7.01 Discuss food & beverage services.

Segments of food & beverage service industry - ConcessionsMobile carts or units that sell food and beveragesVendors that sell food and beverages to attendees in seating areas- Also called hawkers because they “watch fans like a hawk” for opportunities to make sale

Segments of food & beverage service industry – Counter Service

Similar to quick-service restaurants or food courts

Segments of food & beverage service industry – Full-Service

Sit-down, public eating places with services provided by a wait- staffSuites 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

Includes combination of event and segment of the food & beverage industryExample: Cinema Grill in Atlanta, Georgia combines dinner and a movie

History of food & beverage services

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

a. Considered the “father of ballpark concessions”

b. Sold first program at a baseball game in Columbus, Ohio in 1887

c. Began by selling scorecards to crowds at racetracks, ballparks and arenas

d. Initialized the selling of hotdogs, soft drinks at sporting events

e. Became one of the seven largest concessionaires in the U.S

History of food & beverage services, cont.. 2. Cretors & Company

a. Founded in 1885b. Patented the process of popping corn

in oil in 1893c. 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 services, cont..

3. National Association of Concessionaires - NACa. Founded in 1944 as association for recreation and leisure-time food & beverage service industryb. Provides members and services who seek to increase standards of excellence in the food & beverage services industry with information

History of food & beverage services, cont..

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

i. Movie theatersii. Stadiums & arenasiii. Zoos & aquariumsiv. Colleges & universitiesv. Foodservice contractorsvi. Parks & recreation departmentsvii. Amusement parks & family entertainment centersviii. Ice skating rinksix. Roller skating rinksx. Racetracksxi. Bowling centersxii. Outdoor facilitiesxiii. Convention centers

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

Less time consumingResponsibility of training and staffing food & beverage employees is assumed by the contractorFinancial liability for waste, spoilage, or other losses is transferred to the contractorResponsibility of day-to-day operations is assumed by contractor

Contracting food & beverage services - Disdvantages

Venue gives up managerial control with staffing, inventory and merchandisingLess profit due to contractor fees

Self-operating food & beverage services

Involves owning or operating ones own food & beverage servicesAlso referred to as in-house operations

Self-operating food & beverages services - Advantages

Owners control decision-making processProfits increased by cutting out middle-man

Self-operating food & beverage services - Disadvantages

Owner assumes all financial liability for waste spoilage or other lossesOwner responsible for training and staffingOwner must have in-depth knowledge of complete operation

Costs of operating food & beverage services1. Start-up costs are associated

with initial venture of owning a businessFor example: equipment, signage, utilities

2. Cost of goods sold include all costs associated with manufacturing products or purchasing goods for resaleFor example: food, wrappers, condiments, paper products, and containers

Costs of operating food & beverage services, cont..

3. Operating expenses include costs associated with day-to-day operations of a businessFixed operating expenses do not vary over a specified period of time For example: insurance, rent or leasesVariable cost vary on a monthly basisFor example: supplies, utilities, advertising, and security

Factors affecting revenues from food & beverage services and sales

1. Attendance2. Type of event3. Weather4. Team standing (winning or losing

season)5. Expenses

For example: start-up cost, cost of goods sold, and operating expenses

6. Per capita spending Average money spent by each spectator