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Chapter 8 Bar and Beverage Management

1. 1. ChapterChapterChapterChapter 8888 Bar and Beverage ManagementBar and Beverage


ManagementBar and Beverage ManagementBar and Beverage ManagementBar and
Beverage ManagementBar and Beverage ManagementBar and Beverage ManagementBar
and Beverage Management Employee MgtEmployee MgtEmployee MgtEmployee Mgt.,
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Managing your businessPlanning for Profit, Managing your businessPlanning for Profit,
Managing your businessPlanning for Profit, Managing your business 1 F ก ก ก ก F ก ก . 2248
email: tpavit@wu.ac.th Employee MgtEmployee MgtEmployee MgtEmployee Mgt., Planning
for Profit, Managing your businessPlanning for Profit, Managing your businessPlanning for
Profit, Managing your businessPlanning for Profit, Managing your business
2. 2. Today’s Beverage IndustryToday’s Beverage Industry 2 Today’s Beverage
IndustryToday’s Beverage Industry
3. 3. Today’s Beverage Industry SinceSinceSinceSince 1990199019901990, there has been a
gradual decline in alcohol, there has been a gradual decline in alcohol, there has been a
gradual decline in alcohol, there has been a gradual decline in alcohol
consumption.consumption.consumption.consumption. What people are drinking (and
trend)?What people are drinking (and trend)?What people are drinking (and trend)?What
people are drinking (and trend)?What people are drinking (and trend)?What people are
drinking (and trend)?What people are drinking (and trend)?What people are drinking (and
trend)? The health-and-fitness enthusiast looks for lighter drinks (less alcohol and fewer
calories); Sales of spirits (high in alcohol and calories) continue to decline; “White goods”
(vodka, gin, rum and tequila) do better than “brown goods” (bourbon, Scotch and other
whiskies), although they all have similar alcohol content; FBM-343 Beverage and Bar
Management . ก3333 similar alcohol content; Beer sales look mighty impressive when
compared to wine and spirits; Most restaurants recently offer wines by the glass in addition
to wine by the bottle
4. 4. Beverage & Bar Business The BeverageThe BeverageThe BeverageThe Beverage----
Only Bar:Only Bar:Only Bar:Only Bar: The simplest kind of beverage enterprise that serves
beverage alone except snacks (i.e. peanut, pretzels, cheese and cracker).alone except
snacks (i.e. peanut, pretzels, cheese and cracker). Beverage-only bars are definitely a
minority today. Although some are highly profitable, serving liquor alone is sometime not
enough to attract and keep customers. Bar/Entertainment Combinations:Bar/Entertainment
Combinations:Bar/Entertainment Combinations:Bar/Entertainment Combinations: Bars that
usually offers a wide range of entertainment i.e. the neighborhood bar with pool, pinball,
dartboards or giant TV screens; nightclubs with entertainers; comedy clubs; ballrooms with
FBM-343 Beverage and Bar Management . ก4444 neighborhood bar with pool, pinball,
dartboards or giant TV screens; nightclubs with entertainers; comedy clubs; ballrooms with
big bands, etc. In between are cocktail lounges and nightclubs with live entertainment i.e.
piano bars, country-and-western dancing, jazz, duos, etc.
5. 5. Beverage & Bar Business Bars and the Smoking DebateBars and the Smoking
DebateBars and the Smoking DebateBars and the Smoking Debate The cigar bar is another
trendy addition to the beverage scene—and a profitable one, too.beverage scene—and a
profitable one, too. Customers who enjoy high-priced cigars also have the opportunity to
order premium spirits, wines, beers, and after-dinner drinks to accompany them. The cigar
boom is not legal in all venues since smoking is prohibited in many public places by local
and/or state ordinance. Airline Beverage ServicesAirline Beverage ServicesAirline Beverage
ServicesAirline Beverage Services:::: FBM-343 Beverage and Bar Management . ก5555
and/or state ordinance. Airline Beverage ServicesAirline Beverage ServicesAirline Beverage
ServicesAirline Beverage Services:::: Beverage services that are provided on airline flights.
