Professional Documents
Culture Documents
When Beverage World magazine (successor to the National Bottlers’ Gazette) published
their 100 Year History 1882-1982 and Future Probe in 1982, they leaned heavily on the
information in Organization in the Soft Drink Industry for the “A Century of Industry History in
Review” chapter. Their centennial overview offered these thoughts on late nineteenth and early
twentieth century soft drink consumption and production:
People congregated at the local soda fountain in the late 1880s, sat at ornate fountains and ordered a
fizz-bubbling beverage in a glass…Later on part of the fun of drinking a bottled carbonated beverage
was the excitement of opening the bottle. Whether you pushed the stopper in, or snapped loose the
clamp, you didn’t know whether the contents would open with a 'pop' and then foam, spurt, gush, fizzle
or lay limp within…
Although many were entering the bottling trade, soft drink production was still considered a seasonal
business, with activity centered during the warmer months. Many plants simply locked their doors after
Labor Day.
Soft drink sales expansion was also limited in the early 1900s by the limited number of available outlets
and the consumer’s restricted mobility. Bottlers own mobility was also limited by the slow, uncertain
horse and wagon hookup. Bottlers could only make their products available where people congregated,
and that often meant delivering beverages by wagon to the general store, town picnic or church social.
Obviously, the development of the motor car and truck had a profound impact on the pattern of
beverage consumption. The automobile made a trip to the corner grocery a more frequent event and
also created the 'roadside stand' as a place to stop for a cold bottle of sodas. Furthermore, the
replacement of the delivery wagon by the motor truck during 1913-1918 and the subsequent building of
roads greatly expanded the area in which the bottler was able to deliver his drinks.
The beverage industry refers to the industry that produces drinks, in particular ready to
drink beverages. Beverage production can vary greatly depending on the beverage being made.
ManufacturingDrinks.com explains that, "bottling facilities differ in the types of bottling lines they
operate and the types of products they can run". Other bits of required information include the
knowledge of if said beverage is canned or bottled (plastic or glass), hot-fill or cold-fill, and natural or
conventional. Innovations in the beverage industry, catalysed by requests for non-alcoholic
beverages, include: beverage plants, beverage processing, and beverage packing.[1]
A bar (also known as a saloon or a tavern or sometimes a pub or club, referring to the actual
establishment, as in pub bar or savage club etc.) is a retail business establishment that
serves alcoholic beverages, such as beer, wine, liquor, cocktails, and other beverages such
as mineral water and soft drinks and often sell snack foods such as crisps (potato chips) or peanuts,
for consumption on premises.[1]Some types of bars, such as pubs, may also serve food from
a restaurant menu. The term "bar" also refers to the countertop and area where drinks are served.
The term "bar" is also derived from the metal or wooden bar that is often located at feet along the
length of the "bar".[citation needed]
Bars provide stools or chairs that are placed at tables or counters for their patrons. Bars that offer
entertainment or live music are often referred to as music bars, live venues, or nightclubs. Types of
bars range from inexpensive dive bars[2] to elegant places of entertainment often accompanying
restaurants for dining.
Many bars have a discount period, designated a "happy hour" to encourage off-peak-time
patronage. Bars that fill to capacity sometimes implement a cover charge or a minimum drink
purchase requirement during their peak hours. Bars may have bouncers to ensure patrons are of
legal age, to eject drunk or belligerent patrons, and to collect cover charges. Such bars often feature
entertainment, which may be a live band, vocalist, comedian, or disc jockey playing recorded music.
The term "bar" is derived from the typically metal bar under the countertop under which drinks are
served. Patrons may sit or stand at the counter and be served by the bartender. Depending on the
size of a bar and its approach, alcohol may be served at the bar by bartenders, at tables by servers,
or by a combination of the two. The "back bar" is a set of shelves of glasses and bottles behind that
counter. In some establishments, the back bar is elaborately decorated with woodwork, etched
glass, mirrors, and lights.
History[edit]
A Depression-era bar in Melrose, Louisiana
There have been many different names for public drinking spaces throughout history. In the colonial
era of the United States taverns were an important meeting place, as most other institutions were
weak. During the 19th century saloons were very important to the leisure time of the working
class.[3] Today, even when an establishment uses a different name, such as "tavern" or "saloon", the
area of the establishment where the bartender pours or mixes beverages is normally called "the bar".
The sale and/or consumption of alcoholic beverages was prohibited in the first half of the 20th
century in several countries, including Finland, Iceland, Norway, and the United States. In the United
States, illegal bars during Prohibition were called speakeasies, blind pigs, and blind tigers.
Legal restrictions[edit]
Laws in many jurisdictions prohibit minors from entering a bar. If those under legal drinking age are
allowed to enter, as is the case with pubs that serve food, they are not allowed to drink. In some
jurisdictions, bars cannot serve a patron who is already intoxicated. Cities and towns usually have
legal restrictions on where bars may be located and on the types of alcohol they may serve to their
customers. Some bars may have a license to serve beer and wine, but not hard liquor. In some
jurisdictions, patrons buying alcohol must also order food. In some jurisdictions, bar owners have a
legal liability for the conduct of patrons who they serve (this liability may arise in cases of driving
under the influence which cause injuries or deaths).
Many Islamic countries prohibit bars as well as the possession or sale of alcohol for religious
reasons, while others, including Qatar and the United Arab Emirates, allow bars in some specific
areas, but only permit non-Muslims to drink in them.
Types[edit]
A bar's owners and managers choose the bar's name, décor, drink menu, lighting, and other
elements which they think will attract a certain kind of patron. However, they have only limited
influence over who patronizes their establishment. Thus, a bar originally intended for one
demographic profile can become popular with another. For example, a gay or lesbian bar with a
dance or disco floor might, over time, attract an increasingly heterosexual clientele. Or a blues bar
may become a biker bar if most its patrons are bikers.
A cocktail lounge is an upscale bar that is typically located within a hotel, restaurant, or airport.
A full bar serves liquor, cocktails, wine, and beer.
A wine bar is an elegant bar that focuses on wine rather than on beer or liquor. Patrons of these bars
may taste wines before deciding to buy them. Some wine bars also serve small plates of food or
other snacks.
A beer bar focuses on beer, particularly craft beer, rather than on wine or liquor. A brew pub has an
on-site brewery and serves craft beers.
"Fern bar" is an American slang term for an upscale or preppy (or yuppie) bar.
A music bar is a bar that presents live music as an attraction.
A dive bar, often referred to simply as a "dive", is a very informal bar which may be considered by
some to be disreputable.
A non-alcoholic bar is a bar that does not serve alcoholic beverages.
A bar and grill is also a restaurant.
Some persons may designate either a room or an area of a room as a home bar. Furniture and
arrangements vary from efficient to full bars that could be suited as businesses.
Entertainment[edit]
Bars categorized by the kind of entertainment they offer:
Bicycle messenger bars, where bike messengers congregate; these are found only in cities with
large bike messenger communities
Biker bars, which are bars frequented by motorcycle enthusiasts and (in some regions)
motorcycle club members
Cop bars, where off-duty law enforcement agents gather
College bars, usually located in or near universities, where most of the patrons are students
Gay bars, where gay men or women dance and socialize
Lesbian bars
Mixed gay/straight bars, mainly targeting bisexuals
Neighborhood bars, a bar that most of the patrons know each other; it is generally close to home
and is frequented regularly
"Old man" bars, whose clientele are mainly long-time male patrons who know each other well;
since most patrons are retired, they often begin drinking much earlier in the day, consume
inexpensive beer/whisky and may spend much of the day chatting, reading the newspaper, and
watching TV
Sailor bars, usually located in waterfront areas near commercial docks or naval bases
Singles bars where (mostly) unmarried people of both sexes can meet and socialize
Sports bars, where sports fans gather to cheer on their favorite teams with other like-minded
fans
Women's bars
Bar (counter)[edit]
The counter at which drinks are served by a bartender is called "the bar". This term is applied, as
a synecdoche, to drinking establishments called "bars". This counter typically stores a variety
of beers, wines, liquors, and non-alcoholic ingredients, and is organized to facilitate the bartender's
work.
The word "bar" in this context was already in use in 1591 when Robert Greene, a dramatist, referred
to one in his A Notable Discovery of Coosnage.[citation needed]
Counters for serving other types of food and drink may also be called bars. Examples of this usage
of the word include snack bars, sushi bars, juice bars, salad bars, dairy bars, and sundae bars.
Locations[edit]
Australia[edit]
In Australia, the major form of licensed commercial alcohol outlet from the colonial period to the
present was the pub, a local variant of the English original. Until the 1970s, Australian pubs were
traditionally organised into gender-segregated drinking areas—the "public bar" was only open to
men, while the "lounge bar" or "saloon bar" served both men and women (i.e. mixed drinking). This
distinction was gradually eliminated as anti-discrimination legislation and women's rights activism
broke down the concept of a public drinking area accessible to only men. Where two bars still exist
in the one establishment, one (that derived from the "public bar") will be more downmarket while the
other (deriving from the "lounge bar") will be more upmarket. Over time, with the introduction
of gaming machines into hotels, many "lounge bars" have or are being converted into gaming rooms.
