Chapter 1 The Food Service Industry Managing Food
- Slides: 7
Chapter 1 The Food Service Industry Managing Food and Beverage Operations Fourth Edition (241 TXT or 241 CIN) © 2005, Educational Institute
Competencies for The Food Service Industry 1. Distinguish between commercial and noncommercial food service operations. 2. Outline the origins and development of food service in hotels, restaurants, and institutions. 3. Describe various commercial and noncommercial food service facilities and discuss the use of for-profit contract management companies to run noncommercial operations. 4. Identify trends likely to affect food service in the coming years. © 2005, Educational Institute
Advantages and Disadvantages of Chain Restaurants Advantages: • Ready access to cash and credit • Ability to experiment without great risk • Resources to hire staff specialists • Greater access to useful comparative financial information Disadvantage: • Bureaucratic rules and procedures can slow response times to market changes © 2005, Educational Institute 2
Advantages and Disadvantages of Owning or Managing Franchise Restaurants Advantages: • Assistance in opening and operating the business • Franchisor-sponsored training and materials • Greater exposure and higher revenue because of extensive advertising and name recognition • Lower costs due to volume purchasing • Tested operating procedures © 2005, Educational Institute (continued) 3
Advantages and Disadvantages of Owning or Managing Franchise Restaurants (continued) Disadvantages: • Franchise contracts restrict style and methods of operation, products served, services offered, décor, and furnishings • Franchise contracts usually favor the franchisor © 2005, Educational Institute 4
Advantages and Disadvantages of Contract Management in Noncommercial Facilities Advantages: • Large management companies have more resources to solve problems • Ability to negotiate better deals with suppliers • Greater efficiency and therefore lower overall cost • Allows food service to be operated by experts, rather than institution administrators © 2005, Educational Institute (continued) 5
Advantages and Disadvantages of Contract Management in Noncommercial Facilities Disadvantages: • Management companies can affect the institution’s public image • Some people feel that profit-making operators do not belong in noncommercial settings • The institution may become dependent on the management company © 2005, Educational Institute 6
