Prepared by: Bachelor of Science in

LIZYL S. DALIDA-GARAY TOURISM MANAGEMENT

MICRO
PERSPECTIVE IN
TOURISM AND HOSPITALITY
CHAPTER III
The Food Service Sector

TOPICS
A. Introduction B. The Culinary Tourist

C. Food and Beverage D. The Relationship of

Timeline Market, Concept, and Menu

E. Contemporary Commercial
Foodservice Concepts

LEARNING OBJECTIVES
A. Analyze the historical evolution of the
Food Service Industry.
B. Differentiate various forms of Food Service.
C. Examine the role of Culinary Tourism in the
Hospitality Industry.
D. Evaluate the relationship between market, concept, and
menu in Food Service Operations.
C. The Food Service Sector
A. INTRODUCTION
Like the lodging industry, the food service industry is a very old business. Such service came out of the
early inns and monasteries. In cities, small restaurants began serving simple dishes such as soups and
breads. One such restaurant, le restaurant divin (the divine restorative), opened in Paris in 1765. (Like
tourist, restaurant is a French word.) The famous English taverns provided food, drink, and lodging.
In the United States, the early ordinaries, taverns, and inns typically provided food and lodging. Good
examples of these can be found in Colonial Williamsburg, Virginia. Politics and other concerns of the day
were often discussed in such taverns.
With the development of stagecoaches, taverns began providing food and lodging along the early roads
and in small communities. Some believe that these roadside taverns were really the beginnings of the
American hotel industry. As cities grew, so did eating establishments. Some names of historic restaurants
in the 1820s in New York City were Niblo’s Garden, the Sans Souci, and Delmonico’s.
French service was often used in these early restaurants. In French service, some kinds of entrees are
prepared by the dining room captain right at the guests’ table, sometimes using heat from a small burner,
then serving from larger dishes onto the guest’s plate. The kinds and amounts of each food item are
chosen individually. By contrast, in Russian service, the entire plate, with predetermined portions, is served
to each guest.
Menus can be of two types, à la carte and table d’hote. The à la carte menu consists of a complete list of
all the food items being offered on that day. The patron then chooses the individual items desired. In table
d’hote, a combination of items is chosen. Eating and drinking places are big business. Although much of
this activity is local, eating and drinking are favorite pastimes of travelers, and the food service industry
would face difficult times without the tourist market. See figure below for the structure of the food service
industry.
C. The Food Service Sector
A. INTRODUCTION
Social media will become more critical to restaurant marketing. A good plan and solid understanding of
these tools—including Facebook, Twitter, Yelp, and YouTube—can help operators mitigate the effects of
economic environment. ‘‘Word of mouth’’ has moved online, and more consumers use the Web to browse
menus, make reservations, and get recommendations from other diners. Restaurants’ use of e-mail,
Internet, and cell phone text messages in marketing efforts is also a growing trend.
Restaurant operators continue to step up their efforts to go green, investing in energy-efficient equipment
and fixtures, using recyclable materials and reducing their water use. Green initiatives not only help
manage costs, they can also drive traffic.
The food service industry consists of restaurants, travel food service, and vending and contract
institutional food service. Local restaurants are made up of establishments that include fast-food units,
coffee shops, specialty restaurants, family restaurants, cafeterias, and full-service restaurants with
carefully orchestrated ‘‘atmosphere.’’ Travel food service consists of food operations in hotels and motels,
roadside service to automobile travelers, and all food service on airplanes, trains, and ships. Institutional
food service in companies, hospitals, nursing homes, and so on is not considered part of the tourism
industry.
Over the past two decades, the food and beverage business has grown at a phenomenal rate. This has
been especially true for fast-food companies, with the franchising portion in the fast-food segment
becoming the dominant growth sector. This remarkable increase has been gained at the expense of other
food service operators and supermarkets. Franchisees control approximately three-fourths of the fast-
food outlets, whose hamburgers, chickens, steaks, and pizzas dominate the fast-food business.
Fast-food chains have enjoyed great success in part because they limit their menus, which gives them
greater purchasing power, less waste, more portion control, and, of importance to the consumer, lower
operating costs. They are leaders in labor productivity in the restaurant industry. Most fast-food
operations use disposable paper and plastic; the expense for these materials is more than offset by the
savings resulting from not providing regular service and from not employing the personnel required to
wash the dinner service. Fast-food operations also enjoy the advantages of specialization; they have
become specialists in menu items, job simplification, and operating systems. Franchising has been used
extensively in both the restaurant field and the lodging field as a means of achieving rapid growth. Using
the franchisee’s capital, the entrepreneur can get much more rapid penetration of the marketplace.
As noted earlier, franchise units account for approximately three-fourths of the growing fast-food portion
of the industry. Advantages of franchising accrue to both sides. The franchisee gets the start-up help,
advice from experienced management, buying power, advertising, and low unit costs from spreading fixed
costs over large numbers of units. The franchisor has the advantage of a lower capital investment, rapid
growth, and royalty income. The fast-food franchise operators have a great deal of concentration in their
segment of the industry. The seven largest account for almost half of the fast-food units and almost half