Beginning in the mid-1950s, the formerly strict state liquor licensing laws were progressively relaxed
and reformed, with the result that pub trading hours were extended. This was in part to eliminate the
social problems associated with early closing times—notably the infamous "six o'clock swill"—and
the thriving trade in "sly grog" (illicit alcohol sales). More licensed liquor outlets began to appear,
including retail "bottle shops" (over-the-counter bottle sales were previously only available at pubs
and were strictly controlled). Particularly in Sydney, a new class of licensed premises, the wine bar,
appeared; there alcohol could be served on the proviso that it was provided in tandem with a meal.
These venues became very popular in the late 1960s and early 1970s and many offered free
entertainment, becoming an important facet of the Sydney music scene in that period.
In the major Australian cities today there is a large and diverse bar scene with a range of ambiences,
modes and styles catering for every echelon of cosmopolitan society.
Canada[edit]
Public drinking began with the establishment of colonial taverns in both the U.S and Canada. While
the term changed to Public house especially in the U.K., the term Tavern continued to be used
instead of Pub in both the U.S and Canada. Public drinking establishments were banned by
the Prohibition of alcohol, which was (and is) a provincial jurisdiction. Prohibition was repealed,
province by province in the 1920s. There was not a universal right to consume alcohol, and only
males of legal age were permitted to do so. "Beer parlours" were common in the wake of prohibition,
with local laws often not permitting entertainment (such as the playing of games or music) in these
establishments, which were set aside for the purpose solely of consuming alcohol.
Since the end of the Second World War, and exposure by roughly one million Canadians to
the public house traditions common in the UK by servicemen and women serving there, those
traditions became more common in Canada. These traditions include the drinking of dark ales and
stouts, the "pub" as a social gathering place for both sexes, and the playing of games (such as darts,
snooker or pool). Tavern became extremely popular during the 1960s and 1970s, especially for
working-class people. Canadian taverns, which can still be found in remote regions of Northern
Canada, have long tables with benches lining the sides. Patrons in these taverns often order beer in
large quart bottles and drink inexpensive "bar brand" Canadian rye whisky. In some provinces,
taverns used to have separate entrances for men and women. Even in a large city like Toronto the
separate entrances existed into the early 1970s.
Canada has adopted some of the newer U.S. bar traditions (such as the "sports bar") of the last
decades. As a result, the term "bar" has come to be differentiated from the term "pub", in that bars
are usually 'themed' and sometimes have a dance floor. Bars with dance floors are usually relegated
to small or Suburban communities. In larger cities bars with large dance floors are usually referred to
as clubs and are strictly for dancing, Establishments which call themselves pubs are often much
more similar to a British pub in style. Before the 1980s, most "bars" were referred to simply as
"tavern".
Often, bars and pubs in Canada will cater to supporters of a local sporting team, usually
a hockey team. There is a difference between the sports bar and the pub; sports bars focus on TV
screens showing games and showcasing uniforms, equipment, etc. Pubs will generally also show
games but do not exclusively focus on them. The Tavern was popular until the early 1980s, when
American-style bars, as we know them today became popular. In the 1990s imitation British- and
Irish-style pubs become popular and adopted names like "The Fox and Fiddle" and "The Queen and
Beaver" reflect naming trends in Britain. Tavern or pub style mixed food and drink establishment are
generally more common than bars in Canada, although both can be found.
Legal restrictions on bars are set by the Canadian provinces and territories, which has led to a great
deal of variety. While some provinces have been very restrictive with their bar regulation, setting
strict closing times and banning the removal of alcohol from the premises, other provinces have
been more liberal. Closing times generally run from 2:00 to 4:00 a.m.
In Nova Scotia, particularly in Halifax, there was, until the 1980s, a very distinct system of gender-
based laws were in effect for decades. Taverns, bars, halls, and other classifications differentiated
whether it was exclusively for men or women, men with invited women, vice versa, or mixed. After
this fell by the wayside, there was the issue of water closets. This led to many taverns adding on
"powder rooms"; sometimes they were constructed later, or used parts of kitchens or upstairs halls, if
plumbing allowed. This was also true of conversions in former "sitting rooms", for men's facilities.
Italy[edit]
The bar in the coach terminal at Udine, Italy
In Italy, a "bar" is a place more similar to a café, where people go during the morning or the
afternoon, usually to drink a coffee, a cappuccino, or a hot chocolate and eat some kind of snack
such as sandwiches (panini or tramezzini) or pastries. However, any kind of alcoholic beverages are
served. Opening hours vary: some establishments are open very early in the morning and close
relatively early in the evening; others, especially if next to a theater or a cinema, may be open until
late at night. Many larger bars are also restaurants and disco clubs. Many Italian bars have
introduced a so-called "aperitivo" time in the evening, in which everyone who purchases an alcoholic
drink then has free access to a usually abundant buffet of cold dishes such as pasta salads,
vegetables, and various appetizers.
Poland[edit]
In modern Polish, in most cases a bar would be referred to as pub (plural puby), a loan from English.
Polish puby serve various kinds of alcoholic drinks as well as other beverages and simple snacks
such as crisps, peanuts or pretzel sticks. Most establishments feature loud music and some have
frequent live performances. While Polish word bar can be also applied to this kind of establishment,
it is often used to describe any kind of inexpensive restaurant, and therefore can be translated
as diner or cafeteria. Both in bary and in puby, the counter at which one orders is called bar, itself
being another obvious loanword from English.
Bar mleczny (literally 'milk bar') is a kind of inexpensive self-service restaurant serving wide range of
dishes, with simple interior design, usually opened during breakfast and lunch hours. It is very similar
to Russian столовая in both menu and decor. It can be also compared to what is called greasy
spoon in English-speaking countries. Bary mleczne rarely serve alcoholic beverages.
The term bar szybkiej obsługi (lit. 'quick service restaurant') also refers to eating - not drinking -
establishments. It is being gradually replaced by the English term fast food. Another name, bar
samoobsługowy may be applied for any kind of self-service restaurant. Some kinds of
Polish bar serve only one type of meal. An example are restaurants serving pasztecik szczeciński, a
traditional specialty of the city of Szczecin. It can be consumed at the table or take-out.
Spain[edit]
Bars are common in Spain and form an important part in Spanish culture. In Spain it is common for a
town to have many bars and even to have several lined up in the same street. Most bars have a
section of the street or plaza outside with tables and chairs with parasols if the weather allows it.
Spanish bars are also known for serving a wide range of sandwiches (bocadillos), as well as snacks
called tapas or pinchos.
Tapas and pinchos may be offered to customers in two ways, either complementary to order a drink
or in some cases there are charged independently, either case this is usually clearly indicated to bar
customers by display of wall information, on menus and price lists. The anti-smoking law has
entered in effect January 1, 2011 and since that date it is prohibited to smoke in bars and
restaurants as well as all other indoor areas, closed commercial and state owned facilities are now
smoke-free areas.
Spain is the country with the highest ratio of bars/population with almost 6 bars per thousand
inhabitants, that's 3 times UK's ratio and 4 times Germany's, and it alone has double the number of
bars than the oldest of the 15-members of the European Union. The meaning of the word 'bar' in
Spain, however, does not have the negative connotation inherent in the same word in many other
languages. For Spanish people a bar is essentially a meeting place, and not necessarily a place to
engage in the consumption of alcoholic beverages. As a result, children are normally allowed into
bars, and it is common to see families in bars during week-ends of the end of the day. In small
towns, the 'bar' may constitute the very center of social life, and it is customary that, after social
events, people go to bars, including seniors and children alike.
United Kingdom[edit]
Jimmy Wales at the bar during Wikimania 2014 in the Barbican Centre, London
In the UK, bars are either areas that serve alcoholic drinks within establishments such as hotels,
restaurants, universities, or are a particular type of establishment which serves alcoholic drinks such
as wine bars, "style bars", private membership only bars. However, the main type of establishment
selling alcohol for consumption on the premises is the public house or pub. Some bars are similar to
nightclubs in that they feature loud music, subdued lighting, or operate a dress code and admissions
policy, with inner city bars generally having door staff at the entrance.
'Bar' also designates a separate drinking area within a pub. Until recent years most pubs had two or
more bars – very often the Public bar or Tap room, and the Saloon Bar or Lounge, where the decor
was better and prices were sometimes higher. The designations of the bars varied regionally. In the
last two decades, many pub interiors have been opened up into single spaces, which some people
regret as it loses the flexibility, intimacy, and traditional feel of a multi-roomed public house.
One of the last dive bars in London was underneath the Kings Head Pub in Gerrard Street, Soho.
United States[edit]
In the United States, legal distinctions often exist between restaurants and bars, and even between
types of bars. These distinctions vary from state to state, and even among municipalities. Beer
bars (sometimes called tavernsor pubs) are legally restricted to selling only beer, and possibly wine
or cider. Liquor bars, also simply called bars, also sell hard liquor.
