Introduction to

Hotel Industry
Hotel industry in Nepal began after the dawn of
democracy in 1951, the year when the country was
opened for outside world. The then phenomenon were:
• Himalayan Inn (1951), Paras Inn (1952), and Hotel
Jawlakhel (1953)
• Successful climbing of Mt. Everest in 1953,
• Hotel Royale in 1954 by Chef Boris Lissanewitch
• Obtaining membership of UNO in 1954,
• Opening of Tribhuvan Rajpath in 1956,
• Establishing of RNAC In 1958,
• Direct air link to Indian cities Patna, Calcutta and
Delhi in 1960 and Delhi exposed Nepal as potential
tourist destination.
• Hotel Shanker, first four star hotel in 1964
• Hotel De l’ Annapurna, first five star hotel in 1965
• Hotel Soaltee, another five star hotel in 1966
• Visit Nepal Year 1998 (VNY 98’)
• Nepal Tourism Year 2011
• With the advent of Hippy-era from 1960 to
early 1970 Nepal became 2nd most popular
destination of the world for hippy, only after
New York.

• It introduced Nepal as an exotic and interesting

tourist destination in World Travel Market. Many
hotels started opening up to cater food and
accommodation to increasing number of visitors.
 •The oldest running hotel in Nepal are,
Hotel Shankar 1964
De l’ Annapurna Hotel 1965
The Soaltee Hotel 1966

Hotel De l’ Annapurna, Soaltee Crowne Plaza, Shankar Hotel, Lazimpat, Ktm.

Durbar Marg, Ktm. Tahachal, Ktm.
In 1997 a separate Ministry of Tourism was established to
systematize, promote and monitor the hotel and tourism industry
in Nepal under MoCTCA

In 1998 Visit Nepal Year (VNY 98’) campaign was successfully

launched to expose Nepal as a wonderful tourist destination. As
a result number of tourists visited in 1999 which reached to
4,91,504, the then record tourist arrival.
A frequent unrest in political situation caused a great suffer to
tourism and hotel industry for a long time.

Many hotels had to pull down their shutter for ever due to the
drastic drop in tourism activities, mainly because of political unrest,
and secondly due to unsystematic urbanization and poor sanitation
of Katmandu valley.

However, Nepal has abundant tourism products such as natural

resources, climate, geographical location, religion, history, culture,
heritage, friendly people and so on to attract visitors and develop
hotel industry provided the peace prevails.
Introduction to Hotel Industry
This is one of the oldest industry of the world. It started
about 2900 years ago. This industry was then known by
“Inn” for about 2300 years. During this time, travelling
activities was very limited. It was confined to own
villages/towns as most people lacked the following four
essentials :
a. Time
b. Money
c. Transport
d. Motivation/Knowledge
History of Food Industry in India
The food and beverage (F&B) industry in India traces its roots to the
traditional community feasts and the movement of the people on
pilgrimage thousands of years ago.

People were on the move primarily for preaching religion and hunting. Thus
people took shelter under trees when they were away from their homes
and depended on natural sources for their food.

Later, Dharmashalas and Chatrams came up to protect the lives of

travelers from wild animals and robbers. Travelers could stay free of
cost. It also provided stables and sheds for horses and bullock carts,
respectively free of cost. The travelers were also free food during the rule
of Kings.
The barter system of transaction was slowly introduced and this
system motivated people to travel for trade, mainly of
livestock, which later expanded to food grains, clothing, tools
and other goods.

“Sarias” for accommodation to travelers were developed during

Mughal Dynasty.

The invaders introduced their cuisine, the skills of making wines

and spirits and eating habits, table etiquettes and the art of
eating with cutlery were also learnt.
The activation of hotel and restaurants impacted the
development of catering in India which is mainly attributed to
the British. They introduced hotels and restaurants similar to
the ones in Europe where they established resorts in hill
stations. They introduced mechanized transports especially in
the railways in the mid 19th century which enabled large
number of people to move.
The first railway service was started in England from Liverpool to
Manchester in the year 1813.

Some reputed hotels such as The Taj, The Oberoi, The Ambassador
were established when India became independent.

ITDC (India Tourism Development Corporation) was setup in Oct

1966 with objective of developing and expanding tourism
infrastructure and promote tourism.

