Catering/Food Service Industry To easily understand the food and beverage (F&B) services industry, we will

classify it based on (1) the priority given to the provision of food and beverage, (2)
The catering or food service industry includes businesses, institutions, and companies that the motives, (3) the type of market served, and (4) the ownership.
provide activities and services that involve preparing, presenting, role is to provide food
and drinks to all those who eat outside their home for various reasons and are mostly 1 | Based on the priority given to the provision of food and beverage
dependent on the food service outlets for their meal.

Numerous types of food service outlets vary in style, size, location, and service. The
industry caters based on people's demand of the following:

 Food includes a wide range of cuisines (i.e., Japanese cuisines, Italian cuisines, and
the like) where the styles of cooking practices and traditions are associated with a
specific region, country, province, or culture. It can also be a specific specialty, such
as vegetarian or vegan.

 Beverage includes all kinds of drinks that can be alcoholic or nonalcoholic. Alcoholic
beverages may consist of beers, wines, spirits, cocktails, and the like; whereas
nonalcoholic beverages may include refreshing, stimulating, and nourishing drinks.

There are two types of food and beverage services: the on-premise and the off-premise

a. On-premise is when food and beverages are prepared, presented, and served inside
the establishment premises where the customers visit the premises to avail of their Figure 1.1. Classification of F&B Industry Based on the Priority
services. Given to the Provision of Food and Beverage

b. Off-premise is when the food and beverage service partially cook, prepares, and The food and beverage industry sector can be classified into two groups according to
serves in the customer's chosen premises. This is usually availed to cater to a large the priority given to the provision of food and beverages, including the (a) primary
number of people for special occasions. catering industry and (b) secondary catering industry.
The Food Service Industry Sector
a. Primary Catering Industry. The establishment's main concern under this
The broader spectrum of the population eating out from their home has increased category is to cater food and drinks to its clients, such as restaurants, takeaways,
the demand for food and beverage consumption and production. Different food dine-ins, F&B outlets of the accommodation sector, and the like.
and beverage services are introduced with diverse customer needs, and changes in
Residential-These are establishments that offer food and beverage service and
various types of food and beverage service operations are necessitated. The food
accommodations, such as hotels, motels, resorts, and so on.
and beverage industry continues to develop and diversify to meet the challenging
demands of customers. With this, it is essential to understand different food Nonresidential-These are establishments that only offer food and beverages,
service sectors and how they differ in their food service operations, style, size, such as restaurants, pubs, nightclubs, and so on.
location, and market they are catering to make them unique with one another.
b. Secondary Catering Industry. The provision of food and beverages is not the
primary concern of the establishments in this category. Still, it is embedded in
the establishment as support or secondary activity, such as hospital catering,
institutional catering, transport catering, and the like.
2 | Based on the motives
The food and beverage industry sector also varies according to its motives,
whether for profit or service.

a. Profit Motives/Commercial. The food service establishment's main objective is

to gain profit by selling food and beverage as its primary or secondary activity.

b. Service Motives / Noncommercial. Under this sector, the food and beverage
establishments aim not to earn a profit, but instead to provide welfare services at
reasonable prices, such as hospitals and industrial cafeterias.

3 | Based on the type of market served

The sector in the food and beverage industry can also be distinguished according to the
type of market served, whether it is the general or the restricted market.

a. General Market/Non-captive Customers. In this category, the customers have

a full choice of what to eat and where to eat. There are various general market
segments; it can be the upper class, upper-middle class, middle class, lower-
middle class, or lower class. These segments are primarily classified based on
their per capita income level and spending power.

b. Restricted Market / Captive and Semi-captive Customers. Under this

category, the food establishment usually offers limited food offerings or foods
specifically designed to a particular clientele's needs. Clientele has two kinds in
the restricted market: the captive clientele and the semi-captive clientele. Figure 1.2. Classification of F&B Industry Based on Motives and Market Served

senior citizens in nursing homes or patients in hospitals). Foods are typically designed Hotels. The hotel's primary purpose is to provide accommodations that may include
for the needs of a particular client or patient. food and beverage services. A hotel offers various services through outlets, such as
The semi-captive clientele has a choice but is only limited to the establishment's options coffee shops, banquets, specialty restaurants, room service, lounges, and bars.
(i.e;, transport passengers).

