A Food Service Manager Read That the
Main Body
Chapter 4. Food and Beverage Services
Peter Briscoe and Griff Tripp
- Describe the origins and significance of the food and potable sector
- Relate the importance of the sector to the Canadian economy
- Explicate the various types of food and beverage providers
- Discuss differing needs and desires of residents and visitors in selecting a food and beverage provider
- Examine factors that contribute to the profitability of nutrient and potable operations
- Discuss key bug and trends in the sector including government influence, health and safety, human resources, and technology
Overview
According to Statistics Canada, the food and beverage sector comprises "establishments primarily engaged in preparing meals, snacks and beverages, to client order, for immediate consumption on and off the premises" (Authorities of Canada, 2012). This sector is normally known to tourism professionals by its initials as F&B.
The food and beverage sector grew out of simple origins: as people travelled from their homes, going about their business, they often had a demand or want to swallow or drinkable. Others were encouraged to meet this demand by supplying food and drink. Equally the interests of the public became more diverse, so too did the offerings of the food and drinkable sector.
In 2014, Canadian food and beverage businesses accounted for 1.1 1000000 employees and more than 88,000 locations beyond the land with an estimated $71 billion in sales, representing around 4% of the country'southward overall economic activeness. Many students are familiar with the sector through their workplace, because Canada'due south restaurants provide one in every five youth jobs in the state — with 22% of Canadians starting their career in a restaurant or foodservice business organization. Furthermore, going out to a restaurant is the number one preferred activity for spending time with family and friends (Restaurants Canada, 2014a).
Food and Potable Sector Performance
Look at Effigy 4.1, which illustrates the percentage of total nutrient dollars spent in restaurants in Canada and the United States over several years. As you tin can meet, Americans spend significantly more of their full food dollars in foodservice establishments than in grocery stores, and in Canada we spend more than of our total nutrient dollars in the grocery store than we do in foodservice operations. It's worth noting that Americans do not have an equivalent federal sales tax on meals comparable to our GST on foodservice sales, although at that place does exist in some states a sales tax on meals and alcoholic beverages (Country Sales Tax Rates, 2015). This, combined with a larger population, cheaper food distribution costs, and other factors can often mean that it's less expensive to dine out in the United States than in Canada.
For a perspective on how sales are distributed across the country by province, and how different foodservice operations perform in terms of acquirement (sales dollars collected from guests), look at Tables 4.1 and four.2.
[Skip Tabular array] | ||||
Province | Foodservice Units | Boilerplate Volume/Unit ($) | ||
---|---|---|---|---|
Total | Chain Share (%) | Independent Share (%) | ||
Newfoundland and Labrador | 1,127 | 44 | 56 | 715,976 |
Prince Edward Isle | 369 | 35 | 65 | 549,428 |
Nova Scotia | ii,089 | 40 | 60 | 637,237 |
New Brunswick | 1,701 | 48 | 52 | 579,576 |
Quebec | 21,865 | 31 | 69 | 488,712 |
Ontario | 33,628 | 45 | 55 | 623,862 |
Manitoba | two,448 | 41 | 59 | 657,245 |
Saskatchewan | 2,330 | 43 | 57 | 744,322 |
Alberta | 9,858 | 47 | 53 | 828,860 |
British Columbia | 13,214 | 33 | 67 | 627,599 |
Canada | 88,795 | xl | lx | 619,013 |
Data source: Statistics Canada, 2013 |
[Skip Table] | ||||
Province | Sales Growth | Sales | Pre-tax Turn a profit Margin (%) | |
---|---|---|---|---|
2013-14 Forecast (%) | 2012-13 (%) | 2013 ($ millions) | ||
Newfoundland and Labrador | 2.vii | 9.2 | 806.nine | 6.7 |
Prince Edward Island | 1.6 | iv.4 | 202.vii | 5.7 |
Nova Scotia | 3.8 | 0.7 | 1,330.ix | five.ii |
New Brunswick | 2.1 | 0.3 | 985.6 | 5.2 |
Quebec | 3.8 | 2.vii | ten,685.four | iii.9 |
Ontario | 4.1 | 4.two | 20,979.2 | 2.8 |
Manitoba | 4.6 | 6.1 | 1,608.6 | vii.9 |
Saskatchewan | 4.7 | seven.0 | 1,733.9 | 7.0 |
Alberta | 5.4 | vi.4 | 8,170.five | 7.1 |
British Columbia | 3.seven | 6.1 | 8,292.8 | 3.4 |
Canada | 4.2 | iv.half dozen | 54,965.3 | 4.2 |
Data source: Statistics Canada, 2013 |
Table iv.one shows that the independents in BC accept a much larger share of the total number of units compared with chains than any other province except Quebec. In terms of sales (Table 4.2), Ontario is the leader with almost $21 billion. Quebec, BC, and Alberta each earned $viii to $ten billion, and the other provinces had sales of less than $2 billion apiece. While BC and Alberta are almost even in total sales, BC has a third more units (restaurants), leading to lower average sales per unit.
Foodservice sales in Alberta rose by a solid six.four% in 2013. Alberta boasts the highest average unit book at $828,860 per year, more $200,000 over the national boilerplate due to greater disposable income and no provincial sales tax on meals. In BC, the end of the HST (harmonized sales taxation) and improved economic growth lifted full foodservice sales past a healthy 6.1% for the strongest annual growth since 2006 (Restaurants Canada, 2014a).
At present permit'south have a quick look at which provinces take the most profitable foodservice operations.
Figure iv.ii indicates the turn a profit margins per province. Profit is the amount left when expenses (including corporate income revenue enhancement) are subtracted from sales revenue. A higher profit margin means that a greater per centum of sales is retained past the business owner, and a lower percentage is lost to operating and other costs.
The provincial variations in total sales and profit margins are due to several factors including:
- Relative level of economical activity
- Minimum wage levels
- Provincial sales taxes
- Cultural differences
- Weather
- Municipal taxes
- Per centum of market held by chains versus independents
- Number of units (restaurants)
- Density of units relative to local population
- Number of tourists or business travellers
Now that we have a sense of the relative operation of F&B operations by province, and some influences on success, let's delve a petty deeper into the sector.
