Classifying food and

drink service operations

CMICRO
Objectives:
• Explain the range of variables that can
be used to classify food and drink
service operations into different sectors
• Classify different food and drink service
operations into a series of useful
categories
Why classify? What is the problem?
3 key reasons for classifying the
industry into different group of
operations:
1. To provide meaningful and
comparable statistics
2. Benchmarking
3. Common issues
 Approaches to classification:
1. Classifying by name
2. Classifying by food type
3. Classifying by business format
4. Classifying by service style/level
5. Classifying by average spend
Classifying by food type:
• Local cuisine
• National cuisine
• Ingredient dominated
• Theme
• Healthy options
• Cooking style
• Chef-centric
 Local cuisine
• Some operations will focus on
only using food that comes
from the local area and in the
appropriate season
 National cuisine
• Many operations will focus on the
national cuisine of particular countries,
such as French, Italian, or Peruvian,
while others will focus on specific
regional cuisines, such as Sichuan,
Fujian or Cantonese
 Ingredient dominated
• There has been a growth recently in
operations that focus on a single
dominant ingredient
• Ex. flatiron steak at Flat Iron, free range
chickens from Brittany at Clockjack
Oven
 Theme
• It could be argued that the Hard Rock Café
was the first theme restaurant concept,
drawing on American as its theme
• Many others followed, including Planet
Hollywood, TGI Fridays and the Rainforest
Café
 Healthy options
• Other operations concentrate on a
particular food type that can be seen as a
healthy option, such as vegetarian or vegan
• Some are also being increasingly creative
and comprehensive with their gluten free/
wheat free menus
 Cooking style

• Food and drink service

operations can
concentrate on a particular
method of cookery
 Chef-centric
• The rise of media interest in cookery
and chefs has seen the emergence of
operations based on the name and
style of particular celebrities such as
Gordon Ramsay, Guy Grossi, Jamie
Oliver, Bobby Flay, and others
Classifying by business format:

• Independent owner
operated
• Chain
• Franchise
• Management contract
 Independent owner
operated
• Simplest business format
• Owners take sole responsibility for all four functions
• They will determine the original service concept in designing
the menu, service style and the physical environment
• They will select the site for the operation either bought,
leased or rented the property and all the equipment
necessary to deliver the service concept
• They will decide on the marketing and management
operations
 Chain
• If the single unit is successful it can grow
into a chain
• It operates a larger number of units where
the company maintains a centralized locus
of control and operates through a structure
of formal policies, procedures and rules
 Franchise
• Franchisor – holds the intellectual property on the
service concept and how it is operated and
marketed
• Franchisee – provides the property within which the
business operates and handles the day-to-day
running
– They pay fees for the license to operate the concept and for
training methods of operation and for centralized marketing
 Management contract
• One party owns the premises but requires the
expertise of a third party to operate a food and
drink service business on these premises
• Can also be found in hotels where a restaurant
is run by an outside company- a well known high
street brand or a celebrity chef
Classifying by service style/level
• Fine dining
• Casual dining
• Quick service restaurants
• Coffee shops
• Take-away/mobile
 Fine dining
• This is the top end of the market,
representing luxurious and expensive
dining based on the highest quality of
ingredients and cookery techniques
served with a degree of formality in
faultless surroundings
 Casual dining
• Sometimes known as “family” dining or
“popular” dining, based on more
everyday prices and a more relaxed
style of service
• Orders of food and drinks are likely to
be taken at and delivered to the table
 Casual dining
• Fine casual - there has been a merging at the top
end of the casual market between the more relaxed
style of service but a more refined food offer
• Fast casual – there has been a development at the
bottom of this market which maintains a higher
standard of food but moves towards the fast-food
market in terms of ordering at a counter
 Quick service restaurants
• This is the official industry term for the fast-
food sector typified by limited menus, highly
standardized and automated food
preparation from prepared ingredients with
orders taken and delivered at a counter
• Ex: McDonalds, Burger King, KFC
 Coffee Shops
• Based on orders placed and delivered
at the counter with a high volume of
take-away business
• Are distinguished by the centrality of
coffee to the theme and a generally
lighter choice of food
 Take-away/mobile
• These units prepare food for take-
away only or are mobile units for
pop-ups or for special events
such as markets or music
festivals
QUESTIONS?