FOOD and BEVERAGE SECTOR

Characteristics of the Restaurant and Foodservice Industry:

 Annual sales of over $550 billion dollars.

 More than 945,000 restaurant and foodservice operators. 
 Employs more than 13 million people. 
 Over 57 percent of restaurant and foodservice managers are women.
 Approximately 25 percent of eating-drinking establishments are owned by women,
15 percent by Asians, 8 percent by Hispanics, and 4 percent by African Americans.
 The industry expects to continue to grow over the next decade, with 14.8 million
jobs by 2019.

The restaurant and foodservice industry can be divided into two major parts or segments: 

 Commercial
 Non - commercial

The commercial segment makes up almost 80 percent of the restaurant and foodservice
industry.

The non - commercial segment represents about 20 percent of the foodservice industry.

The non - commercial segment prepares and serves food in support of some other
establishment’s main function or purpose.

Categories in this segment include:

 schools and universities

 military
 health care
 business and industry
 clubs

The History of Foodservice

The Real Beginning: Ancient Greece and Rome:

 Ancient Greeks rarely dined out, although they enjoyed the social aspect of dining and
often got together for banquets.
 Romans’ meals were primarily served in the home.
 Romans’ desires for exotic foods and spices increased trade, stretching the Roman
Empire farther east and north.
The Middle Ages:

 Landowners, who lived in relative

 comfort, held large banquets
 almost every night.

Guilds, or associations of people with similar interests or professions were organized.

Cooking guilds established many of the professional standards and traditions that exist today.

During the Renaissance, world travel and international trade greatly improved the European
way of life.

The food preparation system we now call haute cuisine, an elaborate and refined system of food
preparation, had its roots during this period.

In 1765, a man named Boulanger began serving hot soups called restaurers (meaning
restoratives) for their
health-restoring properties.

He called his café a restorante, the origin of our modern word restaurant.

The Industrial Revolution:

 During the Industrial Revolution, people moved to the city to find work in the growing
number of factories to earn a better living.
 People needed to live close enough to the factory to walk to work, go home for lunch,
and leave again for dinner.
 As cities became business hubs, dining and lodging establishments opened up to serve
the needs of workers
 and employers.
 With the invention of the railroad in 1825, inns, taverns, and foodservice facilities
located near railway stations began to grow.

The Twentieth Century:

 By the turn of the century, more people were working and therefore eating out more,
especially for lunch.
 During World War II in the 1940s, the lodging industry prospered as people traveled
for war-related reasons.
 After World War II, in the 1940s and 1950s, the quick-service restaurant segment of the
industry grew quickly.
    In the 1960s, commercial air travel   became popular, and builders   focused on land
near airports as   the next new place to situate   hotels, motels, and foodservice  
facilities.

The Twentieth Century (continued):

The rapid growth of national chains from the 1970s to today has changed the face of the
restaurant and foodservice industry.
“Eating out” became almost as commonplace as eating at home—not just for special occasions,
but simply for convenience.
In the last few decades, lifestyles have
moved steadily toward busier households
that no longer have a dedicated daily food
preparer.

Large restaurant chains lead the way for full-service, casual dining chain restaurants,
matching the growth in the quick-services sector.

Types of Service
Table Service

 Most popular type of service;

 Usually a greeter seats you;
 A server takes your order from a menu;
 Then the food and beverages are delivered on your table;
 Before leaving, you pay your server or a cashier;

Banquet Table Service

This type of service comes in three versions:

  Everyone is served with the same meal at the same time;

  Features several choices but again all meals are served at the same time;
  Seating – guest pre select from a menu and are served at the same time;

Buffet Service

 More self-serve than a cafeteria;

 One price, oftentimes paid in advance covers everything;

Cafeteria Service

 Guest picks up the tray, select their food;

   Place their choices on the tray;
  Pay their selections at a cashier;
  Take the food themselves on the table;

Room Service

 Guests order their meals from a special in – room menu;

  The meal is brought to their guest room usually within 30 – 45 minutes;
  A service charge, perhaps gratuity are, in most cases automatically added to the bill
which appears on the guest folio and is paid when they check out; 

Fast Food Service

 Guest walks up to the counter or drive through and order;

 Most fast food facilities have open seating area;
 Family or travellers often use fast food outlets to save time and money;

Delivery Service

 Food is prepared and then delivered usually to the customer’s home;

TRAVEL TRADE
THOMAS COOK and Son, was the world’s preeminent travel services company.

By 1872, had organized a 222-day trip around the world.

Traditional Agency
The main function of a traditional  travel agency is to: 

act as a real-time intermediary between customers and suppliers:

Airlines ● Hotels ● Rental Car Companies ● Cruise Lines ● Trains

Travel Management Company NOW

“The virtual elimination of domestic travel agent commission was said to have saved the
airlines around $1 billion a year.”
New York Times, 2002

TMCs offset the loss of commission by:

 Rebates
 Incentive payments
                    - from GDS providers per booking

 Service charge

During the 1990’s 

ONLINE RESERVATIONS delivered another blow as customers increasingly sought out
computer-based, third-party vendors.

Websites, among others in pursuit of air, lodging, cruise and inclusive tour bargains.

HOW ARE THEY SURVIVING?

 Older people and recent immigrants have remained important clients

 Business travellers have remained loyal

TRAVEL MANAGEMENT COMPANY or TOUR OPERATOR

are they the same or just similar?

“there is a thin,  blurry line between them.”

In the Philippines, Tour Operators are travel agents who expand their product range by setting
up a tour operation department. 

to simplify:
T.O = Wholesales
TMCs = Retailers

Tour Operations 
is defined as the preparation and implementation of all activities within an itinerary, within a
given time frame, within the estimated costs, in order to meet the next expectations of the
paying client.
- Claraval, B., 2013

Industry Characteristics
Tour Categories based on personality:

 Independent - experienced, flexibility, on their own

 Escorted - Inexperienced, wants worry-free travel
 Special Interest - bird watching, safaris, architecture
 Adventure - involves effort and energy, danger

The TOUR PACKAGE itself is constructed from at least two tourism elements.

Tour Elements:
Transportation
(by air, sea, or land) to and from a point of origin to a destination or destinations and back to
the point of origin.

Transfers
transportation to and from a destination’s gateway (airport, pier, or bus station) to the place of
lodging and vice versa.

Accommodations
lodging and meals in the lodging establishment.

Tour Escort
refers to the services of an individual who travels with the clients from the point of origin and
back, and acts as a manager of the tour group. This person is also known as the Tour Leader.

Sightseeing Tours
are a combination of transportation within the destination to sights and sites of interest, tour
guide’s services, entrance fees, entertainment or activities and sometimes, snacks and meals.

Depending on the number of components tour packages have different labels:

If only tours and transfers are included, it is called ground arrangement package.

If tours, transfers and hotel accommodations with some meals are included, this is called land
arrangements package.

If tours, transfers, hotel accommodations and some meals, plus transportation to and from the
destination(s) are included, this is called an inclusive tour package. 

If all components are included, including tour escort, this is called inclusive escorted tour
package.

Tour Categories Defined by Purpose:

Relaxation. Chance to relax, with plenty of sun, sandy beach, good food and nightly
entertainment.

Sunspot Stayput. Round-trip flight, round-trip transfers from the airport to the hotel and
several nights’ accommodation.
Scenic. Enjoys spectacular scenery while they are away from home.

Learning. Provides a learning experience because of interest in culture, history, science or

education.

Religious and Ethnic. Religious tours to sacred or holy places  (e.g. holy land and Mecca) and
visits to the place or origin where their parents or grandparents came.