6. 6. Beverage & Bar Business (cont.) Food and Beverage Combination:Food and Beverage
Combination:Food and Beverage Combination:Food and Beverage Combination: One type is
the restaurant/bar – drinks/wines are part of the meal service, served by the same wait staff
that serves meals; Another type of food-beverage combination is bar that offers light service,
served by the same wait staff that serves meals; Another type of food-beverage combination
is bar that offers light food in addition to drinks; A special variation of food-beverage
combination is the wine barwine barwine barwine bar A brew pub – a beer version of the
wine bar Hotel Beverage Operations:Hotel Beverage Operations:Hotel Beverage
Operations:Hotel Beverage Operations: Beverage services differs in many ways (with
different purposes) from the bar or the bar-restaurant combination in hotels (i.e. lobby FBM-
343 Beverage and Bar Management . ก6666 from the bar or the bar-restaurant combination
in hotels (i.e. lobby bar, cocktail lounge, restaurant bar, a nightclub with dancing, room
service, minibar etc). FBM-343 Beverage and Bar Management
7. 7. Similarities and Differences Grouping types of beverage service into these rather arbitrary
categories does not really adequately describe the character of individual
enterprises.describe the character of individual enterprises. Many establishments do not fit
handily into a specific category, and those within categories can be as different as day and
night. Yet all categories have certain similarities. They all sell alcoholic beverages. They
have similar staff structures, patterns of purchasing and inventory, FBM-343 Beverage and
Bar Management . ก7777 They all sell alcoholic beverages. They have similar staff
structures, patterns of purchasing and inventory, and ways of controlling the merchandise.
8. 8. Similarities and Differences A successful business meets the needs and desires of a
certain clientele and strives to be deliberately different from others serving adeliberately
different from others serving a similar clientele in order to stand out in the competition for
customers. Other major reasons for the wide variety of bar operations are simple: the special
circumstances of each operation, as well as the personalities, FBM-343 Beverage and Bar
Management . ก8888 of each operation, as well as the personalities, desires, and budgets of
their owners. But to be successful, the entrepreneur must put clientele above all else in
shaping his or her enterprise.
9. 9. Employee ManagementEmployee ManagementEmployee ManagementEmployee
ManagementEmployee ManagementEmployee ManagementEmployee
ManagementEmployee Management 9 Employee ManagementEmployee
ManagementEmployee ManagementEmployee ManagementEmployee
ManagementEmployee ManagementEmployee ManagementEmployee Management
10. 10. Employee ManagementEmployee ManagementEmployee ManagementEmployee
Management Employees affect your profits in many other ways. They are important links in
any cost-control system. They are your best merchandising agents. To yourare your best
merchandising agents. To your customers, they represent you and your philosophy. So how
do you go about finding the right people and putting them all together to function in a smooth
operation? The kinds of employees you will need depend a great deal on your type of
beverage business. First we’ll look FBM-343 Beverage and Bar Management . ก10101010
deal on your type of beverage business. First we’ll look at the entire spectrum of staff
positions, then we will consider how to determine your own staffing needs.
11. 11. Staff PositionStaff PositionStaff PositionStaff PositionStaff PositionStaff PositionStaff
PositionStaff Position 11 Staff PositionStaff PositionStaff PositionStaff PositionStaff
PositionStaff PositionStaff PositionStaff Position
12. 12. Staff PositionStaff PositionStaff PositionStaff Position The staff needs of bars are unique
to each establishment, and there is probably no bar that has all of the positions that we
describe.has all of the positions that we describe. FBM-343 Beverage and Bar Management
. ก12121212
13. 13. FBM-343 Beverage and Bar Management . ก13131313
14. 14. 1111.... The BartenderThe BartenderThe BartenderThe Bartender The central figure in
any beverage operation is the bartenderbartenderbartenderbartender,,,, who is an amalgam
of salesperson, entertainer, mixologist, andentertainer, mixologist, and psychologist Of
course the bartender’s primary function is to mix and serve drinks for patrons at the bar
and/or to pour drinks for table customers served by waiters or waitresses. FBM-343
Beverage and Bar Management . ก14141414 served by waiters or waitresses. The bartender
is typically a host and a promoter whose combination of skill and style translates into
publicrelations benefits that build goodwill and good business.
15. 15. FBM-343 Beverage and Bar Management . ก15151515
16. 16. The BartenderThe BartenderThe BartenderThe Bartender Bartending is as wide-ranging
a job as you can get in the foodservice business, and it is never as simple—or as
glamorous—as it seems.simple—or as glamorous—as it seems. The bartender is: the
person who notices when the bar is getting crowded and crazy, and uses eye contact and a
smile to buy time when newcomers or singles approach the bar; the person whose wit,
wisdom, and approachability make him or her the center of conversation and the purveyor of
both advice and drink concoctions; the person who can FBM-343 Beverage and Bar
Management . ก16161616 advice and drink concoctions; the person who can hold court
behind a sleek bar at the ritziest private party or unclog the men’s-room sink in a pinch.
Bartending requires certain skills and aptitudes, not the least of which are patience,
adaptability, and a good attitude.
