Nutrition 303 – Chapter 1: The FS Industry and Trends

I. History
History - Evolution and Culture
 Evolution – food started to prevent starvation, and turn to become catering
1. Starvation
2. Caterers for religious events
3. Now we use food for business and to make money
 The FS industry didn’t start until the 19th century – Evolved to make profit
1. Middle ages: we didn’t pay for food away from home
 Example: Inns – food is included in their stay; e.g. airlines (considered as
hospitality)
- An extension of the house
 Ate at home unless attended an event
2. Before the French Revolution (1789-1799)
 Nobles employed chefs
3. Then, the French Revolution happened
History - Foundation of Current Operations
KNOW NAMES!!
 1804: 500 restaurants in Paris
 Called “public dining rooms” --- to make profit; go to one place and eat exact same meals;
bulk cooking; pay to go out and eat
 Chef A. Boulanger
 The origin of the term “restaurant” and the first public dining room offering a choice of
dishes from a menu
- Patron has choice to make via menu (change the business
industry)
 1794: first US restaurant opened in Boston
 Expanded due to the availability of choices; Started with French restaurant
 1805: Robert Owen
 Opened a kitchen in his textile mill – in Scotland
 Provided employee with food; offer cheap nutritious meal on the job site
 First onsite FS operation!
 Hospital started to have onsite dining room too
 1834, NYC: The Delmonico brothers
 Printed menu & the first chain restaurant
1. Offer printed menu
2. Expanded their restaurants to two locations (Philadelphia and Boston)
 Modern society influences:
 Automobiles
 Drive in restaurants
- 1920s Ford mobilized America
- 1921, Kirby’s Pig Stand was the first
- Flourished due to convenience to travelers
- Car hip was when waiters served cars outside
- Central meeting grounds
- Ended in 1970 when McDonalds adopted the drive-thru
 Quickly led to the concept ‘Fast-Food’
• Ray Kroc- McDonald’s in 1955
– Limited menu
- Hamburger, shakes, fries – smaller menu, faster service
– Systemized production
- E.g. In-n-Out; specific training in one area of tasks, an assembly line
 - Faster and more uniform
- Disposable papers instead of real plates and cutlery
– Interesting fact: they’ve had nutritional info available for several decades
• Are we done changing?
 2008: Baggers’ Germany has fully-automated burger chain; no servers, just technology

II. Segmentation
1. Quick Service Restaurants (QSR)
- E.g. McD, Taco Bell, Subway, In-n-Out
• Defining Features:
– Also called “fast food” because of the speed of service
– Brand affiliation - logos
– Standardized products – divided work task to make service faster
• Service:
– Fast, efficient delivery system
– Order at counter
• Menu:
– Limited; to keep the turnover faster
• Price:
 Low
2. Fast-Casual Restaurant (E.g. Rubio’s, Luna Grill, Chipotle, Five Guys)
• Defining Features:
– Value driven
– More amenities: softer lighting, aquarium, cushion booth seats
• Service:
– Order at the counter – order and sit down with numbers or buzzers, pick up at
counter or served by servers
– Greater emphasis on service – more options with picking when ordering
• Menu:
– More options and more flexible
– E.g. Panera bread, more bread options, toasted bread, toppings,
• Price:
 Higher than QSR
 Higher quality in service and ingredients
3. Family/ Midscale (Casual Dining) [E.g. Outback, Chili’s, CPK, TGIF]
• Defining Features:
– Family Friendly
– Value – larger portion and better service) – cost more
– Brand loyalty via customer friendly programs
• Service:
– Table service – order with server and they will bring out the food
• Menu:
– Variety – accommodate various age groups
• Price:
 More bang for your buck
 Video: prefer fast casual and independent restaurants, cook at home, rely tech heavy,
Filipino food and grill food, spend money on experience
4. Moderate/ Theme [Rainforest café, ethnic Korean cuisine]
• Defining Features:
– The décor – cultural phenomenon
– Focus more on theme and décor rather than entrees
• Service:
– Trained wait staff
 • Menu:
– Not as varied nor as many options
– Very flexible – can accommodate more people
• Price:
– Higher and smaller portion, better ingredients
– Pay for décor instead of portion size

5. Fine Dining (Ruth’s Chris)

• Defining Features:
– High quality everything
– Ultimate ambiance
• Service:
– Exceptional – memorize wine list and menu, prepare for advice
• Menu:
– Complex, sophisticated
• Price:
– Very high – extremely good service and good quality ingredients

6. Onsite (Google, SDSU Dining, Casino)

• Definition:
 Food outlets in business and industry, schools, universities and colleges,
hospitals, SNF (skilled nursing facilities), eldercare centers, childcare centers,
correctional facilities, and recreation facilities
 Very dynamic
• Focus: nutrition
– Customer demand
– FS in a hospital: food is used for its nutritional and therapeutic value in patient
care
– FS in schools and LTC: dietary requirements
• Service:
 Depends on the facility in which they operate
 E.g. depend on the facility’s open hours
• College/universities
 Attract students with what its offered
 Portion size and location (near to lecture hall)

Trends

- More serving size options - Focus on smaller portion because people are health-focused
- Children’s menu – healthier kids’ options (veggie instead of fries)
- Ethnic authenticity – increase in transportation, more movements of culture in countries
E.g. Little Tokyo, Koreatown, ethnic fusion
- Nutrition – organic, vegan, gluten-free, raw, non-GMO, cage-free, grass-fed, fair trade coffee
Customers care about the process of produce, sustainability
- Self contained foods – no utensils food (on the go), convenience
E.g. breakfast sandwich, calzones, sushiritto
Foodservice as a System

The Organization as a System - Systems Model

 System: a collection of interrelated parts or subsystems unified by design to obtain one or more
objectives
 Implications
Designed to accomplish an objective
Subsystems have an established arrangement
Interrelations exits among elements
The flow of resources through a system is more important than the basic elements
Every subsystem has goals/objectives
The overall organizational objectives are more important than those of the subsystems
Bigger arching goal is more important than the smaller subsystems goals
 Open v. closed systems
Open system
Interaction with the environment
Examples: Food Service is an open system, work email is only for work
Closed System
No interaction with the environment
Examples: North Korea,
 Might have a closed system within an open system
o E.g. Research and Development in a company is a closed system in an open system

 Characteristics of an open system

Interdependency of parts
No one part is completely self sufficient
Integration and synergy
Integration = result of an active interaction which leads to synergy
Synergy = unit is a part of organization using multiple pieces and putting it into one
Dynamic equilibrium
Continuous response and adaptation to changes
Always changing but maintain a steady state
Also known as legal system
Have to address and adapt changes
Equifinality
Same/similar output
Change the input (e.g. mixing ingredients) to serve same output
Permeable boundaries
Allows the system to be penetrated by the external environment
Info, communication, going from inside the boundary to outside the boundary
Interface of systems and subsystems
Point of contact
the small system still interact with the big system
Food supplier and food service system still overlap
E.g. need more ingredients or changing an ingredient
Hierarchy of the system
Know your place