of the sales. Franchise firms are household words: McDonald’s, KFC (Kentucky Fried Chicken), A&W,
Wendy’s, Dairy Queen, Burger King, Pizza Hut, Arby’s, and Taco Bell.
Although the fast-food segment is the most rapidly growing segment, the high-quality segment of the
restaurant industry must not be overlooked. Much of this business is based on customers seeking a
special or different experience in dining out. Local entrepreneurs who emphasize special menus, varying
atmospheres, and high-quality food and service have most effectively satisfied this demand. New
concepts or trends include ethnic restaurants, especially those with an Asian or Mexican flavor; increased
demand for health foods, fish, local produce, and regional dishes; and variety in portion sizes.
C. The Food Service Sector
[Link] CULINARY TOURIST
Although food and beverages have always been a part of the tourism experience, culinary tourism is a
relatively new niche and has come into its own in the last decade. Today, one can find Web sites on
culinary tourism, the subject on regional, state, and national tourism conferences, and books on culinary
tourism. The International Culinary Tourism Association (ICTA) defines culinary tourism as the pursuit of
unique and memorable culinary experiences of all kinds, often while traveling, but one can also be a
culinary tourist at home. Dining out is common among tourists and food can be the major driver in
deciding when and where to travel. Food is also considered a part of cultural tourism and is linked to
agritourism. Wine tourism, whiskey tourism, and beer tourism are all part of culinary tourism.
Lucy Long, professor at Bowling Green State University, is credited with coining the term in her 1998 book
Culinary Tourism. She defines culinary tourism as exploratory eating—individuals exploring foods new to
them as well as using foods to explore new cultures and ways of being. It is about groups using food ‘‘to
sell’’ their histories and to construct marketable and publicly attractive identities, and it is about individuals
satisfying curiosity. She noted that culinary tourism encompasses history, nutrition, culinary arts,
hospitality, psychology, and sociology.
ICTA states that culinary tourism includes culinary experiences of all kinds. It is much more than just
tasting and eating. It encompasses cooking schools, cookbook and kitchen gadgets stores, wine tasting
tours, culinary tours and tour leaders, festivals and events, culinary media, guidebooks, caterers, wineries,
breweries, distilleries, food growers and manufacturers, culinary attractions, and more.
The food industry has always known that food, wine, and other culinary experiences are not only an
important ingredient in travel but also a powerful motivation to travel. A U.S. Travel Association study
reports 25% of leisure travelers say food is a vital factor when choosing a destination. Travelers are
stating that food is a key aspect of the travel experience and that they believe experiencing a country’s
food is essential to understanding its culture.
Notable food attractions are the Octoberfest in Munich, Germany; the whiskey trail in Scotland; the wine
trail in Napa, California; the slow food movement’s biennial Terra Madre and Salore del Gusto festival in
Turin, Italy; Harrods Food Hall in London, England; St. Moritz Gourmet Festival in St. Moritz, Switzerland; and
Tsukiji Fish Market in Tokyo, Japan.
C. The Food Service Sector
C. FOOD AND BEVERAGE TIMELINE
Foodservice operations have come a long way from the pioneering days of Monsieur Boulanger. As
societal norms, customs, and economies evolved, so, too, did the entire F&B industry. The first disciplined
approach to the culinary arts was captured through the grande cuisine instituted by Marie-Antoine
Carême. His cooking style, along with recipes describing dishes and sauces of the grande cuisine, were
collected and published in La Cuisine Classique (1856) and other books that followed. Although these
books were popular in the kitchens of the nobility, they were slow in finding their way into the fledgling
restaurants, which offered a simple table d’hôte. This type of menu provided little if any choice. Carême’s
grande cuisine created a new style of service and range of menu choices. Menus expanded through the
offering of a “carte” or list of suggestions, giving rise to the à la carte restaurant.
The next major step in the development of modern foodservice operations was marked by the opening of
the Savoy Hotel. It opened in London in 1898 under the direction of Caesar Ritz and George Auguste
Escoffier. Grande cuisine was still the exception, but it was embraced by these two foodservice pioneers
who ensured that their à la carte presentations were an event. Diners enjoyed the best of food and service
as well as the ambiance of elegant surroundings.
Escoffier was the most famous chef of his day and is considered by many to be the father of modern-day
chefs. Escoffier revolutionized the methods of food service and kitchen organization during his years of
managing the kitchens at the Savoy and later the Carlton Hotel. He expanded and refined the idea of à la
carte service by establishing carefully planned sequences of courses. For example, a typical sequence of
courses for today’s full-service casual American-style restaurant might start with an appetizer and then be
followed by soup, salad, entrée, and dessert.
Escoffier also reorganized tasks and activities in the kitchen, eliminating duplication of effort and
improving efficiency in operations by creating and defining the work of stations. More than anyone else,
Escoffier helped to focus foodservice providers on the important task of catering to guests’ needs and
desires by making dining a memorable experience. This was only the beginning, as others contributed to
the constantly evolving developments in foods and beverages. Table below traces the historic evolution of
foods and preparation methods from the Egyptian Kingdoms to Ray Kroc’s brainchild, McDonald’s.
C. The Food Service Sector
D. THE RELATIONSHIP OF MARKET, CONCEPT, AND MENU

