Micro Perspective of

Tourism and Hospitality

6
“‘Food and Beverages Sector”

Ms. Allyna Angel R. Temena, CGSP, CEMP, CEHSMP

 NO. 6
MICRO PERSPECTIVE OF TOURISM AND
HOSPITALITY

“‘Food and Beverages Sector”

• Trace the history of the food and beverage

industry:
• Describe the different types of restaurants;
• Explain the importance of franchising to the
restaurants industry;
• In early history, there was much evidence that
certain groups of people together in big groups
and that the early inns provided a crude menu.
• In the Roma era, there were some establishments
that offered sausage or roast meat, bread, and a
Cup of wine.
• The forerunner of the modern restaurant that
provides hot food and drink developed in Rome.
• Many of the early restaurants were in the cities,
near temples and government buildings.
• After the fall of the Roman Empire, the manors
and castles provided food to large numbers of
people. The early inns provided bread and wine to
travelers.
• In 1200, Public cook shops were opened in London
which offered precooked takeout food. The royal
families of Europe introduced cutlery, table linen,
crystal glasses, new foods such as turkey and
potato, and the roadside tavern.
• In the sixteenth century, British inns and taverns
began to serve one meal a day at a fixed time and
price and at a common table. The meal was
known as ordinary and the dining rooms were
called ordinaries.
• In the United States, taverns and inns were very
similar to those in England.
• Famous tavern in New York was Frances Tavern. In
1834, the famous Delmonico's was opened in New
York. In the early 1900s, several events that were
significant to the food industry Occurred.
• The hamburger was first served in 1904 at the St.
Louis World's Fair. The first root beer stand was
founded by Roy Allen and Frank Wright.
• The Second World War brought many changes to
the American public. People became richer, the
automobile made them more mobile, and they
shifted to the suburban areas of cities.
• In the 1960s, fast-food establishments emerged.
• At present, modern popular cuisine including
French, Chinese, Mexican, and Japanese have
become common in most Cruise Line role food
plays in tourism may not be a direct but an
indirect attraction.
Types of Restaurants

The following are the different types of restaurants:

• Family or Commercial Restaurants
Family-style restaurants offer a wide menu of "meat
and potato" selections with a price range that deals
to an average family income. They serve beer and
wine if they have a liquor license. The decor is bright.
A combination of counters, table, and booths is
common.
 NO. 1
Managerial Economics

2. Coffee Shops
Coffee shops are characterized by a food service. The
decor pie and prices are relatively low. It is usually
located in an office building or shopping mall.
3. Cafeterias
Cafeterias are usually located in shopping centers
and office buildings. Self-service is typical with
limited menus of soups, entrees, desserts, and
beverages. Cafeterias often require a large
preparation area.
4. Gourmet Restaurants
Gourmet restaurants generally require a higher initial
investment than other types of restaurants because
they require an expensive ambience and decor. They
cater to those who want a higher standard and are
willing to pay the price.
Ethnic Restaurants
• Ethnic restaurants feature the food of a specific
region or country. They can be Chinese or classical
French cuisine. The decor usually has an ethnic
motif.
Fast-food Restaurants
• Fast-food restaurants have increased in the past
20 years as people have become more mobile.
Franchising is common in this type of restaurant.
• The menu is limited with low prices. Because of
low prices, many customer patronize fast-food
restaurants.
Deli Shops
• Deli shops provide delicatessen food service,
combining traditional delicatessen cold meats and
cheese with takeout sandwiches, salads, and
similar items.
• Some deli shops have limited seating capacity.
They are usually located in shopping areas or
office buildings and are open from 9:00 AM to
5:00 PM or 9:00 PM.
Buffet Restaurants
• Buffet restaurants are established on a completely
self-serve basis. However, if liquor, beer, and wine
are offered, table and service for these beverages
are provided.
• The food buffet is usually an "all you can eat" hot
and cold food for one price. Food preparation and
service stat are kept to a minimum.
Transportation Restaurants
• There is a natural link between transportation and
food service. Several restaurants are generally
found along auto and bus transportation routes.
They are also found at bus, rail, and air
transportation buildings, as well as on
transportation vehicles as trains and ships.
Franchising

• Franchised restaurants are a major component of

the food service industry, particularly in the fast
food sector. The reasons for popularity of
franchising in the restaurant industry are very
similar to those in the hotel industry.
 FOOD COST PERCENTAGE
-used to measure a restaurant’s marketing success. It is
determined by dividing the food cost for a period (a day, a
week, a month)by the sales for that same period and
multiplying it by 100.

Ex.: if the cost of food for 1 month is $40,000 and sales is

$100,000 the food cost would be:
$40,000/$100,000 x 100= 40%

Many restaurants operators strive for a 40% food cost t make

the restaurant profitable.
Labor Costs

• Labor costs are controlled by expressing them as a

percentage of sales on a daily, weekly, or monthly basis
and comparing the actual cost with the standard desired
Instead of treating labor costs as separate from food
costs, many successful restaurants look at these two as a
combined cost.
• For instance, they set a standard of 75% above in which
food costs plus labor costs must not increase
Menus

• The menu is the basic planning document for a

successful restaurant. Several aspects of the
restaurant's operation depend on the menu.
• The menu contains what the restaurant offers, the
range of offerings, as well as the selling prices. The
menu must portray the style and theme of the
restaurant. Thus, the menu's design, printing size,
and colors are important.
Figure 1. Sample of International Airline Menu
Airline Catering

• Airline companies spend billions of dollars every

year for food purchases. The average cost per
airline passenger is between $1 and $7 depending
on the length of the journey. The amount is less
for shorter trips, since passengers may be offered
only a non-alcoholic beverage and a light snack.
Food Quality

• The main problem of airline companies is to cook

the meal on the ground and serve it several hours
later in an extraordinary dry cabin atmosphere,
seven miles high, to different groups of people with
their own food preferences, and whose main
motivation is to travel rather than to eat.
Logistics

• To produce hot meals, the airline companies have

to prepare specifications tor recipes, ingredients,
cooking methods and temperatures, and labor for
each flight.
• These require a forecast using the actual passenger
reservations for each tignt including an allowance
for standbys and last-minute reservations in order
to have the correct raw materials, equipment, and
food production staff for each shift.
 NO. 1
Managerial Economics

Airplane Galleys

• The first airplane galley was designed in 1936 by

Douglas for its DC-3. Meals prepared on the ground
were kept hot or cold in insulated containers on the
aircraft. After World War I, the introduction of
larger airplanes enabled them to have ovens and
refrigerators onboard in their galleys.
Flight Kitchens

• The first airline flight kitchen was opened in the

late 1930s near Washington D.C. Hoover Field
airport by a gentleman named Marriott. He had a
restaurant near airport. He noticed that passengers
would go to his restaurant to eat before boarding
their flights because no meals were served in the
airplane.
Difference Between Airline Catering and Restaurant
catering

Airline catering is different from restaurant catering

because in the latter, the cooks can make last-minute
adjustments.
• For example, a steak might be prepared in the flight
kitchen to be accompanied by a sauce and
vegetables to be served two hours later.
• During this time, it must be kept hot. If there is
flight delay of one hour, the steak will be stringy,
the sauce will be congealed, and the vegetables will
be mushy.
Restaurant Promotion
• Many restaurants advertise their menu on newspapers.
• Local newspaper advertisements are used by most restaurants as a
major form of external promotion.
• Several restaurants advertise in the yellow pages of the local
telephone directory; some use local radio or television stations.
• Most popular restaurants and national restaurant chains advertise in
airline in-flight magazines, consumer travel magazines, and travel
trade publications.