Restaurants. A restaurant consists of different organizations that prepare, present,

and serve food and drinks to various clientele on-premises, though some include
takeout and delivery services. Restaurants have different standards, and they are
varied in prices, market, ambiance, service styles, ranging from self-service cafeterias
to fine dining service outlets, and so on. They can be classified into three groups:
quick service, mid-scale service, and upscale service.
a. Quick Service Transport Catering. Transport catering deals with catering in all transport modes, such as rail, air, sea,
This is commonly known as fast-food restaurant. A limited menu is and road. It provides food and beverage to passengers before, during, and after a journey on buses,
offered and meals are quickly prepared and served. A high customer private cars, trains, aircraft, ships, or ferries. Transport catering can be broadly classified into the
following types:
volume is necessary to make this type of business sustainable since it
requires high labor costs and high equipment investment. Some a. Railway Catering. The two types of railway catering services are terminal catering and in-
establishments also provide windows for drive-through and takeout. This transit catering. Terminal catering allows passengers to get
is a self-service restaurant with affordable prices.
off the train to eat food in various terminals where food service outlets are available. Catering at
b. Mid-scale Service
railway stations or terminals is done through licensed cafes, food stalls, fast-food and takeaway
Under this category, restaurants offer a full meal at a midrange price, vendors, canteens, and the like. In-transit catering is the provision of food and beverages to passengers
which the customers perceive as good value. Mid-scale restaurants can while they are traveling. This is most common to trains that do not often stop because the journey is too
provide full service, buffet, and pay-to-order counters that can be self- short.
service or limited service having the customers' food brought to their
tables. In the Philippines, railway terminals are usually located in nearby buildings or malls where
licensed cafes, food stalls, fast food and takeaway vendors, canteens, and the like are
c. Upscale Service available. Vending machines are also available in some railway stations.
Upscale restaurants offer excellent quality cuisine at a high-end price.
In-transit catering is not yet present in the Philippines since stations would only take a five-to
The establishment under this category provides full service in an elegant
10-minute stop. However, in other countries, in-transit catering is offered in two kinds. The
ambiance. In the Philippines, most upscale service restaurants can be
first is where the dining car service provides breakfast, lunch, and dinner and is organized in
found in five-star hotels and metropolitan districts.
seatings. On the other hand, some passengers go to the dining car for service where
appropriate seating accommodation is provided and return to their seats on the train after the
Leisure-linked Catering. Food and drink services are offered to people engaged
meal.
in leisure, sports, and recreation through licensed cafes, food stalls, fast-food
restaurants, food courts, and the like.

Off-premise Catering. This service is also known as off-site catering. This kind
of service provides food and drinks from small to large groups of people for
social or corporate functions and activities at any location, which is off the
principal workplace.

Clubs. Clubs are those establishments that offer food and beverage services and
sometimes accommodation to their licensed members. These may include a
political party club, societal clubs or Rotary Clubs, sports clubs, association clubs, b. Airline Catering. Similar to rail transport catering, air transport catering also offers
terminal catering and in-flight catering. Licensed cafes, fast-food outlets, self-service
health clubs, and the like. These clubs are classified as proprietary or registered
restaurants, and waiter service restaurants supplemented by vending machines and bars are
clubs. among terminal catering examples. In-flight catering service varies on the class of travel
(first class, business class, or economy class). The economy class passengers are offered pre-
portioned snacks or meals with disposable cutlery and crockery assembled over a plastic tray,
reducing the flight's weight.

In contrast, the business class or executive class passengers are offered food on bone China
crockery and fine glassware. Typically, food and
beverages are included in the airfare. Each aircraft has its catering officer whoIt is sporadic to see cruise ships dock in the Philippines;
informs the kitchen on the number of passengers in the economy class, business usually, the ferry is used as sea transportation for
class, and first class and the number of vegetarians and nonvegetarians. domestic passengers. Some ferries offer tickets where
food and beverages are already included, while others
Nowadays, low-cost flights have become popular. Various airlines remove the provide options not to include foods and drinks on their
inclusion of food and beverages in the airfare and give customers the freedom to ticket price. Convenience stores and cafeterias are also
choose to avail food and drinks while in flight. present in most of the ferries in the Philippines.

d. Surface Catering. Surface catering caters to

passengers traveling by surface transport, such as buses,
cars, and private vehicles, through licensed cafes, food
stalls, fast-food restaurants, takeaway, canteens, and the
like. It is usually located in terminals, stopovers on
highways within the route, and gasoline stations.

Institutional Catering. Food and drinks are provided to people with a specific social
requirement. It includes hospitals, day care centers, universities, armed forces, prisons, and
correctional facilities.

Industrial Catering. Food and drinks are served to people working in industries and factories
that are subsidized by the company.
c. Ship Catering. Commonly, ferries are used on shorter sea routes to have snacks
and soft beverages, whereas ships plying on longer routes will have full-fledged
kitchens offering full meals to the travelers. The ship catering caters to cargo crew
and passengers. Ships have restaurants and kitchens on board. The facilities and 4 | Based on the ownership
services vary depending on the ship's class and the price that the passenger is
willing to pay.
The food and beverage industry sector also varies according to the type of ownership. It can
be self-operated, through a franchise agreement, management contracting, or through
outsourcing.

a. Self-operated. The owner of the company manages the operations. It can be large, small,
or franchised.

b. Franchise Agreement. In this situation, the franchisee purchases the right to use the
brand name, design, and methods as agreed to other franchising agreement conditions
c. Management Contracting. This is when the owner or the company management The Eight Stages of the Food Service Cycle
employs or contracts another food and beverage service organization or company to
manage the whole or part of the operation. It can be either in a noncommercial 1. Understanding the potential market and consumers' demand from various sectors in
institution such as a university cafeteria or in a commercial institution like a hotel. the food service industry.

d. Outsourcing. The emerging trends are where the hotel forms a partnership with the 2. Company policies should be designed according to the business' objectives that
restaurant, coffee chain, or bar brand to operate in the hotel's designated area. would guide operational methods.

