Professional Documents
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Hospitality Management
Hospitality Management
Today, numerous types of food and beverage service outlets have come up in the
market. They offer a wide range of food and beverage services that the customers
can avail. The extent of service depends upon the type of service outlet. They include
drive-through service of fast food where the customers can purchase their favorite
food without having to leave their cars and pick-up points where food is delivered in
minutes. There are also some elite class fine dining outlets which exhibit classy
articles in the house and provide elaborate food services.
Here are some famous types of food and beverage outlets −
Strobe lights,
laser lights,
Entry permission for
Menu with dance floor,
couples or members
Discotheque/Nightclubs snacks and lively music,
on charge, assisted
beverages. informal and
service.
energetic
atmosphere.
Elaborate
menu of single
or multiple Modestly
Family/ Casual Dining cuisines which furnished, Assisted, mid-priced
Restaurants may change Casual service.
according to atmosphere.
the operating
hours.
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premise.
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Mostly Informal and
alcoholic menu social
Push-low seating,
with snacks. ambience with
Pubs self, or assisted
less lighting
service.
and more
chatting.
Architecture,
lighting, and
Limited menu music induce
American/Assisted
Themed Restaurant that is based the feel of the
service.
on the theme. theme. Mostly
informal
ambience.
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transport hubs.
Food can produce substantial revenue and profits for a location-based leisure facility (LBL). Yet
too often, it is relegated to a stepchild status with a snack bar, and usually one that is poorly done
at that. In LBLs, quality food service can generate 25% or more of total revenues. Even more
important, it is a critical success factor for creating a project that results in loyal, repeat guests. The
most successful and oldest operating LBLs have built their reputation and following around food as
much as the entertainment components.
Socialization is a key reason people visit a leisure project. It is a chance for a family or group to go
out and have some fun together. Culturally, socialization tends to revolve around food and
beverage, especially for adults. This is even more significant in parts of Latin America and Europe
than in the US. Without a quality food service operation and pleasant seating area, this
socialization component will be missing and the facility will not be as attractive of a destination.
In the projects White Hutchinson Leisure & Learning Group produces for our clients, we take food
and beverage seriously. It is treated as one of the most important components of a facility-not only
the selection and quality of food, but also the food service seating areas. It is so important, that the
food service is given a unique, distinctive name in each facility. Food service facilities in projects
we have produced include:
In family oriented facilities, where parents accompany children, the food and beverage selection
and the atmosphere and ambience of the seating areas are a very important consideration in
parents' attendance decisions. Studies have found that up to 70% of the decisions to attend are
made by mothers, not children.
Although many parents will play with their children, most prefer to sit, relax and enjoy coffee, other
beverages and food while they socialize and/or monitor their children. The placement of seating
areas needs to consider this monitoring need. If the seating areas have good visibility of children's
play areas, then the children will receive more supervision from parents and the facility will have
less behavior problems. Likewise, it is very important to the comfort of young children to be able to
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see their parents while they play, so parent seating needs to be located especially close to areas
where the youngest children are playing.
Acoustics is also an important consideration. If the seating areas are noisy, and conversation is so
difficult that you have to raise your voice, the experience can actually be unpleasant and stressful
to parents. Loud environments induce physiological stress in not only adults, but also in children.
The once standard fare of pre-frozen hamburgers, pre-frozen shell pizza and soft drinks will no
longer 'cut the mustard' in today's sophisticated restaurant environment. Just look at the menu
selections of many casual cuisine, chain restaurants such as Chili's or Applebee's. Consumers are
becoming more and more sophisticated in their food choices, and expect the same quality and
variety in LBLs.
Our research with families has shown that there is an interest in healthy and high quality food. LBL
food service facilities we have produced have included ethic wraps, branded gourmet coffee bars,
thin crust gourmet pizzas (for adults, children still like the classic style), fresh salads, grills, fresh
fruit moothies and specialty menus for children.
When it come to families, we make sure the caf� areas are both parent and child friendly, paying
special attention to the needs of parents with infants, toddlers and pre-schoolers. Picture menus
are developed for young children who don't yet read. Child-size silverware is offered as well as
spill-proof cups. We give staff special customer service training for working with parents and
children.
When providing food service in a variety of cultures and settings, special religious and local
practices have to be taken into consideration in the design of the seating areas and the kitchen,
sanitation practices, food selection and food preparation.
Sometimes meeting parents' needs means stepping outside societal paradigms. To address
parents' concerns about the unhealthy effect of cola and soda drinks on their children, LouLou Al
Dugong's in Dubai offers no soda drinks, only fruit juices, included fresh squeezed ones. This
operating decision supported parents in not having to say "no" to their children's choices when they
visited the caf� The value of children's nutrition and health came first in this facility.
