Introduction to the hospitality industry

The word ‘hospitality’ Encompasses all aspects of the hotel and catering (or foodservice) industry. Relatively modern word, meaning the friendly and generous treatment of guests and strangers. ‘Catering’ refers to offering facilities to people, especially the provision of food and beverages. The internationally understood term ‘foodservice’ is now also used.

The worldwide industry World’s largest industry. The industry continues to grow. Multiple food outlets at the Trafford Centre, Manchester (image courtesy of FCSI, UK) Tourism is an essential part of the economy and is the main sector bringing in foreign currency.

The UK hospitality industry Provides customers with food, drink, and/or accommodation. Biggest and fastest-growing UK industry. Hospitality sector – substantial with a wide variety of outlets: most outlets: hotel and pub sector most meals served: foodservice, then pubs, staff catering and healthcare. Some overlap with tourism industry.

Size of the UK hospitality industry 1.7 million people employed £85 billion brought into the UK economy £7.5 billion on accommodation

Types of business Private companies: Public limited companies. sole trader self-employed partnership small/medium business limited liability company. Public limited companies.

Key influences affecting the industry Social trends/lifestyle Amount of disposable income Inflation Available credit Cultural factors Regulation – taxation, VAT, tourism Media – television, advertising, magazines, celebrity chefs

Sectors of the industry Hotels and other tourist accommodation Restaurants, popular catering, fast food, takeaway Retail stores Events/banqueting/conferencing/exhibitions Leisure attractions Motorway service stations Industrial catering Welfare catering Licensed trade Transport catering Outdoor catering (off-premises/event catering)

Variables in sectors Historical background Reasons for customer demand Size of sector Policies: financial, marketing, catering Interpretation of demand/catering concept Technological development Influences/state of sector development Primary/secondary activity Types of outlets Profit orientation/cost provision Public/private ownership

Types of market General market: non-captive: customers have a full choice. Restricted market: captive: customers have no choice semi-captive: customers have a choice before entering but then have to choose from food and drink on offer.

Profit and cost markets The profit market includes hotels, commercial restaurants, pubs, fast food and leisure outlets. The cost market includes catering in business and industry, education, healthcare and the armed forces.

Sectors in the foodservice industry Profit orientated (public or private ownership) (foodservice as main or secondary activity) Cost provision Restricted market General market Restricted market Transport catering Hotels/restaurants Institutional catering Clubs Popular catering Schools Industrial (contract) Fast food/takeaway Universities and colleges Private welfare Retail stores Hospitals Events/conferences/ exhibitions Armed forces Leisure attractions Prisons Motorway service stations Industrial (in-house) Pubs and wine bars ODC (off-premises catering)

Employment in the industry Operational staff Supervisory staff Management staff

Employers’ rights and responsibilities Employers must: provide the employee with a detailed job description and a contract of employment adhere to laws relating to employment of staff, including health and safety and food safety.

Employees’ rights and responsibilities Employees must: work in the way that has been agreed to in the contract and job description follow all the organisation’s policies and practices.

Regulation and protection Employers and people in employment are subject to a variety of legislation. This includes regulations on: Children and Young Persons Licensing Rehabilitation of Offenders Data Protection Asylum and Immigration National Minimum Wage Working Time Regulations and Statutory Sick Pay Sex Discrimination, Race Relations, Disability Discrimination, Human Rights.

Learning and qualifications There are many opportunities to learn. Qualifications are worthwhile because they: inform employers of what you are able to do provide better career prospects and opportunities for personal development help to boost confidence and self-esteem. Apprenticeships are a way to learn skills within a workplace setting while also getting a qualification.

Self learning Improve your knowledge by: reading hospitality journals and books and food magazines searching the internet for food sites e-learning (using CDs, DVDs and the internet). Helps you learn in the way that suits you best. You can work at your own pace, testing yourself when you are ready to be tested.

Examples of professional bodies Academy of Culinary Arts Academy of Food and Wine Service British Hospitality Association British Institute of Innkeeping Craft Guild of Chefs Worshipful Company of Innholders