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

2. 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

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

4. 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

5. 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)

7. 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

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

9. Food Service Origins Freestanding Restaurants
1827 : Delmonico’s in America
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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

10. 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

11. 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

12. 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

13. 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

14. The end