Types of Nutrient and Drink Providers
While there are many ways to analyze the sector, in this affiliate, we take a market-based, business-operation approach based on the overall Canadian market share from the Restaurants Canada Market place Review and Forecast (Restaurants Canada, 2014b). The following sections explore the types of foodservice operations in Canada.
At that place are two key distinctions: commercial foodservice, which comprises operations whose primary business organisation is food and drinkable, and non-commercial foodserviceestablishments where nutrient and beverages are served, only are not the primary business.
Let'due south start with the largest segment of F&B operations, the commercial sector.
Commercial Operators
Commercial operators make up the largest segment of F&B in Canada with but over lxxx% market share (Restaurants Canada, 2014b). It is made up of quick-service restaurants, full-service restaurants, catering, and drinking establishments. Let's look at each of these in more detail.
Quick-Service Restaurants
Formerly known as fast-food restaurants, quick-service restaurants, or QSRs, make upwardly 35.four% of total food sales in Canada (Restaurants Canada, 2014b). This prominent portion of the nutrient sector generally caters to both residents and visitors, and is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR mural. While the sector has made steps to move away from the traditional fast-nutrient image and style of service, it is still dominated past both fast food and nutrient fast; in other words, food that is prepared and purchased quickly, and mostly consumed quickly.
Take a Closer Look: The Outset McDonald's In Canada
The first McDonald's eatery in Canada opened in Richmond, BC, in 1967. Located on No. 3 Route, it featured a sleek almost space-age blueprint. To meet a flick of the location, visit McDonald's: And then and Now: www.richmond.ca/cityhall/archives/exhibits/thenandnow/then_now_set_7.htm
Convenience and familiarity is central in this sector. Examples of QSRs include:
- Bulldoze-through locations
- Stand-alone locations
- Locations within retail stores
- Kiosk locations
- Loftier-traffic areas, such every bit major highways or driver routes
Full-Service Restaurants
With 35% of the market share (Restaurants Canada, 2014b), full-service restaurants are perhaps the most fluid of the F&B functioning types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs (Parsa, Lord, Putrevu, & Kreeger, 2015). The menus offered are varied, but in general reflect the prototype of the restaurant or consumer's desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual.
Fine dining restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the tabular array by experienced servers with sound nutrient and beverage cognition in an upscale atmosphere with tabular array linens, fine china, crystal stemware, and argent-plate cutlery. The table is oft embellished with fresh flowers and candles. In these businesses, the boilerplate cheque, which is the total sales divided by number of guests served, is quite loftier (ofttimes reviewed with the price symbols of three or 4 dollar signs- $ $ $ or $ $ $ $).
Bishop's in Vancouver is ane of BC's best known and longest operating fine dining restaurants. Since opening in 1985, this 45-seat restaurant has served heads of land including Bill Clinton and Boris Yeltsin, and has won awards including the Best of Vancouver. John Bishop was awarded the Governor General's Award in 2010 (Georgia Direct, 2015).
Family/casual restaurants are characterized by being open for all three meal periods. These operations offer affordable menu items that span a variety of client tastes. They also have the operational flexibility in bill of fare and restaurant layout to welcome large groups of diners. An analysis of menus in family/casual restaurants reveals a high degree of operational techniques such equally card detail cross-utilization, where a few key ingredients are repurposed in several ways. Both chain and contained eating house operators flourish in this sector. Popular concatenation examples in BC include White Spot, Ricky'south All Day Grill, Boston Pizza, and The Quondam Spaghetti Factory. Independents include the Cerise Wagon Café in Vancouver, the Bon Voyage Restaurant about Prince George, and John's Place in Victoria.
Ethnic restaurants typically reflect the possessor's cultural identity. While these restaurants are popular with many markets, they are oft particularly of interest to visitors and new immigrants looking for a specific surroundings and other people with whom they have a shared culture. Food is ofttimes the medium for this sense of belonging (Koc & Welsh, 2001; Laroche, Kim, Tomiuk, & Belisle, 2005).
The growth and changing nature of this sector reflects the acceptance of diverse ethnic foods within our communities. Ethnic restaurants mostly evolve along 2 routes: toward remaining accurate to the cuisine of the country of origin, or toward larger market place credence through modifying carte items (Mak, Lumbers, Eves, & Chang, 2012).
Upscale casualrestaurants emerged in the 1970s, evolving out of a change in social norms. Consumers began to want the experience of a fun social evening at a eating place with skilful value (just non inexpensive), in contrast to the perceived stuffiness of fine dining at that time. These restaurants are typically dinner houses, but they may open for lunch or brunch depending on location. Examples in BC include the Keg, Earls, Cactus Lodge, Chocolate-brown's Social House, and Joey Restaurants.
Catering and Banqueting
Catering makes up but 6.8% of the full share of F&B in Canada (Restaurants Canada, 2014b) and comprises food served by catering companies at banquets and special events at a diverse set of venues. Notation that banqueting pertains to catered food served on premise, while catering typically refers to off-premise service. At a catered event, customers typically eat at the same time, as opposed to restaurant customers who are served individually or in pocket-sized groups.
Catering businesses (whether on-site or at special locations) are challenged by the episodic nature of events, and the problems of food handling and nutrient rubber with large groups. Catering businesses include:
- Catering companies
- Conference centres
- Briefing hotels
- Wedding venues
- Festival food coordinators
Spotlight On: Diner en Blanc
An interesting public effect with a dining focus is Diner en Blanc, which is held in cities around the globe including Vancouver and Victoria. Diners habiliment all white and bring their table, chair, and place settings with them to a cloak-and-dagger location appear simply hours before. Participants have the option to bring their own food or purchase a catered meal. Alcoholic beverages are also bachelor for buy on site. For more than information, visit the Diner en Blanc website: http://vancouver.dinerenblanc.info/media
While beverages make up role of about every dining experience, some establishments are founded on beverage sales. Let'southward look at these operations next.
Drinking
With 3.five% market place share (Restaurants Canada, 2014b), the drinking establishment sector comprises bars, wine confined, cabarets, nightclubs, and pubs. In British Columbia, all businesses and premises selling booze must adhere to the BC Liquor Control and Licensing Act. At the time this chapter was written, meaning changes were taking identify in the regulations governing drinking establishments, just some general conditions accept remained stable.