17. 17. The BartenderThe BartenderThe BartenderThe Bartender When you’re looking for
candidates for a bartender job consider these points: 1. Sex makes no difference.1. Sex
makes no difference. 2. The bartender is a good host 3. The bartender is a diplomat 4. The
bartender is an authority figure 5. The bartender is a role model 6. The bartender knows how
to mix a drink FBM-343 Beverage and Bar Management . ก17171717 6. The bartender
knows how to mix a drink 7. The bartender pays attention to detail 8. The bartender is
imaginative and fun
18. 18. ALL I REALLY NEED TO KNOW I LEARNED BARTENDINGALL I REALLY NEED TO
KNOW I LEARNED BARTENDINGALL I REALLY NEED TO KNOW I LEARNED
BARTENDINGALL I REALLY NEED TO KNOW I LEARNED BARTENDING Everything I
really need to know about how to exist in this world, personal or business, I learned
bartending. This knowledge was shared with mebartending. This knowledge was shared with
me by owners, managers, salesmen, waitresses, waiters, bartenders, and customers. Most
of these teachers were successful in life’s everyday challenges. These tips you cannot
spend, they are the tips you keep for life: FBM-343 Beverage and Bar Management .
ก18181818 spend, they are the tips you keep for life:
19. 19. ALL I REALLY NEED TO KNOW I LEARNED BARTENDINGALL I REALLY NEED TO
KNOW I LEARNED BARTENDINGALL I REALLY NEED TO KNOW I LEARNED
BARTENDINGALL I REALLY NEED TO KNOW I LEARNED BARTENDING Give everyone a
fair shot. If you haven’t anything nice to say, don’t say it. Use the BEST premium products
Wear a clean shirt every day. Don’t cheat or steal. Smile! Keep your hands and
fingernailsUse the BEST premium products and you’ll be the BEST. Serve. Be the solution to
the problem, not part of the problem. Don’t drink and drive, don’t let others. Respect
salesmen, you’re one. Don’t take sides. You’ll make Keep your hands and fingernails clean.
Use Mr., Sir, or Ms. when talking to strangers. Don’t be a part of a rumor. Keep your space
clean. Don’t waste. Be on time. FBM-343 Beverage and Bar Management . ก19191919 Don’t
take sides. You’ll make two enemies. Be NEAT. Be on time. Help others when they’re busy.
Don’t use the easy way. Use the right way. Don’t give up. Follow your dream.
20. 20. 2. The Barback A barback typically relieves the bartender of all chores except pouring
the drinks and handling the customers and the cash register.and the cash register. A
barback may be responsible for any or all of the following tasks: setting up the bar; preparing
garnishes, special mixes, and syrups; filling ice bins; washing glassware and utensils;
maintaining supplies of towels, napkins, picks, straws, stir sticks, and matches; keeping bar
surfaces and ashtrays clean; washing fixtures; and FBM-343 Beverage and Bar
Management . ก20202020 bar surfaces and ashtrays clean; washing fixtures; and mopping
floors.
21. 21. 2. The Barback The barback is also a runner or gofer, who goes for liquors, beers, wines,
and other supplies as needed by the bartender. Often a barback is an apprentice bartender
and may serve beer or mix simple drinks under the bartender’s supervision. In short Often a
barback is an apprentice bartender and may serve beer or mix simple drinks under the
bartender’s supervision. In short a barback program is an excellent way to always have
people in training for bartending positions. FBM-343 Beverage and Bar Management .
ก21212121
22. 22. 3333.... The Server Beverage service at tables, whether in a cocktail lounge or in a
dining room, is handled by waiters or waitresses, a group collectively referred to as servers.
Servers record the customers’ drink or waitresses, a group collectively referred to as servers.
Servers record the customers’ drink orders, transmit them to the bartender, pick up the
drinks, serve the customers, present the tab, and collect payment Like the bartender, the
server is also a host and a promoter. A few basic requirements for table FBM-343 Beverage
and Bar Management . ก22222222 a promoter. A few basic requirements for table servers
include a pleasant personality, a neat and attractive appearance, poise, and a mind for detail
23. 23. 3333.... The Server The server must actually offer cocktails, wine, or beer to every table.
As elementary as it sounds, failure to ask for the sale is the principal reason that a sale is not
made. And remember, there are numerous opportunities during every guest’s visitthere are
numerous opportunities during every guest’s visit when a selling suggestion is appropriate. A
good training program should help servers learn these important cues. The server must
make it known to customers that he or she is happy to assist them in selecting a beverage.
Again, training gives your server these skills, which builds their confidence and improves
your business. At the very least good bar service requires a basic knowledge of a broad
array of drinks and some variations, so the server can pin down the customer’s FBM-343
Beverage and Bar Management . ก23232323 requires a basic knowledge of a broad array of
drinks and some variations, so the server can pin down the customer’s exact preferences:
Does he want his Martini with an olive or a lemon twist? Does she want her Sour straight up
or on the rocks? The best cocktail server’s drink knowledge is almost as extensive as a
bartender’s. A server may even mix drinks to allow the bartender to take a break.