India has regional diversity in term of food, culture, cloth, lifestyle

and so on. Therefore with development in communication, domestic
tourism was started.
Civil Aviation developed rapidly after second world war.
International flight services started in 1948 and was reinforced in
1950 with international connections.

As a result renowned International chains like Holiday Inn, Sheraton,

Intercontinental, Radissons, Hyatt, Hilton, Marriott, Le Meridian,
Kempinski and so on were attracted.
The hotel corporation of India, a subsidiary unit of Air India,
established the “Centaur Group” in the mid 1970’s. Soon then
globalization policies of the government, fast means of
communication and transportation with rapid industrialization,
introduction of private air transport and no frills airlines, internet
facilities and establishment of the network of well organized travel
and operators have made the world shrink and the movement of
people has become very easy and fast.

Finally the above factors added plus points for the development
of tourism.
 Sectors of Food Service Industry

Food and Beverage sectors

Primary catering Secondary

sectors catering sectors

Classification According to Priority

 Primary Catering Sectors

The establishments under this category are primarily concerned

only with the provisions of food and beverages to customers. The
examples are food service outlets of accommodation sectors,
various types of restaurants and takeaways.
 Secondary catering sectors
The establishments in which the provisions of food and beverage is not
the main activity but a secondary or support activity are called
secondary catering sectors. The examples are institutional catering,
transport catering, catering services in theatres, amusement parts,
departmental stores and industrial catering. The primary activity of
these units is not the provision of food and beverage to the clients but
the activity for which it is set up. For example, in transport business,
taking the passengers to the destination on time and scheduling the
trips will be the primary activity. Some trains have a pantry car, food
and beverage provided to airline passengers, etc.
The food industry can also be divided into the following two
groups according to the profit motive:

 Commercial

 Welfare
Commercial Sectors
These operate mainly to make profit or to earn adequate return on
investment (ROI) through their products and services. Food and
Beverages facilities of hotels, resorts, motels, clubs, stand-alone
restaurants, popular restaurants, takeaway outlets, pubs and bars,
coffee shops, fast food outlets, transport catering, contract catering of
industries, and so on are examples of commercial catering. It can be
further classified into residential, for example hotels, motels, resorts,
inns, clubs, and so on and non-residential for example restaurants, fast
food outlets, popular restaurants, pubs, bars and so on.
Hotels provide F&B services to customers in the following areas
other than accommodation:

• Restaurants
• Bars
• Lounge area
• Banquets
• Rooms
Most guests staying in hotels are on business trips and stay for a
very short duration and expect quick service. They may also need
banquet halls to hold functions, conferences and business meetings.
Alternately, guests may place order from the a la carte menu.
Resorts provide accommodation mainly to vacationers. The
duration of their stay is longer as compared to guests who stay in
downtown hotels. They stay on package deals, which normally
include all three meals.
Motels provide accommodation and basic F&B facilities to guests,
especially to highway travelers/passengers
Clubs offer F&B service only to their members. The non-members can
avail the services of the club only if they are accompanied by the
members. The governing body of the club is responsible for
monitoring the catering services, which may either be run by a
contractor or by the employees of the club.
WELFARE SECTORS
These operate mainly to provide service at no profit and no loss
basis, and most of them are run by private bodies or the
government. They operate within their outlined budget for the
provision of F&B services.
School catering, University catering, Hospital catering, Prison
catering, Military catering and so on are examples of welfare
catering services, provided these services are run by their own
management. Most of these sectors are outsourced these days as
managements want to concentrate on their primary activities.
Food and beverage sectors provide service to various
markets. Some of these sectors provide services to the
general public while others only to the restricted groups .
We can divide the F&B sectors according to the market or
the type of customers they cater in the following manner:
•Non-captive market

