Food Service Ops Review Guide - franchised or licensed...

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Food Service Ops Review Guide Lecture #2 Important Take Aways of the industry o Size, variety, scope o Commercial, non commercial, not for profit o Trends, drivers Industry Overview o 2010 sales forecasted to reach over $580 billion o 945,000 restaurants in the US o On any given day, 130 million people visit these restaurants o Restaurants are America’s largest private sector employer o Industry creates jobs faster than the rest of the economy o Global industry value: $2trillion USD US Food Service v Hotel Revenue o Making sense of a very large industry o How can we look at the industry and understand similarities and differences? o Sales volume and profit making, type of ownership, level of service, price tiers, affiliation Sales v Revenues o US Chains system wide foodservice sales o US companies foodservice revenues What they mean… o System wide sales: includes domestic sales from both company owned or managed and
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Unformatted text preview: franchised or licensed outlets. System wide sales exclude royalties and franchising revenue fees o Sums generated through domestic sales in the US by the parent company or operating subsidiaries. Excluded are revenues from franchised restaurants, and revenues generated through product manufacturing. Figures do include franchise fees and royalties Commercial Restaurant Services o Limited service restaurants o Caterers o Cafeterias and buffets o Snack and non alcoholic beverage bars o Bars and taverns Independent Units o Historically, largest portion # of the industry o Most eating places are independent o Various types of ownership o No chain or brand affiliation o Typically owner on premise Strength: consistency, supervision, creativity, quality, customer relationsip Weakness: burnout, slow reaction to competition, limited capabilities & resources...
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