Bars are sometimes exempt from smoking bans that restaurants are subject to, even if those
restaurants have liquor licenses. The distinction between a restaurant that serves liquor and a bar is
usually made by the percentage of revenue earned from selling liquor, although increasingly,
smoking bans include bars as well.
In most places, bars are prohibited from selling alcoholic beverages to go, and this makes them
clearly different from liquor stores. Some brewpubs and wineries can serve alcohol to go, but under
the rules applied to a liquor store. In some areas, such as New Orleans and parts of Las
Vegas and Savannah, Georgia, open containers of alcohol may be prepared to go. This kind of
restriction is usually dependent on an open container law. In Pennsylvania and Ohio, bars may
sell six-packs of beer "to-go" in original (sealed) containers by obtaining a take-out license. New
Jersey permits all forms of packaged goods to be sold at bars, and permits packaged beer and wine
to be sold at any time on-premises sales of alcoholic beverages are allowed.
During the 19th century, drinking establishments were called saloons. In the American Old West the
most popular establishment in town was usually the Western saloon. Many of these Western
saloons survive, though their services and features have changed with the times. Newer
establishments have sometimes been built in Western saloon style for a nostalgic effect. In
American cities there were also numerous saloons, which allowed only male patrons and were
usually owned by one of the major breweries. Drunkenness, fights, and alcoholism made the saloon
into a powerful symbol of all that was wrong with alcohol.[4] Saloons were the primary target of
the Temperance movement, and the Anti-Saloon League, founded in 1892, was the most powerful
lobby in favor of Prohibition. When Prohibition was repealed, President Franklin D. Roosevelt asked
the states not to permit the return of saloons.[5]
Many Irish- or British-themed "pubs" exist throughout United States and Canada and in some
continental European countries.
As of May, 2014, Pittsburgh, Pennsylvania had the most bars per capita in the United States.[6]
Former Yugoslavia[edit]
Main article: Coffee culture in former Yugoslavia
In Bosnia and Herzegovina, Croatia, Montenegro and Serbia, modern bars overlap
with coffeehouses and larger ones are sometimes also nightclubs. Since the 1980s, they have
become similar in social function to the bars of Italy, Spain and Greece, as meeting places for
people in a city.
Origin of Food & Beverage Service Industry
The origin of Food & Beverage Service Industry can easily be understood by studying the origin and
history of the same, which are detailed below:
A very warm welcome, friendly actions - people who really care - departure with wishes to meet again -
behind these images, there is a highly trained professional for whom hospitality is not a tradition, but a
way of life. We are discussing regarding travel and tourism industry in which one out every 15
individuals living in the world is associated with. One major division of the said industry is hospitality
sector, which comprises mainly of lodging, and food and beverage divisions.
The word ‘hospitality’, according to Oxford English Dictionary, is the friendly reception and treatment of
friends, guests and strangers. Even though this sector comprises mainly of lodging and F & B division, in
a wider sense the word can be used as a synonym for travel and tourism industry.
The ancient travelers were mainly pilgrims, traders and military men, but whenever there was a military
movement they used to carry accommodation and food with them. It was the traders and the pilgrims
who wanted the provision of food and accommodation. The first Inns had nothing more than a cot or a
bench towards the corner of the room or the stable. Here sanitation and privacy were non-existent.
People used to share room with livestock. In the 3rd century, Roman Empire built roads in Europe to
facilitate the traders. Soon a chain of roadside Inns was constructed from Spain to Turkey. This
continued to be same till the end of 17th century for common men. The wealthy used to stay at their
friends’ place or with relatives, but soon they too realized the need for accommodation for their class.
Thus the European castle-like structure sprung up. This had the provision of sanitation, privacy and all
the luxury that they demanded. This structure came to be known as ‘Hotel’, the French equivalent for
Mansion. Colonial American Inns were modeled after the Europeans and the practice of sharing was
common.
Towards the end of the 17th century, the concept of Hotel with a living room and a bath attached for
common men came into existence. The American innkeepers improved the quality of service by
providing comfort and sanitation at affordable rates. A giant leap in this direction was the establishment
of City Hotel in the year 1794.It was the largest hotel in New York, exclusively used for lodging purpose
and inspired the construction of other pioneer hotels. Another milestone was the establishment of
Tremont House in 1829 that was offering a private room with locking facility, washbasin, water pitcher,
soap in the bathroom and above all, a full time service staff. Palace Hotel established in 1874 had A.C,
fire sprinklers, plumbing system and other luxurious facilities. This was followed by the transformation
to different forms of hotels like budget hotels, resorts, motels etc.
Cyber cafe
Cyber cafe
There are two sectors that work in the catering market. They are:
1. Commercial Sector
It is categorized into:-
1. Restricted Market
2. General Market
Restricted Market:
In this type of market the choice of the items, is very less or no choice at all. This market may
be classified as:
1. Transport
2. Clubs
3. Industrial, etc.
General Market:
In this type of market the choice of the items, is varied, i.e., they have full choice. This
market may be classified as:
1. Hotels
2. Pubs
It is the sector, which is, profit / business oriented. This sector mainly caters for the welfare of the Public
through Government or Non – Government Organization. It includes:
1. Institutional,
2. Armed Forces,
3. Industrial,
4. Hospitals, etc.
The catering establishments may also be categorized by the nature of the requirements they fulfill:-
a. Restaurant
b. Transport Catering
c. Airline Catering
d. Railway Catering
e. Marine Catering
f. Surface Catering
g. Outdoor Catering
i. Club Catering
j. Welfare Catering
k. Industrial Catering
l. Leisure-Linked Catering
It’s an establishment that serves the customers prepared food and beverages to order, to be consumed
on the premises.
Transport Catering:-
The provision of food and beverages to passengers, before, during and after a journey on trains, aircraft
and ships and in buses or private vehicles is termed as transport catering. The major forms are:-
Airline Catering
It caters to airline passengers on board the air craft, as well as at restaurants situated at airport
terminals.
Railway Catering
It caters to railway passengers both during the journey as well as during halts at different railway
stations.
Marine Catering
It caters to cargo crew and passenger ship passengers. Ships have kitchens and restaurants on board.
Surface Catering
It caters to passengers traveling by surface transport such as buses and private vehicle; e.g. dhabas on
the highways.
Outdoor Catering
Catering includes the provision of food and drink away from home base and suppliers. The venue is left
to the peoples’ choice.
Club catering
The provision of food and beverages to a restricted member clientele. Examples - turf clubs, golf clubs,
cricket clubs etc.
Welfare Catering
The provision of food and beverages to people to fulfill a social obligation, determined by a recognized
authority.
Industrial Catering
The provision of food and beverages to ‘people at work,’ in industries and factories at highly subsidized
rates.
Leisure-Linked Catering
The provision of food and beverages to people engaged in ‘rest and recreation’ activities. Example -
exhibitions, theme parks, galleries and theatres.
There are different sectors into which the food and beverage industry may be classified. The list
however is not exhaustive, but includes most of the sectors that are found today.
1. Hotels and other The purpose of this sector primarily is The Oberoi’s, Taj Mahal
tourist to provide accommodation along with Mumbai, etc.
accommodation food and beverage facilities
3. Popular Catering These are run with a purpose of Indian Coffee House, Pizza
(Coffee shops, pizza provision of food and drink at low to Hut, Barista, Café Coffee
deliveries) medium price with limited levels of Day, etc.
service
4. Fast Food Outlets (Mc. Provision of food and drink in highly Mc. Donald, TGI Fridays,
Donald, Burger King) specialized environment with high etc.
investments and operational costs and
high customer turnover.
5. Take Aways Provision of food and drinks to people K.F.C’s, Pizza Huts, etc.
quickly so that they may consume it at
some other place.
6. Retail Stores Provision of food and drinks to people The Great India Place, Mega
as an adjunct to the main business of Malls, etc.
retailing.
7. Banqueting, Provision of food and drink to people Habitat World, The Ashok
Conferencing, engaged in business related activities Delhi, etc.
Exhibitions, and other on large scale. It is usually pre-booked.
Business activities.
8. Leisure Attractions Provision of food and drinks to people Wonderla, Essel world,
(theme parks, who are engaged in leisure activities. Ramoji film city, Fun n Food
theaters, amusement Village, etc.
parks)
9. Motorway Service Provision of food together with retail Reliance A-1 Food Plaza,
Stations and petrol services for motorway Midway Restaurants, etc.
travellers often at isolated locations.
10. Welfare Catering Provision of food and drink to people R.K.H.S, etc.
(Schools, Universities, by Organizations (Private,
Hospitals, Prisons) Government and Non – Government)
12. Licensed Trade Provision of food and drink in Bars and Pubs, etc.
environment governed by licensing
requirements.
13. Transport Catering Provision of food and drink to people IRCTC, Star Cruise, Royal
(Airlines, Cruise/ on the move. Caribbean, Princess,
Marine, Road and etc.
Rail)
14. Outdoor Catering or Provision of food and drink away from The Grand Bhagwati,
Off – Premises the home and suppliers of food Maharaja Caterers, etc.
