WHAT IS THE SECTORS OF FOOD SERVICE INDUSTRY ???

 SECTORS OF FOOD SERVICE INDUSTRY

There are many types of F&B operations. They may vary in size, style, location, and the market they are catering to. From a wayside tea stall to an exclusive fine dining restaurant of a deluxe hotel, and from mid-day meal services for school children to meals for industrial workers, all come under the fold of the F&B sector. 

It is necessary to classify all the F&B sectors for a better understanding of their  operations. The F&B sector can broadly be classified into the following two groups according priority given to the provision of food and beverages:

 • Primary catering service

• Secondary catering sectors

Primary catering sectors

The establishments under this category are primarily concerned only with the provision of food and beverages to customers. The examples are food service outlets of accommodation sectors, various types of restaurants, and takeaways.

Secondary catering sectors 

The establishments in which the provision of food and beverages is not the main activity but a secondary or support activity are called secondary catering sectors.

 The examples are institutional catering, transport catering, catering services in theatres, amusement parks, departmental stores, and industrial catering The primary activity of these units is not the provision of food and beverages to the clients but the activity for which it is set up.

 For example, in transport business, taking the passengers to the destination on time and scheduling the trips will be the primary activity. Some trains have a pantry car while others do not Short duration flights may not provide in-flight catering services.

The food service industry can also be divided into the following two groups according to the profit motive 

• Commercial 

• Welfare

Commercial sectors

 These operate mainly to make profit or to earn adequate return on investment (ROD through their products and services, Food and beverage facilities of hotels, resorts, motels, clubs, stand-alone restaurants, popular restaurants, takeaway outlets, pubs and bars, coffee shops, fast food outlets, transport catering, contract catering of industries, and so on, are examples of

commercial catering.

 It can be further classified into residential, for example, hotels, motels, resort,inns, clubs, and so on. and non-residential, for example, restaurants, fast food outlets, popular

restaurants, pubs, bars, and so on.

 Hotels provide F&B services to customers in the following areas other than accommodation: • Restaurants (from silver service restaurants to sell service restaurants, 24 hour operations to restricted hours of operations, open to residential and non-residential guests)

 Bars

Lounge area

Banquets

 Rooms (restricted only to hotel guests)

Welfare sectors

 These operate mainly to provide services at no profit and no loss basis, and most of them are run by private bodies or the government. They operate within their outlined budget for the provision of F&b services.

 School catering, university catering, hospital catering, prison catering, military catering, and so on, are examples of welfare catering services, provided these services are run by their own management, If the catering services are given away on contract (outsourced), then the motive of the contractor would be to make profit and hence such services will become commercial operations. 

Most of these sectors are outsourced these days as managements want to concentrate on their primary activities.

Food and beverage sector provide service to various markets. 

Some of these sectors provide services to the general public while others only to the restricted groups. We can divide the F&B echo according to the market or the type of customers they cater to in the following manner

 Non-captive market 

Captive market 

semi-captive market

NON CAPTIVE MARKET/ CUSTOMER

 The customers have a choice where to eat. The type of restaurant chosen may be a fine dining restaurant of a deluxe hotel, stand-alone restaurant, coffee shop, fast food cutlet, specialty restaurant, of a popular restaurant depending on the following: 

• Reason for dining Birthday party, Valentine's day, wedding anniversary, or business he

 • Time available to eat-Some customers have more time to spend in a restaurant while others very less time, which influences their decision on the selection of the type of eatery Executive class clients need executive lunch during lunch hours as they have less time to eat 

• Food preference of customers. The type of food they want to eat, for example, chinese dishes, south Indian dishes, sandwiches, and so on 

• Money available to spend on food-Dishes of specialty restaurants are more expensive than

popular restaurants

 • Time of the day-As not all the restaurants are open throughout the day

• Distance customer is prepared to travel to reach the eatery

 • Ambience desired - A quiet dinner for two or a dinner with a live band

Personal experience--If customers had a good dining experience in a restaurant, they will prefer

returning there and referring the eatery to their friends

Captive market/customers 

The customers do not have a choice where to eat and have to avail services provided by a particular catering outlet. For example, residential school children, college students staying in hostels, hospital patients, people staying in old age homes, prisoners, and industrial workers.

Semi-captive market/customers. 

The customers have a limited choice where to cat. In such a market, the customers have a choice before selecting the food and beverages. Once the choice is made the customers have no choice but to be content with what is on offer. The examples include the following:

Passengers travelling by train may take food prepared in the pantry car, from food outlets at railway stations, or wait till the destination is reached

Those who travel by car on the highway have a limited choice of taking food from any of the outlets located on the highway. 

Those who wish to travel by air have a choice of selecting the airline and have a choice between vegetarian and non-vegetarian meal. Once these choices are made, they have to take what is offered