The Hospitality Industry

CHAPTER 4: The Hospitality Industry FOOD AND BEVERAGE SECTOR FOOD SERVICES ● a vital part of the hospitality industry ● food service providers also serve the everyday needs of the neighborhood locals, they’re often overlooked ● some cases why people travel ● Creates job opportunities (8% in America) ● Many well-known brands in travel and tourism began in food services. ○ Marriott International (which began as a chain cafeterias) ○ Howard Johnson (which started as an ice-cream shop) ○ Knotts and Berry Farm (a Southern California theme park that was initially famous for serving chicken dinners and boysenberry pies) LESSON 4.1: Characteristics of the Restaurant and Foodservice Industry Food and Beverage Manage food production and service in one or more food outlets: ● Beverage outlets ● Cocktail lounges and pubs ● Room service ● Staff cafeteria ● In-house catering or satellite catering Food and Beverage A Food Service Department typically has the following functions: ● Planning menus for specific services (restaurants, banquets) ● Determining ingredients ● Purchasing ● Receiving ● Storing food-related items ● Preparing and serving food ● Clean-up Food and Beverage Department has both front-of-the-house and back-of-the-house component Other Departments/Divisions: ● Human Resources ● Accounting ● Security ● Maintenance and Engineering ● Materials Management (Purchasing) ● Facility Management Characteristics of the Restaurant and Foodservice Industry: ● Annual sales of over $550 billion dollars. ● More than 945,000 restaurant and foodservice operators. ● Employs more than 13 million people. ● Over 57 percent of restaurant and foodservice managers are women. ● Approximately 25 percent of eating-drinking establishments are owned by women, 15 percent by Asians, 8 percent by Hispanics, and 4 percent by African Americans. ● The industry expects to continue to grow over the next decade, with 14.8 million jobs by 2019. The restaurant and foodservice industry can be divided into two major parts or segments: 1. Commercial Segment - makes up almost 80 percent of the restaurant and foodservice industry. 2. Non - commercial Segment - represents about 20 percent of the foodservice industry. The non - commercial segment prepares and serves food in support of some other establishment’s main function or purpose. Categories in this segment include: ● schools and universities ● military ● health care ● business and industry ● clubs LESSON 4.2: History of the Foodservice Industry The History of Foodservice The Real Beginning: Ancient Greece and Rome: ● Ancient Greeks rarely dined out, although they enjoyed the social aspect of dining and often got together for banquets. ● Romans’ meals were primarily served in the home. ● Romans’ desires for exotic foods and spices increased trade, stretching the Roman Empire farther east and north. The Middle Ages: ● Landowners, who lived in relative comfort, held large banquets almost every night. ➢ Guilds (associations of people with similar interests or professions) were organized. ➢ Cooking guilds established many of the professional standards and traditions that exist today. ➢ During the Renaissance, world travel and international trade greatly improved the European way of life. ➢ The food preparation system we now call haute cuisine, an elaborate and refined system of food preparation, had its roots during this period. ➢ In 1765, a man named Boulanger began serving hot soups called restaurers (meaning restoratives) for their health-restoring properties. ➢ He called his café a restorante, the origin of our modern word restaurant. The Industrial Revolution: ● During the Industrial Revolution, people moved to the city to find work in the growing number of factories to earn a better living. ● People needed to live close enough to the factory to walk to work, go home for lunch, and leave again for dinner. ● As cities became business hubs, dining and lodging establishments opened up to serve the needs of workers and employers. ● With the invention of the railroad in 1825, inns, taverns, and foodservice facilities located near railway stations began to grow. The Twentieth Century: ● By the turn of the century, more people were working and therefore eating out more, especially for lunch. ● During World War II (1940s) - lodging industry prospered as people traveled for war-related reasons. ● After World War II (1940s and 1950s) - the quick-service restaurant segment of the industry grew quickly. ● 1960s - commercial air travel became popular, and builders focused on land near airports as the next new place to situate hotels, motels, and foodservice facilities. The Twentieth Century (continued): ● The rapid growth of national chains from the 1970s to today has changed the face of the restaurant and foodservice industry. ● “Eating out” became almost as commonplace as eating at home—not just for special occasions, but simply for convenience. ● In the last few decades, lifestyles have moved steadily toward busier households that no longer have a dedicated daily food preparer. ● Large restaurant chains lead the way for full-service, casual dining chain restaurants, matching the growth in the quick-services sector. Types of Service Table Service ● Most popular type of service ● Usually a greeter seats you ● A server takes your order from a menu ● Then the food and beverages are delivered on your table ● Before leaving, you pay your server or a cashier Banquet Table Service - meals are served at the same time This type of service comes in three versions: ● Everyone is served with the same meal at the same time ● Features several choices but again all meals are served at the same time ● Seating – guest pre select from a menu and are served at the same time Buffet Service ● More self-serve than a cafeteria ● One price, oftentimes paid in advance covers everything Cafeteria Service ● Guest picks up the tray, select their food ● Place their choices on the tray ● Pay their selections at a cashier ● Take the food themselves on the table Room Service ● Guests order their meals from a special in – room menu ● The meal is brought to their guest room usually within 30 – 45 minutes ● A service charge, perhaps gratuity are, in most cases automatically added to the bill which appears on the guest folio and is paid when they check out Fast Food Service ● Guest walks up to the counter or drive through and order ● Most fast food facilities have open seating area ● Family or travelers often use fast food outlets to save time and money Delivery Service ● Food is prepared and then delivered usually to the customer’s home LESSON 4.3: Types of Food and Beverage Operations The Commercial Sector: Quick-Service Restaurants (QSR) ● Formerly known as fast-food restaurants ● generally caters to both residents and visitors ● represented in areas that are conveniently accessed by both residents and visitors ● food is prepared and purchased quickly, and generally consumed quickly. ● Convenience and familiarity are key in this sector Examples of QSRs include: 1. Drive-through locations 2. Stand-alone locations 3. Locations within retail stores 4. High-traffic areas, such as major or commuter routes Full-Service Restaurants ● 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. ● 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. ● It was once mandatory to have table linens, fine china, crystal stemware and silver plate cutlery in order to be referred to as a fine dining establishment. Family/Casual Restaurants ● 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. Ethnic Restaurants ● Typically reflects the owner’s identity. ● The growth and changing nature of this sector reflect the acceptance of various ethnic foods within our communities. ● The driving force behind these operations is the Chef’s background, their commitment to the quality of the product, innovative preparation mixed with exceptional technique, and knowledgeable service staff to bring it to the consumer. 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. Catering and Banqueting ● It comprises food served by catering companies at banquets and special events at a diverse set of venues. ● Banqueting pertains to catered food served on premise ● Catering typically refers to off premise catering. ● The catering and banqueting experience has evolved tremendously to the point where guests who attend events expect restaurant-quality food and service. ● In keeping with this concept, the event planner will coordinate with the catering establishments that guests who attend the planned events have a choice or options for each course served. Catering business include: 1. Catering companies 2. Conference centers 3. Conference hotels 4. Wedding venues 5. Festival food coordinators Alcohol and Cannabis ● The drinking establishment sector comprises bars, wine bars, cabarets, nightclubs and pubs. ● As the name suggests, a liquor primary license is needed to operate a business that is in the primary business of selling alcohol. ● Together, the commercial ventures of QSRs, full service restaurants, catering functions, and drinking establishments make up just over 80% of the market share The Non Commercial Sector: Institutional ● Often run under a predetermined contract. This sector includes: 1. Hospitals 2. Universities, Colleges and other educational institutions 3. Prisons and other detention facilities 4. Corporate staff cafeterias 5. Cruise ships 6. Airports and other transportation terminals and operations Accommodation Foodservice These include: 1. Hotel restaurants and bars 2. Room Service 3. Self-serve dining operations Collaborations between hotel chains and restaurant chains have seen reliable pairing. Vending and Automated Foodservices ● While not generally viewed as part of the food and beverage sector, automated and vending services do account for significant sales for both small and large foodservice and accommodation providers. ● Vending machines are located in motels, hotels, transportation terminals, sporting venues, or just about any location that will allow for the opportunity for an impulse or convenient purchase CHAPTER 5: Travel and Tour ● Any preplanned (and prepaid) package to one or more places, which includes two or more travel components ○ Flights ○ Lodging ○ Admission ○ Attraction ● Tours - highly structures or loosely organized and can vary in duration from short sightseeing trips to continent-crossing adventures that lasts several weeks ● No matter how many types of people there are and wherever they want to go there seems to be a tour made just for them. LESSON 5.1: Characteristics of Travel and Tour A. THOMAS COOK and Son, was the world’s preeminent travel services company. B. By 1872, had organized a 222-day trip around the world. C. Traditional Agency The main function of a traditional travel agency is to: act as a real-time intermediary between customers and suppliers: ● Airlines ● Hotels ● Rental Car Companies ● Cruise Lines ● Trains D. Travel Management Company NOW “The virtual elimination of domestic travel agent commission was said to have saved the airlines around $1 billion a year.” New York Times, 2002 E. TMCs offset the loss of commission by: ● Rebates ● Incentive payments - from GDS providers per booking ● Service charge F. During the 1990’s ● ONLINE RESERVATIONS delivered another blow as customers increasingly sought out computer-based, third-party