In BC, liquor licences are divided into liquor primary and food primary. Equally the proper name suggests, a liquor principal licence is needed to operate a business that is in the chief business organisation of selling alcohol. Most pubs, nightclubs, and cabarets fall into this category. A food primary licence is required for an operation whose primary business is serving nutrient. Some operations, such as pubs, will agree a liquor primary licence even though they serve a significant volume of food. In this case, the licence allows for various patronage.
I noteworthy alter to the licensing of pubs in BC is that children are permitted in them if they are accompanied and attended by responsible adults. While not universally adopted past pubs to date, this change in legislation is an example of the fluctuating social norms to which the sector must respond.
Together the commercial ventures of QSRs, total-service restaurants, catering functions, and drinking establishments make upward just over 80% of the market share. Now allow's look at the other 20% of businesses, which fall nether the non-commercial umbrella.
Non-Commercial
The following non-commercial entities earn but under twenty% share of the foodservice earnings in Canada (Restaurants Canada, 2014b). While these make up a smaller share of the market place, there are some advantages inherent in these business models. Non-commercial operations cater predominantly to consumers with limited selection or option given their occupation or location. This type of consumer is often referred to as a captured patron. In a tourism capacity such as in airports or on cruise ships, the accepted cost bespeak for these patrons is often higher for a given product, increasing profit margins.
Institutional
Oftentimes run under a predetermined contract, this sector includes:
- Hospitals
- Universities, colleges, and other educational institutions
- Prisons and other detention facilities
- Corporate staff cafeterias
- Prowl ships
- Airports and other transportation terminals and operations
Accommodation Foodservice
These include hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room). Hotel restaurants are usually open up to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations betwixt hotel chains and restaurant chains accept seen reliable pairing of hotels and restaurants, such as the combination of Sandman Hotels and Moxie'due south Grill and Bar.
Vending and Automatic Foodservices
While not generally viewed as office of the food and drinkable sector, automated and vending services do account for significant sales for both small and big foodservice and adaptation providers. Vending machines are located in motels, hotels, transportation terminals, sporting venues, or just about any location that will let for the opportunity for an impulse or user-friendly purchase.
Business organization Performance for Types of Food and Beverage Operators
As mentioned, the commercial sector comprises the majority of dollars earned. Figure iv.ix illustrates the difference between share of traffic and share of dollars for each subsector. We know that QSRs are much more economical and generally much busier than full-service restaurants. How does that traffic and low prices translate into market share for the different segments?
Figure iv.9 shows that QSRs attract 2-thirds of all the traffic, while earning less than half of the total dollars. Family/midscale and coincidental dining each attract one-half the dollars of QSR, merely they practice that from much lower shares of the traffic. Meanwhile fine dining is patronized by less than 1% of the full restaurant traffic, simply earns 4.2% of the dollars. The growing strength of convenience stores, department stores, and other retail establishments obtain a respectable 11.v% of traffic and 10.six% of the eating place dollar.
Every bit you tin see, while QSRs attract the greatest number of guests, the ratio of dollars earned per transaction is significantly less than that of the fine dining sector. This makes sense, of course, because the typical QSR earns relatively little per invitee merely attracts hundreds of customers, while a fine dining restaurant charges high prices and serves a select few guests each day.
Sales Per Segment
[Skip Tabular array] | |||||
Type of Restaurant | 2012 Concluding ($ millions) | Segment Market Share (%) | 2013 Preliminary ($ millions) | Segment Market Share (%) | |
---|---|---|---|---|---|
COMMERCIAL | QSR | 23,139.seven | 35.4 | 24,114.5 | 35.four |
Full-service | 22,631.i | 34.7 | 23,847.3 | 35.0 | |
Caterers | iv,443.6 | 6.eight | 4,644.9 | 6.eight | |
Drinking places | two,355.vi | 3.vi | 2,358.6 | 3.5 | |
Total Commercial | 52,570.1 | eighty.5 | 54,965.3 | lxxx.7 | |
Non-COMMERCIAL | Accommodation | v,456 | 8.4 | 5,647.0 | 8.3 |
Institutional | iii,668.six | 5.6 | three,898.5 | 5.vii | |
Retail | 1,234.iii | 1.nine | 1,199.4 | 1.8 | |
Other | ii,362 | 3.six | ii,416.3 | iii.5 | |
Full Not-Commercial | 12,720.9 | xix.five | 13,161.3 | 19.3 | |
Data source: Restaurants Canada, 2013 |
The sales revenues for the various segments are shown in Tabular array four.3. Note that QSRs and full-service restaurants are about equal in their sales and almost completely dwarf the other commercial sectors of caterers and drinking places. It is likewise noteworthy that the commercial components take four times the sales volume of the non-commercial components.
Types of Food and Beverage Customers
Now that we've classified the sector based on business type and looked at relative performance, permit's await at F&B from another perspective: client type. The first way to classify customers is to divide them into two key markets: residents and visitors.
The commencement of these, the resident grouping, can exist further divided based on their purpose for visiting an F&B operator. For one grouping, nutrient or drink is the primary purpose for the visit. For example, remember of a group of friends getting together at a local restaurant to experience their signature sandwich. For another group, food and potable is the secondary purpose, added spontaneously or equally an ancillary activeness. For example, call back of time-crunched parents whisking their kids through a drive-through on their way from one after-school action to the next. Hither the food and drink providers offer an expedient way to access a meal.
Foodservice providers also service the visitor marketplace, which presents unique challenges as guests will bring with them the tastes and eating habits of their home state or region. Virtually establishments generally follow one of two directions. One is to cater completely to visitors from the day the doors open up, with an operational and market focus on tourists. The other is to cater primarily to residents.
Sometimes a local foodservice provider tin continue to cater to the resident market over time. In other cases, often because of financial pressures, the business shifts its focus away from the residents to better cater to visitors' tastes. These changes, when they practice occur, generally happen over time and can pb to questions of authenticity of the local offerings (Smart, 2003; Heroux, 2002; Mak, Lumbers, Eves, & Chang, 2012).