24. 24. 3333.... The Server In many restaurants waiters and waitresses serve both food and
drinks, including wine by the bottle, with the meal. Servers must be able tobottle, with the
meal. Servers must be able to open a wine bottle properly, carry out the rituals of wine
service, and answer questions about wines, specialty drinks, and recipes. FBM-343
Beverage and Bar Management . ก24242424
25. 25. 4444.... The Wine Steward or Sommelier Fine restaurants that feature elegant service
may have a management-level employee who handles the orderingemployee who handles
the ordering and serving of wine. The wine stewardwine stewardwine stewardwine steward
(also called the cellarmaster,cellarmaster,cellarmaster,cellarmaster, winemaster, wine
captain, or wine waiter, all terms applying to both sexes) presents the wine list at the FBM-
343 Beverage and Bar Management . ก25252525 sexes) presents the wine list at the table,
makes recommendations, discusses wines with customers, and takes care of serving the
wines
26. 26. 4444.... The Wine Steward or Sommelier In addition to being part of the serving staff, a
well-qualified wine waiter can become an integral part of the management team, who can do
any orpart of the management team, who can do any or all of the following: FBM-343
Beverage and Bar Management . ก26262626
27. 27. 4444.... The Wine Steward or Sommelier Create a wine list that fits your atmosphere and
menu. Deal with suppliers and importers and order wine.Deal with suppliers and importers
and order wine. Negotiate exclusive deals to carry certain wines in your market. Control and
keep inventory of the cellar or wine- storage area. FBM-343 Beverage and Bar Management
. ก27272727 storage area. Make purchasing decisions to maximize profits, in some
situations this includes buying wines to store for future years’ lists.
28. 28. 4444.... The Wine Steward or Sommelier Train your servers and other staff members in
wine appreciation. Orchestrate and help publicize tastings, wineOrchestrate and help
publicize tastings, wine dinners, seminars, and other winerelated events for your business.
FBM-343 Beverage and Bar Management . ก28282828
29. 29. 5555.... Security Positions This may come in the form of a doorman or door person. This
person is expected to keep order if there are long lines to get in, to person is expected to
keep order if there are long lines to get in, to ask for customers’ identification (and firmly but
politely enforce a dress code or refuse to admit underage people), and to collect a cover
chargecover chargecover chargecover charge at the front door. The cover charge is a fee for
FBM-343 Beverage and Bar Management . ก29292929 The cover charge is a fee for
admittance to the bar, and is sometimes given to or split with the band if there’s live music.
30. 30. 6. Beverage-Management Positions In very large operations the beverage steward may
work for the beverage manager or beverage director. This is often a senior-management
position, part of theThis is often a senior-management position, part of the team that runs a
corporate operation: a hotel, a large nightclub, a high-volume restaurant, or an entire hotel or
restaurant chain. The beverage director is in charge of hiring, training, and supervising all
beverage-related personnel; purchasing all beverages and beverage equipment; FBM-343
Beverage and Bar Management . ก30303030 purchasing all beverages and beverage
equipment; establishing and maintaining inventory and control systems; setting standards;
and making policy on matters relating to beverage operation.
31. 31. 6. Beverage-Management Positions A beverage director is either part of, or reports to,
top management. In some large organizations responsibility for food-In some large
organizations responsibility for food- and-beverage service is combined into one position
called the food-and-beverage director. Such management positions require several years of
industry experience, preferably firsthand experience in each area of responsibility. FBM-343
Beverage and Bar Management . ก31313131 each area of responsibility.
32. 32. 6. Beverage-Management Positions following list of qualities that you will find in the best
bar managers: 1. Business training.1. Business training. 2. Market knowledge 3. Desire to
lead 4. Maturity and stability 5. Financial wisdom FBM-343 Beverage and Bar Management .
ก32323232 5. Financial wisdom 6. Street smarts 7. Legal knowledge
33. 33. 6. Beverage-Management Positions A manager’s overall responsibilities may include
hiring and firing;hiring and firing;hiring and firing;hiring and firing; training, scheduling,
andtraining, scheduling, andtraining, scheduling, andtraining, scheduling, andtraining,
scheduling, andtraining, scheduling, andtraining, scheduling, andtraining, scheduling, and
supervising personnel;supervising personnel;supervising personnel;supervising personnel;
forecasting and budgeting;forecasting and budgeting;forecasting and budgeting;forecasting
and budgeting; purchasing beverages and related supplies or requisitioningpurchasing
beverages and related supplies or requisitioningpurchasing beverages and related supplies
or requisitioningpurchasing beverages and related supplies or requisitioning them from a
corporate commissary;them from a corporate commissary;them from a corporate
commissary;them from a corporate commissary; maintaining records;maintaining
records;maintaining records;maintaining records; carrying out control systems (the manager
typically has thecarrying out control systems (the manager typically has thecarrying out
control systems (the manager typically has thecarrying out control systems (the manager
typically has the only key to the storeroom);only key to the storeroom);only key to the
storeroom);only key to the storeroom); FBM-343 Beverage and Bar Management .
