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