Have a Closer Wait: The Scientific discipline of Addictive Nutrient
For some time, 1 secret recipe for success in the nutrient sector, particularly the fast-nutrient portion of the sector, was uncomplicated: salt, carbohydrate, and fatty — and lots of it. There is a science behind these additives and why consumers keep coming back to satisfy their cravings. To view a CBC special on the science of addictive food, visitThe scientific discipline of Addictive Food: www.youtube.com/spotter?v=4cpdb78pWl4
It is clear that the food and potable sector must remain responsive to consumers' needs and desires. This is made evident by the emergence of health-concious eating in N America over the concluding ii decades. The influence of books such as Fast Nutrient Nation (Schlosser, 2012) and documentaries such as Super Size Me have created mainstream awareness about what goes into our food and our bodies. As many developed nations, including Canada, struggle with health-care concerns including hypertension, diabetes, and obesity, food operators are taking note and developing new wellness-witting menus. Programs like BC'south Informed Dining initiative are helping consumers understand their options (run across the Spotlight On below).
Spotlight On: Informed Dining
The Informed Dining program was created by Healthy Families BC to assistance consumers gain a better understanding of the ingredients in their nutrient and their role in daily healthy eating habits and guidelines. For more information, visit the Informed Dining webpage: world wide web.healthyfamiliesbc.ca/home/informed-dining
This sensation, coupled with an increasing involvement and desire for more authentic foods produced without using herbicides and pesticides, free of genetically modified ingredients, and even costless of carbohydrates or gluten, has placed pressure on the sector to respond, and many have (Frash, DiPietro, & Smith, 2014). Consumers are more aware of the plight of farmers and producers from faraway places and the support for fair trade practices. At the same time, there is a heightened desire for more locally grown products, and a general awareness of nutrition and the quality of products that are harvested in flavour and closer to dwelling house.
Take a Closer Wait: Cittaslow Designation for Cowichan Bay
The customs of Cowichan Bay on Vancouver Isle was awarded the Cittaslow Designation, which helps admit its focus on sustainable practices and local food harvesting all-time practice. For more information on the designation and community efforts, watch the video, Cittaslow Cowichan Bay: world wide web.youtube.com/watch?v=_JQ-Cnh-v5Q
Consumer consciousness regarding the source and distribution of food has created a movement that champions sustainable and locally grown foods. While this tendency does have its extremes, it is founded on the premise that eating food that has been produced nearby leads to better food quality, sustainable food production processes, and increased enjoyment. This has led to a number of restaurants that incorporate these concepts in their menu planning and marketing.
In improver to this trend toward "conscious consumerism" (LinkBC, 2014, p.4), F&B professionals must exist highly enlightened of the importance of special diets including gluten-gratuitous, low-carb, and other dietary restrictions (LinkBC, 2014).
All of these influences are continuously shaping the food and beverage sector. Before nosotros explore boosted trends and bug in the sector, let's review the core considerations for profitability in foodservice operations.
Profitability
While many factors influence the profitability of foodservice operations, key considerations include type of business, location, cost command and profit margin, sales and marketing strategies, and human resources direction. We've already examined the different types of functioning, and their relative profit margins. Let's look at the other profitability considerations in more than detail.
Location
The option of the right location for a restaurant is often cited as the virtually critical factor in an operation'southward success (or failure) in terms of profitability. Prior to opening, site assay is required to determine the amount of traffic (foot traffic and vehicle traffic), proximity to competing businesses, visibility to patrons, accessibility, and presence (or absence) of desired patrons (Ontario Restaurant News, 1995).
Cost Control
According to Restaurants Canada, QSRs have the highest profit margin at 5.1%, while full-service restaurants accept a margin of 3.5%. There volition exist meaning variances from these percentages at individual locations fifty-fifty within the same brand (2014b).
A number of costs influence the profitability of an F&B operation. Some of the key operating expenses (every bit a percentage of revenue) are detailed in Figure 4.12, above, where food price and salaries & wages are the ii major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of assets. These percentages represent averages, and will vary greatly by sector and location.
Cost control and containment is essential for all F&B businesses. Demanding particular attention are the labour, food, and beverage costs, also known as the operator'due south primary costs. In add-on to these big ticket items, in that location is the toll of reusableoperating supplies such equally cutlery, glassware, china, and linen in full-service restaurants.
Given that nearly operations have both a service side (interacting directly with the consumer) and production side (preparing nutrient or drink to exist consumed), the primary costs incurred during these activities often make up one's mind the feasibility or success of the operation. This is peculiarly truthful as the primary production (e.yard., nutrient and drink) is perishable; ordering the correct amount requires skill and feel.
Have a Closer Look: Survey of Service Industries — Foodservices and Drinking Places
The Statistics Canada Survey of Service Industries series features an in-depth wait at the food and beverage sector. Information used in this chapter (and much more) can be found in this comprehensive overview. To explore the survey, visit the Survey of Service Industries: www23.statcan.gc.ca/imdb/p3Instr.pl?Function=assembleInstr&Item_Id=137106&LI=137106&TET=ane
Sales and Marketing
The two principal considerations for sales and marketing in this sector are market share and revenue maximization. Most F&B operations are constrained past finite time and space, so management must constantly seek ways to increment revenue from the existing operation, or increment the share of the available marketplace. Examples of revenue maximization include upselling existing consumers (due east.thousand., asking if they want fries with their repast; offer dessert), and using outdoor or patio infinite (even using rain covers and heaters to extend the outdoor season). Examples of increasing market place share in the fast-food sector include extending special offers to new, first-time customers through social media or targeted straight mail.
In today'due south cluttered market, being noticed is a constant goal for most companies. Converting that awareness into patronage is a challenge for most operators. Restaurant reviews have been a part of the nutrient and drink sector for a long time. With the increase of online reviews by customers at sites like Yelp, Urbanspoon, and TripAdvisor, and sharing of experiences via social media, food and drink operators are becoming increasingly enlightened of their spider web presence (Kwok & Yu, 2013). For this reason, all major food and beverage operators carefully monitor their online reputation and their social media presence.
Have a Closer Look: McDonald's Social Media Conversation
In 2014, McDonald'southward Restaurants took to the internet to respond questions about their food product and ingredients. After months of declining sales, their strategy was to create more emotional appointment with customers and to gain their trust (Passikoff, 2014). To read more than about the initiative, read the article in Forbes magazine, "McDonald's Hopes New Social Media Question-And-Respond Will Alter Food Image": www.forbes.com/sites/robertpassikoff/2014/10/14/mcdonalds-hopes-new-social-media-qa-volition-modify-food-prototype/
One of the keys to a stiff reputation, both in person, and online, is the direction of human resources.