Catering services.
There are different types of food service operations. These may be classified on the basis of area, service
practiced and food served. The classification is as follows:
2. Coffee Shop It is open 24 hours and serves all meal types from Breakfast till
Dinner and Mid-night Snacks.
3. First Class Restaurant It is a formal dining restaurant with classical preparation and
presentation of food offering a high level of table service.
5. Ethnic Restaurant The type of food and design of the restaurant depends on the
demographic origin followed, i.e., Indian, Oriental, French, etc.
8. Public Houses / Pubs These are licensed establishments mend for the provision of
drinks. It may be a simple bar with a standing room or the
customers may have a plush surrounding offering a varied
selection of food.
(i) Food service industry and catering industry are different from each other.
(ii) Provision of Food at entertainment parks comes under Leisure linked catering.
Banquet is a large catering activity department where food & beverage are served
for pre-arranged number of peoples on pre-fixed date & time agreed menu &
price.
Banquet is a place where many guest having their Food and Beverage together. You can
say Banquet is a proper place of party. Thousands of peoples have their Food and
Beverage as well as Lunch or Dinner in Banquet Hall. But this party is held and fixed with
Date, time and Price. Like you want to hold a party with 500 peoples then you have to fix
Date, time and price of the food and Banquet hall. Some Banquet charges some money
as rent of Banquet hall.
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Basically, Banquet is a place which can use for having food & beverage with prearranged
number of peoples on prefixed date & time agreed menu & price.
Banquet is the very important part of F&B section. If you think about F&B or Restaurant
then you must have to think about Banquet hall, Because Banquet is a right place to have
Food and Beverage. Without Banquet Hall, there are no place for having Food in a
Restaurant and According to myself without Banquet hall a restaurant is not suitable to
run and unable to run.
However, if you want to run a restaurant or want to build up your career in a restaurant
then you must have to learn about Banquet and enlarge your knowledge about F&B,
Restaurant, Banquet hall and Service.
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History of catering[edit]
The earliest account of major services being catered in the United States is a 1778 ball in
Philadelphia catered by Caesar Cranshell to celebrate the departure of British General William
Howe.[1] Catering business began to form around 1820, centering in Philadelphia.[1][2] Catering being a
respectable and profitable business. The early catering industry was disproportionately founded by
African-Americans.[1][2][3]
The industry began to professionalize under the reigns of Robert Bogle who is recognized as "the
originator of catering."[2] By 1840, the second generation of Philadelphia black caterers formed, who
began to combine their catering businesses with restaurants they owned.[2] Common usage of the
word "caterer" came about in the 1880s at which point local directories began listing numerous
caterers.[1] White businessmen eventually moved into the industry and by the 1930s, the black
businesses had virtually disappeared.[1]
In the 1930s, the Soviet Union, creating more simple menus, began developing state public catering
establishments as part of its collectivization policies.[4] A rationing system was implemented during
World War II, and people became used to public catering. After the Second World War, many
businessmen embraced catering as an alternative way of staying in business after the war.[5] By the
1960s, the home-made food was overtaken by eating in public catering establishments.[4]
By the 2000s, personal chef services started gaining popularity, with more women entering the
workforce.[citation needed] People between 15 and 24 years of age spent as little as 11-17 minutes daily on
food preparation and clean-up activities in 2006-2016, according to figures revealed by the American
Time Use Survey conducted by the US Bureau of Labor Statistics[6].
Describe the origins and significance of the food and beverage sector
Relate the importance of the sector to the Canadian economy
Explain the various types of food and beverage providers
Discuss differing needs and desires of residents and visitors in
selecting a food and beverage provider
Examine factors that contribute to the profitability of food and
beverage operations
Discuss key issues and trends in the sector including government
influence, health and safety, human resources, and technology
Overview
According to Statistics Canada, the food and beverage sector comprises
“establishments primarily engaged in preparing meals, snacks and beverages, to
customer order, for immediate consumption on and off the premises” (Government of
Canada, 2012). This sector is commonly known to tourism professionals by its initials
as F&B.
The food and beverage sector grew out of simple origins: as people travelled from their
homes, going about their business, they often had a need or desire to eat or drink.
Others were encouraged to meet this demand by supplying food and drink. As the
interests of the public became more diverse, so too did the offerings of the food and
beverage sector.
In 2014, Canadian food and beverage businesses accounted for 1.1 million employees
and more than 88,000 locations across the country with an estimated $71 billion in
sales, representing around 4% of the country’s overall economic activity. Many students
are familiar with the sector through their workplace, because Canada’s restaurants
provide one in every five youth jobs in the country — with 22% of Canadians starting
their career in a restaurant or foodservice business. Furthermore, going out to a
restaurant is the number one preferred activity for spending time with family and
friends (Restaurants Canada, 2014a).
Figure 4.1. Foodservice spending as a percentage of total food dollars spent in Canada and the
US [Long Description]
Look at Figure 4.1, which illustrates the percentage of total food dollars spent
in restaurants in Canada and the United States over several years. As you can see,
Americans spend significantly more of their total food dollars in foodservice
establishments than in grocery stores, and in Canada we spend more of our total food
dollars in the grocery store than we do in foodservice operations. It’s worth noting that
Americans do not have an equivalent federal sales tax on meals comparable to our GST
on foodservice sales, although there does exist in some states a sales tax on meals and
alcoholic beverages (State Sales Tax Rates, 2015). This, combined with a larger
population, cheaper food distribution costs, and other factors can often mean that it’s
less expensive to dine out in the United States than in Canada.
For a perspective on how sales are distributed across the country by province, and how
different foodservice operations perform in terms of revenue (sales dollars collected
from guests), look at Tables 4.1 and 4.2.
[Skip Table]
Foodservice Units
Newfoundland and
1,127 44 56 715,976
Labrador
[Skip Table]
Foodservice Units
[Skip Table]
Newfoundland and
2.7 9.2 806.9 6.7
Labrador
[Skip Table]
Table 4.1 shows that the independents in BC have a much larger share of the total
number of units compared with chains than any other province except Quebec. In terms
of sales (Table 4.2), Ontario is the leader with almost $21 billion. Quebec, BC, and
Alberta each earned $8 to $10 billion, and the other provinces had sales of less than $2
billion apiece. While BC and Alberta are almost even in total sales, BC has a third more
units (restaurants), leading to lower average sales per unit.
Foodservice sales in Alberta rose by a solid 6.4% in 2013. Alberta boasts the highest
average unit volume at $828,860 per year, more than $200,000 over the national
average due to greater disposable income and no provincial sales tax on meals. In BC,
the end of the HST (harmonized sales tax) and improved economic growth lifted total
foodservice sales by a healthy 6.1% for the strongest annual growth since 2006
(Restaurants Canada, 2014a).
Now let’s take a quick look at which provinces have the most profitable foodservice
operations.
Figure 4.2 Pre-tax profit margins. [Long Description]
Figure 4.2 indicates the profit margins per province. Profit is the amount left when
expenses (including corporate income tax) are subtracted from sales revenue. A higher
profit margin means that a greater percentage of sales is retained by the business owner,
and a lower percentage is lost to operating and other costs.
The provincial variations in total sales and profit margins are due to several factors
including:
Now that we have a sense of the relative performance of F&B operations by province,
and some influences on success, let’s delve a little deeper into the sector.
Types of Food and Beverage Providers
Figure 4.3 The Keg at the Station is in a former train station in New Westminster, BC
While there are many ways to analyze the sector, in this chapter, we take a market-
based, business-operation approach based on the overall Canadian market share from
the Restaurants Canada Market Review and Forecast (Restaurants Canada, 2014b). The
following sections explore the types of foodservice operations in Canada.
Let’s start with the largest segment of F&B operations, the commercial sector.
Commercial Operators
Commercial operators make up the largest segment of F&B in Canada with just over
80% market share (Restaurants Canada, 2014b). It is made up of quick-service
restaurants, full-service restaurants, catering, and drinking establishments. Let’s look at
each of these in more detail.
Quick-Service Restaurants
Formerly known as fast-food restaurants, quick-service
restaurants, or QSRs, make up 35.4% of total food sales in Canada (Restaurants
Canada, 2014b). This prominent portion of the food sector generally caters to both
residents and visitors, and is represented in areas that are conveniently accessed by
both. Brands, chains, and franchises dominate the QSR landscape. While the sector has
made steps to move away from the traditional fast-food image and style of service, it is
still dominated by both fast food and food fast; in other words, food that is prepared and
purchased quickly, and generally consumed quickly.
Drive-through locations
Stand-alone locations
Locations within retail stores
Kiosk locations
High-traffic areas, such as major highways or commuter routes
Full-Service Restaurants
With 35% of the market share (Restaurants Canada, 2014b), full-service
restaurants are perhaps the most fluid of the F&B operation types, adjusting and
changing to the demands of the marketplace. Consumer expectations are higher here
than with QSRs (Parsa, Lord, Putrevu, & Kreeger, 2015). The menus offered are varied,
but in general reflect the image of the restaurant or consumer’s desired experience.
