Food and Beverage Classification Pamela Castillo ITHM 201 November 1, 2011 Prof. Carlos Rivera To the majority of the people in our society when you say to them food and beverage they think fast food and restaurants. Rarely do they take into consideration the tons of other food and beverage outlets that encompass this industry and make it one of the largest ever growing industries in the world. Food is a necessary part of life and will always be needed. Those are some reasons why this industry has an above average future outlook.

The food and beverage industry includes a vast amount of venues. It is a very diverse industry consisting of commercial operations and non-commercial operations. Commercial operations can be classified as either part of the restricted market or the general market. Examples of the restricted market would be some institutional employee catering, or private clubs. The general market includes but is not limited to hotels, fast foods, vending machines, pubs, amongst others.

Non-commercial operations are establishments where meals and snacks are prepared / served as an adjunct, supportive service to the primary purpose of the establishment. For example: hospitals, schools, and prisons. These may also fall under the subsidized category of either private or public ownership which may include employee catering or institutional catering. These foodservice operations financial goal does not involve generating profit from the sales of food and beverage product, and may also be called institutional foodservice.

Some of the different types of food and beverages establishments are: bars & pubs, cafes, canteens, coffee shops, fast food outlets, food courts, hawker stalls, restaurants, snack bars, cafes, coffee houses & snack bars, coffee shops, eating houses & food courts, fast food restaurants, food caterers, food stalls, hawker stalls, restaurants. All of these fall under different categories, some holding a category of their own.

In the chart below it presents various foodservice segments in North America and their sales rankings in billions of dollars. Food and Beverage Sales Ranking in North America Commercial operations can also be segment in various ways. Either independent, chain, or franchise. Independent venues are those which are either family owned or whose director management is the owner. Chain operations may have independent concepts but can easily expand their success by using standardized recipes, themes, and concepts.

A franchise is an entity belonging to a larger corporate body that one can purchase and operate to one’s own standards and specifications. A chain is an entity that cannot be purchased by an individual, but can be managed by an individual under the auspices of a corporation. Franchise venues are like chain restaurant concepts that share their success with various independent owners for a royalty. Some food and beverage venues that may fall under the chain and franchise operations are McDonalds, Wine Styles, KFC, amongst others.

Non-commercial venues are usually operated by the government or by management contract companies. A management contract company is a private operation that manages a non-commercial venue. A good example of a management contract company is ARAMARK. They provide food and beverage outsourcing services for clients. ARAMARK serves facilities such as sports arenas, convention centers, amphitheaters, employee dining areas, and hospitals. Just as this company, there are many others providing service to different types of organizations and venues.

Goes to show that the food and beverage industry is made up of a lot more than just your typical McDonalds, Chili’s or Pizza Hut. The food and beverage industry has many different types of classifications and is composed of hundreds of restaurants, management contract companies, caterers, independent coffee shops, hot dog carts, franchises, and the list goes on. In order to progress in this industry having a good knowledge of the different types of classifications is an assetand one should always keep up to date with new trends for it is an ever changing industry.

References Industry of Food and Beverage. Retrieved from: http://www. wikinvest. com/industry/Food_%26_Beverage Food and Beverage Industry. Retrieved from: http://globaledge. msu. edu/Industries/Food-and-Beverage/background Hotels and Food and Beverage. Retrieved from: http://www. hotelfandb. com/marketoverview. asp What is non-commercial foodservice?. Retrieved from: http://wiki. answers. com/Q/What_is_non_commercial_foodservice_system#ixzz1cTrH8wJH