• Captive market

• Semi-captive market
 Non- captive market
• The customers have a choice where to eat.
• The type of restaurant chosen may be a fine dining restaurant of
a deluxe hotel, stand-alone restaurants, coffee shop, fast food
outlet, specially restaurant or a popular restaurants depending
on the following:
 Non- captive market
• Personal experience
• Reason for dining
• Time available to eat
• Money available to spend on
• Food preference of customers
• Time of the day
• Distance
• Ambience desired
Captive Market/ Customers
The do not have a choice where to eat and have to avail
services provided by a particular catering outlets. For
examples, Residential School Children, College Students
staying in Hostels, Hospital Patients, People Staying in Old
Age Homes, Prisoners and Industrial Workers.
semi- Captive Market/ Customers
The customers have a limited choice where to eat. In such a market, the
customers have a choice before selecting the food and beverages. Once
the is made, the customers have no choice but to be contented with what
is on offer.
The examples include passengers travelling by train (pantry car),
passengers on the highway, airline passengers, and so on. At the most
they may have the choice between vegetarian and non-vegetarian.
TYPES OF RESTAURANTS AND THEIR
CHARACTERISTICS
Bistro : Small restaurants that serves simple, moderately priced meals
and wine. Menu consists of simple dishes that can be prepared
easily, and service provided is informal and quick. Braised
meat are typical dishes. No printed menus.
Brasserie : It is a formal restaurant which serves drinks, single dishes and
other meals. One can have just a drink / coffee. Service
provided is professional and menus are in printed form. Dress
codes for waiters - Traditional uniform of long apron and
waistcoats.
Coffee Shop: Mainly serves snacks and beverages 24 hours a day and
might serve all the three meals. Concept of coffee shop
started from the USA. Service and ambience are informal.
The furniture and service equipment are not very expensive.
Turnover is high and APC is low.
Features of Coffee Shop:
• The service and ambience are informal
• The furniture and service equipment are less expensive
• No table clothes, covers are laid on place mats
• Table tops may have stone, mica, glass, etc.
• Mostly pre-plated service
• High seat turn over
• Staff works in three shifts
• Usually located in the ground floor / lobby level of star hotels
Specialty Restaurant :
It serves quality dishes which are its strength and contribute to
the brand image. The ambience and décor reflects the theme of
the restaurant. It is an outlet for leisurely dining. The tempo of
service is comparatively slow
Specialty Restaurant
Specialty Restaurant
Specialty Restaurant - Servers
Features of Specialty Restaurant:
• Opens mostly for lunch and dinner between noon and 3 p.m. and 7 p.m.
and 11 p.m.
• It may specialize either in a particular type of food, such as fish and
chips, pastas or steaks, or in a particular type of cuisine, e.g. Indian,
Chinese, so on.
• Uniform, décor, music, menu card, crockery designs and décor
complement the cuisine being served.
• Uniformed wait staff serves food according to tradition
• The seat turnover is low and APC is high
Fine Dining Restaurant :
Primarily caters to the requirement of the affluent market segment
wanting to experience fine dining. It is an outlet for leisurely
dining. It offers dishes of one particular region or country or exotic
dishes from various cuisines, wines, spirits and digestives. The tempo
of service is comparatively slow. The ambiance and décor is
elegant and rich.
Fine Dining Restaurant
Features of Fine Dining Restaurant:
• Offers dishes of one particular region or country or exotic dishes from various
cuisines, wines, spirits and digestives.
• Opens mostly for dinner between 7 p.m. and 11 p.m. However it may open for
lunch depending on the location.
• The ambience and décor will be elegant and rich and exclusive carved wooden
furniture is used with chairs having armrest.
• Good quality linen, fine lead crystal, EPNS cutleries and hollowware is maintained
at all times.
• Staffs are more skilled, well-versed and Sommeliers are employed to serve drinks.
• Uniformed wait staff serves food using silver pairs or Gueridon service
• Seat turnover is low but labor cost, overhead cost and APC is high
 Popular Restaurants : Service is informal yet food
available are hygienic. These types of restaurants are
located in a busy area such as bus stands, railway
stations, shopping area and so on. Highly demanded
quickly and at the moderate prices. Menus are
displayed on a board at a prominent place or can be
laminated/ printed. The service standards are low and
normal . Turnover is very high but revenue per cover is
low.
Dhaba : It is a roadside food stall on national and state
highways. Main objective to cater heavy crew vehicles.
Specializes more in Punjabi cuisines and tandoor cooking,
serving very limited dishes, which are freshly prepared. The
service standard is very informal and hardly any cutlery
used. Dishes are inexpensive and taste like home-made food.
Offers vegetarian and non- vegetarian.
Fast Food Joint : First concept was
introduced in the USA. It is characterized
by the speed of service and the
affordable price of the menu items. It is
located in a very busy area.
Fast food generally specializes in one particular
product. It can be eaten in premises or taken
away as packed food. These are very bright
and colorful interior of the outlet. For examples
burger, pizza, pani puri, samosa and so on.
Features of Fast food:
• Fast food generally specializes in one particular product. For example, burger,
pizza and so on.
• Opens mostly for dinner between 7 p.m. and 11 p.m. However it may open for
lunch depending on the location.
• The ambience and décor will be elegant and rich and exclusive carved wooden
furniture is used with chairs having armrest.
• Good quality linen, fine lead crystal, EPNS cutleries and hollowware is maintained
at all times.
• Staffs are more skilled, well-versed and Sommeliers are employed to serve drinks.
• Uniformed wait staff serves food using silver pairs or Gueridon service
• Seat turnover is low but labor cost, overhead cost and APC is high
Rôtisserie : This type of restaurant specializes in grilled or roast meat, poultry
and fish which are prepared in front of the guests, where griller is operated
either by gas or by electricity. Food items are served on a plate by the food
service staff along with salads, potatoes and accompanying sauce. It has
moderate décor. Wine and beer may also be served.

