1. Food and Beverage Management
Chapter 1 – The Food Service Industry
Food and Beverage Management

2. Eating is not optional The History of Food Service –
First Restaurants were part of homes that sold rooms and food to travellers
By the time of the Roman Empire, Inns were common.
The Roman Catholic Church – first “Hotel Chain”
Inns and Alehouses in England as early as 1400 AD
In the Americas – Cole’s Ordinary was among the first – Boston 1634

3. Food and Beverage in the Modern Era
The early 20th century saw the construction of large modern hotels 1950’s – many felt the quality of food and beverages had declined in hotels. Today Food and Beverage is considered a prime profit center for many hotels.

4. Freestanding Restaurants
Began in 1765 in Paris, France – the word restaurant derives from this establishment. In the U.S. the first restaurant is generally accepted as Delmonico’s in New York City (1827). The group closed in “Harvey House” was the first chain of commercial restaurants and hotels in the U.S.
Guilds of Innkeepers and Catering Operators. This was a soup vendor (the Original Soup Nazi!)– who sold his/her soup as “le Restaurant Divine” the “Divine Restorative”
In 1878 Harvey started the first of his eating house-hotel establishments along the AT&SF tracks in Florence, Kansas.[1][2] The rapid growth of the Harvey House chain soon followed.
Fred Harvey is credited with creating the firstrestaurant chain in the United States. Harvey and his company also became leaders in promoting tourism in the American Southwest in the late 19th century. The company and its employees, including the famous waitresses who came to be known as "Harvey Girls", successfully brought new higher standards of both civility and dining to a region widely regarded in the era as "the Wild West". The popularity of the Harvey Girls grew even stronger in 1946, when Judy Garland starred in the film version of Samuel Hopkins Adams’ novel The Harvey Girls.[3]

5. Non Commercial Facilities
Business
Mills
Employee Benefit
Office Coffee Services
Hospitals
Therapeutic diets
Schools
Food Service began in mid 1800’s

6. Evolution of Food Establishments
The automobile – drive in restaurants, drive through, etc. (A&W, Howard Johnsons)
Quick Service and “Fast Food” (McDonalds, Burger King)
“Fast” Casual Food
Food Trucks
Delivery (Pizza, restaurant menus)
Laundro Bars
Food Courts
Grocery take out / sit down (Whole Foods)
Home Meal replacements

7. Basic Segments Commercial Food Service Operations –
Non Commercial Food Service Operations

8. Commercial Food Service
Commercial Food Service Operations attempt to maximize profits primarily through the sales of Food and Beverage
Examples:
Restaurants
Hotel F&B outlets
Other – catering, food truck, carts, etc.

9. Freestanding Eating and Drinking Places –
Can Be independent
Corporate
Chain and Franchise
Styles Include:
Fine Dining
Casual Dining
Family Service
Quick Service

10. Lodging Food Service Operations
Full Service
A La Carte Dining – Gourmet to Family
Catering
Room Service
Coffee shops
Bars
Limited Service
“Lobby Food Service”
None

11. Other Commercial Facilities
Public Cafeterias
Bars, Taverns, Lounges
Ice Cream Stands
Caterers
Food carts and trucks

12. Non Commercial Operations
Operations offering Food and Beverage as a component of –but not the primary mission
Usually focus on offering nutritious meals and minimize expenses related to Food and Beverage Operations

13. Non Commercial Business Industry Healthcare Educational
Leisure/recreation
Transportation Organizations
Private Clubs

14. Leisure and Recreational
Business / Industry
Company canteens (Google), Vending
Healthcare
Hospitals, Orphanages, Nursing Homes
Educational Institutions
Schools, Universities, Senior meals
Private Clubs
Country Clubs, Dining Clubs
Leisure and Recreational
Arenas, Amusement Parks, Casinos, Bowling alleys
Transportation Companies
Airlines, Trains, Ships
Others
Prisons, Military, Religious, athletic facilities, Cruise Lines,

15. Organization of Commercial Operations
Commercial Food Services – 3 main categories
Independents
Chain Restaurants
Franchises

16. Independants Chain Restaurants
Owned by an owner or group with no chain affiliation
May have multiple units
Chain Restaurants
Multi Unit Organizations
Often have the same menu, purchase cooperatively
Maybe owned by a Company, Franchise company, private owners(s)

17. Advantages of Chain Restaurants
Easier to acquire cash, credit and long term leases
Scale affords the opportunity to make a mistake
Ability to experiment (foods, décor, etc)
Personnel advantages
Can afford specialists (finance, risk management
Better internal controls – can compare results within units.

18. Disadvantages of Chains
Difficult to keep up with changing markets and economic conditions
Bureaucracy creep slows and can hamper efficiency
Single bad event can damage the entire chain

19. Franchises Special category of Chain Restaurants
Franchisee pays a fee to for the right use the Name, Design and Business Methods of the Franchisor
Franchisees are often local investors
Maybe be required to pay royalty fees on a percentage of revenue, advertising fees, sign rentals, food products etc.

20. Advantages to Franchising
Start up assistance
Company training programs
National Advertising campaigns
Name Recognition, Food Consistency
Lower food cost with volume purchasing
Tested operating procedures
Employee recruiting

21. Disadvantages Strict Contracts Contracts tend to favor Franchisor
Menu set
Décor set
Specified production equipment
Contracts tend to favor Franchisor
Little room to negotiate
Co Branding – 2 franchises share facilities

22. Non Commercial Companies and Contract Management Companies
As Pressures for cost containment mixed with lower revenue, there is a need for non commercial operations to operate more like their commercial counterparts
Advantages
Large Companies have greater resources to solve problems
Can save money through effective national negotiations
Can often operate at lower costs
Faculty administrators can delegate to food service professionals

23. Disadvantages to Contract Management Companies
May assume too much control – effecting public image
Some people dislike the profit motivation in non profit type operations
Concerns of decreased food quality
Organization may become too dependent on the CMC.

24. The Future of Food Service
Home Meal Replacements
QSR – new foods and higher quality items
More entertainment in casual restaurants
More offering in non traditional stores (7-11)
Comfort foods, Fusion Cuisine, Healthy choices
Green Restaurants
Improved Technologies

25. Vocabulary A La Carte Menu Chain Restaurant Co-Branding Comfort Foods
Commercial Food Service Operation
Franchise
Franchisee
Franchisor
Green Restaurant
Home Meal Replacement
Independent Operation
Lobby Food Service
Non commercial food service operation
Office coffee service