7.01 Discuss food & beverage services.

1. 7.01 Discuss food & beverage services.

2. 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

3. Segments of food & beverage service industry – Counter Service • Similar to quick-service restaurants or food courts

4. 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

5. 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

6. 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

7. 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 World’s Columbian Exposition in Chicago, Illinois d. Influenced the creation of machines for use in theaters

8. 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

9. 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

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

11. 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

12. Contracting food & beverage services - Disdvantages • Venue gives up managerial control with staffing, inventory and merchandising • Less profit due to contractor fees

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

14. Self-operating food & beverages services - Advantages • Owners control decision-making process • Profits increased by cutting out middle-man

15. 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

16. 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

17. 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

18. 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