MARKET SEGMENT
In this chapter, market, concept, and menu are the basic tools used in describing foodservice operations.
Every operation, from small “mom and pop” stores to large chain restaurant organizations, serves a
particular segment of the overall market for foodservice. Each foodservice operation responds to the
needs and expectations of its market through its concept and menu. Proper alignment of market, concept
and menu is essential in achieving a successful foodservice enterprise.
Market Segments It is a basic truth in the hospitality business that meeting the needs and expectations of
guests is necessary for success. Failure to meet the guests’ expectations and needs means they will not
return, and the business will inevitably close. Every foodservice operation depends upon its ability to
respond to the demands of its customers.
Not all potential customers have identical needs and expectations for food service. Some people enjoy and
are able to afford fine dining at relatively expensive restaurants, while others prefer the company of other
regulars in a neighborhood restaurant. Some people prefer the adventure of ethnic dining and others the
predictability of a steak and a baked potato. Individuals experience different needs and expectations of
foodservice at different times. Special occasions, such as birthdays or anniversaries, may call for
celebratory meals. For more ordinary occasions, such as traveling across town to a business meeting, the
best course of action might be to grab a burger at a quick-service restaurant on the way.
Market segments is a term used to describe subgroups of consumers who share a specific set of needs
and expectations. In foodservice, for example, businesspeople seeking to impress prospective clients
constitute a market segment, just as do families traveling the interstate highway seeking an inexpensive
and convenient place to stop. Each segment has decidedly different needs and expectations for its dining
experiences. The restaurant that satisfies the needs of the traveling family is not as likely to draw the
businessperson for a power lunch.
When thinking about market segments, it is helpful to imagine actual people with real needs and
expectations for dining. However, it is important to remember that the same people may occupy several
market segments, depending on their needs and expectations for foodservice at any given moment. The
businessperson seeking a dramatic and impressive dining experience on Friday may, on Saturday, become
part of a traveling family looking for a quick-service meal. An individual can be, and often is, part of two or
more market segments. Consequently, while market segments often seem to describe distinct groups of
individuals, they actually focus on sets of needs and expectations.
Market segmentation is based on the principle that it is very difficult, if not impossible, to be all things to all
people. A single restaurant cannot serve the needs of all people at all times. Focusing on a specific set of
related needs and expectations for foodservice makes it possible for a restaurant to excel in particular
ways, thus drawing the attention—and business—of those who seek that particular dining experience.
Market segmentation helps a restaurant define and target groups of customers within its marketplace. If a
restaurant understands and knows how to evaluate market segment performance, it will be able to
analyze predicted customer volume, including niche opportunities. Determining the ideal segment to target
requires a restaurant to perform significant market analysis before it arrives at a final concept and menu.
However, doing this will help it achieve optimal competitive positioning.
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D. THE RELATIONSHIP OF MARKET, CONCEPT, AND MENU