Major segments include fine dining, family/casual, ethnic, and upscale casual.
Figure 4.4 A rhubarb pavlova with local Pemberton strawberries is served at Araxi Restaurant +
Bar, a fine dining establishment in Whistler.
Fine dining restaurants are characterized by highly trained chefs preparing complex
food items, exquisitely presented. Meals are brought to the table by experienced servers
with sound food and beverage knowledge in an upscale atmosphere with table linens,
fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with
fresh flowers and candles. In these businesses, the average cheque, which is the total
sales divided by number of guests served, is quite high (often reviewed with the cost
symbols of three or four dollar signs- $ $ $ or $ $ $ $).
Bishop’s in Vancouver is one of BC’s best known and longest operating fine dining
restaurants. Since opening in 1985, this 45-seat restaurant has served heads of state
including Bill Clinton and Boris Yeltsin, and has won awards including the Best of
Vancouver. John Bishop was awarded the Governor General’s Award in 2010 (Georgia
Straight, 2015).
Family/casual restaurants are characterized by being open for all three meal
periods. These operations offer affordable menu items that span a variety of customer
tastes. They also have the operational flexibility in menu and restaurant layout to
welcome large groups of diners. An analysis of menus in family/casual restaurants
reveals a high degree of operational techniques such as menu item cross-utilization,
where a few key ingredients are repurposed in several ways. Both chain and
independent restaurant operators flourish in this sector. Popular chain examples in
BC include White Spot, Ricky’s All Day Grill, Boston Pizza, and The Old Spaghetti
Factory. Independents include the Red Wagon Café in Vancouver, the Bon Voyage
Restaurant near Prince George, and John’s Place in Victoria.
Figure 4.5 This is the interior of the Old Spaghetti Factory, a popular family chain, in Gastown,
Vancouver. This location opened in 1970 and has stood the test of time.
Ethnic restaurants typically reflect the owner’s cultural identity. While these
restaurants are popular with many markets, they are often particularly of interest to
visitors and new immigrants looking for a specific environment and other people with
whom they have a shared culture. Food is often the medium for this sense of belonging
(Koc & Welsh, 2001; Laroche, Kim, Tomiuk, & Belisle, 2005).
Figure 4.6 The exterior of Vij’s, the flagship restaurant of Vikram Vij’s ethnic dining legacy
The growth and changing nature of this sector reflects the acceptance of various ethnic
foods within our communities. Ethnic restaurants generally evolve along two routes:
toward remaining authentic to the cuisine of the country of origin, or toward larger
market acceptance through modifying menu items (Mak, Lumbers, Eves, & Chang,
2012).
Upscale casual restaurants emerged in the 1970s, evolving out of a change in social
norms. Consumers began to want the experience of a fun social evening at a restaurant
with good value (but not cheap), in contrast to the perceived stuffiness of fine dining at
that time. These restaurants are typically dinner houses, but they may open for lunch or
brunch depending on location. Examples in BC include the Keg, Earls, Cactus Club,
Brown’s Social House, and Joey Restaurants.
Catering companies
Conference centres
Conference hotels
Wedding venues
Festival food coordinators
While beverages make up part of almost every dining experience, some establishments
are founded on beverage sales. Let’s look at these operations next.
Drinking
With 3.5% market share (Restaurants Canada, 2014b), the drinking establishment
sector comprises bars, wine bars, cabarets, nightclubs, and pubs. In British Columbia,
all businesses and premises selling alcohol must adhere to the BC Liquor Control and
Licensing Act. At the time this chapter was written, significant changes were taking
place in the regulations governing drinking establishments, but some general conditions
have remained stable.
In BC, liquor licences are divided into liquor primary and food primary. As the
name suggests, a liquor primary licence is needed to operate a business that is in the
primary business of selling alcohol. Most pubs, nightclubs, and cabarets fall into this
category. A food primary licence is required for an operation whose primary business is
serving food. Some operations, such as pubs, will hold a liquor primary licence even
though they serve a significant volume of food. In this case, the licence allows for diverse
patronage.
One noteworthy change to the licensing of pubs in BC is that children are permitted in
them if they are accompanied and attended by responsible adults. While not universally
adopted by pubs to date, this change in legislation is an example of the fluctuating social
norms to which the sector must respond.
Figure 4.8 The Six Mile Pub in Victoria, established in 1855, British Columbia’s oldest public
house
Non-Commercial
The following non-commercial entities earn just under 20% share of the foodservice
earnings in Canada (Restaurants Canada, 2014b). While these make up a smaller share
of the market, there are some advantages inherent in these business models. Non-
commercial operations cater predominantly to consumers with limited selection or
choice given their occupation or location. This type of consumer is often referred to as
a captured patron. In a tourism capacity such as in airports or on cruise ships, the
accepted price point for these patrons is often higher for a given product, increasing
profit margins.
Institutional
Often run under a predetermined contract, this sector includes:
Hospitals
Universities, colleges, and other educational institutions
Prisons and other detention facilities
Corporate staff cafeterias
Cruise ships
Airports and other transportation terminals and operations
Accommodation Foodservice
These include hotel restaurants and bars, room service, and self-serve dining operations
(such as a breakfast room). Hotel restaurants are usually open to the public and reliant
on this public patronage in addition to business from hotel guests. Collaborations
between hotel chains and restaurant chains have seen reliable pairing of hotels and
restaurants, such as the combination of Sandman Hotels and Moxie’s Grill and Bar.
Figure 4.9 Share of market for different restaurant segments [Long Description]
As mentioned, the commercial sector comprises the majority of dollars earned. Figure
4.9 illustrates the difference between share of traffic and share of dollars for each
subsector. We know that QSRs are much more economical and generally much busier
than full-service restaurants. How does that traffic and low prices translate into market
share for the different segments?
Figure 4.9 shows that QSRs attract two-thirds of all the traffic, while earning less than
half of the total dollars. Family/midscale and casual dining each attract half the dollars
of QSR, but they do that from much lower shares of the traffic. Meanwhile fine dining is
patronized by less than 1% of the total restaurant traffic, but earns 4.2% of the
dollars. The growing force of convenience stores, department stores, and other retail
establishments obtain a respectable 11.5% of traffic and 10.6% of the restaurant dollar.
As you can see, while QSRs attract the greatest number of guests, the ratio of dollars
earned per transaction is significantly less than that of the fine dining sector. This makes
sense, of course, because the typical QSR earns relatively little per guest but attracts
hundreds of customers, while a fine dining restaurant charges high prices and serves a
select few guests each day.
[Skip Table]
Segment Segment
2012 Market 2013 Market
Type of Final ($ Share Preliminary ($ Share
Restaurant millions) (%) millions) (%)
Total
52,570.1 80.5 54,965.3 80.7
COMMERCIAL Commercial
Table 4.3: Sector sales and market shares for 2012-2013
[Skip Table]
Segment Segment
2012 Market 2013 Market
Type of Final ($ Share Preliminary ($ Share
Restaurant millions) (%) millions) (%)
The sales revenues for the various segments are shown in Table 4.3. Note that QSRs and
full-service restaurants are almost equal in their sales and almost completely dwarf the
other commercial sectors of caterers and drinking places. It is also noteworthy that the
commercial components have four times the sales volume of the non-commercial
components.
Types of Food and Beverage Customers
Now that we’ve classified the sector based on business type and looked at relative
performance, let’s look at F&B from another perspective: customer type. The first way to
classify customers is to divide them into two key markets: residents and visitors.
The first of these, the resident group, can be further divided based on their purpose
for visiting an F&B operator. For one group, food or drink is the primary purpose for
the visit. For example, think of a group of friends getting together at a local restaurant to
experience their signature sandwich. For another group, food and drink is the secondary
purpose, added spontaneously or as an ancillary activity. For example, think of time-
crunched parents whisking their kids through a drive-through on their way from one
after-school activity to the next. Here the food and beverage providers offer
an expedient way to access a meal.
Figure 4.10 A visitor to Nanaimo eats a signature “Nanaimo bar” in front of a Nanaimo bar, the
Jingle Pot Pub
Foodservice providers also service the visitor market, which presents unique challenges
as guests will bring with them the tastes and eating habits of their home country or
region. Most establishments generally follow one of two directions. One is to cater
completely to visitors from the day the doors open, with an operational and market
focus on tourists. The other is to cater primarily to residents.
Sometimes a local foodservice provider can continue to cater to the resident market over
time. In other cases, often because of financial pressures, the business shifts its focus
away from the residents to better cater to visitors’ tastes. These changes, when they do
occur, generally happen over time and can lead to questions of authenticity of the local
offerings (Smart, 2003; Heroux, 2002; Mak, Lumbers, Eves, & Chang, 2012).
