Branding and Merchandising 7.01 Discuss food & beverage services.

Segments of Food & Beverage Service Industry

Concessions Mobile carts or units that sell food and beverages Vendors that sell food and beverages to attendees in seating areas - Also called hawkers because they “watch fans like a hawk” for opportunities to make sale

Counter Service Similar to quick-service restaurants or food courts

Full-Service Sit-down, public eating places with services provided by a wait- staff Suites are rooms with a view of event with seating and food & beverage services provided by full-service wait-staff

Specialty Services Includes combination of event and segment of the food & beverage industry Example: Cinema Grill in Atlanta, Georgia combines dinner and a movie +

History of food & beverage services 1. Harry M. Stevens- H.M. Stevens Concessions Company a.“Father of ballpark concessions” b.Sold first program at a baseball game in Columbus, Ohio in 1887 c.Sold scorecards to crowds at racetracks, ballparks and arenas d.Initialized the selling of hotdogs, soft drinks at sporting events e.Became one of the seven largest concessionaires in the U.S

History of food & beverage services, cont.. 2. Cretors & Company a. Founded in 1885 b. Patented the process of popping corn in oil in 1893 c. Introduced first popcorn popping machine at World’s Columbian Exposition in Chicago, Illinois d. Influenced the creation of machines for use in theaters

History of food & beverage services, cont.. 3. National Association of Concessionaires - NAC a. Founded in 1944 as association for recreation and leisure-time food & beverage service industry b. Provides members and services who seek to increase standards of excellence in the food & beverage services industry with information

History of food & beverage services, cont.. i. Movie theaters ii. Stadiums & arenas iii. Zoos & aquariums iv. Colleges & universities v. Foodservice contractors vi. Parks & recreation departments vii. Amusement parks & family entertainment centers viii. Ice skating rinks ix. Roller skating rinks x. Racetracks xi. Bowling centers xii. Outdoor facilities xiii. Convention centers c. Included are owners and operators from the following facilities:

Contracting food & beverage services Contracting is an agreement between a venue and an external company that provides food & beverages services

Contracting food & beverage services - Advantages Less time consuming Responsibility of training and staffing employees is assumed by the contractor Financial liability for waste, spoilage, or other losses is transferred to the contractor Responsibility of day-to-day operations is assumed by contractor

Contracting food & beverage services - Disadvantages Venue gives up managerial control with staffing, inventory and merchandising Less profit due to contractor fees

Self-operating food & beverage services Involves owning or operating ones own food & beverage services Also referred to as in-house operations

Self-operating - Advantages Owners control decision-making process Profits increased by cutting out middle-man

Self-operating - Disadvantages Owner assumes all financial liability for waste spoilage or other losses Owner responsible for training and staffing Owner must have in-depth knowledge of complete operation

Costs of operating food & beverage services 1.Start-up costs are associated with initial venture of owning a business -Example: equipment, signage, utilities 2.Cost of goods sold include all costs associated with manufacturing products or purchasing goods for resale. -Example: food, wrappers, condiments, paper products, and containers

Costs of operating food & beverage services, cont.. 3. Operating expenses include costs associated with day-to-day operations of a business A. Fixed operating expenses do not vary over a specified period of time Example: insurance, rent or leases B. Variable cost vary on a monthly basis Example: supplies, utilities, advertising, and security

Factors that affect revenues 1. Attendance 2. Type of event 3. Weather 4. Team standing (winning or losing season) 5. Expenses -For example: start-up cost, cost of goods sold, and operating expenses 6. Per capita spending -Average money spent by each spectator