ก33333333 carrying out control systems (the manager typically has thecarrying out control
systems (the manager typically has thecarrying out control systems (the manager typically
has thecarrying out control systems (the manager typically has the only key to the
storeroom);only key to the storeroom);only key to the storeroom);only key to the storeroom);
handling cash and payroll;handling cash and payroll;handling cash and payroll;handling cash
and payroll; maintaining quality; andmaintaining quality; andmaintaining quality;
andmaintaining quality; and promoting the enterprise and the merchandisepromoting the
enterprise and the merchandisepromoting the enterprise and the merchandisepromoting the
enterprise and the merchandise
34. 34. DeterminingDeterminingDeterminingDetermining Staff NeedsStaff NeedsStaff
NeedsStaff Needs DeterminingDeterminingDeterminingDetermining Staff NeedsStaff
NeedsStaff NeedsStaff Needs 34 DeterminingDeterminingDeterminingDetermining Staff
NeedsStaff NeedsStaff NeedsStaff Needs DeterminingDeterminingDeterminingDetermining
Staff NeedsStaff NeedsStaff NeedsStaff Needs
35. 35. Determining Staff Needs Now that you’ve have learned what is expected of each major
bar-related job, you can adapt the information by adding more detail about the specifics of
your bar.by adding more detail about the specifics of your bar. For example, 1.1.1.1. will your
bartenders be working a service bar or publicwill your bartenders be working a service bar or
publicwill your bartenders be working a service bar or publicwill your bartenders be working a
service bar or public bar?bar?bar?bar? 2.2.2.2. Free pour, measured pour, or metered
gun?Free pour, measured pour, or metered gun?Free pour, measured pour, or metered
gun?Free pour, measured pour, or metered gun? 3.3.3.3. How many minimum drinks per
hour must they serve?How many minimum drinks per hour must they serve?How many
minimum drinks per hour must they serve?How many minimum drinks per hour must they
serve? FBM-343 Beverage and Bar Management . ก35353535 3.3.3.3. How many minimum
drinks per hour must they serve?How many minimum drinks per hour must they serve?How
many minimum drinks per hour must they serve?How many minimum drinks per hour must
they serve? 4.4.4.4. What kind of person will maintain your image?What kind of person will
maintain your image?What kind of person will maintain your image?What kind of person will
maintain your image? 5.5.5.5. This kind of information belongs in theThis kind of information
belongs in theThis kind of information belongs in theThis kind of information belongs in the
job description,job description,job description,job description, aaaa written blueprint of what
is required in each job.written blueprint of what is required in each job.written blueprint of
what is required in each job.written blueprint of what is required in each job.
36. 36. 1111.... Developing Job Descriptions Skills and aptitudes Physical characteristics Health
requirements Physical characteristics Health requirements Mental ability and attitude Age
requirements FBM-343 Beverage and Bar Management . ก36363636
37. 37. BARTENDER JOB DESCRIPTIONBARTENDER JOB DESCRIPTIONBARTENDER JOB
DESCRIPTIONBARTENDER JOB DESCRIPTION
Description:Description:Description:Description: Bartenders work behind the bars and in
back-of-the-house areas. They prepare and sell drinks to Cocktail Hostesses andareas. They
prepare and sell drinks to Cocktail Hostesses and customers. They prep their work area with
several functions, measure and prepare drinks according to receipe, and make cash register
transactions. Bartenders must handle credit card tabs, note spills and overrings, and address
the cash register immediately after preparing an order. They accept tips, but do not allow tips
to remain on the bar or do not exchange tips or change with cash FBM-343 Beverage and
Bar Management . ก37373737 remain on the bar or do not exchange tips or change with
cash register monies prior to the end of their shift. Bartenders perform cleanup and register
checkout functions at the end of their shift. They also stock products and supplies.
38. 38. BARTENDER JOB DESCRIPTIONBARTENDER JOB DESCRIPTIONBARTENDER JOB
DESCRIPTIONBARTENDER JOB DESCRIPTION They perform “silent selling” and
“upselling” techniques and inform customers of club activities and promotions. They serve
customers by using “experience time” goals and create an upbeat, friendly environment in
their work area. They must customers by using “experience time” goals and create an
upbeat, friendly environment in their work area. They must function as a team member with
Barbacks, other Bartenders, and Cocktail Hostesses. They must learn and use alcohol
management techniques and advise the management staff of intoxicated or unruly
customers. Due to the high level of customer interaction, the Bartender must perform all
duties with great emphasis on cleanliness, FBM-343 Beverage and Bar Management .
ก38383838 must perform all duties with great emphasis on cleanliness, personability,
professionalism, and service. Bartenders are strongly encouraged to work up individual
“Showtimes”— complete with costumes—to be performed throughout the evening with the
Programmer.