Take a Closer Look: The Science of Addictive Food
For some time, one secret recipe for success in the food sector, particularly
the fast-food portion of the sector, was simple: salt, sugar, and fat — and
lots of it. There is a science behind these additives and why consumers keep
coming back to satisfy their cravings. To view a CBC special on the science
of addictive food, visitThe science of Addictive Food:
www.youtube.com/watch?v=4cpdb78pWl4
It is clear that the food and beverage sector must remain responsive to consumers’ needs
and desires. This is made evident by the emergence of health-concious eating in North
America over the last two decades. The influence of books such as Fast Food
Nation (Schlosser, 2012) and documentaries such as Super Size Me have created
mainstream awareness about what goes into our food and our bodies. As many
developed nations, including Canada, struggle with health-care concerns including
hypertension, diabetes, and obesity, food operators are taking note and developing new
health-conscious menus. Programs like BC’s Informed Dining initiative are helping
consumers understand their options (see the Spotlight On below).
This awareness, coupled with an increasing interest and desire for more authentic foods
produced without using herbicides and pesticides, free of genetically modified
ingredients, and even free of carbohydrates or gluten, has placed pressure on the sector
to respond, and many have (Frash, DiPietro, & Smith, 2014). Consumers are more
aware of the plight of farmers and producers from faraway places and the support
for fair trade practices. At the same time, there is a heightened desire for more locally
grown products, and a general awareness of nutrition and the quality of products that
are harvested in season and closer to home.
In addition to this trend toward “conscious consumerism” (LinkBC, 2014, p.4), F&B
professionals must be highly aware of the importance of special diets including gluten-
free, low-carb, and other dietary restrictions (LinkBC, 2014).
All of these influences are continuously shaping the food and beverage sector. Before we
explore additional trends and issues in the sector, let’s review the core considerations
for profitability in foodservice operations.
Figure 4.11 Officials announce more funding for BC farmers markets, which have become
increasingly popular due to changing consumer tastes
Profitability
While many factors influence the profitability of foodservice operations, key
considerations include type of business, location, cost control and profit margin, sales
and marketing strategies, and human resources management. We’ve already examined
the different types of operation, and their relative profit margins. Let’s look at the other
profitability considerations in more detail.
Location
The selection of the correct location for a restaurant is often cited as the most critical
factor in an operation’s success (or failure) in terms of profitability. Prior to opening,
site analysis is required to determine the amount of traffic (foot traffic and vehicle
traffic), proximity to competing businesses, visibility to patrons, accessibility, and
presence (or absence) of desired patrons (Ontario Restaurant News, 1995).
Cost Control
According to Restaurants Canada, QSRs have the highest profit margin at 5.1%, while
full-service restaurants have a margin of 3.5%. There will be significant variances from
these percentages at individual locations even within the same brand (2014b).
Figure 4.12 Operating ratios for Canadian food and beverage businesses in 2012 [Long
Description]
A number of costs influence the profitability of an F&B operation. Some of the key
operating expenses (as a percentage of revenue) are detailed in Figure 4.12, above,
where food cost and salaries & wages are the two major expenses, each accounting for
approximately a third of the total. Other expenses include rental and leasing of venue,
utilities, advertising, and depreciation of assets.These percentages represent averages,
and will vary greatly by sector and location.
Cost control and containment is essential for all F&B businesses. Demanding particular
attention are the labour, food, and beverage costs, also known as the
operator’s primary costs. In addition to these big ticket items, there is the cost of
reusable operating supplies such as cutlery, glassware, china, and linen in full-service
restaurants.
Given that most operations have both a service side (interacting directly with the
consumer) and production side (preparing food or drink to be consumed), the primary
costs incurred during these activities often determine the feasibility or success of the
operation. This is especially true as the main product (e.g., food and drink) is
perishable; ordering the correct amount requires skill and experience.
The two principal considerations for sales and marketing in this sector are market share
and revenue maximization. Most F&B operations are constrained by finite time and
space, so management must constantly seek ways to increase revenue from the existing
operation, or increase the share of the available market. Examples of revenue
maximization include upselling existing consumers (e.g., asking if they want fries with
their meal; offering dessert), and using outdoor or patio space (even using rain covers
and heaters to extend the outdoor season). Examples of increasing market share in the
fast-food sector include extending special offers to new, first-time customers through
social media or targeted direct mail.
In today’s cluttered marketplace, being noticed is a constant goal for most companies.
Converting that awareness into patronage is a challenge for most operators. Restaurant
reviews have been a part of the food and beverage sector for a long time. With the
increase of online reviews by customers at sites like Yelp, Urbanspoon, and TripAdvisor,
and sharing of experiences via social media, food and beverage operators are becoming
increasingly aware of their web presence (Kwok & Yu, 2013). For this reason, all major
food and beverage operators carefully monitor their online reputation and their social
media presence.
Figure 4.13 Winner of Top Chef Canada Matthew Stowe and patron at a new Cactus Club
restaurant opening
Appropriately staffing an F&B operation involves attracting the right people, hiring
them, training them, and then assigning them to the right tasks for their skills and
abilities. Many businesses operate outside the traditional workweek hours; indeed, some
operate on a 24-hour schedule. Creating the right team, employing them in accordance
with legal guidelines, and keeping up with the demands of the businesses are challenges
that can be addressed by a well-thought-out and implemented human resources plan.
People who have long-lasting careers in the sector find the fluctuating conditions
appealing; no two days are the same, and the fast-paced and energetic social
environment can be motivating. Many positions provide meaningful rewards and
compensation that can lead to long-term careers.
One topic of discussion in food and beverage human resources is that of gratuities
(tipping). In Canada, restaurants are obligated to pay staff minimum wage, and
gratuities are paid by the customer as an expression of their gratitude for service. This is
not the model in countries like Australia, where service staff are paid a higher
professional wage and prices are raised to accommodate this.
In British Columbia, tips are considered income for tax purposes but are not considered
wages as they are not paid by the employer to the employee. A restaurant owner cannot
use tips to cover business expenses (e.g., require an employee to use his or her tips to
cover the cost of broken glassware). Employers are also not permitted to charge staff for
the cost of diners who do not pay (known as a dine-and-dash). They can, however,
require front-of-house staff pool their gratuities, or pay individually, to ensure back-of-
house staff receive a percentage of the tips (British Columbia Ministry of Jobs, Tourism
and Skills Training, n.d.). This is also commonly known as a tip-out.
There have been experiments with gratuity models in recent years. One example is
a restaurant on Vancouver Island, which tried an all-inclusive pricing model upon
opening in 2014, but reverted three months later to the traditional tipping model due to
consumer demand and resistance to higher prices (Duffy, 2014).
Government Influence
Each level of government affects the sector in different ways. The federal government
and its agencies have influence through income tax rates, costs of employee benefits
(e.g., employer share of Canada Pension Plan and Employment Insurance deductions),
and support for specific agricultural producers such as Canadian dairy and
poultry farmers, which can lead to an increase in the price of ingredients such as milk,
cheese, butter, eggs, and chicken compared to US prices (Findlay, 2014; Chapman,
1994).
Provincial governments also impact the food and beverage sector, in particular with
respect to employment standards; minimum wage; sales taxes (except Alberta); liquor,
wine, and beer wholesale pricing (Smith, 2015); and corporate income tax rates.
Over time, the consequence of these government impacts has resulted in independent
and chain operators alike joining forces to create a national restaurant and foodservice
association now named Restaurants Canada (see Spotlight On above). At the
provincial level, BC operators rely on the British Columbia Restaurant &
Foodservices Association (BCRFA).
Food and beverage providers hold a distinct position within our society; they invite the
public to consume their offerings, both on and off premise. In doing so, all food and
beverage operators must adhere to standardized public safety regulations. Each
province has regulations and legislation that apply in their jurisdiction. In BC, this is
addressed by the FoodSafe and Serving It Right programs, and compliance with the
Occupiers Liability Act. These regulations and legislation are enacted in the interest of
public health and safety.
FoodSafe is the provincial food safety training program designed for the foodservice
industry (FoodSafe, 2009). Serving It Right is a mandatory course that is completed
through self-study, and is required for anyone serving alcohol in a commercial setting.
Its goal is to ensure that licensees, managers, and servers know their legal
responsibilities and understand techniques to prevent over-service and related issues
(go2HR, 2014).
In broad terms, BC’s Occupiers Liability Act covers the responsibilities of the occupier of
a property to ensure the safety of visitors. Additional local health bylaws set standards of
operation for health and safety under the direction of the medical officers of health.
Public health inspectors regularly visit food and beverage operations to evaluate
compliance. In some communities, these inspection results are posted online.
Collectively, the food and beverage industry in BC has an excellent reputation for
ensuring the health and safety of its patrons, the general public, and its employees.
Technology Trends
Other trends include automated services such as that offered by Open Table, which
provides restaurants with an online real-time restaurant reservation system so
customers can make reservations without speaking to anyone at the restaurant (Open
Table, 2015). And now smartphone apps will tell customers what restaurants are nearby
or where their favourite chain restaurant is located.
Changing Venues
The following trends relate to the changing nature of food and beverage venues,
including the emerging importance of the third space, and the increased mainstream
presence of non-permanent locations such as street vendors and pop-up restaurants.
