7.01 Discuss food &
beverage services.
Segments of food & beverage
service industry - Concessions
Mobile carts or units that sell food and
beverages
Vendors that sell food and beverages to
attendees in seating areas
- Also called hawkers because they “watch
fans like a hawk” for opportunities to
make sale
Segments of food & beverage
service industry – Counter Service
Similar to quick-service restaurants or food
courts
Segments of food & beverage
service industry – Full-Service
Sit-down, public eating places with
services provided by a wait- staff
Suites are rooms with a view of event with
seating and food & beverage services
provided by full-service wait-staff
Segments of food & beverage
service industry – Specialty Services
Includes combination of event
and segment of the food &
beverage industry
Example: Cinema Grill in Atlanta,
Georgia combines dinner and a
movie
History of food & beverage
services
1. Harry M. Stevens-H.M. Stevens Concessions
Company
a. Considered the “father of ballpark concessions”
b. Sold first program at a baseball game in
Columbus, Ohio in 1887
c. Began by selling scorecards to crowds at
racetracks, ballparks and arenas
d. Initialized the selling of hotdogs, soft drinks at
sporting events
e. Became one of the seven largest concessionaires
in the U.S
History of food & beverage
services, cont..
2. Cretors & Company
a. Founded in 1885
b. Patented the process of popping corn in oil
in 1893
c. Introduced first popcorn popping machine at
World’s Columbian Exposition in Chicago,
Illinois
d. Influenced the creation of machines for use
in theaters
History of food & beverage
services, cont..
3. National Association of Concessionaires - NAC
a. Founded in 1944 as association for
recreation and leisure-time food & beverage
service industry
b. Provides members and services who seek to
increase standards of excellence in the food &
beverage services industry with information
History of food & beverage
services, cont..
c. Included are owners and operators from the following
facilities:
i. Movie theaters
ii. Stadiums & arenas
iii. Zoos & aquariums
iv. Colleges & universities
v. Foodservice contractors
vi. Parks & recreation departments
vii. Amusement parks & family entertainment centers
viii. Ice skating rinks
ix. Roller skating rinks
x. Racetracks
xi. Bowling centers
xii. Outdoor facilities
xiii. Convention centers
Contracting food & beverage
services
Contracting is an agreement between a
venue and an external company that
provides food & beverages services
Contracting food & beverage
services - Advantages
Less time consuming
Responsibility of training and staffing food &
beverage employees is assumed by the
contractor
Financial liability for waste, spoilage, or other
losses is transferred to the contractor
Responsibility of day-to-day operations is
assumed by contractor
Contracting food & beverage
services - Disdvantages
Venue gives up managerial control with
staffing, inventory and merchandising
Less profit due to contractor fees
Self-operating food &
beverage services
Involves owning or operating ones own
food & beverage services
Also referred to as in-house operations
Self-operating food & beverages
services - Advantages
Owners control decision-making process
Profits increased by cutting out middleman
Self-operating food & beverage
services - Disadvantages
Owner assumes all financial liability for
waste spoilage or other losses
Owner responsible for training and staffing
Owner must have in-depth knowledge of
complete operation
Costs of operating food &
beverage services
1. Start-up costs are associated with
initial venture of owning a business
For example: equipment, signage,
utilities
2. Cost of goods sold include all costs
associated with manufacturing
products or purchasing goods for
resale
For example: food, wrappers,
condiments, paper products, and
containers
Costs of operating food &
beverage services, cont..
3. Operating expenses include costs
associated with day-to-day operations of a
business
Fixed operating expenses do not vary over
a specified period of time
For example: insurance, rent or leases
Variable cost vary on a monthly basis
For example: supplies, utilities, advertising,
and security
Factors affecting revenues from
food & beverage services and sales
1.
2.
3.
4.
5.
Attendance
Type of event
Weather
Team standing (winning or losing season)
Expenses
For example: start-up cost, cost of goods
sold, and operating expenses
6. Per capita spending
Average money spent by each spectator