Staffing and Human Resources
Appropriately staffing an F&B operation involves attracting the right people, hiring them, preparation them, and and then assigning them to the right tasks for their skills and abilities. Many businesses operate exterior the traditional workweek hours; indeed, some operate on a 24-hour schedule. Creating the right squad, employing them in accord with legal guidelines, and keeping upwardly with the demands of the businesses are challenges that can exist addressed by a well-thought-out and implemented human resource plan.
People who have long-lasting careers in the sector find the fluctuating conditions highly-seasoned; no two days are the aforementioned, and the fast-paced and energetic social environment can be motivating. Many positions provide meaningful rewards and bounty that tin lead to long-term careers.
One topic of word in food and beverage homo resources is that of gratuities (tipping). In Canada, restaurants are obligated to pay staff minimum wage, and gratuities are paid past the customer as an expression of their gratitude for service. This is not the model in countries similar Australia, where service staff are paid a higher professional wage and prices are raised to suit this.
Have a Closer Await: Tipping and Its Alternatives
In 2008, Michael Lynn and Glenn Withiam wrote a paper discussing the role of tipping and potential alternatives. While the paper focuses peculiarly on the United States (where wages are structured differently from Canada), it raises some good questions near consumer preference and touch on on businesses (Lynn & Withiam, 2008). For case, exercise tips actually improve service? These questions tin can use to food and beverage businesses just also other tourism operations within the service context. It as well offers some suggestions for further research. Read this paper at "Tipping and Its Alternatives": http://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?commodity=1029&context=articles
In British Columbia, tips are considered income for tax purposes simply are non considered wages as they are non paid by the employer to the employee. A restaurant possessor cannot apply tips to cover business expenses (e.g., crave an employee to use his or her tips to encompass the toll of broken glassware). Employers are besides non permitted to accuse staff for the cost of diners who practise non pay (known as a dine-and-dash). They can, however, crave front-of-house staff pool their gratuities, or pay individually, to ensure back-of-house staff receive a percent of the tips (British Columbia Ministry of Jobs, Tourism and Skills Training, n.d.). This is as well commonly known every bit a tip-out.
There accept been experiments with gratuity models in recent years. 1 instance is a restaurant on Vancouver Island, which tried an all-inclusive pricing model upon opening in 2014, but reverted three months afterwards to the traditional tipping model due to consumer need and resistance to higher prices (Duffy, 2014).
Trends and Issues
In addition to having to focus on the irresolute needs of guests and the specific challenges of their own businesses, nutrient and drinkable operators must deal with trends and bug that affect the entire manufacture. Allow's take a closer look at these.
Government Influence
Each level of government affects the sector in unlike ways. The federal government and its agencies have influence through income tax rates, costs of employee benefits (e.thousand., employer share of Canada Alimony Programme and Employment Insurance deductions), and support for specific agricultural producers such as Canadian dairy and poultry farmers, which tin lead to an increment in the cost of ingredients such as milk, cheese, butter, eggs, and chicken compared to Usa prices (Findlay, 2014; Chapman, 1994).
Provincial governments also impact the food and drink sector, in detail with respect to employment standards; minimum wage; sales taxes (except Alberta); liquor, vino, and beer wholesale pricing (Smith, 2015); and corporate income tax rates.
Municipal governments take an ever-increasing impact through property and business taxes, non-smoking bylaws, zoning and bylaw restrictions, user fees, and operating hours restrictions.
Spotlight On: Restaurants Canada
When Restaurants Canada was founded in 1944, it was known as the Canadian Restaurant Association, and subsequently the Canadian Restaurant and Foodservices Association. Today, the arrangement represents over thirty,000 operations including restaurants, bars, caterers, institutions, and suppliers. Information technology conducts and circulates industry inquiry and offers its members cost savings on supplies, insurance, and other business organization expenses. For more than information, visit the Restaurants Canada website: www.restaurantscanada.org
Over time, the consequence of these government impacts has resulted in independent and chain operators alike joining forces to create a national restaurant and foodservice association now named Restaurants Canada (run across Spotlight On above). At the provincial level, BC operators rely on theBritish Columbia Eating house & Foodservices Association (BCRFA).
Spotlight On: BC Restaurant & Foodservices Clan (BCRFA)
For more 40 years, the BCRFA has represented the interests of the province's foodservice operators in matters such as wages, benefits, liquor licences and other relevant matters. Today, it offers benefits to over iii,000 members on both the supply and the operator side. For more information, visit the BC Restaurant and Foodservices Association website: http://bcrfa.com
Health and Safety
Nutrient and beverage providers hold a distinct position inside our society; they invite the public to swallow their offerings, both on and off premise. In doing and so, all food and drink operators must adhere to standardized public safety regulations. Each province has regulations and legislation that apply in their jurisdiction. In BC, this is addressed by the FoodSafe and Serving It Right programs, and compliance with the Occupiers Liability Human action. These regulations and legislation are enacted in the interest of public wellness and safety.
Have a Closer Look: Health and Prophylactic Training
Nutrient and beverage professionals are strongly encouraged to have both FoodSafe and Serving It Right courses. These certifications are necessary to advance into specific and leadership roles in the manufacture. For instance, Serving Information technology Right is required by all licensees, managers, sales staff, and servers in licensed establishments. In addition, individuals may require Serving It Right for a special occasion licence. To sign up for an online programme or course about you, visit FoodSafe: www.foodsafe.ca and Serving It Right: www.servingitright.com
FoodSafe is the provincial nutrient safety training program designed for the foodservice industry (FoodSafe, 2009). Serving Information technology Right is a mandatory class that is completed through cocky-study, and is required for anyone serving alcohol in a commercial setting. Its goal is to ensure that licensees, managers, and servers know their legal responsibilities and understand techniques to prevent over-service and related bug (go2HR, 2014).
In broad terms, BC's Occupiers Liability Deed covers the responsibilities of the occupier of a property to ensure the safety of visitors. Additional local health bylaws set up standards of performance for health and rubber nether the direction of the medical officers of health. Public health inspectors regularly visit food and beverage operations to evaluate compliance. In some communities, these inspection results are posted online.
