MARKETING THE INDUSTRY SEGMENTS

1. MARKETING THE INDUSTRY SEGMENTS 4.06 Explain the food and beverage industry.

2. Food and beverage business: A business operated to prepare, serve, sell, or provide food for people to eat

3. Segments of the food and beverage industry • Commercial foodservice • Institutional foodservice • Foodservice in a consumer business

4. Commercial foodservice: Profit-driven businesses that compete for customers’ dollars by preparing, serving, selling, or providing food for immediate consumption • Fine dining operations • Fast food restaurants • Cafeteria operations • Buffet restaurants • Theme restaurants • Ethnic restaurants • Family restaurants • Catering operations

5. Fine dining operations • Service is concentrated and the ratio of servers to customers is high. • Dining is enjoyed over an extended period of time. • Chefs are highly qualified and their skills contribute to atmosphere. • These businesses are frequented by only a small percentage of population. • Customers are seated at tables, and a server takes guests’ orders. • Meal selections come from a set menu, with daily specials. • Food and service is of highest quality. • Prices are consistent with quality—high. • Atmosphere is important. • Food is cooked to individual order.

6. Fast food restaurants • Facilities and operations are designed for faster service. • Counter service and/or drive-thru window service are provided. • Menu choices are minimal. • Food preparation time is quick. • The customer dining area is small. • Atmosphere does not encourage customers to linger over meals.

7. Cafeteria operations • Consists of a long serving line with menu items on display • Customers move their trays along the serving line and ask food servers to plate the item they select. • A hot line/side and a cold line/side are often provided. • Dining areas are large to serve large groups. • Customers get food items, take trays with them, and seat themselves.

8. Buffet Restaurants • Food is displayed on special tables that keep the food hot or cold. • Customers get up and down from their tables to get the food they want. • Servers clear the dirty dishes and may provide beverage service. • Buffet service is capable of handling large groups of people.

9. Theme Restaurants • Carry out a common theme throughout all parts of the operation; menu items, décor, servers’ uniforms, and sometimes music are factors in setting theme • “Total experience”

10. Ethnic Restaurants • Most are independently owned. • Several notable successful chains • Serve needs of immigrants in the area and customers who want to try something new

11. Family Restaurants • Cater to all members of the family • Relaxed setting, menu provides for all ages • Some have salad and dessert bars • Special menus for children • All-day menus

12. Catering Operations • Provide food, beverages, and service for special occasions • May have their own location and cater groups there, or they may cater to groups at other locations • Coordinate many details and must keep in close touch with the customer • Weather may impact outdoor activities

13. Institutional Foodservice: Foodservice that is provided to customers in an institution such as a hospital, prison, school, or the military • In-house foodservice • Contract foodservice

14. In-house foodservice: A foodservice operation that is run by the business itself

15. Contract foodservice: An institutional foodservice operation that is run by an outside foodservice agency

16. Foodservice in a consumer business • A food and beverage business sometimes operates within another business. • The food is not the main purpose of going to these attractions or locations, but it enhances the experience. • These businesses have characteristics of both institutional and commercial foodservice. • Examples: airports and sports arenas

17. Factors affecting location *Location is key factor in marketing mix • What are demographics of surrounding population? • Is there growth in immediate area? • What is existing public infrastructure? • Does the property/building have good access? • Is there enough parking? • Is the property visible from surrounding roadways? • Who are the competitors?

18. Foodservice Industry Trends • Americans eat approximately half of their meals away from home. • When dining at home, Americans want food items that are convenient and quick to prepare. • Take-out continues to be popular. • Consumers expect high-quality ingredients. • Theme restaurants make eating out entertaining, not just convenient. • Healthy choices are very important. • Technology has improved service.

19. Advertising in the food and beverage industry • Smaller operations can target local markets through local media. • National chains use television for broad exposure. • Magazine ads can target specific markets and geographic areas. • Billboards are used to direct tourists to businesses in the local area.

20. Personal selling in the food and beverage industry • Suggestive selling is important in any restaurant. • A server’s knowledge of the product and preparation methods helps the sales process and image of the business. • The one-on-one customer contact generates immediate feedback.

21. Sales promotion in the food and beverage industry • Toys in kid’s meals, t-shirts, and specialty glassware • Temporary plans incorporated to bring customers into the business • Rate cards and informal surveys • Table tents • Sales promotions are only as effective as the salesperson trying to sell them.