Geographic Location
For some foodservice operations, a convenient location is essential for success. Most quick-service
restaurants have multiple locations because few people are inclined to drive two hours for a hamburger
and fries. However, some other restaurants, known as destination restaurants, which have earned their
reputation for, say, serving wonderful steaks and huge portions, may draw their clientele from relatively
great distances.

Age
Among the fast-food restaurant chains, McDonald’s has achieved a considerable competitive advantage
by targeting children. The Ronald McDocharacter, playgrounds, and specialized decor, as well as a tradition
of making corporate gifts to children’s charities, all function to strengthen McDonald’s appeal to the
younger set—and its parents. Many of these children remain loyal to McDonald’s even after becoming
adults. They then introduce their own children to McDonald’s. This has resulted in generation-to-generation
brand loyalty within McDonald’s market segment.

Ethnicity
Ethnicity can be a powerful draw in terms of customer loyalty and community development. Restaurants
identified as purveyors of ethnic foods may appeal to members of a cuisine’s ethnic group as well as to
others who are interested in enjoying foods from different cultures. Ethnically based foodservice offers
comfort and familiarity by providing foods that are considered to be part of a culture.

Social Class
Certain kinds of restaurants confirm their customers’ social class—or, at least, their customers’ social
aspirations. Such restaurants may be places where it is possible to see the famous, or where it is
fashionable for the famous to be seen. Customers expect these venues to provide high quality in both
concept and execution. For instance, an upscale restaurant would probably not last very long if it served
meals on placemats set with plastic flatware, because customers expect linen tablecloths and polished
silverware.

Price
Some restaurants are known for being expensive, others are known for being inexpensive. Typically, the
criterion is not so much the actual dollars spent but the cost in relation to the value received. Marketing
specialists refer to this phenomenon as the price-value relationship. Customers expect to receive greater
value for higher prices, or at least to get value or quality that is in line with the price paid.