Children have always been fascinated by food preparation. That is why in 1997 we introduced the
industry's first do-it-yourself cooking for children as young as 3 years old and now, in 2001, will be
introducing the industry's first do-it-yourself campfire cooking for children.
Quality food service is an essential component of any LBL. It requires research, attention to detail
and understanding the needs of both parents and children's. Treat it like a necessary evil, and
success will be elusive. Get it right and your business
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So, you’ve thought about selling your food/beverage product
to the healthcare industry. Driving past your local mega-
hospital, maybe you’ve thought ‘Hey, those are big buildings
with lots of people in them. I wonder if they would buy my
food product?’
Or, ‘What do all the doctors, nurses, and medical technicians,
not to mention patients and visitors, eat? Are they all brown-
bagging it?’ The answer is, basically no, for the most part,
they aren’t.
Hospitals and other healthcare facilities like nursing homes,
provide cafeterias and other retail outlets for visitors and
employees, as well as the nutrition services for patients.
Both aspects are managed by the same food and nutrition
team; a director of food and nutrition, dieticians, chefs and
other staff.
As in other foodservice sectors like colleges – read more
about the college foodservice market here – the quality of
the foodservice in a healthcare facility is an important part of
their guest’s and employees’ experience and is taken very
seriously. These foodservice teams are constantly looking
for new and improved food ideas and products to enhance
their offerings.
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Here’s a Quick Overview of the Healthcare
Foodservice Industry
There are 60,000 healthcare institutions in the U.S.; ranging
from urban mega-hospitals to smaller local hospitals and
nursing homes.
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How the Industry is Structured
The team who runs the food service, as mentioned above, are
the director of food and nutrition, dieticians, executive chefs
and their foodservice staff. These are known as operators.
For a large part of the industry, this team is employed by the
hospital; these are known as ‘self-operated’.
But in some cases, the food service team is working for an
outside company – called a contract management company.
The largest three of these companies are Sodexo, Aramark
and Compass Group. These contract-management
companies also run foodservice in other sectors such
as colleges and corporate dining (Business & Industry) – read
more about these other foodservice industry sectors here.
About 70% of healthcare foodservice is self-operated. The
remaining 30% are contract-managed. If you are wondering
which type of operator is easier to sell your food or beverage
product to, check out our post that speaks to that, here.
In addition to the operators on site, the wholesale-
distributors who supply their operations are also critical. For
the operator to buy your food product, it usually has to be ‘in-
distribution’ – meaning it is being carried by these wholesale
distributors.
The largest of these wholesale distributors are U.S. Foods
and Sysco. Learn more about the foodservice wholesale
industry here.
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Conclusion
The healthcare industry is a very large and stable part of our economy, that will never
go away. The foodservice aspect of healthcare is equally large and stable. So, if you
think your food/beverage product could be a part of this industry, it is well worth taking
a look at and beginning your journey to market to this important channel.
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Given its dominance and importance, students of hospitality management
should possess a working understanding of the food service segment of
the hospitality industry. As such, the purpose of this chapter is to educate
the reader on different segments of food service. Most of this chapter is
devoted to discussing commercial food service establishments. A
commercial food service establishment is that whose main purpose is
creating and selling food and beverage. Non-commercial food service
establishments are discussed later in the chapter. A non-commercial
foodservice establishment is embedded in an organization where food and
beverage is not the primary business focus, such as in healthcare,
education, the military, and transportation. Food service is continually
evolving, and this chapter will highlight some of the notable trends and
emerging issues. Finally, this chapter will discuss a variety of career
options that might be of interest to those seeking to pursue a professional
career in food service.
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segment. Quick service restaurants (QSRs), commonly known as fast
food by the general public, are those where the customer orders at a
counter, pays prior to receiving the product, and picks food up at the
counter. Drive-thru service is also commonplace in the QSR segment. The
service level is minimal, fast, and efficient. The food quality is low-cost
value with average checks under $8.00. QSR establishments may be
open for all three meal periods (breakfast, lunch, and dinner) with some
operations providing 24-hour service. In 2015, McDonald’s began offering
breakfast all day, although the verdict on the success of this rollout is still
out. QSR establishments are unquestionably chain dominated and are
they child friendly with specific children’s menus. Most “pizza shops” fall
into the QSR segment as well. Some establishments may be coined QSR-
Plus, such as Chick-fil-A, Five Guys Burgers and Fries, and Shake Shack,
who provide higher quality offerings and realize higher check averages.
Traditionally, McDonald’s, Burger King, and Wendy’s dominated the QSR
segment, but dominance has begun to shift. McDonald’s still occupies the
number one position in sales, but the number two and three spots go to
Starbucks and Subway.3 Subway tops the list with the most number of
units/restaurants. Today there is more competition among key players
within QSR, and QSR establishments are competing with the quick casual
segment as well.