vendors. ● Websites, among others in pursuit of air, lodging, cruise and inclusive tour bargains. G. HOW ARE THEY SURVIVING? ● Older people and recent immigrants have remained important clients ● Business travelers have remained loyal TRAVEL MANAGEMENT COMPANY or TOUR OPERATOR ● Are they the same or just similar? ● “there is a thin, blurry line between them.” ● In the Philippines, Tour Operators are travel agents who expand their product range by setting up a tour operation department. to simplify: T.O = Wholesalers TMCs = Retailers Tour Operations ● is defined as the preparation and implementation of all activities within an itinerary, within a given time frame, within the estimated costs, in order to meet the next expectations of the paying client. - Claraval, B., 2013 Industry Characteristics Tour Categories based on personality: ● Independent - experienced, flexibility, on their own ● Escorted - Inexperienced, wants worry-free travel ● Special Interest - bird watching, safaris, architecture ● Adventure - involves effort and energy, danger TOUR PACKAGE - constructed from at least two tourism elements. Tour Elements: 1. Transportation ● (by air, sea, or land) to and from a point of origin to a destination or destinations and back to the point of origin. 2. Transfers ● transportation to and from a destination’s gateway (airport, pier, or bus station) to the place of lodging and vice versa. 3. Accommodations ● lodging and meals in the lodging establishment. 4. Tour Escort ● refers to the services of an individual who travels with the clients from the point of origin and back, and acts as a manager of the tour group. ● This person is also known as the Tour Leader. 5. Sightseeing Tours ● are a combination of transportation within the destination to sights and sites of interest, tour guide’s services, entrance fees, entertainment or activities and sometimes, snacks and meals. Depending on the number of components tour packages have different labels: ➢ If only tours and transfers are included, it is called ground arrangement package. ➢ If tours, transfers and hotel accommodations with some meals are included, this is called land arrangements package. ➢ If tours, transfers, hotel accommodations and some meals, plus transportation to and from the destination(s) are included, this is called an inclusive tour package. ➢ If all components are included, including tour escort, this is called inclusive escorted tour package. Tour Categories Defined by Purpose: ● Relaxation. Chance to relax, with plenty of sun, sandy beach, good food and nightly entertainment. ● Sunspot Stay put. Round-trip flight, round-trip transfers from the airport to the hotel and several nights’ accommodation. ● Scenic. Enjoys spectacular scenery while they are away from home. ● Learning. Provides a learning experience because of interest in culture, history, science or education. ● Religious and Ethnic. Religious tours to sacred or holy places (e.g. holy land and Mecca) and visits to the place or origin where their parents or grandparents came. CHAPTER 6: Gaming Entertainment ● No longer a niche arena for a certain age group or consumer segment ● ● ● Viable form of entertainment for players > pumupunta sila dito para mag gaming The improvements to hardware such as sound cards, graphics and faster processors have meant a related growth and development of the gaming industry as well As a result, modern games, especially those that are PC based, have become very demanding as applications and serious gamers are among those who purchase highpowered personal computers to keep up with the newest games LESSON 6.1 History of Gaming Industry Historical Review of the Gaming Industry ● Today, the precise origin of gambling is still unknown ● There are Chinese records that date the first official account of the practice as far back as the third millennium B.C. ○ A public gambling house was legalized for the first time in 1626 in Venice, Italy ○ Romans were also gamblers ■ They placed bets on chariot races, cockfights, and dice throwing ● The gaming entertainment business has its roots in Las Vegas ● From 1940-1976, Las Vegas was a monopoly for gaming ● Las Vegas is rich with tales of Bugsy Siegel ○ Nagsimula ang las vegas strip (casino alley..) ● During the 1970s, Atlantic City was in an impoverished state, experiencing high amounts of crime and poverty; in an effort to revitalize the city, New Jersey voters in 1976 approved casino gambling for Atlantic City ● The gaming industry has exploded from just two jurisdictions in 1976 to some form of legal gambling in 48 states ● Only two states, Hawaii and Utah, do not permit some form of gambling Native American Gaming ● In California v. Cabazon Band of Mission Indians, et al. (1987), the Supreme Court decided that once a state legalized any form of gambling, the Native Americans in that state have the right to offer and self-regulate the same games, without government restrictions ● Indian Gaming Regulatory Act (IGRA): ○ Provides framework for games ○ Defines different “classes” of gaming ○ Today there are 354 gaming facilities on reservation lands in 28 states, and Native American gaming has been the fastest-growing sector of casino gaming in the United States Size and Scope of Gaming ● As public acceptance of legalized gaming has grown, state and local governments have permitted gaming entertainment establishments to open ● The gaming entertainment industry pays billions of dollars per year in gambling privilege taxes to state governments ● Casino gaming companies pay an average of 12% of total revenues in taxes LESSON 6.2 Gaming Entertainment GAMING ENTERTAINMENT ➢ The casino industry is one subset of the gaming industry