Barbeque Restaurant : This kind of

restaurant specializes in barbeque dishes, both
vegetarian and non-vegetarian delicacies.
Marinated pieces of meat, poultry, fish,
vegetables, paneer and so on, are inserted into
skewers and cooked over live charcoal or
electric griller. People buy aroma of barbeque
dishes only because of the way of their
preparation and presentation. Beers are
served in some barbeque restaurants.
Night Club : It operates during the night and offers dinner, dance and live
entrainment. The main attraction of the are cabarets or floor shows. Guests are
required to wear formal wear and can dance on the dance floor. They levy an
entry fee. Dinner and wine are served at the table to the guest. However, it is
not permitted in some places.

Pub : A pub formally public house (a house "open to the

public", as opposed to a private house), is a drinking
establishment fundamental to the culture of Britain. It
mainly serves various kinds of beer, especially draught
beer and snacks. Originally, they were owned by
breweries to sell their beers.
 Bar: Bars offers all kinds of spirits such as whisky, rum, gin,
vodka, brandy, tequila, wines and beers. Hotels and
restaurants also have their separated and licensed area to
sell alcoholic drinks. They also offer snacks.

The additional area or a restaurants inside the

hotels to dispense wines, beers and spirits during
the service is called as a Dispense bar.
Carvery: It is a restaurant that which serves roasted meats and poultry which
are carved at the carving counter by a carver in the presence of guests.
The carved meats and poultry items are
served with the accompanying sauces and
vegetables.

Food Court: It refers to a number of independent food

stalls each of them serving different items of food. The
customers order the food items they want to have and
consume them at a common dining area. Available dishes
include local cuisines and globally popular dishes. It has
mostly self-service and waiters may assist in clearing the
table and serving water.
 Disposable items such as plates, spoons and fork are extensively used. The
average revenue per cover is moderate and affordable by the common man.

Modern kiosk
Kiosk : Kiosk is a small permanent or temporary structure on a Disposable items
sidewalk from which items such as coffee, tea, chocolates, pastries,
savories and so on may be sold.
The items bought may be either be taken away or consumed at
tables arranged nearby. Most of kiosk do not have seating provision.
Kiosk and Food Court
Drive-in : In a drive restaurants customers usually drive in and parks their
vehicles at a parking lot then remain seated in their vehicles. The waiters
go to the customers with menu cards where they collect orders and deliver
the food items on specially designed trays and the customers remain
parked while they eat.
Drive-in
Oyster Bar : It is a restaurant that specializes in the serving of
fresh oysters. In the presence of guest in front oysters are opened
or shelled behind the counter. The counters are made of non-
porous material made of up graphite that can be cleaned easily in
daily basis. Further more, fresh oysters are served on a bed or
crushed ice with oyster cruet, brown bread and butter.
Oyster Bar
Discotheque : Same as night clubs it also operates during night hours.
Same to night club provides a dance floor to the guests to dance on with
special sound and lighting effect is created for an appropriate ambience.
As usual drinks like beer and snacks are made available to the guest
during operation hours. Service provided is very informal and difference
than night clubs dress code is not insisted upon.
Discotheque
Ice Cream Parlour : It mainly serves different kinds of ice cream like sundae,
coupe, bombe, cassata and so on. Ice creams are stored in a containers and
are kept in refrigerated displays with through glass.
Parlours may either be a franchisee or an independent one making its own
varieties of ice creams. Seating arrangements and service are very informal.
Gussets may either eat in the premises or have it packed and carry.
Café : This is a restaurant of French origin that which mainly serves coffee
and snacks. French introduced café in the French colonies in India. During that
period coffee and pastries were served along with snacks like vada, samosa,
bonda and so on.
Cafeteria : Traditional cafeteria system consists of the straight line of counters
containing a variety of hot and cold dishes. The customers start at the end of
a line and a tray was picked up then
they used to move along the length of the
counters as they select the dishes they want to
have. Cashier at the end if the counter used
to collect payments and this is not required if
the meals are pre-paid.

