Chapter 1

Food Service Industry

 Two Segments
Commercial Non-Commercial

Primary attempt to maximize profit through sale Primary attempt to minimize cost and provide nutritious
meals
Examples Include
Examples Include
• Free Standing eating & Drinking places
• Business / Industry Organizations
• Lodging Foodservice facilities • Healthcare
• Other commercial facilities • Educational Institutions

1. Public cafeterias • Private Clubs

• Transportation Companies
2. Bars
• Military Restaurants
3. Taverns also known as pubs
• Other organization
4. Ice cream / coffee shops 1. Prison
5. Catering services 2. Religious groups

3. Athletic facilities
Commercial Non-Commercial
 Food Service Origins
• Hotel Restaurants

• Roman Catholic Church

• English Inns

• American Inns

• Hotels in 20th century

Delmonico's In the US
• https://www.youtube.com/watch?v=WEbjPwgL
W8U
• https://delmonicos.com/dinner-menu/
Quick-Service Franchise Operations
• Biggest impact in the food service industry
• 1920-1930s A&W Restaurants
• Then comes McDonalds, Burger king, & Wendy's

Columbus, Ohio 1920 Adjacent Monrovia

Airport 1937
 Origin of non-commercial facilities
Businesses:
• Robert Owen in 1815 created a large eating room for mill workers and their families
• By 1890 banks, insurance companies, factories provided food to employees
• 1902 first cafeteria introduced for Plymouth Cordage Company in Massachusetts
• 1945 coffee break introduced
Hospitals:
• 1800s English nurse Florence Nightingale considered to be the first dietician
• Initially head nurse, housekeeper or cook was responsible for nutritionist meals
• As it grew, hospitals used professional foodservice organizations in this regards.
Schools
• 1200s, even in Oxford & Cambridge quarters, self preparation of food or with servant
• 1776 10 universities in the US, provided food
• Mid 1800s primary and secondary schools started providing meals
Organization of Commercial Operations
Independent Operations : Owner having properties having no chain relationship
Examples include Monal, Tuscany Courtyard, Qishmish

Chain Restaurants: Part of a multi-unit organization with similar menu, sops,

purchase supplies, standardized recipes, equipments and layouts.
Chain restaurants are not necessarily franchised and are may be company owned.
Examples include Rewayat, chacha je, Tandoori

Franchise Operations
• Franchisor: Who lets someone use their brand, products and services for a fees
• Franchisee: Who pays someone a fees to their brand, products and services
Examples include subway, kfc, pizza hut etc
Management Contract Companies
A management contract is defined as
an agreement between a management
company and a property owner, whereby the
operator assumes responsibility
for managing the property by providing
direction, supervision, and expertise through
established methods and procedures
 Future of Food Service Industry
• Flexitarian diet

• Sustainability

• Naturally good

• Locavore

• Digital Coupons

• Convenience

• Attractive places
Question & Answers