Collectively, the nutrient and drink industry in BC has an excellent reputation for ensuring the health and rubber of its patrons, the general public, and its employees.
Technology Trends
Technology continues to play an ever-increasing role in the sector. It is most noticeable in QSRs where many functions are automatic in both the front of houseand back of house. In the kitchen, temperature sensors and alarms determine when fries are ready and notify kitchen staff. Out front, remote printers or special screens ensure the kitchen is immediately notified when a server rings in a purchase. WiFi enables credit/debit card manus-held devices to exist brought straight to the table to process transactions, saving steps dorsum to the serving station.
Other trends include automated services such as that offered by Open Table, which provides restaurants with an online existent-time restaurant reservation organization so customers can make reservations without speaking to anyone at the restaurant (Open Table, 2015). And at present smartphone apps will tell customers what restaurants are nearby or where their favourite chain eating place is located.
Take a Closer Look: Automatic Cooking in Asia
In Singapore Changi Drome, a quick-service eatery is using automated woks. The cook adds the ingredients and can nourish to other duties until the item is ready for service. Cheque out a video of a cook using an automatic wok: www.youtube.com/picket?v=Gqiz17AsYhQ. And in China, watch a video of robots that are shaving noodles "by mitt.": singularityhub.com/2013/04/nineteen/chinese-restaurant-owner-says-robot-noodle-maker-doing-a-good-chore/
Changing Venues
The following trends relate to the changing nature of nutrient and drinkable venues, including the emerging importance of the third space, and the increased mainstream presence of non-permanent locations such as street vendors and pop-upwardly restaurants.
The Third Space
The third space is a concept that describes locations where customers besiege that are neither home (the first space) nor work or school (the 2d space). Many attribute the emergence of these spaces to the popularity of java shops such equally Starbucks. In the 3rd space, operators must create a comfortable venue for customers to "hang out" with comfy seating, grab and go F&B options, WiFi, and a relaxed ambiance. Providing these components has been shown every bit a fashion to increment traffic and customer loyalty (Mogelonski, 2014).
Taking It to the Street
Street food has e'er been a component of the foodservice industry in most big cities. These operations are often run past a unmarried possessor/operator or with minimal staff, and serve hot food that tin be eaten while standing. According to research firm IBISWorld, in 2011 the "street food business organisation — which includes mobile food trucks and non mechanized carts, is a $1 billion manufacture that has seen an 8.4 percent growth rate from 2007 to 2012″ (Entrepreneur, 2011) with 78% of owners having no more than 4 employees.
Recently, in N America, where climate and weather permit, there has been a noticeable increase in both the number and type of street food vendors. In the city of Vancouver alone at that place are over 100 permitted food cart businesses, searchable by an app and sortable list — and the city uses the terms street food vendor, food cart, and food truck interchangeably (City of Vancouver, 2014).
Popular-upwards restaurants have also emerged, facilitated in office past the prevalent utilise of social media for marketing and location identification. Popular-ups are temporary restaurants with a known expiry date, which also tend to have the following in common (Knox, 2011):
- A well-known or up-and-coming chef at the helm
- An interesting, but stationary, location (a warehouse, a park, the more than unusual the better)
- Staff who are adept at promotions and word-of-oral fissure
- Strong local foodie (nutrient and drinkable enthusiast) base in the area
- Involvement from local artists or musicians to add to the experience
As popular they are with consumers, the ways in which pop-ups deviate from restaurants has aggravated some critics, causing Bon Appétit mag to declare that "pop-ups are not supposed to be restaurants," and that "popular-up restaurants are over" (Duckor, 2013). Statements like these are further evidence that food and beverage services trends are dynamic and ever-irresolute.
Determination
The food and beverage sector is a vibrant and multifaceted function of our society. Michael Hurst, famous restaurateur and sometime chair of the United states of america National Eating house Association, championed the idea that all guests should be received with the statement "Glad you are here" (Tripp, 1992; Marshall 2001). That argument is the perfect apotheosis of what F&B is to the hospitality industry — a mix of service providers who welcome guests with open arms and take care of their most basic needs, every bit well every bit their emotional well-being.
Have a Closer Expect: Michael Hurst
Michael Hurst preached to students, industry participants, and university colleagues akin, maxim that "The most precious gift you tin can give your Guests is the souvenir of Friendship" (Tripp, 1992; Marshall 2001). To learn more than nigh this legendary character, visit In My Opinion: Michael E. Hurst [PDF]: http://digitalcommons.fiu.edu/cgi/viewcontent.cgi?article=1353&context=hospitalityreview
The social fabric of our state, its residents, and visitors will change over time, and so besides will F&B. What will not change in spite of how nosotros divide the segments — into tourists or locals — is that the sector is at its best when food and beverages are accompanied by a social element, extending from your dining companions to the front and dorsum of the business firm.
And so far, we have covered the transportation, accommodation, and food and beverage sectors. In the next two chapters, we'll explore the recreation and entertainment sector, starting with recreation in Affiliate 5.
