7.01 Discuss food & beverage services.

Food & Beverage

• (F&B) - the sector/industry that specializes in the conceptualization, the making of, and delivery of foods.

Segments of food & beverage service industry

• Concessions• Counter Service• Full-Service• Specialty Services

Segments of food & beverage service industry - Concessions

• Mobile carts or units- sell food and beverages

• Vendors (hawkers)- sell food and beverages to attendees in seating areas

- watch fans for opportunitiesto make sale

Segments of food & beverage service industry – Counter Service

• Similar to quick-service restaurants or food courts

Segments of food & beverage service industry – Full-Service

• Sit-down, public eating places with services provided by a wait- staff

• Suites are rooms with a view of event with seating and food & beverage services provided by full-service wait-staff

Segments of food & beverage service industry – Specialty Services

• Includes combination of event and segment of the food & beverage industry

• Example: Epicenter Theaters in Charlotte combines dinner and a movie

History of food & beverage services

1. Harry M. Stevens- H.M. Stevens Concessions Companya. Considered the “father of ballpark concessions”b. Sold first program at a baseball game in Columbus, Ohio

in 1887c. Began by selling scorecards to crowds at racetracks,

ballparks and arenasd. Initialized the selling of hotdogs, soft drinks at sporting

eventse. Became one of the seven largest concessionaires in the

U.S

History of food & beverage services2. Cretors & Company

a. Founded in 1885b. Patented the process of popping corn in oil in

1893c. Introduced first popcorn popping machine at

World’s Columbian Exposition in Chicago, Illinoisd. Influenced the creation of machines for use in

theaters

History of food & beverage services

3. National Association of Concessionaires - NAC

a. Founded in 1944 as association for recreation and leisure-time food & beverage service industry

b. Provides members and services who seek to increase standards of excellence in the food & beverage services industry with informationc. (next slide)

History of food & beverage servicesc. Included are owners and operators from the following facilities:

i. Movie theatersii. Stadiums & arenasiii. Zoos & aquariumsiv. Colleges &

universitiesv. Foodservice contractorsvi. Parks & recreation

departmentsvii. Ice skating rinks

viii. Amusement parks & family entertainment centers

ix. Roller skating rinksx. Racetracksxi. Bowling centersxii. Outdoor facilitiesxiii. Convention centers

Contracting food & beverage services

• Contracting is an agreement between a venue and an external company that provides food & beverages services

Contracting food & beverage services - Advantages

• Less time consuming• Responsibility of training and staffing food &

beverage employees is assumed by the contractor• Financial liability for waste, spoilage, or other

losses is transferred to the contractor• Responsibility of day-to-day operations is assumed

by contractor

Contracting food & beverage services - Disdvantages

• Venue gives up managerial control with staffing, inventory and merchandising

• Less profit due to contractor fees

Self-operating food & beverage services

• Involves owning or operating ones own food & beverage services

• Also referred to as in-house operations

Self-operating food & beverages services - Advantages

• Owners control decision-making process• Profits increased by cutting out middle-man

Self-operating food & beverage services - Disadvantages

• Owner assumes all financial liability for waste spoilage or other losses

• Owner responsible for training and staffing• Owner must have in-depth knowledge of

complete operation

Costs of operating food & beverage services

1. Start-up costs are associated with initial venture of owning a businessFor example: equipment, signage, utilities

2. Cost of goods sold include all costs associated with manufacturing products or purchasing goods for resaleFor example: food, wrappers, condiments, paper products, and containers

Costs of operating food & beverage services, cont..

3. Operating expenses include costs associated with day-to-day operations of a business

• Fixed operating expenses do not vary over a specified period of time

• For example: insurance, rent or leases• Variable cost vary on a monthly basis• For example: supplies, utilities, advertising, and

security

Factors affecting revenues from food & beverage services and sales

1. Attendance2. Type of event3. Weather4. Team standing (winning or losing season)5. Expenses- start-up cost, cost of goods sold, and

operating expenses6. Per capita spending- Average money spent by

each spectator