9 INDUSTRIAL FOOD SERVICE

V. Premala Priyadharsini

1.Introduction

Foodservice (US English) or catering industry (British English) defines those businesses, institutions, and companies responsible for any meal prepared outside the home. Food service industry includes restaurants, school and hospital cafeterias, catering operations, and many other formats. The food service industry encompasses all of the activities, services, and business functions involved in preparing and serving food to people eating away from home. It includes all types of restaurants from fine dining to fast food. It also includes institutional food operations at locations such as schools and hospitals, as well as other specialty vendors such as food truck operators and catering businesses. Today’s food service industry makes up 10% of the total workforce in the United States, which amounts to 14.4 million workers.

2 Objectives

• Gain knowledge on origin of food service industries and its important components.
• Educate you on the recent advancements in the food service industry

3. History of Industrial Food service

The concept of preparing food as a craft and form of business can be traced all the way back to the 11th century with medieval guilds. Guilds were made up of various types of merchants and Craftsmen and each guild provided a specialized good or service to the community. The guilds established more of an organized system within local economies, and allowed people to purchase and trade from a variety of highly specialized vendors. Bakers and butchers are just two examples of specialized food craftsmanship. Guild members would pass on their knowledge to new generations by hiring apprentices. These apprentices would train under the established experts and learn the specific skills required of the profession. The guild system eventually fell out of favor in economic systems, but the concept of the apprenticeship is still very common in the culinary profession today, and many young chefs learn their craft through mentorship and job shadowing under the guidance of experienced chefs and food professionals.

4 The Evolution of Cuisine

The way in which food is prepared and served has evolved dramatically since the onset of classical French cooking in the 18th and 19th centuries. Carême and Escoffier had an elaborate style. Their creations were very rich, and many recipes required several hours or even several days of advance preparation. Garnishes and service embellishments were also very elaborate, and a large number of courses were served in succession to create a grand experience. The cuisine itself is known as grande or haute cuisine, and its purpose is not just to be fed — it is to indulge and enjoy a full gastronomic experience.

5. What Are the Types of Food Service Operations?

Basically there are two types of food service operations, the commercial and non-commercial.

5.1. Commercial

Commercial food service, sometimes referred to as market-oriented food service, is the largest and most recognizable form of food service operation in the world, accounting for approximately 77 percent of food expenditures outside of people’s homes. You’ll recognize commercial food service operations as you drive around your town and down the highway, with large, fluorescent signs advertising hamburgers, pizza, and submarine sandwiches.

Commercial food service includes fast-food and full-service restaurants, Bars and nightclubs, catering and banquet events, and recreation and leisure outlets. The main goal is to provide food and beverage to customers for profit and creating positive guest experiences. You may also find commercial food service operators in sports stadiums and on airlines and cruise ships.

Retail stores that offer prepared meals such as supermarkets and convenience stores, as well as vending machines, can also be classified as commercial ventures.

5.2. Noncommercial

Noncommercial food service, on the other hand, is a cost-oriented enterprise that prepares and serves meals as a secondary support service to educational institutions and other organizations. Noncommercial food service accounts for about 23 percent of food expenditures outside the home. Noncommercial food operations exist inside of an organization such as a school, hospital or business. Noncommercial food service operations can be found in corporations, healthcare facilities, schools and military or government installations. For them, providing food and beverages is not the No. 1 goal of the organization, but a secondary goal offered in support of the establishment’s main purpose. For example, noncommercial operations exist in secondary and higher education institutions, hospitals, nursing homes, military bases, and child care centers. A university, for example, has the primary goal of educating students to enter the workforce, but offers cafeterias and other food services to support its primary goal. You could also find a noncommercial enterprise in a business that chooses to offer a cafeteria or dining facility to its employees.

6. Differences in the Types of Food Service Operations

There  are  a  few  distinct  differences  between  commercial  and  noncommercial  food  service

Operations. Consider the following:

6.1. Commercial restaurants operate on a for-profit basis, meaning they rely on profits to stay in business. Noncommercial ventures are typically subsidized by the institution from which they operate.

Commercial restaurants are typically privately owned by an independent operator, a franchise owner, or the chain itself. Noncommercial food operations are owned and operated by an overseeing organization — a public school, for instance, in the case of a cafeteria.

Commercial Foodservice Commercial food services are food service operations found in lodging properties, clubs, restaurants, and other business that exist to make a profit from the sales of food and beverage products(opposite of non-commercial food service). The commercial segment makes up almost 80 percent of the restaurant and foodservice industry. Types of foodservice within this segment include restaurants, catering and banquets, retail, stadium, and airline and cruise ships:

Restaurants: There are many types of restaurants, including quick-service, fine-dining, casual, theme restaurants, buffets, and cafeterias.

6.2. Catering and banquets: In the catering and banquet

Segment, the menu is chosen by the host of an event for a specified number of people.