Recently, in North America, where climate and weather allow, there has been a
noticeable increase in both the number and type of street food vendors. In the city of
Vancouver alone there are over 100 permitted food cart businesses, searchable by an
app and sortable list — and the city uses the terms street food vendor, food cart,
and food truck interchangeably (City of Vancouver, 2014).
Figure 4.15 Tacofino (closest), Pig on the Street, and Mom’s Grilled Cheese food trucks welcome
crowds to their portable kitchens in downtown Vancouver.
Pop-up restaurants have also emerged, facilitated in part by the prevalent use of
social media for marketing and location identification. Pop-ups are temporary
restaurants with a known expiry date, which also tend to have the following in common
(Knox, 2011):
As popular they are with consumers, the ways in which pop-ups deviate from
restaurants has aggravated some critics, causing Bon Appétit magazine to declare that
“pop-ups are not supposed to be restaurants,” and that “pop-up restaurants are over”
(Duckor, 2013). Statements like these are further evidence that food and beverage
services trends are dynamic and ever-changing.
Conclusion
The food and beverage sector is a vibrant and multifaceted part of our society. Michael
Hurst, famous restaurateur and former chair of the US National Restaurant Association,
championed the idea that all guests should be received with the statement “Glad you are
here” (Tripp, 1992; Marshall 2001). That statement is the perfect embodiment of what
F&B is to the hospitality industry — a mix of service providers who welcome guests with
open arms and take care of their most basic needs, as well as their emotional well-being.
The social fabric of our country, its residents, and visitors will change over time, and so
too will F&B. What will not change in spite of how we divide the segments — into
tourists or locals — is that the sector is at its best when food and beverages are
accompanied by a social element, extending from your dining companions to the front
and back of the house.
So far, we have covered the transportation, accommodation, and food and beverage
sectors. In the next two chapters, we’ll explore the recreation and entertainment sector,
starting with recreation in Chapter 5.
Key Terms
Assets: items of value owned by the business and used in the
production and service of the dining experience
Average cheque: total sales divided by number of guests served
Back of house: food production areas not accessible to guests and
not generally visible; also known as heart of house
BC Restaurant & Foodservices Association
(BCRFA): representing the interests of more than 3,000 of the
province’s foodservice operators in matters including wages, benefits,
liquor licences, and other relevant matters
Beverage costs: beverages sold in liquor-licensed operations; this
usually only includes alcohol, but in unlicensed operations, it includes
coffee, tea milk, juices, and soft drinks
Captured patrons: consumers with limited selection or choice of
food or beverage provider given their occupation or location
Commercial foodservice: operations whose primary business is
food and beverage
Cross-utilization: when a menu is created to make multiple uses of
a small number of staple pantry ingredients, helping to keep food
costs down
Dine-and-dash: the term commonly used in the industry for when a
patron eats but does not pay for his or her meal
Ethnic restaurant: a restaurant based on the cuisine of a particular
region or country, often reflecting the heritage of the head chef or
owner
Family/casual restaurant: restaurant type that is typically open
for all three meal periods, offering affordable prices and able to serve
diverse tastes and accommodate large groups
Fine dining restaurant: licensed food and beverage establishment
characterized by high-end ingredients and preparations and highly
trained service staff
Food and beverage (F&B): type of operation primarily engaged in
preparing meals, snacks, and beverages, to customer order, for
immediate consumption on and off the premises
Food cost: price including freight charges of all food served to the
guest for a price (does not include food and beverages given away,
which are quality or promotion costs)
Food primary: a licence required to operate a
restaurant whose primary business is serving food (rather than
alcohol)
Foodie: a term (often used by the person themselves) to describe a
food and beverage enthusiast
Front of house: public areas of the establishment; in quick-service
restaurants, it includes the ordering and product serving area
Full-service restaurants: casual and fine dining restaurants where
guests order food seated and pay after they have finished their meal
Liquor primary licence: the type of licence needed in BC to
operate a business that is in the primary business of selling alcohol
(most pubs, nightclubs, and cabarets fall into this category)
Non-commercial foodservice: establishments where food is
served, but where the primary business is not food and beverage
service
Operating supplies: generally includes reusable items including
cutlery, glassware, china, and linen in full-service restaurants
Pop-up restaurants: temporary restaurants with a known expiry
date hosted in an unusual location, which tend to be helmed by a
well-known or up-and-coming chef and use word-of-mouth in their
promotions
Primary costs: food, beverage, and labour costs for an F&B
operation
Profit: the amount left when expenses (including corporate income
tax) are subtracted from sales revenue
Quick-service restaurant (QSR): an establishment where guests
pay before they eat; includes counter service, take-out, and delivery
Restaurants Canada: representing over 30,000 food and beverage
operations including restaurants, bars, caterers, institutions, and
suppliers
Revenue: sales dollars collected from guests
Third space: a term used to describe F&B outlets enjoyed as “hang
out” spaces for customers where guests and service staff co-create the
experience
Tip-out: the practice of having front-of-house staff pool their
gratuities, or pay individually, to ensure back-of-house staff receive a
percentage of the tips
Upscale casual restaurant: emerging in the 1970s, a style of
restaurant that typically only serves dinner, intended to bridge the
gap between fine dining and family/casual restaurants
Exercises
1. Looking at Table 4.1, what was the average volume of sales per F&B
establishment in BC in 2013? What was it for Alberta? What about
the national average? What might account for these differences? List
at least three contributing factors.
2. Looking at the same table, how many F&B “units” were there in BC in
2013?
3. What are the two main classifications for food and beverage
operations and which is significantly larger in terms of market share?
4. Should gratuities be abolished in favour of all-inclusive
pricing? Consider the point of view of the server, the owner, and the
guest in your analysis.
5. Think of the concept of the third space, and name two of these types
of operations in your community.
6. Have you worked in a restaurant or foodservice operation? What are
the three important lessons you learned about work while there? If
you have not, interview a classmate who has experience in the field
and find out what three lessons he or she would suggest.
7. What is your favourite restaurant? What does it do so well to have
become your favourite? What would you recommend it do to improve
your dining experience even more?
8. What was your all-time best restaurant dining experience? Compare
and contrast this with one of your worst dining experiences. For each
of these, include a description of:
a. The food
b. The behaviour of restaurant staff
c. Ambiance (music, decor, temperature, comfort of chairs,
lighting)
d. The reason for your visit
e. Your mood upon entering the establishment
The following story made the rounds via social media in late 2014. While
the claim has not been verified, it certainly rings true for a number of F&B
professionals who have experienced this phenomenon. The story is as
follows:
A busy New York City restaurant kept getting bad reviews for slow service,
so they hired a firm to investigate. When they compared footage from 2004
to footage from 2014, they made some pretty startling discoveries. So
shocking, in fact, that they ranted about it in an anonymous post on
Craigslist:
We are a popular restaurant for both locals and tourists alike. Having been in
business for many years, we noticed that although the number of customers we serve
on a daily basis is almost the same as ten years ago, the service seems very slow. One
of the most common complaints on review sites against us and many restaurants in
the area is that the service was slow and/or they needed to wait too long for a table.
We’ve added more staff and cut back on the menu items but we just haven’t been
able to figure it out.
We hired a firm to help us solve this mystery, and naturally the first thing they
blamed it on was the employees needing more training and the kitchen staff not
being up to the task of serving that many customers.
Like most restaurants in NYC we have a surveillance system, and unlike today where
it’s digital, 10 years ago we still used special high capacity tapes to record all activity.
At any given time we had 4 special Sony systems recording multiple cameras. We
would store the footage for 90 days just in case we needed it for something.
The investigators suggested we locate some of the older tapes and analyze how the
staff behaved ten years ago versus how they behave now. We went down to our
storage room but we couldn’t find any tapes at all.
We did find the recording devices, and luckily for us, each device has 1 tape in it that
we simply never removed when we upgraded to the new digital system!
The date stamp on the old footage was Thursday July 1, 2004. The restaurant was
very busy that day. We loaded up the footage on a large monitor, and next to it on a
separate monitor loaded up the footage of Thursday July 3 2014, with roughly the
same amount of customers as ten years before.
We carefully looked at over 45 transactions in order to determine what has been
happening:
Here’s a typical transaction from 2004:
Customers walk in. They are seated and are given menus. Out of 45 customers
3 request to be seated elsewhere.
Customers spend 8 minutes on average before closing the menu to show they are
ready to order.
Waiters shows up almost instantly and takes the order.
Appetizers are fired within 6 minutes; obviously the more complex items take
longer.
Out of 45 customers 2 sent their items back.
Waiters keep an eye on their tables so they can respond quickly if the customer
needs something.
After guests are done, the check is delivered, and within 5 minutes they leave.
Average time from start to finish: 1 hour, 5 minutes.
Here’s what happened in 2014:
Customers walk in. Customers get seated and are given menus, and out of 45
customers 18 request to be seated elsewhere.
Before even opening the menu most customers take their phones out, some are
taking photos while others are texting or browsing.
Seven of the 45 customers had waiters come over right away, they showed them
something on their phone and spent an average of five minutes of the waiter’s time.
