THE HISTORY OF

FOOD & BEVERAGE

SERVICE INDUSTRY
MICRO PERSPECTIVE OF TOURISM & HOSPITALITY

BY: ERICKA ROSE ALVAREZ / BSHM 1-1 N / PROF/ HAYDN CALABIG


The ancient travelers were
mainly pilgrims, traders and
military men, but whenever
there was a military movement
they used to carry
accommodation and food with
them. It was the traders and the
pilgrims who wanted the
provision of food and
accommodation.
The first Inns had nothing
more than a cot or a bench
towards the corner of the room
or the stable. Here sanitation
and privacy were non-existent.
People used to share room with
livestock. In the 3rd century,
Roman Empire built roads in
Europe to facilitate the traders.
Soon a chain of roadside Inns was
constructed from Spain to Turkey.
This continued to be same till the
end of 17th century for common
men. The wealthy used to stay at
their friends’ place or with
relatives, but soon they too
realized the need for
accommodation for their class.
Thus the European castle-like
structure sprung up. This had the
provision of sanitation, privacy and
all the luxury that they demanded.
This structure came to be known
as ‘Hotel’, the French equivalent
for Mansion.
Colonial American Inns
were modeled fete the Europeans
and the practice of sharing was
common. Towards the end of the
17th century, the concept of Hotel
with a living room and a bath
attached for common men came
into existence. The American
innkeepers improved the quality
of service by providing comfort
and sanitation at affordable rates.
A giant leap in this direction was
the establishment of City Hotel in
the year 1794. At was the largest
hotel in New York, exclusively used
for lodging purpose and inspired
the construction of other pioneer
hotels.
Tremont House in Boston,
Massachusetts was a luxury
hotel, and the first to provide
indoor plumbing.

One of the first hotels in a

modern sense was opened in
Exeter in 1768, although the idea
only really caught on in the early
19th century. In 1812 Mivart’s
Hotel opened its doors in London,
later changing its name to
Claridge’s.

Hotels proliferated throughout Western

Europe and North America in the 19th
century, and luxury hotels, including
Tremont House and Astor House in the
United States, Savoy Hotel in the United
Kingdom and the Ritz chain of hotels in
London and Paris, began to spring up in the
later part of the century, catering to an
extremely wealthy clientele.

"THIS IS WHERE ALL IT

STARTED"

In India during the later part of the 18th

century and the formation of the East India
Company by the British, it was apparent
that the catering and Food and Beverage
Service Industry was required on a more
formal basis. With the advent of the railways
in the mid 19th century small hotels and
clubs were becoming a part of everyday life
for those who could afford to eat out.
 FOOD SERVICE
OPERATION
THERE ARE TWO TYPES OF
FOOD SERVICE OPERATIONS.
COMMERCIAL FOOD SERVICE
ARE ORGANIZATION THAT
SELL FOOD SOLELY TO MAKE
PROFITS WHILE NON
COMMERCIAL ARE
ORGANIZATION WHICH SERVE
FOOD AS A SUPPORT ROLE TO
OTHER INSTITUTIONS .
 Primary goal
When differentiating between commercial
and non-commercial food and beverage
services, here’s the very first question to ask: Is
selling F&B products the primary goal in this
setting? If the answer is “yes”, you are dealing
with a commercial enterprise. Ensuring a
positive guest experience may be conducive to
reaching this goal. Full-service restaurants,
which come in many shapes and sizes from
high-end, niche outlets to casual, family-
oriented restaurants, seek to do so by
providing friendly table service, for example.
Quick-service restaurants, on the other hand,
aim to appeal by offering speed, efficiency and
competitive prices, while keeping the service

COMMERCIAL
level to a minimum. This is just the tip of the
iceberg in terms of segmentation in this
category.
Quality of fare and