Market segments are very fluid in the foodservice industry. Customers’ needs and expectations may vary
widely depending on the circumstances of the moment. In addition, their needs and expectations defy neat
categorization along one or two easily identified dimensions. The decor may be critical in fulfilling some
guests’ expectations, whereas for other guests the decor is irrelevant. Foodservice operations that
understand the needs and expectations of their guests, and are effective at meeting them, are far more
likely to succeed than those that do not. Equally important is not overreaching customer needs and
thereby wasting valuable resources on components of the operation that are unimportant to the
consumer.
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D. THE RELATIONSHIP OF MARKET, CONCEPT, AND MENU

CONCEPT
Overall concept is one of the primary ways an establishment responds to its market segment. Concept
refers to the many elements in a foodservice operation that contribute to its function as a complete and
organized system that serves the needs and expectations of its guests. Some of the most basic elements
in a foodservice operation’s concept include the size of the facility, its location, its feel and personality, and
its hours of operation.

Facility Size
The size of a foodservice facility is usually described in terms of its annual dollar volume or number of
seats, although overall square footage or number of meals served also describes size. The number of
seats is directly related to the volume of business conducted by the operation, except where take-out,
delivery, or drive-through windows are a significant part of the business. Other than restaurants that offer
take-out and delivery, operations with more seats have the potential to do more business than
comparable, smaller ones that charge equal prices.

Location
Location is a critical factor in many foodservice concepts. A great product at a great price is of no value if
it is too far away from its intended market. For this reason, most chain restaurants prepare a careful site
analysis before locating a new unit to ensure it is convenient to the target market. Location must be
viewed holistically when developing the concept for a new foodservice operation.
A good location for one concept may be horrible for another. Some restaurants thrive far off the beaten
path; some fail on a busy street corner. But good visibility and street access are a factor in location quality.
If a foodservice establishment is located inside a mall and customers have to make a left turn across six
lanes of traffic at an intersection without a traffic light to enter the mall parking lot, the establishment may
be doomed because it has neither good visibility nor ease of access.

Hours of Operation
Hours of operation may seem like a rather mundane element of a foodservice operation’s concept, but
deciding when to be open for business is extremely important. The cost of labor needs to be balanced
against customer demand.

Theme and Design

For a number of contemporary foodservice operations, theme is the central element in the concept.
Difficult to describe with precision, theme can be thought of as the collective effect of a number of factors
that, when joined, create a distinctive total dining experience.
Often a theme is derived from another culture. Themes also may reflect special interests: rock music (Hard
Rock Café), automobiles (Studebaker’s), or sports celebrities (Michael Jordan’s), to name a few.
Design is important to virtually all foodservice operations, and is particularly vital to themed operations.
Through design—the arrangement of space, the finishes, the furnishings, the table settings (plates, glasses,
and flatware), the lighting, the sound, and the choice of colors—the theme of a restaurant is made visually
apparent to the guest.
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D. THE RELATIONSHIP OF MARKET, CONCEPT, AND MENU

FORMS OF SERVICE
Form of service refers to the way food and beverages are presented to the guest. Different forms of
service address the varying needs of different market segments and also contribute to the guest’s
perception of value. Service forms range from formalized tableside cooking to self-service buffets with a
cashier at the end of the counter.

Table service is positioned at the higher end of the market and targeted to the middle to upper
demographic segment. Guests are seated by a host or hostess. Orders are taken by servers at the
table, and food and beverages are brought to the table. Usually, several courses are offered on the
menu, which is accompanied by a wine list or a listing of specialty drinks. Soiled dishes are cleared by
servers or bus persons.

Buffet service is positioned at the low to middle level of the market and targets the value-conscious
and family segments. Buffet service is also associated with catered events or special events where
guests come to a “buffet table” to obtain food and beverages. Wedding receptions, church potlucks,
and Sunday brunches at restaurants and clubs often use buffet service. The distinguishing factor is
that the guest must come to the buffet table for food.

Banquet table service is common at large group events, such as special events and conventions. It
can be targeted to the family, social, or business market. Banquet service is very similar to ordinary
table service in that a server brings food to the guests’ table. However, banquet service often requires
transportation of food from a central kitchen. Food may be “plated” in the central kitchen and moved
in special heated carriers to the dining area, or it may be transported in bulk to a small serving kitchen
adjacent to the dining area and plated there.

