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

2. The food and beverage industry has three parts
Restaurants Concessions
Catering
What do you think are the differences between the three parts?

3. 3 parts of Food and Beverage
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.
Catering brings the restaurant to the guest, instead of asking the guest to come to the restaurant.

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

5. Food Trucks Con’t
the “roach coach” style of food truck. It serves greasy, unhealthy food.
Today, there are many food trucks that have outstanding health and safety ratings and serve gourmet food.
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.
entrepreneurial chef to start a restaurant without all the expenses of a “real” restaurant in a building

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

7. 3 Types of Resturants
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.
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.
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.

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

9. Ambiance
The ambiance means the atmosphere or environment of a particular place—the kind of feeling it inspires.
Cafés may serve a wide variety of food, so a café is characterized by its ambiance rather than by its menu.
Pubs also have a particular ambiance, which may include lots of leather and wooden furnishings, along with a display of the beers. Breweries are places that brew their own beer, and some breweries may display some of their beer-making equipment as part of the décor as well.
The newest trend is what’s called a gastropub, which offers high-quality food as well as beer.
The third picture shows a restaurant that is characterized by its food rather than its ambiance. In this case, the type of food is sushi

10. 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?

11. Food and beverage industry in the ecomony
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. The number of Hispanic-owned restaurant businesses jumped 80%, Asian-owned restaurants 60%, and restaurants owned by women increased by 50% during this time period.

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

13. Ethnic Dining
Chinese, Mexican, and Italian food have been popular for many years; in fact, they are staples of the American diet, meaning that people eat them regularly.
Mexican food remains the fastest-growing ethnic food trend.

14. 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.

15. Statistics
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.

16. 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?

17. A concession stand is a place where you can buy snacks or food at a cinema, a fair, a stadium, or other entertainment venue.
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.
food trucks may operate as concession stands.
many concession stand owners must pay a percentage of their sales to the owner of the building, so their prices have to be high just to stay in business!

18. 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.

19. The catering business will supply the food for a social event
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.
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.
Hotels and convention centers also have catering departments that assist meeting planners holding events in those venues.