- Assets: items of value endemic by the business organisation and used in the production and service of the dining feel
- Average check: full sales divided by number of guests served
- Back of house: food production areas non attainable to guests and non more often than not visible; too known as heart of house
- BC Eating house & Foodservices Association (BCRFA):representing the interests of more than 3,000 of the province's foodservice operators in matters including wages, benefits, liquor licences, and other relevant matters
- Beverage costs: beverages sold in liquor-licensed operations; this usually only includes alcohol, but in unlicensed operations, it includes coffee, tea milk, juices, and soft drinks
- Captured patrons: consumers with limited pick or choice of food or drink provider given their occupation or location
- Commercial foodservice: operations whose master business concern is food and beverage
- Cross-utilization: when a menu is created to make multiple uses of a small number of staple pantry ingredients, helping to keep food costs down
- Dine-and-dash: the term commonly used in the industry for when a patron eats merely does not pay for his or her meal
- Ethnic restaurant: a restaurant based on the cuisine of a detail region or country, often reflecting the heritage of the head chef or owner
- Family/casual eating house: restaurant blazon that is typically open for all three meal periods, offering affordable prices and able to serve various tastes and accommodate large groups
- Fine dining eating place: licensed food and drink establishment characterized by high-cease ingredients and preparations and highly trained service staff
- Food and beverage (F&B): type of performance primarily engaged in preparing meals, snacks, and beverages, to customer society, for immediate consumption on and off the premises
- Food toll: cost including freight charges of all food served to the guest for a toll (does non include food and beverages given away, which are quality or promotion costs)
- Food primary: a licence required to operate a restaurant whose primary business concern is serving food (rather than alcohol)
- Foodie: a term (frequently used by the person themselves) to describe a food and beverage enthusiast
- Front of house: public areas of the establishment; in quick-service restaurants, it includes the ordering and product serving area
- Full-service restaurants: casual and fine dining restaurants where guests order food seated and pay afterwards they have finished their repast
- Liquor primary licence: the type of licence needed in BC to operate a business organization that is in the primary business of selling alcohol (most pubs, nightclubs, and cabarets autumn into this category)
- Non-commercial foodservice: establishments where nutrient is served, merely where the master business is not food and beverage service
- Operating supplies: more often than not includes reusable items including cutlery, glassware, mainland china, and linen in full-service restaurants
- Pop-up restaurants: temporary restaurants with a known expiry appointment hosted in an unusual location, which tend to exist helmed by a well-known or up-and-coming chef and use give-and-take-of-mouth in their promotions
- Main costs: nutrient, beverage, and labour costs for an F&B operation
- Profit: the corporeality left when expenses (including corporate income tax) are subtracted from sales revenue
- Quick-service restaurant (QSR): an establishment where guests pay before they eat; includes counter service, take-out, and delivery
- Restaurants Canada: representing over xxx,000 nutrient and potable operations including restaurants, bars, caterers, institutions, and suppliers
- Revenue: sales dollars collected from guests
- 3rd space: a term used to describe F&B outlets enjoyed every bit "hang out" spaces for customers where guests and service staff co-create the experience
- Tip-out: the practice of having front-of-business firm staff puddle their gratuities, or pay individually, to ensure back-of-house staff receive a percentage of the tips
- Upscale casual restaurant: emerging in the 1970s, a style of restaurant that typically only serves dinner, intended to bridge the gap between fine dining and family/coincidental restaurants
- Looking at Table 4.1, what was the average book of sales per F&B institution in BC in 2013? What was it for Alberta? What about the national average? What might account for these differences? List at least three contributing factors.
- Looking at the same table, how many F&B "units" were there in BC in 2013?
- What are the two principal classifications for nutrient and beverage operations and which is significantly larger in terms of marketplace share?
- Should gratuities be abolished in favour of spread-out pricing? Consider the point of view of the server, the owner, and the guest in your analysis.
- Call back of the concept of the tertiary infinite, and name two of these types of operations in your community.
- Have you worked in a eating house or foodservice performance? What are the three of import lessons you learned near work while there? If you have not, interview a classmate who has experience in the field and find out what 3 lessons he or she would propose.
- What is your favourite restaurant? What does it practice and then well to have become your favourite? What would yous recommend it practice to meliorate your dining feel even more?
- What was your all-fourth dimension all-time restaurant dining experience? Compare and contrast this with one of your worst dining experiences. For each of these, include a clarification of:
- The food
- The behaviour of restaurant staff
- Ambiance (music, decor, temperature, comfort of chairs, lighting)
- The reason for your visit
- Your mood upon entering the establishment
The following story made the rounds via social media in late 2014. While the claim has non been verified, information technology certainly rings truthful for a number of F&B professionals who accept experienced this phenomenon. The story is as follows:
A busy New York City restaurant kept getting bad reviews for slow service, so they hired a firm to investigate. When they compared footage from 2004 to footage from 2014, they made some pretty startling discoveries. So shocking, in fact, that they ranted about it in an bearding post on Craigslist:
Nosotros are a popular restaurant for both locals and tourists alike. Having been in business for many years, we noticed that although the number of customers we serve on a daily basis is almost the same as 10 years ago, the service seems very slow. One of the well-nigh mutual complaints on review sites against the states and many restaurants in the expanse is that the service was slow and/or they needed to wait too long for a table. We've added more staff and cut back on the bill of fare items but we only haven't been able to effigy it out.
Nosotros hired a business firm to help us solve this mystery, and naturally the first thing they blamed it on was the employees needing more than training and the kitchen staff not being up to the task of serving that many customers.
Like near restaurants in NYC we accept a surveillance organisation, and unlike today where it's digital, 10 years agone we even so used special high capacity tapes to record all activity. At whatsoever given time we had 4 special Sony systems recording multiple cameras. We would store the footage for 90 days merely in instance we needed it for something.
The investigators suggested we locate some of the older tapes and analyze how the staff behaved x years agone versus how they bear now. Nosotros went downwardly to our storage room only we couldn't observe whatever tapes at all.
We did detect the recording devices, and luckily for u.s.a., each device has one tape in it that we simply never removed when nosotros upgraded to the new digital system!
The date stamp on the old footage was Thursday July ane, 2004. The restaurant was very busy that 24-hour interval. We loaded upwardly the footage on a large monitor, and next to it on a dissever monitor loaded upwardly the footage of Thursday July three 2014, with roughly the aforementioned corporeality of customers equally 10 years before.
Nosotros carefully looked at over 45 transactions in order to decide what has been happening:
Here's a typical transaction from 2004:
Customers walk in. They are seated and are given menus. Out of 45 customers 3 asking to be seated elsewhere.
Customers spend 8 minutes on average earlier closing the carte du jour to prove they are ready to order.
Waiters shows up well-nigh instantly and takes the order.
Appetizers are fired within half-dozen minutes; apparently the more complex items take longer.
Out of 45 customers ii sent their items back.
Waiters go along an center on their tables then they can respond quickly if the customer needs something.
After guests are done, the check is delivered, and within 5 minutes they exit.
Average time from start to stop: 1 hour, 5 minutes.
Hither's what happened in 2014:
Customers walk in. Customers get seated and are given menus, and out of 45 customers 18 asking to be seated elsewhere.
Before even opening the carte du jour nigh customers have their phones out, some are taking photos while others are texting or browsing.