39. 39. BARTENDER JOB DESCRIPTIONBARTENDER JOB DESCRIPTIONBARTENDER JOB
DESCRIPTIONBARTENDER JOB DESCRIPTION Functions:Functions:Functions:Functions:
Prepare cocktails per recipe and serve per specifications. Prep, clean, and stock work
area—before, during, and specifications. Prep, clean, and stock work area—before, during,
and after shift. Accept credit cards, cash, and coupons for products. Perform cash register
functions, and checkout accurately. Perform “silent selling” and “upselling” functions. Monitor
customers for intoxication, rowdiness, or need FBM-343 Beverage and Bar Management .
ก39393939 Monitor customers for intoxication, rowdiness, or need for drinks. Have
“Showtime” mentality. Supervisors:Supervisors:Supervisors:Supervisors: Bar Manager and
Management Staff.
40. 40. BARBACK JOB DESCRIPTIONBARBACK JOB DESCRIPTIONBARBACK JOB
DESCRIPTIONBARBACK JOB DESCRIPTION
Description:Description:Description:Description: Barbacks work behind the bar areas and in
back- of-the-house areas. Barbacks support the work Barbacks work behind the bar areas
and in back- of-the-house areas. Barbacks support the work of Bartenders by performing
tasks of fruit cutting, juice making, filling of ice bins, removal of trash, and preparation of
“speciality” cocktails. They have several opening and closing duties involving product
stocking and cleanliness, and assist in FBM-343 Beverage and Bar Management .
ก40404040 product stocking and cleanliness, and assist in keeping their work area clean
through operating hours.
41. 41. BARBACK JOB DESCRIPTIONBARBACK JOB DESCRIPTIONBARBACK JOB
DESCRIPTIONBARBACK JOB DESCRIPTION Barbacks do not accept tips or money from
customers and do not handle transactions or register functions. They assist in the
preparation of the Liquor Requisition form and advise the Bar Manager of needed supplies
They assist in the preparation of the Liquor Requisition form and advise the Bar Manager of
needed supplies and products. Barbacks only prepare frozen cocktails. They wash
glassware and utensils, and supply the Bartenders with needed liquor, beer, and supplies.
Because of the extensive customer contact, Barbacks must work with courtesy, energy, and
speed. Barbacks are strongly FBM-343 Beverage and Bar Management . ก41414141
courtesy, energy, and speed. Barbacks are strongly encouraged to work up individual
“Showtime” routines—complete with costumes—to be performed throughout the evening
with the Programmer.
42. 42. BARBACK JOB DESCRIPTIONBARBACK JOB DESCRIPTIONBARBACK JOB
DESCRIPTIONBARBACK JOB DESCRIPTION Functions:Functions:Functions:Functions:
Set-up the bars for operation. Clean and mop the bars during operation and atClean and
mop the bars during operation and at the end of operation. Stock glassware and product.
Change out condiments and juices for the Bartenders. Prepare club “specialty” cocktails.
FBM-343 Beverage and Bar Management . ก42424242 Prepare club “specialty” cocktails.
Monitor customers for intoxication, rowdiness, or need for drinks. Have “Showtime” mentality.
43. 43. BARBACK JOB DESCRIPTIONBARBACK JOB DESCRIPTIONBARBACK JOB
DESCRIPTIONBARBACK JOB DESCRIPTION
Supervisors:Supervisors:Supervisors:Supervisors: Bar Manager. Management Staff.
(Directed by Bartenders during operating hours.)(Directed by Bartenders during operating
hours.) Uniform:Uniform:Uniform:Uniform: Black work shoes or coaching shoes, black pants,
white button- down oxford shirt (long sleeve), blue apron, blue bowtie, name tag, three club
buttons, one button of choice, pen, lighter, and a smile.
Grooming:Grooming:Grooming:Grooming: FBM-343 Beverage and Bar Management .
ก43434343 Grooming:Grooming:Grooming:Grooming: “All-American scrubbed-up” look for
hair. Clean and neat hair, nails, and skin. For men, no beards or earrings.
44. 44. Training The StaffTraining The StaffTraining The StaffTraining The StaffTraining The
StaffTraining The StaffTraining The StaffTraining The Staff 44 Training The StaffTraining The
StaffTraining The StaffTraining The StaffTraining The StaffTraining The StaffTraining The
StaffTraining The Staff
45. 45. TRAINING THE STAFF The first part of the manager’s personnel responsibility,
explaining jobs and assigning responsibilities, begins right after employees
areresponsibilities, begins right after employees are hired. Every person must learn exactly
what is expected of them FBM-343 Beverage and Bar Management . ก45454545
46. 46. TRAINING THE STAFF There are at least four good reasons for taking the time and
effort to give employees a basic, all-inclusive orientation session before they start
work:orientation session before they start work: 1.1.1.1. They will be able to work faster and
with less confusion.They will be able to work faster and with less confusion.They will be able
to work faster and with less confusion.They will be able to work faster and with less
confusion. 2.2.2.2. They will feel more confident in their jobs, and this willThey will feel more
confident in their jobs, and this willThey will feel more confident in their jobs, and this
willThey will feel more confident in their jobs, and this will be reflected in their attitude toward
work and in the waybe reflected in their attitude toward work and in the waybe reflected in
their attitude toward work and in the waybe reflected in their attitude toward work and in the
way they relate to your customers.they relate to your customers.they relate to your
customers.they relate to your customers. 3.3.3.3. They will more easily establish good
relationships withThey will more easily establish good relationships withThey will more easily
establish good relationships withThey will more easily establish good relationships with
coworkers.coworkers.coworkers.coworkers. FBM-343 Beverage and Bar Management .
