Nirav Patel Hoboken | Share of Food Service Market

1
Share of Food Service Market

• Nirav Patel Hoboken

2
The meaning of the word Restaurant

• The word restaurant covers a broad range of food
  service operations.
• The term comes from a French word meaning
  restorer of energy.
• In the mid-1700s - it was known as any public
  place that offered soup and bread.
• Today - it is any public place that specializes
  in the sale of prepared food for consumption on
  or off premise.

3
Food Away From Home May Be Purchased in a Variety
of Locations

• hotel facilities
• casinos
• taverns

• Employee cafeterias
• convenience stores
• traditional restaurants

This speaks to the size and scope of the food
service industry, and most of these segments are
experiencing positive growth!
4
On-Site Food Service
This is the other major food service sector and
is sometimes referred to as institutional food
service.

• This part of the industry is composed of
  contractors and caterers who serve food in the
  following places
• manufacturing plants
• office buildings
• healthcare facilities
• schools and colleges
• and many more...

5
Share of Food Service MarketPercentage of Total
Sales in Billions
This slide identifies the relative shares of the
market held by the following segments

• Eating places 67.4
• Bars and taverns 3.2
• Institutions operating own food service 8.7
• Managed services 6.5
• Food service in hotels and motels 5.2
• Other commercial 8.7
• Military 0.3

Varied Field of Food Service
6
Off-Premise Sales Vs. On-Premise Sales

• Off- Premise Sales
• Includes operations such as drive-through,
  takeout, and delivery.
• Biggest growth in food service industry for many
  years.
• Since the late 1980s it has the lions share of
  growth in total restaurant sales

• On-Premise Sales
• Includes sales that take place at the food
  service location.
• This type of sales actually declined in 1992, but
  has increased each year since.

Varied Field of Food Service
7
Fast Food Alters the meaning of Restaurant

• During the 1960s and 1970s, fast food altered
  dramatically the meaning of what a restaurant
  was.
• This trend toward off-premise consumption
  suggests a fundamental change in the business
  definition of restaurants and how they are
  evolving
• But there were other changes happening as well...

Varied Field of Food Service
8
Fast Food Alters the meaning of Restaurant

• Formal fine dining has been declining in relative
  importance, whereas casual dining has been
  growing very rapidly
• As mentioned in chapter one, this decline in fine
  dining and the rise in fast food preference may
  be due to the changing age composition of North
  America.
• The Baby Boomers were raised on fast food and
  prefer the informal and casual atmosphere that is
  comfortable for the whole family

Varied Field of Food Service
9
QSR?

• QSR stands for Quick-Service restaurants.
• These restaurants has seen sales continue to rise
  for the most part
• Sales rose by 4.4 percent in 2000 over 1999
• There are many QSRs throughout Florida

10
The Restaurant Business

• The restaurant Business is constantly changing
• There are so many types of restaurants that it is
  difficult to devise a mode to fit them all.
• Nevertheless, we need some basic terminology to
  describe the field, even in general terms. So
  here we go

11
Basic Restaurant Terminology

• Eating Market
• This includes the off-premise operations such as
  takeout and delivery.
• Much of it is now referred to as home meal
  replacement (HMR).
• Dining Market
• This includes the on-premise operations such as
  fine dining and casual upscale restaurants

12
More Basic Restaurant Terminology

• Quick Service Restaurants (QSR)
• This includes the midscale operations such as
  family restaurants.
• These are the contemporary, popular-priced
  restaurants and this comprises the largest
  segment of the restaurant industry today

Lets talk a little more about the Quick Service
Restaurants
13
Characteristics of Quick-Service Restaurants

• Many locations
• Limited menus
• High and variable sales
• Fast service with much self service
• Many part-time employees with varied schedules
• Unskilled labor

• Skilled management
• Unit managers in key roles
• Highly competitive prices
• Chains dominate field
• Simple units
• Complex systems

14
Midscale Restaurants

• Family restaurants
• Commercial cafeterias and buffets
• Home meal replacement (HMR)
• Pizza operations

15
Family-Style Restaurant Chains

• Dennys
• Waffle House
• International House of Pancakes (IHOP)
• Shoneys
• Cracker Barrel
• Boston Market

• Perkins Family Restaurant
• Cocos
• Big Boy
• Friendlys Restaurants
• Bob Evans Farms

16
Casual Restaurants

• Specialty establishments
• Ethnic restaurants
• Entertainment sometimes called eatertainment

17
Thank You