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7.01 Discuss food & beverage services. . Food & Beverage. (F&B) - the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. . Segments of food & beverage service industry. Concessions Counter Service Full-Service Specialty Services.

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food beverage
Food & Beverage
  • (F&B) - the sector/industry that specializes in the conceptualization, the making of, and delivery of foods.
segments of food beverage service industry
Segments of food & beverage service industry
  • Concessions
  • Counter Service
  • Full-Service
  • Specialty Services
segments of food beverage service industry concessions
Segments of food & beverage service industry - Concessions
  • Mobile carts or units- sell food and beverages
  • Vendors (hawkers)- sell food and beverages to attendees in seating areas

- watch fans for opportunities

to make sale

segments of food beverage service industry counter service
Segments of food & beverage service industry – Counter Service
  • Similar to quick-service restaurants or food courts
segments of food beverage service industry full service
Segments of food & beverage service industry – Full-Service
  • Sit-down, public eating places with services provided by a wait- staff
  • Suites are rooms with a view of event with seating and food & beverage services provided by full-service wait-staff
segments of food beverage service industry specialty services
Segments of food & beverage service industry – Specialty Services
  • Includes combination of event and segment of the food & beverage industry
  • Example: Epicenter Theaters in Charlotte combines dinner and a movie
history of food beverage services
History of food & beverage services

1. Harry M. Stevens- H.M. Stevens Concessions Company

  • Considered the “father of ballpark concessions”
  • Sold first program at a baseball game in Columbus, Ohio in 1887
  • Began by selling scorecards to crowds at racetracks, ballparks and arenas
  • Initialized the selling of hotdogs, soft drinks at sporting events
  • Became one of the seven largest concessionaires in the U.S
history of food beverage services1
History of food & beverage services

2. Cretors & Company

a. Founded in 1885

b. Patented the process of popping corn in oil in 1893

c. Introduced first popcorn popping machine at World’s Columbian Exposition in Chicago, Illinois

d. Influenced the creation of machines for use in theaters

history of food beverage services2
History of food & beverage services

3. National Association of Concessionaires - NAC

a. Founded in 1944 as association for recreation and leisure-time food & beverage service industry

b. Provides members and services who seek to increase standards of excellence in the food & beverage services industry with information

c. (next slide)

history of food beverage services3
History of food & beverage services

c. Included are owners and operators from the following facilities:

viii. Amusement parks & family entertainment centers

ix. Roller skating rinks

x. Racetracks

xi. Bowling centers

xii. Outdoor facilities

xiii. Convention centers

i. Movie theaters

ii. Stadiums & arenas

iii. Zoos & aquariums

iv. Colleges & universities

v. Foodservice contractors

vi. Parks & recreation departments

vii. Ice skating rinks

contracting food beverage services
Contracting food & beverage services
  • Contracting is an agreement between a venue and an external company that provides food & beverages services
contracting food beverage services advantages
Contracting food & beverage services - Advantages
  • Less time consuming
  • Responsibility of training and staffing food & beverage employees is assumed by the contractor
  • Financial liability for waste, spoilage, or other losses is transferred to the contractor
  • Responsibility of day-to-day operations is assumed by contractor
contracting food beverage services disdvantages
Contracting food & beverage services - Disdvantages
  • Venue gives up managerial control with staffing, inventory and merchandising
  • Less profit due to contractor fees
self operating food beverage services
Self-operating food & beverage services
  • Involves owning or operating ones own food & beverage services
  • Also referred to as in-house operations
self operating food beverages services advantages
Self-operating food & beverages services - Advantages
  • Owners control decision-making process
  • Profits increased by cutting out middle-man
self operating food beverage services disadvantages
Self-operating food & beverage services - Disadvantages
  • Owner assumes all financial liability for waste spoilage or other losses
  • Owner responsible for training and staffing
  • Owner must have in-depth knowledge of complete operation
costs of operating food beverage services
Costs of operating food & beverage services

1. Start-up costs are associated with initial venture of owning a business

For example: equipment, signage, utilities

2. Cost of goods sold include all costs associated with manufacturing products or purchasing goods for resale

For example: food, wrappers, condiments, paper products, and containers

costs of operating food beverage services cont
Costs of operating food & beverage services, cont..

3. Operating expenses include costs associated with day-to-day operations of a business

  • Fixed operating expenses do not vary over a specified period of time
  • For example: insurance, rent or leases
  • Variable cost vary on a monthly basis
  • For example: supplies, utilities, advertising, and security
factors affecting revenues from food beverage services and sales
Factors affecting revenues from food & beverage services and sales

1. Attendance

2. Type of event

3. Weather

4. Team standing (winning or losing season)

5. Expenses- start-up cost, cost of goods sold, and operating expenses

6. Per capita spending- Average money spent by each spectator