7.01 Discuss food

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7.01 Discuss food beverage services.
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Segments of food beverage service industry -
Concessions

• Mobile carts or units that sell food and
  beverages
• Vendors 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

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Segments of food beverage service industry
Counter Service

• Similar to quick-service restaurants or food
  courts

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Segments of food beverage service industry
Full-Service

• Sit-down, public eating places with services
  provided by a wait- staff
• Suites are rooms with a view of event with
  seating and food beverage services provided by
  full-service wait-staff

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Segments of food beverage service industry
Specialty Services

• Includes combination of event and segment of the
  food beverage industry
• Example Cinema Grill in Atlanta, Georgia
  combines dinner and a movie

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History of food beverage services

• 1. Harry M. Stevens-H.M. Stevens Concessions
  Company
• Considered the father of ballpark concessions
• Sold first program at a baseball game in
  Columbus, Ohio in 1887
• Began by selling scorecards to crowds at
  racetracks, ballparks and arenas
• Initialized the selling of hotdogs, soft drinks
  at sporting events
• Became one of the seven largest concessionaires
  in the U.S

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History of food beverage services, cont..

• 2. Cretors Company
• a. Founded in 1885
• b. Patented the process of popping corn in oil in
  1893
• c. Introduced first popcorn popping machine at
  Worlds Columbian Exposition in Chicago, Illinois
• d. Influenced the creation of machines for use in
  theaters

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History of food beverage services, cont..

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

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History of food beverage services, cont..

• c. Included are owners and operators from the
  following facilities
• i. Movie theaters
• ii. Stadiums arenas
• iii. Zoos aquariums
• iv. Colleges universities
• v. Foodservice contractors
• vi. Parks recreation departments
• vii. Amusement parks family entertainment
  centers
• viii. Ice skating rinks
• ix. Roller skating rinks
• x. Racetracks
• xi. Bowling centers
• xii. Outdoor facilities
• xiii. Convention centers

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Contracting food beverage services

• Contracting is an agreement between a venue and
  an external company that provides food
  beverages services

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Contracting food beverage services - Advantages

• Less time consuming
• Responsibility of training and staffing food
  beverage employees is assumed by the contractor
• Financial liability for waste, spoilage, or other
  losses is transferred to the contractor
• Responsibility of day-to-day operations is
  assumed by contractor

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Contracting food beverage services -
Disdvantages

• Venue gives up managerial control with staffing,
  inventory and merchandising
• Less profit due to contractor fees

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Self-operating food beverage services

• Involves owning or operating ones own food
  beverage services
• Also referred to as in-house operations

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Self-operating food beverages services -
Advantages

• Owners control decision-making process
• Profits increased by cutting out middle-man

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Self-operating food beverage services -
Disadvantages

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

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Costs of operating food beverage services

• 1. Start-up costs are associated with initial
  venture of owning a business
• For example equipment, signage, utilities
• 2. Cost of goods sold include all costs
  associated with manufacturing products or
  purchasing goods for resale
• For example food, wrappers, condiments, paper
  products, and containers

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Costs of operating food beverage services,
cont..

• 3. Operating expenses include costs associated
  with day-to-day operations of a business
• Fixed operating expenses do not vary over a
  specified period of time
• For example insurance, rent or leases
• Variable cost vary on a monthly basis
• For example supplies, utilities, advertising,
  and security

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Factors affecting revenues from food beverage
services and sales

• 1. Attendance
• 2. Type of event
• 3. Weather
• 4. 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