ก46464646 coworkers.coworkers.coworkers.coworkers. 4.4.4.4. They will be more likely to
stay if you ensure that theyThey will be more likely to stay if you ensure that theyThey will be
more likely to stay if you ensure that theyThey will be more likely to stay if you ensure that
they have a good experience from the very first day.have a good experience from the very
first day.have a good experience from the very first day.have a good experience from the
very first day.
47. 47. Bartender Training As you might imagine, introducing a new cocktail in such an
establishment is quite a feat and includes the following steps: 1.1.1.1. Standardizing the
drink recipeStandardizing the drink recipeStandardizing the drink recipeStandardizing the
drink recipe1.1.1.1. Standardizing the drink recipeStandardizing the drink
recipeStandardizing the drink recipeStandardizing the drink recipe 2.2.2.2. Pricing the
drinkPricing the drinkPricing the drinkPricing the drink 3.3.3.3. Equipping the bars with
ingredients and appliances (ifEquipping the bars with ingredients and appliances (ifEquipping
the bars with ingredients and appliances (ifEquipping the bars with ingredients and
appliances (if applicable) to produce the drinkapplicable) to produce the drinkapplicable) to
produce the drinkapplicable) to produce the drink 4.4.4.4. Training the bartenders to use the
equipment andTraining the bartenders to use the equipment andTraining the bartenders to
use the equipment andTraining the bartenders to use the equipment and ingredients to make
the drinkingredients to make the drinkingredients to make the drinkingredients to make the
drink 5.5.5.5. Reprinting the cocktail menus and otherwise advertisingReprinting the cocktail
menus and otherwise advertisingReprinting the cocktail menus and otherwise
advertisingReprinting the cocktail menus and otherwise advertising the ‘‘new’’ drink
concoctionthe ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoction
6.6.6.6. Programming the computerized cash registers to trackProgramming the
computerized cash registers to trackProgramming the computerized cash registers to
trackProgramming the computerized cash registers to track FBM-343 Beverage and Bar
Management . ก47474747 the ‘‘new’’ drink concoctionthe ‘‘new’’ drink concoctionthe ‘‘new’’
drink concoctionthe ‘‘new’’ drink concoction 6.6.6.6. Programming the computerized cash
registers to trackProgramming the computerized cash registers to trackProgramming the
computerized cash registers to trackProgramming the computerized cash registers to track
sales of the new drinksales of the new drinksales of the new drinksales of the new drink
7.7.7.7. Familiarizing the servers with the drink, including a tasteFamiliarizing the servers
with the drink, including a tasteFamiliarizing the servers with the drink, including a
tasteFamiliarizing the servers with the drink, including a taste of it, so that they can describe
and sell itof it, so that they can describe and sell itof it, so that they can describe and sell itof
it, so that they can describe and sell it
48. 48. Sales Training This kind of training is a combination of the following: 1.1.1.1. Product
knowledgeProduct knowledgeProduct knowledgeProduct knowledge1.1.1.1. Product
knowledgeProduct knowledgeProduct knowledgeProduct knowledge 2.2.2.2. Sales
skillsSales skillsSales skillsSales skills 3.3.3.3. Guest psychologyGuest psychologyGuest
psychologyGuest psychology 4.4.4.4. Rules, etiquette,Rules, etiquette,Rules,
etiquette,Rules, etiquette, and techniqueand techniqueand techniqueand technique FBM-343
Beverage and Bar Management . ก48484848
49. 49. Training in Beverage Laws The following are three more general ideas on which
beverage laws are based: 1.1.1.1. Alcohol may be served only during the days andAlcohol
may be served only during the days andAlcohol may be served only during the days
andAlcohol may be served only during the days and1.1.1.1. Alcohol may be served only
during the days andAlcohol may be served only during the days andAlcohol may be served
only during the days andAlcohol may be served only during the days and hours established
by law in your area.hours established by law in your area.hours established by law in your
area.hours established by law in your area. 2.2.2.2. It is against state law everywhere to
serveIt is against state law everywhere to serveIt is against state law everywhere to serveIt is
against state law everywhere to serve alcohol to anyone underalcohol to anyone
underalcohol to anyone underalcohol to anyone under 20202020 3.3.3.3. It is against the law
to serve alcohol to anyoneIt is against the law to serve alcohol to anyoneIt is against the law
to serve alcohol to anyoneIt is against the law to serve alcohol to anyone who is clearly
intoxicated.who is clearly intoxicated.who is clearly intoxicated.who is clearly intoxicated.
