Overview of the Restaurant and

Foodservice IndustrySection 1.1

Just the Facts

The industry has annual sales of over $550 billion

There are more than 945,000 restaurants and foodservice operators

Employs more than 13 million people (9% of the workforce)

Travel and tourism industry averages annual sales over $1 trillion

Overview

Examine the size and scope of the many restaurants and businesses that comprise the industry

Explore the history of the foodservice industry

The Restaurant and Foodservice Industry

People eat out for enjoyment and entertainment

The industry can be divided into two major parts or segments: Commercial Noncommercial

Commercial Restaurant and Foodservice Segment

Makes up almost 80% of the industry

Types of establishments include: Restaurants Catering and banquets Retail Stadium Airline and cruise ships

Types of Establishments

Restaurants: There are many types of restaurants, including quick-service, fine-dining, casual, theme restaurants, buffets, and cafeterias.

Catering and banquets: The menu is chosen by the host of an event for a specified number of people. Food may be prepared on or off location .

Retail: Offer prepared meals to be eaten in the store or at home. Vending machines are also considered to be retail.

Stadiums: May be privately run or use large-scale contractors.

Restaurant SegmentsRestaurant Segment

Services Offered Avg. Per-Person Dinner Check

Family Dining Full-Service

Serving staff provides service, and the order is taken while the patron is seated. Patrons pay after they eat.

$10 or less

Casual Dining Full-Service

Serving staff provides service at the table, and the order is taken while the patron is seated. Patrons pay after they eat.

$10 - $25 range

Fine Dining Full-Service

Serving staff provides service at the table, and the order is taken while the patron is seated. Patrons pay after the eat.

$25 or more

Quick Service (Fast Food)

Order is taken while the patron is standing and pays before eating. Food may be eaten on premises, taken out, or delivered.

$3 - $6 range

Quick-Casual

Attractive and comfortable establishments serving freshly prepared, wholesome quality, authentic food in a reasonably fast service format.

$7 - $9 range

Noncommercial Foodservice Segment

This segment prepares and serves food in support of some other establishments’ main function

Examples include: Schools and universities Military bases and ships Health-care facilities Club and member-based facilities (golf or athletic

clubs)

Foodservice is typically handled in one of two ways: Contract feeding: contractors manage and operate

the dining facilities Self-operators: companies hire their own staff to

operate foodservices

The Big Picture: The Hospitality Industry

Restaurants and foodservice fall under the umbrella of the hospitality industry, but even bigger hospitality falls under travel and tourism

Travel and tourism: the combination of all the services that people need and will pay for when away from the home, including transportation, lodging, and dining

Hospitality: the services that people use when away from home

Tourism: travel for recreation, leisure, or business purposes

The History of Hospitality and Foodservice

The Beginning: Ancient Greece and Rome (400 B.C. – 300 B.C.)

Ancient Greeks rarely dined out, but they did enjoy the social aspect of eating at banquets

In 282 B.C. Rome conquered the lands surrounding the Mediterranean; Romans served meals at home

As the Roman Empire expanded there was an increased use of spices and growing knowledge of different cuisine

Marcus Apicius: a Roman, gourmet, and lover of luxury was so interested in cooking the he wrote one of the earliest cookbooks De Re Coquinaria (On Cooking)

The History of Hospitality and Foodservice

The Beginning: Ancient Greece and Rome (300 B.C. – 400 B.C.)

Private clubs called lesche, offered food to members

Other establishments, called phatnai, catered to travelers, traders, and visiting diplomats

The Middle Ages (500 A.D. – 1300 A.D.)

A shift from hunting and gathering to an agrarian (farming) society

On feudal farms banquets were held almost every night, with one purpose: to eat

The History of Hospitality and Foodservice

The Renaissance through the French Revolution (1400 A.D. – 1800 A.D.)

Reemergence of spice trade

Expansion of world travel

1533 A.D.: Catherine de Medici brings silverware to France

Noblemen used food and use of exotic spices to show wealth creating haute cuisine An elaborate and refined cooking system of food

preparation

1650 A.D.: First café (coffee house) opens in Oxford, England

The History of Hospitality and Foodservice

The Renaissance through the French Revolution (1400 A.D. – 1800 A.D.)

Guilds: associations of people with similar interests or professions were organized

1750 A.D.: Boulanger began serving hot soups. He called his café restorante (the root word for restaurant)

After the French Revolution many cooks did not have jobs and began opening restaurants of their own like Boulanger – dining out on a large scale was born

Major Contributors Marie-Antoine Carême (1784-1833)

Accomplishment: Defined the art of grand cuisine Contribution: very refined, elaborate cuisine,

perfected fine French sauces

Georges August Escoffier (1846-1935) Accomplishment: Credited with refining Carême’s

grand cuisine into the more contemporary classical cuisine

Contribution: established exact rules of conduct and dress for chefs and developed kitchen brigade

The History of Hospitality and Foodservice

Europe's Industrial Revolution (1750 – 1890’s)

There was mass migration to cities

With the invention of the railroad in 1825, inns, taverns, and foodservice facilities near rail stations began to grow

The Gilded Age (1850 – 1900’s)

Scientific revolution

Louis Pasteur: developed pasteurization

Nicolas Appert: developed canning

Nurse Florence Nightingale: argued health was dependent on appropriate diet

The History of Hospitality and Foodservice

The Gilded Age (1850 – 1890’s)

Entrepreneurs opened fancy restaurants such as Delmonico’s and the Astor House

1848: people poured into California as they gold was discovered To meet the growing population cafeterias opened,

an assembly-line process of serving food quickly and cheaply without the need for servers

The History of Hospitality and Foodservice

The 20th Century (1900 – 1999)

U.S. employment was at an all-time high, therefore more people were eating out

By the Depression in the 1930s restaurants closed due to economic troubles

1940s: Boom in the lodging industry as people traveled for war-related reasons (WWII)

1950s: Quick-service restaurant segment grew quickly

1970s to today: growth of national chain restaurants changing the notion of eating out to an everyday occasion

Contributions from Entrepreneurs

1837: Delmonico brothers open additional restaurants in Manhattan, beginning the first restaurant chain

1876: Fred Harvey opens the Harvey House building one of the earliest nationwide chain restaurants

1921: Ray Allen and Frank Wright begin selling rights allowing people to sell their root beer (A&W), creating the first franchise company

1921: White Castle in Wichita, Kansas becomes the first chain of quick-service hamburger restaurant

Contributions from Entrepreneurs

1958: Frank Carney creates the Pizza Hut franchise, one of the first quick-service franchises to focus on a menu other than hamburgers

1968: Bill Darden opens the first Red Lobster, focusing on affordable prices and full service (Darden Restaurants also include: Olive Garden, Bahama Breeze, The Capital Grille, and LongHorn Steakhouse)

1971: Starbucks opens in Seattle, Washington

1977: Ruth Fertel opens Ruth’s Chris Steak House, starting one of the first national fine-dining chains

The Future

The spread of civilization, growth of international trade, and improvements in science and technology all played a part in making foodservice the successful industry it is today.

Bound to tradition

It must be responsive to changes in the society that it serves