7.01 Discuss food &
beverage services.
Food & Beverage
• (F&B) - the sector/industry that specializes in
the conceptualization, the making of, and
delivery of foods.
Segments of food & beverage service
industry
•
•
•
•
Concessions
Counter Service
Full-Service
Specialty Services
Segments of food & beverage service industry -
Concessions
• Mobile carts or units- sell food and beverages
• Vendors (hawkers)- sell food and beverages to
attendees in seating areas
- watch fans 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: Epicenter Theaters in Charlotte
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
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
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
c. (next slide)
History of food & beverage services
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. Ice skating rinks
viii. Amusement parks &
family entertainment
centers
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 middle-man
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. Attendance
2. Type of event
3. Weather
4. Team standing (winning or losing season)
5. Expenses- start-up cost, cost of goods sold, and
operating expenses
6. Per capita spending- Average money spent by
each spectator