Categories Within F&B Sector Flashcards
Division of sectors
Primary catering sector
Secondary catering sector
Primary catering sector
Main focus: food
Ex: restaurants, takeaways
Secondary catering sector
Focus: food is not the main activity
Examples: institutional catering, theatres
Types of food service industry
Commercial
Welfare
Commercial
Focus: 🤑
Division: general and restricted market Examples of general market: F&B in hotels, stand alone restaurants
Examples of restricted markets: clubs, industrial catering
Welfare
Focus: break-even
Restricted market Examples: old age homes, military, prison
ADR
Average daily rate
RTS
Ready to serve
Factors to be considered by restaurants for survival
Menu
Service hour
Mode of service
Expenditure potential of the customer
Target customer
Business environment
Environmental factors that impact the F&B sector
Internal
External
External division
Political
Economic
Social
Technical
Political
Govt policies and regulations of food packaging, safety and disposable systems.
VAT+service+luxury tax
Economic
Cost of raw materials
Cost of labour
Cost of water
Cost of energy
Changes in disposable income of the society
Credit policies of suppliers
Loan policies
Rate of interest
Social
Changes in the eating habits of the customers
Technical
Advancement in the food processing technology
High tech food production and service equipment
Information technology
Division of internal factors
Food and beverage
Employees
Control
Food and beverage operations
Highly perishable nature of food commodities
Wastage, pilferage and poor portion control of food and beverages
Employees
Labour turnover
Absenteeism
Poor supervision
Availability of staff
Skill
Control
Stores control procedures
Purchase procedures
Proper cash control to avoid theft
Correct pricing of dishes
Introduction of F&B in India (till British)
Pilgrims/travellers took shelter under trees
Danger of animals hunting them
Need for safe accommodation
Dharamshalas + chatrams (food, shelter, bullock cart for travel)
With barter system, concept of home stay
Invaders and traders: sarais during Mughal rule
British introduced: western style hotels, cuisines, style of making wine, distilled drinks, eating habits, table etiquette, eating with cutlery
Continuation of the introduction of F&B in India
1960s: demand for eating outside food. Development of restaurants. First restaurants, shelved food prepared before hand. Served till stock got over. No care about the warmth of food. “Take it or Leave it” approach
Development of hotels and pantry cars in trains which began during the British era. Taj, oberoi and other brands took over post independence.
Capacity building for service providers (CBSP)
2002
Aim: train people engaged in smaller hospitality segments to cater to tourists
Short term training: improve etiquette, behaviour and attitude towards tourists
2005: Project Priyadarshini: involve women equally
Improved relationships and cultural exchanges between states
Impact of civil aviation on India
Increased foreign visits to India
Improved tourism
International brands like Hyatt and Marriot set up hotels in India
Franchises like McDonalds and Burger King moved
Factors that have changed the food service sector in India
Media influence
Influx of foreigners
Trained and qualified manpower
Professionalism
Wide range of cooking and service equipment
Food technology
Consumer demand
Change in lifestyle
Lack of time to cook
Why would a customer choose a restaurant
Ambience
Experience
Reason for dining
Time available to eat
Food preference
Disposable income
Time of the day
Distance
Types of customers
Non-captive market/customers: have a choice
Captive market: no choice (hostel students)
Semi-captive: limited choice (passengers on trains)