3. The demand should be understood and analyzed to develop the decisions on the type
The Food Service Operations
of operations, such as food and beverages to offer, pricing, service level, and other
The hospitality industry's food and beverage service operations involve providing associated factors.
food and drinks for customers' consumption; thus, the operations exclude retailing
4. This is generally followed by planning and designing facilities such as identifying
and manufacturing. The food and beverage service (or food service) operations are
necessary equipment, placement, and size to fit into the operations' critical needs to
concerned with eight stages of the food service cycle, which are arranged sequentially
cater to the customers' demands.
that can be used as a basis to analyze the food service operations. The food service
cycle acts as a checklist when conceiving an idea, implementing a concept, and 5. Proper provisioning for food, beverages, and other purchases should be done to meet
delivering an idea. The eight stages of the food service cycle include the following: the service methods, food production, and beverage requirements to execute the plans
successfully.

6. The aspect of food and beverage operations and management requirements should be
well taken care of. It is necessary to know various food and beverage processes and
production, methods, and staffing critical in decision-making.

7. Controlling the cost is one of the most essential aspects in reaching the
establishment's profitability which is revenue associated with food production, beverage
provision, and other services.

8. Continuous assessment of customer satisfaction is an integral part of the cycle as this

acts as the determining factor toward the sustainability of the establishment

the food service cycle is designed to guide the planning of food and beverage
operations, but it also serves as a tool to reassess the existing ones. The eight stages in
the food cycle are interdependent, although they are presented in sequence-a challenge
to one stage may be the cause of burden to other stages. Problems at one stage, like
purchasing, may affect cost and revenue control (spoilage due to over-purchasing) or
food production (unable to offer some menu items due to lack of availability of
ingredients in the stockroom).

The example clearly shows that identifying and understanding the various
interrelationships between the eight stages of the food service cycle are essential. The
eight stages of the food service cycle will ensure that the management decision will
consider the operations by looking at the effect of a particular choice throughout all the
food service cycle stages.
 Types of Food Service Operations Poolside Barbecue

The customers can avail themselves of a wide range of food and beverage services.
It includes self-service cafeterias, fine dining service outlets, and the like. The
extent of service operations depends upon the type of food service outlet. There are
numerous types of food and beverage service outlets that are existing in the market,
and some have similar types of food service operations found in different food
service sectors.

Example: Coffee shops may be found in hotels, airline terminals, or motorway

service stations.

Here are the different types of food service outlets and their operations.
Menu
The menu selection offers various wines and beers, including roasted meats, seafood, and fresh
vegetables.

Ambiance
It is situated in or near the swimming pools. The ambiance is very enthusiastic with upbeat music.

Service
It provides self-service where customers pick up food and drinks. There are also some that provide
assisted service where food and drinks are served at the customers' tables.

PUB

Menu
Airport lounge offers a wide range of menu from breakfast, lunch, to dinner.
Numerous meals, hot and cold drinks, salads, and desserts are also available.

Ambiance
Soft instrumental music, soft lights, and formal ambiance are appealing for having
meals at leisure and resting gracefully at the airport.
Menu
Menu selection comprises alcoholic drinks and light snacks.
Service
It is 24/7 open that provides self-service or assisted service where the traveler Ambiance
himself/herself takes food and beverages. The ambiance is designed for socialization and chatting in a low-light setting.

Service
It provides a self-service or an assisted service. Drinks are served in a speedy push-low seating.
 Specialty/Ethnic Restaurant Themed Restaurant

Menu
The outlet offers a particular specialty dish, such as Japanese, Italian, Mexican,
Chinese, and the like. Menu
Limited menu options are designed according to the restaurant’s theme.
Ambiance
The interiors, furniture, decorations, and ambiance, including music, are designed Ambiance
according to where the food originates. The ambiance, such as light and music, and the architectural design follow the
restaurant’s theme. Most of the themed restaurant shave an informal atmosphere.
Service
Staff uniforms, as well as the service, correspond to the place where the food
Service
originates.
It provides an assisted service.
Takeaway Counter
Vending Machine

Menu
It has a limited or elaborate menu of food and beverages,
Menu
Packed pre-portioned foods and canned beverages are some vending machine options.
Ambiance
The front-end counter for selling is attached to the pantry.
Ambiance
It has limited space, usually located in crowded places such as terminals.
Service
It offers a pickup service where the customer places order, waits until it is
Service
completed, and picks up the food and beverages to consume them off-premise.
It is ultimately a full self-service.