Cafeteria service is targeted at low-end and institutional markets. It is found in student and
corporate dining halls and fast food venues such as ballparks. In cafeteria service, like buffet service,
guests pick up their own food and take it to their table. The difference between the two is that
cafeteria-style service typically has employees “dishing up” food for customers, whereas buffets are
usually self service.

Family-style service is positioned as a value concept in the market and is often used at summer
camps, as well as in a small number of commercial restaurants, particularly ethnic restaurants.
Family-style service involves bringing various food items in sufficient quantities for tables of six, eight,
twelve, or more diners. Food is passed from person to person, as at a traditional family dinner.

Room service is associated with hotels, where guests can order a meal from a menu and have it
brought to their room. Similar systems characterize contemporary hospital foodservice, where
patients order from a menu and their selections are brought to their rooms. Hospitals, however, tend
to provide meals at scheduled times, whereas hotel room service may be available twenty-four hours
a day.
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D. THE RELATIONSHIP OF MARKET, CONCEPT, AND MENU

Quick counter service establishments are positioned at the low end of the market and target the
value-conscious and fast-food segments. At quick counter service operations, the customer stands at
a counter, places an order, pays, waits while the order is assembled, and then receives the order. Fast-
food restaurants such as McDonald’s and Burger King utilize quick counter service. Food materials are
delivered to outlets in packaged and/or processed form for quick preparation and service.

Traditional counter service represents an earlier form of ordering and receiving food more quickly
than is found in restaurants with table service. Customers, particularly single customers, who do not
want to take a table and wait for a server can sit on a stool at the counter. There they are served by a
counter person, often a short-order cook.

The term “take-out” is generally applied to table-service restaurants that offer food to customers
who prefer to take it home and eat it there. Some contemporary restaurants, like Pizza Hut’s delivery-
and-take-out-only units, offer take-out service but do not have tables. Today, many full-service
restaurants offer take-out service as a normal component of day-to-day operations in order to
significantly increase their market share and revenues.

Delivery service, where prepared food is brought to the customer’s home, was popularized for
today’s consumers by Domino’s Pizza. But delivery service also characterizes meals on wheels
programs for seniors, as well as urban restaurants that deliver within neighborhoods. Some delivery
services are connected with a particular restaurant. Instead, they offer a limited menu of items from
various participating neighborhood restaurants. The customer places an order with the delivery
service, which in turn places the order with the restaurant, picks up the order, and delivers it to the
customer.

Carhop service originated with the “drive-in” restaurants made popular in southern California in the
1940s and 1950s. Customers drive into the restaurant parking lot but remain in their cars. Orders are
called into an intercom or are given directly to a carhop (a server) who comes to the driver’s side
window. The carhop returns with the food, presents the check, and collects payment.

Drive-through service is the contemporary counterpart to carhop service. Drive-through service is

commonly found in quick-service restaurants. Customers place an order through a microphone, drive
forward to a window, pay, and receive their order. A variation on the system uses two windows, one to
receive payment and the next to deliver food.
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D. THE RELATIONSHIP OF MARKET, CONCEPT, AND MENU

MENU
Many people who frequent restaurants believe the menu is a list of what the chef prefers to cook. Even
some restaurateurs believe that they are the food experts and thus their menus should reflect what they
believe is best for the customer. Only the most renowned chefs are able to develop a menu that both
expresses their culinary artistry and succeeds in the marketplace. Most restaurateurs understand that the
customer is the final—and most important—judge of the menu. If customers cannot find what they expect
on the menu, the choice is simple: Go elsewhere.
The menu is the foodservice operation’s plan for meeting the needs and expectations of its guests. It is
perhaps the most significant element in the execution of the foodservice enterprise. It lists those items
that customers will desire and appreciate. It dictates staffing, equipment, space layout, and investment
requirements. The menu, therefore, is the product plan for a restaurant and, as such, is the biggest
determinant of whether it will achieve a profitable return on investment.
Menus typically state prices for food and beverage items. Pricing, like menu item selection, should
demonstrate a clear understanding of the market segment served by the foodservice operation. Prices
that are too high will not generate perceived value in the eyes of customers. But pricing has an effect on
profits, and prices that are too low will threaten the operation’s financial survival. Setting prices for menu
items is thus a balancing act. Specific strategies for pricing go beyond the scope of this text. But it is
important to emphasize that menu pricing, like menu item selection, ultimately will be judged by the
customer.