  6.3.Retail: Retail stores offer prepared meals that can be eaten in the store or taken home. These products can be found in supermarkets, convenience stores, and specialty shops selling limited items such as coffee, doughnuts, and candies.

6.4.Stadiums: The food offered at stadiums stretches from the peanuts in the stands to the fine dining in the luxury suites. Some stadiums have privately run foodservice operations. However, most use large-scale contractors to handle the business.

6.5.Airlines and cruise ships: Options range from casual dining and buffets to elegant dinners to room service. Food selection varies as well, from steak to vegetarian to children’s meals and pizza. Cruise ships may serve up to several thousand meals at each seating.

6. Airlines, especially on long distance flights, will offer meals, sometimes more than one, to help passengers adjust to time differences. These range from a simple beverage in short-haul economy class to a seven-course gourmet meal using real dishes and glassware in long-haul first class.

7.Noncommercial Foodservice

The non-commercial segment could be defines as operations including colleges & universities, K-12 school districts, healthcare, retail meal solutions, convenience stores, travel centres, lodging/hotels, recreation, travel, business & industry, military, corrections, day-care, group purchasing organizations, and foodservice management firms. The noncommercial segment represents about 20 percent of the foodservice industry. This segment prepares and serves food in support of some other establishment’s main function or purpose. For example, the cafeteria at a local university supports the school’s goal of educating students by serving them meals so that they have the energy to participate in class and activities. Categories in this segment include schools and universities, the military, health care, business and industry, and clubs. The food service industry consists of many players to keep track of, many different channels for getting products to market, and many different strategies that can lead to success or failure in the space. Add to that the rapid pace of change in food service industry technology as well as an ever changing regulatory environment, and it all adds up to a big challenge for new and even established manufacturers and distributors in the food service industry.

The top three things manufacturers and distributors need to know about the industrial food service is :

8.The food supply chain is highly complex.

When we think of the food service industry, we typically think of the retail and restaurant establishments that sell food directly to consumers. But those players are just the tip of an iceberg that represents an extremely complex food supply chain. In order for food to reach the retailer and end consumer, it actually follows a rather complicated path, full of highly specialized players. Here are a few of the players that are typically involved in the food service industry:

8.1.Manufacturers’ reps. Manufacturers reps, also called food brokers, manage the process of selling food directly to stores on behalf of manufacturers. They typically outsource the logistics of delivery to a third party.

8.2. Wholesale distributors Wholesale distributors manage the process of selling, storing, and delivering the food products. . The wholesale distributor differs from a manufacturers’ rep in that they physically take possession of and handle the food and are often in charge of logistics and end consumer marketing efforts.

8.3.Self-distributing retail Large retail chains like Walmart, Kroger, Safeway, and Target are both retailers and distributors with their own logistics networks and distribution centers located in regional hubs around the country. If the retailer has its own trucks, it typically is a self-distributing retailer.

8.4.Foodservice reps. Similar to manufacturers’ reps, food service reps sell food to restaurants but do not physically store or deliver products or handle logistics.

8.5.Wholesale foodservice distributors Foodservice distributors buy and sell products while handling the logistics involved with getting food from the manufacturer to the retailer’s or restaurant’s stockroom.

8.6. Self-distributing food service Similar to large retail chains, there are restaurant chains so large that they handle their own foodservice distribution. McDonald’s and Golden State Foods are probably the best known of these. Again, if the restaurant has its own trucks, it is likely to be self-distributing.

9. Regulation and safety are key concerns.

Food safety is a big concern as a result and plays a big role in how things get done in the food service industry. There are numerous regulatory bodies involved in regulating the food service industry. They include the Food and Drug Administration and the USDA, as well as more than 3,000 state, local, and regional agencies. These agencies work together and independently to create the complex set of food safety standards that govern how food is manufactured, distributed, and handled in the United States. There are also regulatory bodies outside the United States that impact the global food industry. In a world where much of the food we eat every day is globally sourced, this results in a highly complex and constantly changing set of regulations that govern the industry.

Recently, technology has made it possible to dramatically improve food safety with enhanced track and trace capabilities that provide more data about how food has been handled through the supply chain. Best practices in this area have in turn enabled regulators to increase regulation in efforts to improve food safety. Currently, the FDA and USDA are rewriting the rules around food handling in cooperation with industry insiders as part of the Food Safety Modernization Act.

Technology plays a big role in enabling food safety regulations to become more stringent and this trend is likely to continue as technology such as the Internet of Things (IoT) makes it possible to gather more data. Another major issue in the food service industry is standardization around labeling, product descriptions, and claims. Government organizations at the state, federal, and international level may have different regulations around food labeling for foods designated as organic, genetically modified, natural, healthy, or other categories. These are often highly regulated and subject to change as well, depending on the market.

