1. Introduction to the hospitality industry

2. 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.

3. 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.

4. 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.

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

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

7. 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

8. 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)

9. 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

10. 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.

11. 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.

12. 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)

13. Employment in the industry
Operational staff
Supervisory staff
Management staff

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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