This form of service is widely followed in institutional

and industrial catering. Now-a-days “free flow
cafeteria” system is followed and the counters these
days are segregated according to the type of dishes
offered .
Customers are free to move as per their will to any of the
service points to select dishes and exit through the payments
point.
Environment factors influencing the
food service operations
External Factors
Political
•Government policies and regulations dealing with Food and Beverages.
•Tax laws

Economic
•Increasing cost of the raw materials, labour, water and energy
•Changes in disposable income of the society
•Rate of interest
Social
• Changes in the eating habit of the people
• Changes in population distribution
• Changes in the socio-economic grouping of the area

Technical
• Advancement in food processing technology
• High tech food production and service equipment
• Information technology
Internal Factors
Control
Food and Beverage
• stores control procedures
• less storage of food
• purchase procedures
• wastage and poor portion control
• issue procedures
• correct pricing
Staff
• high turn over
• absenteeism
• poor supervision
• shortage of staff
• unskilled staff
Employment opportunities
Accommodation sector
• Hotels
• Resorts
• Motels
• Clubs
• Youth hostels

Welfare sectors
• Hospitals
• Hotels
• Prisons and so on

Caribbean Resort
Non-residential Commercial Sectors
• Pubs
• Bars
• Restaurants of all types
• Recreation Centers

Flight Catering

Transport catering
• Ship catering
• Flight catering and so on

Recreation Centers
 conclusions
• Food chain industry has future growth
• Integrated Service Marketing Communication can led to further enhancement
• If gap’s are closed properly can boost the business.

• Globalization, faster communication and

transportation and other factors has poised to
food service industry to expand day to day.

Ship/Cruise Catering
Key Terms
• American Service • Marinade
• Bain Marie • Oyster Cruet (p 132, 141)
• Basting • Package
• Bombe • Silver Service (p 96)
• Budget • Skewer
• Cabaret • Sommelier
• Cassata • Stand-alone Restaurant
• Coupe • Sundae
• Cover • Turnover
• Cyclic Menu • Wait staff
• Gueridon
• Gueridon Service
 • Q. 2 • Q. 8,
• Q. 3, • Q. 10,
• Q. 4, • Q. 11
• Q. 5,
• Q. 6,

Review Questions
 Standards for the Assignment
• Use A4 size paper
• Make a cover page with
–Name of Subject,
–Chapter No.
–Name of Student (LHS)
–Name of Teacher(RHS)
–Draw margin and leave enough space on the
LHS
–Write Single side only
 Standards for the Assignment

• Mention the correct Q. No. as per the book

• Copy the Question for each answer
• Maintain substantial space between the Question
and Answer
• Always start the question in a New page
• To show the difference between, always answer in
parallel column
• Mention in bullet points as far as possible
 Coffee Shop Specialty Restaurant

Purpose  It is a hub for people to meet and  It is a place to spend some quality time in
communicate leisure with family and friends

Furniture  It should be light and casual (less  It should be highly comfortable and justifying the
comfortable) theme of the restaurant

Meals  All meals are served i.e. breakfast,  Generally lunch and /dinner is served with the
brunch, lunch, hi-tea, dinner, supper exception of breakfast
and late night snacks

Timing  It is open 24X7  It opens mainly for lunch and/dinner

Decor  The décor is modern  The décor is according to the theme

Cover  For quick service flatware, cutlery  Except table essentials nothing is laid in advance
and crockeries are laid in advance