Seven of the 45 customers had waiters come up over correct away, they showed them something on their telephone and spent an average of five minutes of the waiter'due south time. Given this is contempo footage, nosotros asked the waiters about this and they explained those customers had a problem connecting to the WIFI and demanded the waiters try to assist them.
After a few minutes of letting the customers review the menu, waiters return to their tables. The majority of customers have non even opened their menus and ask the waiter to wait a bit.
When customers exercise open their menus, many place their phones on top and go on using their activities.
Waiters return to come across if they are set up to order or have any questions. Most customers ask for more time.
Finally a table is prepare to order. Total average time from when a customer is seated until they place their social club is 21 minutes.
Nutrient starts getting delivered within 6 minutes; plain the more complex items have style longer.
26 out of 45 customers spend an average of iii minutes taking photos of the food.
14 out of 45 customers have pictures of each other with the food in front of them or as they are eating the food. This takes on average another 4 minutes every bit they must review and sometimes retake the photo.
ix out of 45 customers sent their nutrient dorsum to reheat. Plain if they didn't intermission to do whatever on their phone the food wouldn't have gotten cold.
27 out of 45 customers asked their waiter to take a group photo. xiv of those requested the waiter retake the photo every bit they were not pleased with the starting time photo. On boilerplate this entire process between the chit chatting and reviewing the photo taken added another five minutes and plain caused the waiter not to be able to take care of other tables he/she was serving.
Given in well-nigh cases the customers are constantly decorated on their phones it took an average of 20 more minutes from when they were done eating until they requested a check.
Furthermore once the check was delivered it took 15 minutes longer than 10 years ago for them to pay and leave.
8 out of 45 customers bumped into other customers or in one case a waiter (texting while walking) equally they were either walking in or out of the restaurant.
Boilerplate time from beginning to finish: ane:55
We are grateful for everyone who comes into our eatery, later all there are so many choices out at that place. But can you please be a fleck more considerate?
Now it'south your plough. Imagine you are the restaurant operator in question, and answer the questions below.
- What could yous, equally the owner, endeavor to do to improve the turnover time? Come upwards with at least three ideas.
- Now put yourself in the position of a server. Do your ideas still work from this perspective?
- Lastly, look at your typical customer. How volition he or she respond to your proposals?
References
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Duffy, A. (2014, Baronial 22). Vancouver Island restauranteur regretfully ends his no-tip policy. Vancouver Dominicus. Retrieved from world wide web.vancouversun.com/news/metro/Vancouver+Island+restaurateur+regretfully+ends+policy/10140961/story.html
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Attributions
Figure four.1 Foodservice Share of Full FoodDollars by LinkBC is used nether a CC-Past-NC 2.0 license.
Figure iv.ii Turn a profit Margins for Restaurants by Province by LinkBC is used under a CC-Past-NC 2.0 license.
Effigy 4.3 The Keg at the Station by Jon the Happy Web Creative is used nether a CC Past 2.0 license.
Figure iv.4 North Arm Farm Strawberry + Rhubarb Pavlova by Ruth Hartnup is used under a CC-BY 2.0 license.
Figure 4.5 The erstwhile spaghetti factory by Isabelle Puaut is used nether a CC Past-NC-ND two.0 license.
Figure iv.6Vij's by january zeschky is used under a CC-Past-NC two.0 license.
Effigy 4.7 Dîner en Blanc Vancouver 2012 by Maurice Li Photography is used under a CC By-NC-ND 2.0 license.
Figure 4.8 Six Mile by Alan Levine is used under a CC BY-SA ii.0 license.
Effigy 4.9 Market Share by Eating place Segment by LinkBC is used nether a CC-BY-NC ii.0 license.
Figure 4.x Life goal #5 complete by Brett Ohland is used under a CC By-NC-SA ii.0 license.
Effigy iv.eleven New funding for farmers' market programme by Province of British Columbia is used under a CC BY-NC-ND 2.0 license.
Figure iv.12 Operating Ratios for Canadian Foodservice Businesses by LinkBC is used under a CC-BY-NC 2.0 license.
Figure 4.13 Cactus Club Cafe by Mack Male used nether CC Past-SA two.0 license.
Figure 4.14 must launder easily by Ambernectar13 is used nether CC BY-ND 2.0 license.
Effigy iv.15 Vancouver nutrient carts on a sunny day past Christopher Porter is used under a CC BY-NC-ND 2.0 license.
Long Descriptions
Country | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Pct of food coin spent on foodservices past Americans | 46.four% | 46.7% | 47.5% | 47.9% | 46.7% | 47.5% | 47.9% | 48% | 48% | 49% | 49% | 48% | 47% | 47.6% | 47% |
Percent of food money spent on foodservices by Canadians | forty.ii% | 40.0% | 39.ii% | 39.iii% | 39.1% | 39.2% | 38.8% | 38.4% | 37.0% | 36.7% | 36.vii% | 37.three% | 37.7% | 38.2% | 38.v% |
[Render to Figure 4.1]
Province | Pre-Tax profit margin |
---|---|
Manitoba | 7.9% |
Alberta | 7.one% |
Saskatchewan | 7.0% |
Newfoundland and Labrador | 6.7% |
Prince Edward Isle | 5.7% |
New Brunswick | five.2% |
Nova Scotia | 5.2% |
Canada | 4.2% |
Quebec | 3.ix% |
British Columbia | iii.4% |
Ontario | 2.viii% |
[Return to Effigy 4.ii]
Quick Service Restaurants | Family unit/Midscale | Coincidental Dining | Fine Dining | Retail | |
---|---|---|---|---|---|
Share of Traffic | 64.5% | 13.2% | 10.ane% | 0.7% | 11.five% |
Share of Dollars | 45.8% | 20.half dozen% | 22.v% | iv.two% | half dozen.ix% |
[Return to Effigy 4.nine]
Expense | Percentage of operating acquirement |
---|---|
Price of Sales | 35.6% |
Salaries and wages | 33.7% |
Other | 7.9% |
Rental and Leasing | 7.half-dozen% |
Pre-Revenue enhancement turn a profit | 4.2% |
Depreciation | 3.0% |
Advertising | 2.eight% |
Utilities | two.seven% |
Repair and Maintenance | two.5% |
[Return to Figure iv.12]
Source: https://opentextbc.ca/introtourism/chapter/chapter-4-food-and-beverage-services/
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