FOOD dining experience

Customers have to have specific

SERVICE
reasons to choose one commercial
F&B outlet over another. Whether it
be convenience, excellent quality,
unique interior decor or otherwise,
the enterprise is inherently motivated
to please its guests.
Ownership
Legal form and organizational structure
Flagship food services, from fast food restaurants Commercial F&B outlets are usually
to fine dining establishments, fall into the most privately owned. They may be
recognizable and widespread of food service independent legal entities, franchises
or form part of a chain.
categories: commercial food services. Also
referred to as “market-oriented food services”, Profit-orientation, funding and
this category accounts for the lion’s share of financial viability
consumer spending on food and beverage In line with their primary goal, commercial F&B
products outside the home. An entire spectrum outlets must be financially viable as they
of segments from food trucks to nightclubs fall operate on a for-profit basis. With funding
unlikely to be funneled in from elsewhere other
With
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set commercial company, all operational endeavors are geared
food services apart from their non-commercial towards ensuring profitability. From choosing
counterparts followed by an overview of the suppliers offering produce at the right price,
respective types. while also considering what customers will
expect in terms of transparency, sourcing to
USPs, experience design in the pursuit of repeat
business and good reviews - money must be
made!
EXAMPLES OF
COMMERCIAL FOOD
SERVICE
QUICK SERVICE
RESTAURANT
(also fast food restaurant), a specific type
of restaurant that serves fast food cuisine
and has minimal table service. It is the
official restaurant terminology for a “fast
food” establishment, with well-known
names such as Subway, McDonald’s,
Burger King, KFC, Taco Bell and Wendy’s
being prime examples of this type of
restaurant segment. Most QSR
environments are centered around
functionality, with speed and efficiency
being primary goals.

FULL SERVICE
RESTAURANT
means a restaurant where meals are
primarily prepared individually for the
customer and are served to customers
at their table by wait staff. A restaurant
which is a fast food restaurant, or which
has drive-through facilities is not
considered a full-service restaurant.
defined as a sit down eatery where food
is served directly to the customers'
table. These establishments may sell
alcoholic beverages; provide takeout,
delivery or present live entertainment.
 FAMILY/CASUAL
RESTAURANTS
are a type of casual dining restaurants
where food is often served on platters
and the diners serve themselves. It can
also be used to describe family-friendly
diners or casual restaurants. It is
characterized by being open for all three
meal periods; these operations offer
affordable menu items that span a
variety of customer tastes. They also
have the operational flexibility in menu
and restaurant layout to welcome large
groups of diners.

ETHIC RESTAURANT
These are specialty restaurants (not
necessarily fine dining) which serve
ethnic delicacies of a region,
primarily in a natural setting
inspired by the local culture. It
specialize in ethnic or national
cuisines. For example, Greek
restaurants specialize in Greek
cuisine. specialize in ethnic or
national cuisines. For example,
Greek restaurants specialize in
Greek cuisine.
 ALCOHOL & CANNABIS
The drinking establishment sector
comprises bars, wine bars, cabarets,
nightclubs and pubs. As the name
suggests, a liquor primary license is
needed to operate a business that is
in the primary business of selling
alcohol. Together the commercial
ventures of QSRs, full service
restaurants, catering functions, and
drinking establishments make up just
over 80% of the market share.

UPSCALE CASUAL
RESTAURANTS
are restaurants that tend to have fewer
people wearing backwards hats. They
accomplish this mission not through the use
of extensive security forces, but instead high
prices. Emerged in the 1970s, evolving out of a
change in social norms; consumers began to
want the experience of a fun social evening at
a restaurant with good value (but not cheap)
in contrast to the perceived stuffiness of fine
dining at that time. These restaurants are
typically dinner houses, but they may open for
lunch or brunch depending on location.