E. CONTEMPORARY COMMERCIAL FOODSERVICE CONCEPTS

Market, concept, and menu are helpful tools for understanding similarities and differences among
foodservice operations. These tools bring into focus key elements in foodservice that can then be used to
identify trends and developments in the industry. Market, concept, and menu can also be used to classify
foodservice operations, both commercial and institutional. Commercial foodservice operations range from
fine dining establishments to quick-service restaurants. (Institutional foodservice concepts are discussed
in a subsequent section.)

Fine Dining
The fine dining restaurant is characterized by a high level of attentive table service, expensive-looking
furnishings and decor, and fine cuisine. This category of restaurant sometimes is referred to as “white
tablecloth,” as tables in such establishments are often covered in white linen and set with fine china and
flatware and crystal glasses. Prices lie at the high end of the spectrum, with guests paying $100 or more to
enjoy an appetizer, entree, and dessert. The addition of liquor or wine can drive the average customer
check over $150 per person.
The fine dining category can be further divided into smaller segments. Some fine dining restaurants draw a
clientele of culinary adventurers who choose a restaurant because of the reputation of the chef. Such
restaurants are termed “celebrity chef” operations.
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E. CONTEMPORARY COMMERCIAL FOODSERVICE CONCEPTS

Theme Restaurants
Theme restaurants take a different approach to providing a distinctive dining experience. Whereas fine
dining establishments tend to create a sense of elegant dining, theme restaurants seek to provide diners
with an experience that evokes other times or places. Some themes are relatively mild in execution, such
as restaurants that have visual touches drawn from English pubs, sports bars with memorabilia from local
teams, or seafood restaurants with porthole-shaped windows.
The theme of a restaurant has little to do with the quality of the food or the service, but it often helps the
restaurant secure a position within the customer’s mind as memorable, different, and fun. Themes thus
help restaurants stand out from the crowd of everyday dining establishments. The risk of a theme
restaurant is that the concept will not be attractive to a substantial number of people or will be just a fad
and soon lose its appeal.

Casual Dinnerhouses
Closely related to theme restaurants are casual dinnerhouses such as Bennigan’s, T.G.I. Friday’s, and Chili’s.
Casual dinnerhouses seek to attract middle-income individuals who enjoy dining out yet wish to avoid high
prices and the formality of fine dining restaurants. Thus their prices fall in the midrange, their
atmosphere is comfortable, and their mood is relaxed. Alcohol is frequently served at casual dinnerhouses.
They are often viewed as good price-value experiences.
Distinguishing between theme restaurants and casual dinnerhouses is not always possible. Many theme
restaurants have a relaxed atmosphere, and many casual dinnerhouses have themes. The difference
between the two is often a matter of interpretation. For many purposes, the two can be collapsed into one
category. To complicate the categorization process further, some casual dinnerhouses have themes built
around ethnicity or culture. Over the last few decades, a number of chain restaurant companies have
developed casual dinnerhouse concepts with ethnic themes to attract the baby boom generation. Chi-Chi’s
(Mexican) and the Olive Garden (Italian) are prime examples.

