. Pubs also have a particular ambiance, which may include lots of leather and wooden furnishings, along with a display of the beers. The newest trend is what’s called a gastropub, which offers high-quality food as well as beer. This picture is a restaurant that is characterized by its food rather than its ambiance. In this case, the type of food is sushi, a Japanese cuisine that serves fish and rice in small, bite-sized pieces. Some sushi restaurants have a memorable ambiance, but others are simple storefronts that serve sushi inside. So, in this case, the restaurant would be defined by what it serves rather than by its ambiance.

The food and beverage industry is a big part of the economy, and it includes a lot of small businesses The industry employs an estimated 13.1 million people. The industry is expected to add 1.8 million jobs in the next decade. Nearly half of all adults have worked in the industry at some point during their lives, and more than 1 in 4 adults got their first job experience in a restaurant. Take a guess: How many businesses in this industry are owned by women? Asians? African Americans? Hispanics?

Answer On a typical day in 2013, the restaurant industry will make $1.8 billion. Industry sales increased by 3.8% over 2012 and are projected to reach a record $660 billion in 2013, according to the National Restaurant Association. Between 1997 and 2007, which is the most recent year available for this information, the number of restaurants owned by: African Americans increased 188%. This is more than five times the rate of growth in restaurant businesses overall. Hispanic-owned restaurant businesses jumped 80% Asian-owned restaurants 60%, Restaurants owned by women increased by 50% during this time period.

Ethnic dining is extremely popular Sushi Quesadillas Shish kabobs Curry Lasagna What countries do these foods come from? Which ones have you tried?

Trends are changing in the food and beverage industry Four hot trends in 2012: Locally grown, sustainably farmed food Food trucks Nutritious children’s food Slow food movement Grass-fed beef is a new healthy option in many restaurants.

Why choose a particular restaurant? A few statistics about why people choose to eat at a particular restaurant: 68% said their favorite restaurant foods provide flavor and taste sensations that cannot easily be duplicated in their home kitchen. 76% said they are trying to eat healthier now at restaurants than they did two years ago. 70% said they are more likely to visit a restaurant that offers locally produced food items. 69% said purchasing meals from restaurants, takeout, and delivery places makes it easier for families with children to manage their day-to-day lives. 52% said they are likely to make a restaurant choice based on how much a restaurant supports charitable activities and the local community. 27% said that when it comes to choosing a restaurant, they are paying more attention to coupons and value specials than they were two years ago.

Concessions are the second part of the food and beverage industry Concession operations generally work in conjunction with other activities such as sporting events, movies, or live performances. What types of food do you usually see at concession stands? Look at the photos. Why do you think those types of foods are served there?

Concession Stands Frequently, the food sold at concession stands is junk food— such as french fries, ice cream, popcorn, pizza, hot dogs, soft drinks, funnel cakes, and candy. Junk food is popular and sells well. It is also easy to make, because a lot of it is prepared and prepackaged so that the workers can provide it quickly. All the food sold at concession stands needs to be easy to prepare, with only one or two steps.

Catering is the third part of the food and beverage industry Catering provides food for a specific event, such as a wedding or a conference. List some events that might be catered.

Catering The catering business will supply the food for a social event. This will include customizing a menu with your vision and budget in mind. More often than not, a catering business will offer event planning services along with the food service—for example, planning and organizing music, entertainment, photography, setup, and breakdown. Catering businesses can be used just for food and beverage or they can help coordinate the whole event. Weddings are one of the most commonly catered events. Other events may include bat and bar mitzvahs, baby and bridal showers, private parties at people’s homes, fundraising dinners, corporate meetings, or conferences