Hospitality and Tourism 110Hospitality and Tourism 110Food and Beverage

Food and BeverageFood and Beverage

Largest of the 5 sectorsBrings in about $24 billion annually in

Canada according to the Canadian Tourism Human Resource Council

Approximately 775,000 in 2006Training ground for many people

beginning their careers

HistoryHistory

Restaurants have existed since the 1500s

Fork first introduced in 1533First restaurant in the US opened in

1827Antoine’s opened in New Orleans in

1840 and is still in operation today

Two DivisionsTwo Divisions

Commercial food services – 78% of market share - primary business is the service of food and drink E.g. Restaurants, fast food outlets, clubs, bars,

pubs, etc. Non-commercial food services – 22% of the

market share - found where the primary business is not the service of food and drink E.g. airports, museums, hospitals, schools,

retirement homes, the military, recreational camps, etc.

TRENDSTRENDS

Casual DiningCasual Dining

Luxury of fine dining is being replaced by casual dining

More casual atmosphere – plants, natural wood, earth tones

Smaller and more intimate restaurantFewer menu items to choose from

TakeoutTakeout

Represents 50% of industry’s total growth

Busier lives, more two income families mean more takeout

Grocery stores offering more ready-to-eat foods to compete with take-out

Dining Out with ChildrenDining Out with Children

Children often influence where the family eats

Restaurants cater to children with a children’s menu (hamburgers, hot dogs, fries, etc)

Crayons and menu that doubles as a game or colouring page

Child friendly play area

ServiceService

Tops the list of reasons a consumer returns to a restaurant

Important for management to know what customer satisfaction is

Restaurant surveys can indicate customer satisfaction

NutritionNutrition

More choice for side dishes – salads instead of fries

A lot of people are watching what they eat now, but most “treat themselves” when eating out

Restaurants recognize diet trendsResearch shows that most people eat what

they want and “get back on track” the next day

Allergy AwarenessAllergy Awareness

More people are developing food allergies

Ingredients should be available upon request

Allergens include: MSG, peanuts, nut oils, preservatives

Responsibility of the restaurant staff to identify all ingredients in a dish

Legal IssuesLegal Issues

New alcohol laws Drinking-and-driving legislation

New smoking lawsDesignated smoking room (DSR)No Smoking

OwnershipOwnership

IndependentsIndependents

Owned by one or two individualsFlexible businessOwners can easily change menus or

décorCan be risky – huge personal

investment80% bankrupt in 5 years

Multi-Unit CorporateMulti-Unit Corporate

Corporate headquarters provide leadership, control and planning

Managers trained by corporationOperate independently – but must

follow company policy and meet quotasExamples: Lone Star, Boston Pizza

FranchiseFranchise

Advantage of a brand name product, national advertising, training

Disadvantage of high franchise fees, pay % of monthly revenue to company, no flexibilityExamples: McDonalds, Tim Hortons

Commercial Food ServiceCommercial Food Service

Commercial Food ServiceCommercial Food Service

Haute CuisineElegant and expensiveHighly trained staff, exemplary service,

exclusive clienteleRestaurant has beautiful silverware, crystal

goblets, fresh linen tablecloths and napkins, exotic flowers

Food is cooked daily by chef and sous-chef

Commercial Food ServiceCommercial Food Service

Fine DiningUnique and exciting foodHighly trained wait staffCostly table settingsNot as exclusive as Haute Cuisine

Commercial Food ServicesCommercial Food Services

DiningBistros – casual dining, simple decorFamily style – found in suburbs or tourist

attractionsSpecialty – serves one kind of foodEthnic – specialize in national dishesTheme – theme more important than the foodBuffet – customers help themselves to the

food

Commercial Food ServicesCommercial Food Services

Limited Service RestaurantsCoffee houses – Tim Hortons, StarbucksCafeterias – similar to buffet, but portions

are presetFast Food – customer does some of the

work: locating napkins, condiments, straws, place to sit, and clean up

Commercial Food ServicesCommercial Food Services

Drinking EstablishmentsPubs – typical of an English barBarsLoungesClubs

Non-commercial Food Non-commercial Food ServiceService

Social and contract caterersMajor suppliers to the airlines, bus and

rail systems, recreational camps, museums, historic sites, sports arenas, special events

E.g. Cara Operations, Compass Group

Tourism and the Food Service Tourism and the Food Service IndustryIndustry

Tourism Sales Dependent Restaurants – earn more than 50% of their sales revenues from tourists

Example: McDonald’s across from train depot in Banff

Tourism Profit Dependent Restaurants – earn 20-50% of their sales revenues from tourists

Location is key, must be close enough to a major highway, attraction, high traffic shopping, accommodations

Tourism and the Food Service Tourism and the Food Service IndustryIndustry

Resident Sales Dependent Restaurants – earn <20% of their sales revenues from touristsMay profit from tourism dollars but

survive without them