The Food Service Industry

Food and & Beverage Management

1Tuesday, May 19, 2009Introduction to HOST 154 Food and Beverage Operations

Who am I?

• Dean Louie, Chef and Instructor• Maui Community College• Chef in Hotels and Resorts• Restaurants in Guam and Hawaii• Teaching for 10 years• Bachelor’s of Art, Master’s in LIS, 2011• Exploring faculty/student exchange in

China• People, Travel, History and Food

2Tuesday, May 19, 2009My background, credentials and family

Chinese-American born in San Francisco: Lived in San Francisco, Honolulu, Sacramento, Oakland, Saipan, Guam and Maui.

Background as an Artist and Printmaker. Chef for over 14 years.

Contact information on syllabus

dlouie@hawaii.edu deanlouie@me.com

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This is Maui!Chinese Culture alive and intact in MauiBeautiful Plants and flowersLots of beautiful ocean life Food and Wine festivalsGreat food and resourcesWonderful creative students at Maui Community College

Class Expectations

• Come to Class and Take notes• Study and review lecture notes• Please ask questions• Ask for clarity• Success in quizzes and exams

4Tuesday, May 19, 2009Participate for credit

Names on Index Cards

Take 5 minutes; Introduce person on your Left Smile, Stand and Speak Very Clear so we can all hear!

Name (English Name too)Where are you from?Why did you choose this major?Where have you traveled and where would you like to travel?One Favorite food?Change!

Food and Beverage Operations1.The Food &

Beverage Industry2.Organization3.Fundamentals of

Management4.F&B Marketing 5.F&B Nutrition

6.Menus7.Costing 8.Production9.Service10.Sanitation11.Layout & Design12.Financial MGMT

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Slide Presentations We will cover all of these major topics

Think about where you want end up. Concentrate on the topic and be ready to ask questions:

Administrators and Operators- Organization, Management Marketing, Costing, Layout and Design and Financial Planning

Tourism & Travel - Management Marketing, Financial Planning, Costing and Sanitation

Chefs and Restaurant & Catering Managers- Nutrition, Menus, Production, Service, Layout and Design and Sanitation

Overview

• Commercial vs. noncommercial food service operations & facilities

• Origins and development of food service in hotels, restaurants, and institutions

• Trends affect food service in the coming years

6Tuesday, May 19, 2009Commercial: For profit (seeks maximum returns, marketing, advertising, changing with trends and markets)restaurants, fast food, food stands, airlines, hotels, catering

Non-Commercial : Non-Profit (low revenue, minimum returns and changes) Prisons, schools, hospitals, factories, military

Commercial & Noncommercial Food Service Facilities

• Commercial types:1.Independents2.Chains3.Franchises

• Chains & Franchises:– All franchises are part of a chain, but not

all chain restaurants are franchises

7Tuesday, May 19, 2009Independent: Chinese obsessed with food! Young, talented and established Chefs opening their own rest

International Chains: McDonalds, KFC,

Franchise: Independent owners who agree and are contracted by law to follow set Corporate standards.

Advantages & Disadvantages of Chain Restaurants• Advantages:

– Ready access to cash and credit– Ability to experiment without great risk– Resources to hire staff specialists– Greater access to useful comparative

financial information• Disadvantages

– Bureaucratic rules and procedures can slow response times to market changes

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Independent Restaurant-Magazine Ad in Lahaina Maui, Hawaii

Marketing Example for Menu magazine

Clearly Lists Restaurant contact information-Phone number, hours of operation, type of restaurant, sample of menu, directions, website

Colorful photographs, Logo and designs, Quotations of others,

Identifies the Chef as owner and credentials by list of awards

Owning vs. Managing Franchise Restaurants• Advantages:

– Assistance in opening and operating the business

– Franchisor-sponsored training and materials

– Greater exposure and higher revenue because of extensive advertising and name recognition

– Lower costs due to volume purchasing– Tested operating procedures

10Tuesday, May 19, 2009Marketing and branding is strongest toolTraining, software and resources are usually factored in budget

Owning vs. Managing Franchise Restaurants (cont.)• Disadvantages:

– Franchise contracts restrict style• methods of operation• products served • services offered• décor• furnishings

– Franchise contracts usually favor the franchisor

11Tuesday, May 19, 2009Cannot be as creative or change marketing style if business slumpsRestrictive in changing menu and suppliers

Contract Management in Noncommercial Facilities• Advantages:

– Large management companies have more resources to solve problems

– A ability to negotiate better deals with suppliers

– Greater efficiency & lower overall cost– Allows food service to be operated by

experts, rather than institution administrators

12Tuesday, May 19, 2009Flexibility at a priceCan often create resources and innovation while institution cannot

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US Management Service Contractor-SODEXO

Has contracts and contacts in US and internationallyAble to adjust to many different styles of operationsSets high standards fiscally and operationallySoftware, training and experts help solve challenges

Contract Management in Noncommercial Facilities (cont.)

• Disadvantages:– Management companies can affect the

institution’s public image– Some people feel that profit-making

operators do not belong in noncommercial settings

– The institution may become dependent on the management company

14Tuesday, May 19, 2009Sometimes hard to gain acceptance from public and othersMay not always fit seamlessly into the overall plans of the institutionMay not be able to achieve high goals

Origins & Development of Food Service• Hotel Restaurants

– Early inns, shelters for travelers– Church hospices, monasteries– Hotel restaurants today are integral parts of the

profit plan• Freestanding restaurants

– English coffeehouses– The soup called le restaurant divin– Chain, drive-ins, quick-service, drive-throughs,

food courts, curbside service, grocery & convenience stores

– Home delivery, fax order, e-mail order– Home replacement meals

15Tuesday, May 19, 2009Originally restaurants were offered after the French Revolution in late 1700ʼsSince royalty hired Chefs they were now out of work and set up roadside inns and cafes for travelers

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The “Bund” turn of the century.

Located near Temple of Town God, Yuyuan in Shanghai, Shanghai Old Restaurant is one of the earliest restaurants serving local Shanghai cuisine. It started out as a small mom-and-pop cook shop named “Rongshun Guan” in the Tongzhi Period of the Qing Dynasty 1865-some 140 years ago. The facilities in the restaurant are as old as the restaurant itself. The tables and chairs are all “old-fashioned”, and time has taken its toll on the bowls, plates and chopsticks. Guzheng performances are available in the lobby downstairs.

Origins & Development of Food Service (cont.)

• Noncommercial facilities– Robert Owen - “the father of industrial catering” –

employee “eating rooms” around 1815 in NYC– Boarding houses for workers– Growth of business food service programs

through WWI &WWII– Florence Nightingale -first dietitian & modern

hospital administrator– American Dietetic Association– Critical role of nutrition in hospital and school food

service– School tend to use cafeteria service

17Tuesday, May 19, 200990% meals in early 1900 were still on farms. After Industrial Revolution in 1930-1950 dining out grew to massive proportions. Now many families in America dine out once a week.

Eventually evolved into concepts of Mc Donaldʼs and KFCWhat do you think is the next trend in Fast Food?

18Tuesday, May 19, 2009Hawaii has a uniques culture and history of Hospitality that has morphed (transitioned) with BIG tourism dollars...and the Pineapple is the international symbol of Hospitality... after becoming such a large identity of Hawaii AG

Now we are seeking ways to address sustainability with Eco-Tourism since AG is waning

Trends likely to affect food service • Meal solutions• Greater competition between restaurants and

grocery stores• Growing emphasis on value-cost relative to

quality• Entertainment in casual dining

operations-”eatertainment”• Growing presence of convenience stores,

use of co-branding • Changing menu items

19Tuesday, May 19, 2009What do you think? Itʼs a Shrinking world!Internet, global viruses, changing markets interlinked

Have a great idea that can be translated and marketed internationally?Yahoo, Google, Microsoft and You Tube did!

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Exciting Field of F & B!

Intro Review

• 3 Main types of F & B • Commercial and Non-Commercial• Differences depend on management

and expertise style• Early Origins• New trends emerging with popularity,

dietary need, global exposure....• And Sustainability!

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Introduction Review

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– Independents, Chains, Franchises