Years ago, food trucks and street food vendors would not have been
included in a textbook chapter, but today they are a popular and steadily
growing segment. The famous Halal Guys food cart on 53 rd Street and
6th Avenue in New York City is rumored to generate over one million
dollars in annual sales. Similar to QSR establishments, food truck/street
service is counter-based and limited, due to their small street-side
presence. Patrons order and pay at the counter, take their food away, eat
right on the sidewalk, or may sit at a few tables nearby. These operations
typically have a limited menu; they find a few things to do very well (e.g.,
falafel, grilled cheese, or crepes). These establishments are not
necessarily the hot dog and pretzel stands they once were with a
reputation of serving poor quality food (“roach coaches”). Some may still
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provide lower quality food, but others provide a higher-end menu,
sometimes with gourmet offerings. In fact, the trend in food trucks/street
food is toward the higher end. Check averages span a few dollars to over
$20. Pepe, a Washington DC-based food truck inspired by Jose Andres, a
Spanish trained chef who worked at El Bulli, the number one ranked
restaurant in the world for several years, offers a sandwich priced at $20.
Unlike QSRs, food trucks/street food vendors are typically independents,
but chains are beginning to emerge, such as The Taco Truck in New York,
Massachusetts, and New Jersey. Food trucks and street vendors have
been innovative using social media as a marketing strategy. Kogi is a
famous taco truck in Los Angeles that has utilized social media to amass a
cult-like following by tweeting their various locations numerous times
throughout a day.
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typically receive menus, and are waited on by servers, who are central in orchestrating
the dining experience. Food may now be delivered in courses (appetizer, main course,
and dessert). Payment occurs at the end of the meal, and gratuities (tips) are now
expected. We see alcohol served in many full-service establishments, although in
some states alcohol is served at Chipotle.
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some of these establishments cost as much as $15 million to
build. These restaurants are often found in major shopping malls and major
tourist areas so they can draw on high volume. Given the high costs of building
these restaurants and the high cost of real estate, theme check averages are notably
higher than casual establishments (in the rage of $13.00 for lunch and $23.00 for
dinner).
The casual upscale (also known as polished casual) segment is a minor step
below upscale restaurants. This segment is arguably one of the most difficult
segments for individuals to grasp conceptually. Restaurants in this segment are similar
to upscale restaurants in service and food quality with average checks in the range of
$16.00 for lunch and $50.00 for dinner. A major distinction is that they turn tables
quickly in comparison to upscale restaurants where the dining pace is more leisurely.
Casual upscale restaurants generally serve lunch and dinner; whereas upscale fine
dining restaurants typically only serve dinner. Casual upscale establishments have
expensive decor, some may use linen, they have a full bar and a high-quality wine list,
and most items are prepared from scratch with the highest quality ingredients. There
are numerous independently owned and operated casual upscale restaurants.
However, the major players in this segment are chains, including Great American
Restaurants, Hillstone Restaurant Group, and J. Alexander’s. For the most part, chain
restaurants in this segment do not want the connotation of being a part of a chain, but
rather would like to be perceived as unique independent restaurants. Hillstone
Restaurant Group, for example, varies the names of its restaurants (e.g., Houston’s,
Bandera, and R+D Kitchen), menu, and décor based on location to help achieve a
unique independent feel.
Upscale fine dining establishments are at the top of the restaurant “food chain.”
Upscale fine dining restaurants have a strong focus on providing the highest level of
product and service, and their décor has an upscale look and feel. Upscale restaurants
will often have a wine cellar to meet guests’ expectations. (Some wine cellars are
rumored to have more than $7 million worth of inventory.) Upscale establishments
employ highly trained professional servers who are typically only responsible for one or
two tables at the same time. Average checks can easily exceed $500.00. Unlike
casual upscale, independents dominate the upscale fine-dining segment. High-end
steakhouses, such as Pappas Bros. Steakhouse, Peter Lugers, and Ruth’s Chris
Steak House, fall into this segment. Alinea in Chicago and Eleven Madison Park in
New York City are other examples of independent upscale fine dining. Many
restaurants in this segment have an à la carte or a fixed price (prix fixe) menu. An à la
carte menu prices each item separately; whereas everything is included for one price
with a fixed price menu. Thomas Keller’s The French Laundry fixed price menu is over
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$295 per person at the time of writing this chapter. The French Laundry menu also has
several “add-ons” that could easily extend the average check to over $500, excluding
alcohol. Many upscale dining establishments and their chefs strive to earn a coveted
Michelin Star, a top spot in one of the several international lists, or a positive review
online. Such accolades help these establishments maintain their exclusive status in a
highly competitive business environment.
