Hospitality and Tourism 110
Food and Beverage
Food and Beverage
Largest of the 5 sectors
 Brings in about $24 billion annually in
Canada according to the Canadian
Tourism Human Resource Council
 Approximately 775,000 in 2006
 Training ground for many people
beginning their careers

History
Restaurants have existed since the
1500s
 Fork first introduced in 1533
 First restaurant in the US opened in
1827
 Antoine’s opened in New Orleans in
1840 and is still in operation today

Two Divisions

Commercial food services – 78% of
market share - primary business is
the service of food and drink


E.g. Restaurants, fast food outlets,
clubs, bars, pubs, etc.
Non-commercial food services – 22%
of the market share - found where
the primary business is not the
service of food and drink

E.g. airports, museums, hospitals,
schools, retirement homes, the military,
recreational camps, etc.
TRENDS
Casual Dining
Luxury of fine dining is being replaced
by casual dining
 More casual atmosphere – plants,
natural wood, earth tones
 Smaller and more intimate restaurant
 Fewer menu items to choose from

Takeout
Represents 50% of industry’s total
growth
 Busier lives, more two income
families mean more takeout
 Grocery stores offering more readyto-eat foods to compete with take-out

Dining Out with Children
Children often influence where the
family eats
 Restaurants cater to children with a
children’s menu (hamburgers, hot
dogs, fries, etc)
 Crayons and menu that doubles as a
game or colouring page
 Child friendly play area

Service
Tops the list of reasons a consumer
returns to a restaurant
 Important for management to know
what customer satisfaction is
 Restaurant surveys can indicate
customer satisfaction

Nutrition
More choice for side dishes – salads
instead of fries
 A lot of people are watching what
they eat now, but most “treat
themselves” when eating out
 Restaurants recognize diet trends
 Research shows that most people eat
what they want and “get back on
track” the next day

Allergy Awareness
More people are developing food
allergies
 Ingredients should be available upon
request
 Allergens include: MSG, peanuts, nut
oils, preservatives
 Responsibility of the restaurant staff
to identify all ingredients in a dish

Legal Issues

New alcohol laws


Drinking-and-driving legislation
New smoking laws
 Designated
smoking room (DSR)
 No Smoking
Ownership
Independents
Owned by one or two individuals
 Flexible business
 Owners can easily change menus or
décor
 Can be risky – huge personal
investment
 80% bankrupt in 5 years

Multi-Unit Corporate
Corporate headquarters provide
leadership, control and planning
 Managers trained by corporation
 Operate independently – but must
follow company policy and meet
quotas


Examples: Lone Star, Boston Pizza
Franchise
Advantage of a brand name product,
national advertising, training
 Disadvantage of high franchise fees,
pay % of monthly revenue to
company, no flexibility


Examples: McDonalds, Tim Hortons
Commercial Food Service
Commercial Food Service

Haute Cuisine
Elegant and expensive
 Highly trained staff, exemplary service,
exclusive clientele
 Restaurant has beautiful silverware,
crystal goblets, fresh linen tablecloths
and napkins, exotic flowers
 Food is cooked daily by chef and souschef

Commercial Food Service

Fine Dining
Unique and exciting food
 Highly trained wait staff
 Costly table settings
 Not as exclusive as Haute Cuisine

Commercial Food Services

Dining
Bistros – casual dining, simple decor
 Family style – found in suburbs or tourist
attractions
 Specialty – serves one kind of food
 Ethnic – specialize in national dishes
 Theme – theme more important than the
food
 Buffet – customers help themselves to
the food

Commercial Food Services

Limited Service Restaurants
Coffee houses – Tim Hortons, Starbucks
 Cafeterias – similar to buffet, but
portions are preset
 Fast Food – customer does some of the
work: locating napkins, condiments,
straws, place to sit, and clean up

Commercial Food Services

Drinking Establishments
Pubs – typical of an English bar
 Bars
 Lounges
 Clubs

Non-commercial Food
Service

Social and contract caterers
Major suppliers to the airlines, bus and
rail systems, recreational camps,
museums, historic sites, sports arenas,
special events
 E.g. Cara Operations, Compass Group

Tourism and the Food Service
Industry

Tourism Sales Dependent
Restaurants – earn more than 50%
of their sales revenues from tourists


Example: McDonald’s across from train
depot in Banff
Tourism Profit Dependent
Restaurants – earn 20-50% of their
sales revenues from tourists

Location is key, must be close enough
to a major highway, attraction, high
traffic shopping, accommodations
Tourism and the Food Service
Industry

Resident Sales Dependent
Restaurants – earn <20% of their
sales revenues from tourists

May profit from tourism dollars but
survive without them