CHAPTER 1: The Food Service Industry HOST 154 CHAPTER 1: The Food Service Industry

FOOD SERVICE: A Diverse Industry FS industry is part of the large HOSPITALITY Industry divided into 2 basic segments 1. Commercial Operations 2. Non Commercial Operations See exhibit 4 – pg 7

Commercial Operations MAXIMIZES Profit through sale of Food and Beverage sales Examples: Free-standing restaurants Food and Service in lodging properties Other

Non Commercial operations Providing Food and Beverage Service is not the primary mission – seeks to MINIMIZE expenses – nutritious meals Examples: See Exhibit 4 pg 7 Contract Management Companies Self Operated Food Services

Food Service Origins Hotel Restaurants Evolved from early Inns and other rest shelters for travelers Middle Ages: Roman Catholic Church first hotel chain-hospice 1400’s: English Inns – ale houses (hostels)

Food Service Origins Hotel Restaurants 1634: American Inns and Taverns followed Travelers – Cole’s Ordinary in Boston 20th Century: Hotel’s in every large U.S. City

Food Service Origins Freestanding Restaurants 1600’s : Coffee Houses in England 1765 : Traiteurs in France – restorative soup First Restaurant MONSIEUR BOULANGER

Food Service Origins Freestanding Restaurants 1827 : Delmonico’s in America http://www.delmonicosrestaurantgroup.com/rest aurant/gallery-videos.html 1912: Harvey’s first Chain 1920’s: Automobiles – drive in-car hops 1960’s: Drive thru Quick Service Franchise Operations (fast foods) Home meal replacements is a trend – Mark’s Place

Food Service Origins Non Commercial Operations Business: 1812: Robert Owen “Father” of industrial catering in England 1820’s: Lunch Rooms in America 1900’s: Cafeteria Service in Plymouth, Mass World War I: increase of food service to workers World War II: Coffee Break introduced – vending Hospitals: restore patient health Schools: 1935 Congress subsidized food programs

Organization of Commercial Operations Independents owners have no chain relation Mom and Pop Chain Restaurants Standardize menus Multi-unit organizations Franchises Special category of chain operations Franchisee pays Franchisor fees for use of brand

Non Commercial Operations and Management Companies Need to control and manage noncommercial food service operations by using for profit contract management companies. Advantage: MC has Greater resources MC can Negotiate with suppliers lower food cost Disadvantage: MC assume too much control MC decrease F&B quality MC for profit in a healthcare, educational, or other

FUTURE of the Food Service Industry Global recession Slowed business expansions Reduced guest counts Lower revenues – less spending guests A la carte menus More comfort foods Reduce operating costs without losing quality Rise on Home replacement meals Quick Service chains buying other chains Casual Dining and Entertainment Convenience Stores gaining market share – co branding Ethnic fusion is free standing Green Restaurants Increase in Technology

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