NON-COMMERCIAL FOOD SERVICE
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referred to as self-operated (self-op), or they can contract food service out
to a company that specializes in feeding and related services. Three of the
dominant players today in non-commercial food service include Aramark,
Compass, and Sodexo. While the success of a commercial restaurant is
often determined by its sales volume in dollars, non-commercial success
is often rated by participation (volume of people). This is especially true in
cases where food is free or partially subsidized by the host company for its
employees.
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through cafeteria-style filling up their tray as they went through the line.
Now there are more options, more stations, and more made-to-order
food. We also see smaller tables to mimic eating in a restaurant. Many
universities use food service offerings as a recruiting tool to lure
prospective students, and it is not uncommon for students and parents
to tour state-of-the-art food service facilities during campus visits. In the
past, different dining halls on the same campus were basically the
same. Today dining halls try to differentiate themselves and compete
for student patronage. Universities can be self-operated, or they may
contract out their food service operations. Many universities also have
retail dining areas or food courts similar to a mall where students can
find many familiar QSR brands.
K-12 education. Kindergarten through twelfth-grade food service
primarily involves providing lunches in both public and private schools.
These programs are subsidized to various degrees by the U.S. federal
government, and nutritional requirements, set by federal regulations,
must be met to receive federal dollars. Many schools also offer
breakfast and after school snacks, and some even offer dinner to
ensure nourishment throughout the day. School nutrition programs are
focusing more on purchasing local products and doing nutrition
education to help improve the eating behaviors of students. Programs
also offer snack foods and catering for school functions to help
increase sales. School food service may be either self-operated or
contracted out.
Healthcare. Healthcare feeding in a traditional hospital setting includes
patient feeding, employee feeding, and guest feeding. Hospitals may
also have catering that can range from casual to large upscale
fundraising events. The size and scope of offerings largely depend on
the size and location of the hospital. Rehabilitation clinics, long term
care facilities, and traditional nursing homes also provide patient
feeding.
Continuing care retirement communities (CCRCs). CCRCs are a
relative newcomer and are becoming more important with the Baby
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Boomers at or nearing retirement age. Nursing homes may come to
mind when you think of a CCRC, but a CCRC is closer to a resort.
Many guests are still very active, and CCRCs fulfill individuals’ needs
for activities, accommodations, and fine food. There is a growing need
for management talent in CCRCs, and many hospitality programs are
adding courses in this area to their curricula.
Sports and entertainment arenas. Sports and entertainment arenas
typically contract out their food service operations. Offerings range from
popcorn and peanuts to fine dining full-service restaurants. There may
also be catering in the box suites. Often the food at an arena mimics an
area’s most popular and unique items. In Pittsburgh’s Heinz field, for
example, you can find the famous Primanti Bros. sandwich, which is
stuffed with coleslaw and fries. AT&T Park’s $8 Gilroy garlic fries in
San Francisco have become famous in their own right. For the
Olympics, Aramark is the food service provider, feeding athletes, coaches,
staff, officials, and the press. This is food service on a grand scale serving over 3.5
million meals and 10,000 people per hour with diverse dietetic and cultural needs. 5
Corrections. Correctional facilities must feed inmates and employees, and they
typically forbid individuals from bringing food into a facility from the outside.
Accordingly, non-commercial food service is an important component of a jail or
prison system. Furthermore, food plays an important role in maintaining inmate
morale in this environment.
Military. This segment involves feeding military troops and affiliated support
organizations. While much of the feeding is in “mess halls,” there are more upscale
dining options offered in officer’s clubs. There are also balls and galas that can be
upscale in nature as well. Higher ranking officers such as Generals are often
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assigned their own culinary team to prepare daily meals and cater to special
events.
Airline. The airline industry has food service in airports, ranging from fast food to
casual sit-down restaurants. The Burger King or Subway in the airport is most likely
managed by a contracted food service company. In-flight food service is, of course,
another area that falls in this category. Two of the major in-flight food service
providers are Gate Gourmet and Sky Chefs.
Trains. Onboard dining options can range from snacks to full-service meals in the
dining car, often requiring reservations. On many long-distance trains there may be
an attendant with a snack cart who travels from car to car. Bar-buffet cars are a
unique part of the train experience, where the quality of the food and wine can rival
that of a gourmet restaurant.
Cruises. One of the first questions asked of someone returning from a cruise is,
“How was the food?” Dining on cruise ships has evolved over the years to allow for
more options and flexibility with some outlets open 24 hours. Royal
Caribbean’s The Allure of the Seas is currently the world’s largest cruise ship with
more than 20 dining options, ranging from casual snacks to fine dining (and
everything in between). We are now also see branding on cruise ships with
concepts like Starbucks.
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