CATERING AND
BANQUETING
A banquet is an elaborate
meal that marks a particular
event or celebration. Catering
is the business of offering food
service to special events
located at a remote site such
as birthdays, dinner parties, or
family gatherings.
 NON
COMMERCIAL
FOOD
SERVICE
Non-commercial food service
establishments serve F&B products, but
either as an addition to other services or for
non-profit reasons. For example, it is hard to
imagine a fully functioning hospital without
meals delivered to patients or a cafeteria for
staff and visitors alike. And how could you
possibly sell long-haul flight tickets without
the option to feed your travelers on route?
Would your local golf club be the same
without refreshments? These are just a few Ownership, legal form and
of the settings in which you are likely to find organizational structure
non-commercial food services, accounting Large or small food service operators may
for a far smaller market share than be contracted in to run non-commercial
commercial undertakings. food service operations, while chains or
franchises may operate individual sections
Primary goal of larger non-commercial food courts.
Clearly, selling F&B products is not the primary Alternatively, the host organizations
goal in these instances, but rather a secondary themselves may choose to provide their
support service. Whenever non-commercial own non-commercial food services, tying
food services are at play, they are a facilitating them into the respective organizational
factor. Without them, the overarching
structure more directly.
operations of the host organization would be
compromised.
Profit-orientation, funding and
Quality of fare and financial viability
dining experience Non-commercial F&B outlets are more likely to be
concerned with covering their costs than making profits.
The stereotype of stodgy school dinners and In some instances, they may be subsidized or even
abysmal hospital canteens has long reigned funded by the host institution or company. Financial
supreme. However, efforts to tie food services viability may therefore take a back seat to simply
into the overall strategic direction of the host facilitating its smooth functioning. Of course, the service
organization are gaining momentum. Private provision may be outsourced, with franchises or external
schools offering healthy, brain-boosting meals,
suppliers stepping in. In these cases, the operator itself is
for instance. Or universities and employers
profit-oriented, but may have to make some concessions
attempting to lure in top talent with
in service design to accommodate the host’s specific
outstanding fare, say.
needs and circumstances.
 INSTITUTIONAL
An institution, in food service terms,
is an entity or organization that
serves a specific group of people. It's
not a private club, but rather a place
like a school cafeteria, hospital
dining service, or other place where
people are eating not for fun but as
part of a scheduled break at that
institution.

(1) HOSPITALS
(2) UNIVERSITIES,
COLLEGES AND
OTHER
EDUCATIONAL
INSTITUTIONS
(3) PRISONS AND
OTHER DETENTION
FACILITIES
(4) CORPORATE
STAFF CAFETERIAS
(5) CRUISE SHIPS
(6) AIRPORTS AND
OTHER
TRANSPORTATION
TERMINALS AND
OPERATIONS
 ACCOMMODATION FOODSERVICE
The Accommodation and Food Services sector comprises
establishments providing customers with lodging and/or preparing
meals, snacks, and beverages for immediate consumption. The
sector includes both accommodation and food services
establishments because the two activities are often combined at
the same establishment.

((1) HOTEL
RESTAURANTS AND
BARS
(2) ROOM SERVICE
(3) SELF-SERVE
DINING OPERATIONS.
COLLABORATIONS
BETWEEN HOTEL
CHAINS AND
RESTAURANT
CHAINS HAVE SEEN
RELIABLE PAIRING.
VENDING AND
AUTOMATED
FOODSERVICES
A vending machine is an automated
machine that provides items such as
snacks, beverages, cigarettes and lottery
tickets to consumers after cash, a credit
card, or a specially designed card is inserted
into the machine.

(WHILE NOT GENERALLY VIEWED AS PART OF

THE FOOD AND BEVERAGE SECTOR,
AUTOMATED AND VENDING SERVICES DO
ACCOUNT FOR SIGNIFICANT SALES FOR BOTH
SMALL AND LARGE FOODSERVICE AND
ACCOMMODATION PROVIDERS.
VENDING MACHINES ARE LOCATED IN
(1)MOTELS
(2)HOTELS
(3)TRANSPORTATION
TERMINALS
(3)SPORTING VENUES
OR JUST ABOUT ANY LOCATION THAT WILL
ALLOW FOR THE OPPORTUNITY FOR AN
IMPULSE OR CONVENIENT PURCHASE.
 WHAT IS THE DIFFERENCE
BETWEEN COMMERCIAL AND
INSTITUTIONAL FOOD
SERVICES?

Let’s round off the discussion with a reflection on the difference between
commercial and institutional food services. As shown in the table above, institutional
food services are those provided by institutions of all kinds, whether these be in the
healthcare, education, travel sector, or catering to employees or military personnel,
etc. As they do not constitute the primary goal of these institutions, but instead
provide necessary services to enable them to operate well; they are considered
non-commercial food services. This does not mean, however, that none of their
objectives or characteristics fall in line with commercial endeavors. They may be
profitable in their own right, seeking to add value by providing good-quality fare or
provide a competitive edge by adhering to or even enhancing the image otherwise
pursued by their institution.

In sum, the F&B landscape comprises a vast array of business models and segments.
Each with their own characterizing facets, whether in direct pursuit of profits or
otherwise, they offer consumers diversity of choice and, in the case of non-
commercial food services, they enable businesses, clubs and more to pursue their
operations resting assured their visitors’ culinary needs are tended to.