Ethnic Restaurants
While a number of casual dinnerhouses have ethnic themes, true ethnic restaurants—whose origins and
target markets are quite different—also exist. A separate category for ethnic restaurants is necessary to
highlight these differences. The ethnic restaurant category includes establishments closely tied to the
cultures from which they originate. Such restaurants are often located in areas where large numbers of
people of the culture live. The cuisine tends to be authentic rather than derivative, decor reflects the tastes
of a particular culture, and the menus may be in the native language.
Ethnic restaurants reflect the variety and diversity of their native cultures. An ethnic restaurant may be
expensive or inexpensive, elegant or casual. It may offer take-out with limited table service, like the typical
Mexican taqueria, a restaurant that serves different kinds of tacos and antojitos, snacks made with corn
tortillas. Rather than offering full-course meals, it may emphasize snacksize portions such as those served
in a tapas bar, a restaurant that specializes in serving a variety of Spanish appetizers. It may be an
Ethiopian restaurant that encourages guests to eat with their fingers or a Japanese restaurant where
guests sit on the floor on padded mats.
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E. CONTEMPORARY COMMERCIAL FOODSERVICE CONCEPTS

Family Restaurants
Family restaurants, which in earlier years were classified as coffee shops, offer table and counter service,
a somewhat limited menu, and a family-friendly atmosphere. The difference between casual/theme
restaurants and family. restaurants is not always distinct, but the family restaurants are usually less
sophisticated in theme and ambiance and alcohol is rarely sold. Children’s menus and food choices that
appeal to the younger palate are standard features, as are “comfort” foods such as mashed potatoes,
biscuits and gravy, and macaroni dishes. It is not uncommon for a family restaurant to have breakfast
items available all day.

Grill/Buffet
The grill/buffet category includes steakhouse chains that use buffet service as well as cafeterias. Both
types of restaurants use a self-service format, and the buffet frequently offers all you can eat for one
price. Grill and buffet restaurants traditionally serve segments of that market that seek high value for a
relatively low price. Families seeking inexpensive meals and seniors on fixed incomes are important
markets for these restaurants. These operations need a high volume of business to be profitable. The
buffet concept often enables customers to consume larger-than-average quantities of food and therefore
raises the restaurant’s cost of food. However, because these restaurants have the ability to do a high
volume of business with little waste, they have lower operating costs than those in other segments,
allowing them to produce a viable incremental return on investment.

Quick Service
The quick-service category, sometimes called fast food, is by far the largest in the foodservice industry.
The quick-service category today is characterized by relatively low prices, limited menu offerings,
utilitarian decor, and modified counter service. Factory-like food production processes make it possible to
prepare of large quantities of menu items to exacting standards of quality and consistency. This category
is dominated by large chains. McDonald’s is the largest chain in the world.

Coffeehouses
Coffeehouses are among the fastest growing foodservice concepts largely because of the dynamic
growth of Starbucks, which expanded from fewer than two hundred stores in 1992 to over 40,000 stores
in 2024. Many coffeehouses in urban and suburban areas provide a contemporary version of a third place,
where patrons gather to talk, read the newspaper, and enjoy a latte or cappuccino. In cyber-cafés, patrons
log on to the Internet rather than reading the morning paper.

Catering
Today catering and special event planning continues to grow both in dollars and in its share of the
foodservice industry, however, when the overall food and beverage industry declines during uncertain
economic times the catering and events segment constricts proportiantely. Changes in the business,
including mobile kitchens, box lunches, thematic stage productions, props, decor treatments and the
growth of supermarket catering services, have transformed catering into a highly profitable segment of
the foodservice industry. Today’s highly competitive, state-of-the-art special event catering services offer
gourmet foods, high-fashion tent decor, elegant and ethnically attuned service delivery, and innovative
beverage services that include carved ice and specialty glassware for beverage products.
Prepared by: Bachelor of Science in
LIZYL S. DALIDA-GARAY TOURISM MANAGEMENT

CHAPTER III
The Food Service Sector
END OF MODULE
MICRO
PERSPECTIVE IN
TOURISM AND HOSPITALITY