10. Technology is critical.

As indicated with the continued emphasis on food safety, traceability, and regulation, technology plays a key role in the food service industry. This role is likely to only expand in the coming years: food service companies are increasingly expected to be supply chain technology companies. Two supply chain technologies that are having a growing impact on the food service industry include:

10.1. Mobile apps and devices Mobile devices such as smart phones and tablets are revolutionizing how food service industry companies are ordering food, tracking it through the supply chain, paying for it, and managing is placement on store and warehouse shelves. Mobile order management and payment apps now enable orders to be placed anywhere simply by tapping a device, eliminating the need for paper forms. As the technology improves, it will also help with managing distribution warehouses and manufacturing processes as mobile devices become more integral in the supply chain

10.2. IoT and big data.

As more devices become connected to the Internet of Things—from containers and pallets to trucks, forklifts, even the products that are used in the food service supply chain such as cold storage refrigerators and coffee makers—manufacturers and distributors will have access to more data that can help them track, trace, and manage food in their supply chain. As regulations tighten, companies that succeed must learn to leverage this data effectively.

10.2.1.Indian consumers are increasingly dining out, particularly in urban areas and urbanization, changing lifestyles and food preferences are giving impetus to the F&B industry

10.2.2.Food-Based Apps Technology is evolving, people are becoming extremely tech savvy, and so the year 2017 is bound to see an increase in the use of table-reservation apps / food-based apps. Customers will be able to book tables in advance, restaurants will be able to keep efficient tabs on consumer demands – especially so on busy nights. • Multi-Cuisine India is a growing market where consumer preferences keep evolving. Indians today are well-traveled, educated and savvy. They know their food and demand more than just one type of cuisine. They enjoy experimenting when it comes to food. Hence multi-cuisine is one big trend to watch out in the coming year.

10.2.3.Casual Dining The restaurant industry in India is mainly driven by young population, which opts for casual dining even when they want to catch up with friends. Indian consumers are increasingly dining out, particularly in urban areas and urbanization, changing lifestyles and food preferences are giving impetus to the F&B industry. Customer trends are gradually moving from the fine dine to a more casual dining culture and the trend is expected to continue in the coming years.

10.2.4.Foodservice’s Latest Offering: Premium casual dining • QSR Quick service restaurants (QSRs) are a mainstay of the Indian foodservice market. They have established themselves in major cities and are now expanding into smaller cities with smaller formats. To withstand the competition, most of the players are customizing their menu in terms of flavours, pricing and services to meet Indian consumers’ inclinations. India’s booming QSR market: Domestic vs foreign brands

10.2.5.Malls Will be Preferred Locations Existing restaurant brands and also new brands are now eyeing the shopping malls as their preferred locations to create family dining options. This especially since various research reports have indicated that even in times of financial distress people will continue to eat out and the F&B industry will be constantly growing. Factors like value for money, quality service and experimentation in cuisines have become the core competence for any restaurant in the industry. Considering the food revolution and consumer preferences and with the aim of expanding their business and tap more customers the restaurant brands do not want to leave the malls untouched.

10.2.6.Entrepreneur Entry in Industry Passion doesn’t just drive entrepreneurs; it often leads them to their highest, best opportunities. With education and travel comes knowledge and understanding of food. The love for food and the curiosity to experiment will give the industry new entrepreneurs who are bound to bring with them, new concepts, themes, and chef-led innovations. 2017 will be ripe for home-grown successful entrepreneurs to invest their knowledge, expertise and experience in helping young businesses grow because this is what industry needs to keep evolving so that we can set the standards high.

10.2.7. Restaurants in this segment appeal to consumers looking for an exciting and distinctive dining experience at a lower cost than fine dining.

A new trend in casual dining is sweeping both operators and consumers alike. And that’s premium casual dining. “Hidden within the casual dining category, premium casual dining has emerged as a fast-growing subset that has high potential for growth.

11.Individual Restaurant Apps: The next wave of revolution in foodservice industry Technology has gripped the life of consumers like never before. today, every decision is taken with the click of a button. And the foodservice industry is no different. Apps of companies like Zomato, Food panda, and Dine out are being touted as trendsetters for opening the floodgates to innovative technological advancements.

12. Direct Connections Matter

Individual restaurant apps not only help restaurants in connecting with customers directly, but also aid in garnering consumer loyalty in a cut-throat environment which sees new (and innovative) restaurants open on a daily basis. The added advantage of directly engaging with customers aside, apps help revenue burgeon.

Take for example Raasta’s mobile app – Raasta Lounge. This is not your usual app. It is also a loyalty e-card on the go with some amazing offers in store. The Raasta Lounge app – which is available on Android and IOS – has seen over a 1,000 downloads in just one month. The app works on the point-system which has been infamously renamed Raasta Joints that are redeemable at Raasta Hauz Khas Village, CyberHub, and the recently launched Raasta Mumbai. Also, they are roping in more people who are new to the app world.”

13.Summary

Food takes center stage at the city’s finest restaurants; good service is an important element for the best possible experience for diners. Increase customer satisfaction and need to built consumer loyalty know proper food service etiquette increasingly hectic lifestyles make cooking at home a challenge, so the restaurant and food industry enjoys steady growth.

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