What is the food service industry?

Food and beverage industry: What are its

different sectors?
The very start of the food service
industry is credited to restaurants that began From the snack bar at the local
in France during the 18th century. From cinema up to the gastronomic restaurant in a
humble beginnings of guilds and roadside Hong Kong skyscraper, the F&B service
inns in the early Middle Ages over the first à industry offers a lot of diversity. In general,
la carte restaurant opening in France in the there are two categories of commercial food
18th century up until today’s multi-trillion- service and non-commercial food service.
dollar industry, food and beverage service
Commercial operators
industry has grown to become a major factor
in shaping the world we live in. Influential Commercial operators have the
restaurateurs and bar owners have a huge primary goal of selling F&B products. They
impact on consumption trends and can help represent the main segment of F&B
shape the future of food. Never before has the operations.
sector known such rapid change in consumer
behavior as now in times of digitalization, Quick-service restaurants
social media and growing ecological 1. Drive-through outlets
awareness. 2. Outlets within retail stores
What is the food and beverage service 3. Fast food restaurants
industry made of? Limited-service restaurants
Food service industry definition 1. Self-service restaurants
The food service industry refers to 2. Takeaways
any company or business essential to the 3. Food trucks
preparation and distribution of food products Full-service restaurants
outside of the home. Components of this
industry include food service distributors, 1. Fine dining restaurant
counter and table servers, and food service 2. Family restaurants
providers. The food supply chain generally 3. Ethnic restaurants
starts with agricultural businesses producing 4. Casual restaurants
the food stuff that is then processed and
Catering & banqueting
served to individual consumers. Therefore,
the F&B service stands for the integral last 1. Catering companies
step of a long chain that ends with a meal on a 2. Conference centers
plate or a drink in a glass. Full-service 3. Wedding venues
restaurants, bars, pubs, fast food outlets, 4. Festival food coordinators
caterers, and other places that prepare, serve
and sell food or drink to the general public are Non-commercial operators
all part of the industry. The choice of self- Non-commercial food service
service, full-service and take-away means establishments serve F&B products, either as
many service delivery options. While the an addition to other services or for non-profit
different categories of outlets serve a variety reasons.
of different customer segments and each has
its particular challenges, recent developments Institutional
are having a global impact on all players in
1. Hospitals
this space.
2. Educational institutions
 3. Corporate staff cafeterias
4. Cruise ships
5. Airports and transportation terminals
& operations
Accommodation foodservice
1. Hotel restaurants and bars
2. Room service
The future of food: Where is food and
beverage heading?
A paradigm shift has been observed
in the perspective of the masses with respect
to the food and beverage industry. People are
now more nutrition-savvy, prefer sugar-free
products, and are generally more inclined to
maintaining good health. Supporting this is
the fact that food products are not judged on
quality alone, but also the nutritional content,
the origin and the way they are produced.
These new criteria have forced businesses to
incorporate changes in the existing process
and tackle some of the major challenges of
the food and beverage market. The whole
food industry has been evolving quickly over
the past few years (and still is), trying to cope
with these changes in consumption habits. In
the race to remain competitive, food service
businesses are adapting according to the main
trends outlined below.
What are the top trends in the food and
beverage industry?
Food and beverage online sales
Food delivery has become a global
market worth more than $150 billion, having
more than tripled since 2017 - in part due to
Covid-19. Researchers have forecasted a
drastic increase of over 65% in delivery
demand. This means that food delivery, which
was ranked 6th in outlet preferences for 2018,
is expected to become the second preferred
option after table service for 2030.
Every customer experience should fill
personal reviews on all large sites and should
be viewed regularly. Furthermore, the
“instagramability” of dishes will further grow
in importance thanks to the increase in
Generations X and Y’s buying power. Making
their menu delivery-friendly will also be key.
Food that can be transported easily and
sustainable options such as organic and
locally sourced products delivered in reusable
or compostable packaging ordered through
smartphone channels will drive growth in the
future.
Health-conscious food products
A new type of consumer is here:
conscious and well-informed about what they
buy. The decision to consume a product will
be increasingly based on how it was made,
where it came from and what processes were
used to produce it. F&B businesses will have
to show this new generation of customers that
they are invested in creating a more
sustainable future. This means more than just
implementing lofty marketing campaigns.
Every product and service will need to meet
the expectation of ethical buyers.
Technology in food and beverage industry
A trend that restaurants have to take
note of is how much millennials are looking
for convenience. As proven by their reaction
to mobile apps, particularly in the quick
service segment, it is clear what this change
in behavior means for restaurateurs. The more
connected we get, the more often we are
taking to solutions on our phones for decision
making, ordering, paying, sharing and
reviewing.
Main challenges in the Food & Beverage
industry
Responsible solutions to ecological issues
The excessive consumption of single-
use plastics when serving drinks and food and
their improper disposal is going to be one the
major challenges of the future in the F&B
service industry. Particularly in the age of
food delivery, food businesses will have to
step up their game when it comes to using
recyclable materials and encouraging their Is the bar you work at offering a
proper discarding. holiday special or did the chef come up with a
new creation that he/she wants everyone to
Waste management also makes up a part of
try? It will be up to you to convince your
this problem. The way food businesses use
guests to choose the options your employer
their raw products will have to evolve to
wants to sell. Selling has always been an
include more responsible solutions.
invaluable skill for anyone willing to succeed
Public opinion and social media professionally. Like most great
businesspeople, you will have to start small.
The amount of information on the However, getting your first sales will not only
world wide web knows no bounds. Yet, all it feel great, but also get you noticed by
takes for the reputation of a F&B business to management. And that’s the easiest way to
get tarnished is one negative post on a social move up the ladder.
network going viral.
Better your communication skills
Why choose a career in the food and
beverage industry? On a busy night it can get pretty
hectic in any F&B service establishment. So
Serving as a connector of people when you are communicating a client’s order
across all cultures, the industry is at the center to your colleagues or briefing your
of most human interaction. Everyone needs to subordinates on the set-up of a large event,
eat and drink, so being in the business of you will undoubtedly have to learn how to
providing these services will never go out of bring across your message as effectively as
fashion. possible.
Multitasking skills
Taking orders while clearing tables or
preparing multiple dishes while processing
incoming orders at the same time will have
your multitasking skills up and running in no
time. There truly is no better way to learn this
skill than to get a job in a busy restaurant and
deal with everything that’s thrown at you at
once.
Become a time manager.
The typical F&B outlet has very few
days off. Rotating shifts will have you
working during festive seasons and on
weekends. Multiple tasks to be done and
sudden changes to your work schedule are
part of the regular issues that have to be
managed. To get a hold of it all, you will
quickly learn to manage your personal and
professional calendar like a pro.
Learn how to make a sale.