CHAPTER 1: The Food Service Industry. FS industry is part of the large HOSPITALITY Industry divided...
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Transcript of CHAPTER 1: The Food Service Industry. FS industry is part of the large HOSPITALITY Industry divided...
CHAPTER 1: The Food Service 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
MAXIMIZES Profit through sale of Food and Beverage sales
Examples:◦ Free-standing restaurants
◦ Food and Service in lodging properties
◦ Other
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
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)
1634: American Inns and Taverns followed Travelers – Cole’s Ordinary in Boston
20th Century: Hotel’s in every large U.S. City
First Restaurant MONSIEUR BOULANGER
1600’s : Coffee Houses in England
1765 : Traiteurs in France – restorative soup
1827 : Delmonico’s in America
http://www.delmonicosrestaurantgroup.com/restaurant/gallery-videos.html
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
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
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
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
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