Given this is recent footage, we asked the waiters about this and they explained those
customers had a problem connecting to the WIFI and demanded the waiters try to
help them.
After a few minutes of letting the customers review the menu, waiters return to their
tables. The majority of customers have not even opened their menus and ask the
waiter to wait a bit.
When customers do open their menus, many place their phones on top and continue
using their activities.
Waiters return to see if they are ready to order or have any questions.
Most customers ask for more time.
Finally a table is ready to order. Total average time from when a customer is seated
until they place their order is 21 minutes.
Food starts getting delivered within 6 minutes; obviously the more complex items
take way longer.
26 out of 45 customers spend an average of 3 minutes taking photos of the food.
14 out of 45 customers take pictures of each other with the food in front of them or
as they are eating the food. This takes on average another 4 minutes as they must
review and sometimes retake the photo.
9 out of 45 customers sent their food back to reheat. Obviously if they didn’t pause to
do whatever on their phone the food wouldn’t have gotten cold.
27 out of 45 customers asked their waiter to take a group photo. 14 of those
requested the waiter retake the photo as they were not pleased with the first photo.
On average this entire process between the chit chatting and reviewing the photo
taken added another 5 minutes and obviously caused the waiter not to be able to
take care of other tables he/she was serving.
Given in most cases the customers are constantly busy on their phones it took an
average of 20 more minutes from when they were done eating until they requested a
check.
Furthermore once the check was delivered it took 15 minutes longer than 10 years
ago for them to pay and leave.
8 out of 45 customers bumped into other customers or in one case a waiter (texting
while walking) as they were either walking in or out of the restaurant.
Average time from start to finish: 1:55
We are grateful for everyone who comes into our restaurant, after all there are so
many choices out there. But can you please be a bit more considerate?
Now it’s your turn. Imagine you are the restaurant operator in question,
and answer the questions below.
Distilled beverage: These types of beverages are prepared by the distillation of without distilled
beverage and the amounts of alcohol vary from (40-55) % as below-
Undistilled beverage: These types of beverage are prepared by the fermentation of fruits juices or
food grains and on filtration of fermented liquid and some wanted flavour; colour and perfumes are
accessed (intermixed). The amounts of alcohol vary from (3-15) % as below;
Uses of Alcohol
Alcoholic Drinks: The term "alcohol" in alcoholic beverages refers to ethanol (CH3CH2OH).
Industrial methylated spirits: Ethanol is usually sold as industrial methylated spirits, which is ethanol
with a small quantity of methanol and possibly some colour added. Because methanol is poisonous,
industrial methylated spirits are unfit to drink, allowing purchasers to avoid the high taxes levied on
alcoholic drinks.
Use of ethanol as a fuel: Ethanol burns to produce carbon dioxide and water, as shown in the
equation below, and can be used as a fuel in its own right or in mixtures with petrol (gasoline).
CH3CH2OH+3O2→2CO2+3H2O
"Gasohol" is a petrol/ethanol mixture containing approximately 10–20% ethanol. Because ethanol can
be produced by fermentation, this is a useful method for countries without an oil industry to reduce the
amount of petrol imports.
Ethanol as a solvent: Ethanol is widely used as a solvent. It is relatively safe and can be used to
dissolve many organic compounds that are insoluble in water. It is used, for example, in many
perfumes and cosmetics.
Methanol as a fuel: Methanol also burns to form carbon dioxide and water:
2CH3OH+3O2→2CO2+4H2O
It can be used a petrol additive to improve combustion, and its use as a fuel in its own right is under
investigation.
Methanol as an industrial feedstock: Methanol is also used to make other compounds, for example,
methanal (formaldehyde), ethanoic acid, and methyl esters of various acids. In most cases, these are
then converted into further products.
• Wood spirit: Methyl alcohol is also called wood spirit because in early stage it was obtained by the
destructive distillation of wood.
• Grain alcohol: Ethyl alcohol is also called grain alcohol because it is obtained by the starch enriched
substances.
• Absolute alcohol: The alcohol which is 100% pure is called absolute alcohol and it is completely
pure and anhydrate.
• Rectified spirit: This is also called commercial alcohol in which 95.6% ethyl alcohol and 4.4% water
exist.
• Power alcohol: The mixture of purified spirit, benzene and petrol is called power alcohol and it is
used in propelling engine. As it is directly related to the power to carry out the engine so it is called
power alcohol.
• Denatured alcohol: Ethyl alcohol which cannot be used for the beverage purposes is called
denatured alcohol. To obtain such type of alcohol usually in purified spirit, methyl alcohol, piridin,
acetone etc. type of toxic substances are mixed.
Bartender
Profession
A bartender is a person who formulates and serves alcoholic or soft drink beverages
behind the bar, usually in a licensed establishment. Bartenders also usually maintain
the supplies and inventory for the bar
Bar personnel
Bartenders mix and serve alcoholic beverages and other drinks to bar and restaurant patrons.
Bartenders must know about different varieties and brands of beer, wine, and spirits and how to
serve each. They must also learn and master cocktail-making techniques like shaking, stirring,
pouring, and muddling.
An important part of being a bartender is providing good customer service. Bartenders take
orders, collect payment and make change, recommend drinks, and make conversation with their
customers. They also maintain a clean working area and may be responsible for keeping their bar
well-stocked.
Most bartenders don’t complete formal training for their jobs. Bartenders may teach themselves
or learn on the job by working as a bartender helper or assistant.
Some bartenders go to bartending schools to receive their initial training. Bartending schools
exist across the United States, and experts recommend choosing one that is licensed by your
state’s department of education and offers programs that take at least 40 hours to complete.
Students in bartending courses learn how to use bar equipment, mix a wide variety of cocktails,
pour different types of beverages, and provide good customer service. They may also learn about
health and safety issues, working with cash registers, and interviewing for bartender positions.
There is no one strict path to becoming a bartender, and you could begin working as a bartender
as soon as you meet your state’s age requirements. Some states set the minimum age for
bartenders at 18, while others require bartenders to be at least 21 years old.
Most bartenders rely heavily upon tips to supplement their hourly wage. The Bureau of Labor
Statistics reports that in 2012, bartenders in the United States earned a median of $9.09 per hour,
including tips. The top ten percent of bartenders made more than $15 per hour that year.
The BLS expects that employment of bartenders in the United States will grow by 12 percent
between 2012 and 2020, about as fast as the average growth for all occupations. While
employment will grow, competition for bartending jobs may be strong. Bartenders can enhance
their job prospects by gaining experience and training.
Bartenders who gain working experience will be more likely to land lucrative jobs with busy,
successful bars and restaurants. Some bartenders may advance into restaurant management or
even open their own bars.
Search for job openings in your area and apply and interview in a professional manner. Search
for openings that might be a good fit for your interests; if you are interested in sports, for
example, then a sports bar may be a good place for you. Network with other bartenders to find
out about job openings in your area.
If you want to learn more about bartending, you can learn a lot by talking to a bartender. Build a
rapport with bartenders in various bars and restaurants to learn more about the profession and the
job scene in your area.
Top 10 Qualities of a Great Bartender
Bartending can be a terrific occupation for the right person. Tips can be through the roof, and the
atmosphere and clientele can make for fun shifts. The most successful bartenders have certain qualities
that get them the more lucrative positions and best tips. Some of those top qualities include:
1. Knowledgeable About Drinks: Mixology skills are an essential quality of a great bartender.
Bartenders should know off-hand how to make the most common drinks, but not be afraid to consult
reference books as needed to make drinks that they are not familiar with.
2. Has Good Customer Service Skills: A great bartender has outstanding customer service skills.
The very nature of the job is to serve customers, and pay largely depends on tips. A great bartender
has a personality that connects with customers and keeps them coming back to the bar.
3. Maintains Cleanliness: A great bartender keeps the bar and dishes in top form. When working
with food and beverages, keeping things clean and sanitary is vital.
4. Is Well Prepared to Handle Unusual Situation: Bartenders should always be prepared for
anything, such as uncommon drinks or larger-than-usual crowds. Liquors and wines should always
be well stocked and the bar clean and ready for customers.
5. Is Attentive: A great bartender stays on top of everything. They know when their customers need
drink refills or when something in the bar needs to be restocked.
6. Has a Good Personality: The most successful bartenders have friendly personalities that connect
with customers. When a customer feels like he or she has a friend in a bartender, they become a
repeat customer and leave generous tips.
7. Has a Keen Memory: Great bartenders have excellent memories. They remember regular
customers' drinks, as well as what new customers are currently drinking. They also have dozens of
drink recipes memorized.
8. Possesses Strong Money-Handling Skills: Bartenders also act as cashiers and must be good
handling money. They should be able to quickly make calculations and figure out change.
9. Is Highly Efficient: A great bartender works quickly and efficiently. When serving multiple
customers, speed is an important quality to have.
10. Acts Responsibly: Other staff members depend on a bartender to be on time and efficient.
Bartenders have to remember to check IDs and keep things in their area under control.