FBM-343 Beverage and Bar Management . ก49494949 who is clearly intoxicated.who is
clearly intoxicated.who is clearly intoxicated.who is clearly intoxicated.
50. 50. Training in Beverage Laws A number of good training programs have been developed to
teach bar managers and servers how to tell when people are drinking too much and what to
do about it. In these courses you can expect to learn how managers and servers how to tell
when people are drinking too much and what to do about it. In these courses you can expect
to learn how to: 1.1.1.1. Keep track of the number of drinks served to each customer.Keep
track of the number of drinks served to each customer.Keep track of the number of drinks
served to each customer.Keep track of the number of drinks served to each customer.
2.2.2.2. Recognize behaviors that might indicate increasing intoxication.Recognize behaviors
that might indicate increasing intoxication.Recognize behaviors that might indicate increasing
intoxication.Recognize behaviors that might indicate increasing intoxication. 3.3.3.3.
Understand drink equivalencies (how strong different drinks are).Understand drink
equivalencies (how strong different drinks are).Understand drink equivalencies (how strong
different drinks are).Understand drink equivalencies (how strong different drinks are). 4.4.4.4.
Observe guests’ body types and sizes to determine how many drinksObserve guests’ body
types and sizes to determine how many drinksObserve guests’ body types and sizes to
determine how many drinksObserve guests’ body types and sizes to determine how many
drinks are ‘‘too many.’’are ‘‘too many.’’are ‘‘too many.’’are ‘‘too many.’’ 5.5.5.5. Encourage
alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage alternatives to alcohol
(snacks, a cup of coffee, dinner).Encourage alternatives to alcohol (snacks, a cup of coffee,
dinner).Encourage alternatives to alcohol (snacks, a cup of coffee, dinner). FBM-343
Beverage and Bar Management . ก50505050 are ‘‘too many.’’are ‘‘too many.’’are ‘‘too
many.’’are ‘‘too many.’’ 5.5.5.5. Encourage alternatives to alcohol (snacks, a cup of coffee,
dinner).Encourage alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage
alternatives to alcohol (snacks, a cup of coffee, dinner).Encourage alternatives to alcohol
(snacks, a cup of coffee, dinner). 6.6.6.6. Tactfully but firmly refuse to serve the person who
can not handle anyTactfully but firmly refuse to serve the person who can not handle
anyTactfully but firmly refuse to serve the person who can not handle anyTactfully but firmly
refuse to serve the person who can not handle any more (‘‘I’m sorry, but I’m not allowed to
bring you another drink.’’).more (‘‘I’m sorry, but I’m not allowed to bring you another
drink.’’).more (‘‘I’m sorry, but I’m not allowed to bring you another drink.’’).more (‘‘I’m sorry,
but I’m not allowed to bring you another drink.’’).
51. 51. Planning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for
ProfitPlanning for ProfitPlanning for ProfitPlanning for Profit 51 Planning for ProfitPlanning for
ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for ProfitPlanning for
ProfitPlanning for Profit
52. 52. PRICING FOR PROFIT Profit is the difference been total sales and total costs. For a bar
total sales are the number of drinks sold multiplied by their selling prices.drinks sold
multiplied by their selling prices. Several factors are involved: the cost of each drink, the
effect of price on demand for the drink, the contribution of each drink to total sales, and the
effect of the sales mix on profits. FBM-343 Beverage and Bar Management . ก52525252
53. 53. The Demand/Price Relationship Costs and percentages are not the whole answer to
pricing. Price is only one of two factors in total sales. The other, as you likely know, is
thesales. The other, as you likely know, is the number of drinks sold. The price affects the
number The effect of prices on numbers is the elusive secret of successful pricing—elusive
because no one ever knows precisely what effect a change of FBM-343 Beverage and Bar
Management . ก53535353 one ever knows precisely what effect a change of price will have
on demand in any given situation.
54. 54. Coordinating Prices to Maximize Profits The following price categories may be useful;
they should at least give you a point of departure for your own plan: 1.1.1.1.
Highballs.Highballs.Highballs.Highballs. Two prices, one for highballs poured with well
brands and one for those made with call-brand drinks. 1.1.1.1.
Highballs.Highballs.Highballs.Highballs. Two prices, one for highballs poured with well
brands and one for those made with call-brand drinks. Generally highballs make up the
lowest price category. 2.2.2.2. Cocktails.Cocktails.Cocktails.Cocktails. Two prices, one for
cocktails made with well brands and one for those made with call brands. 3.3.3.3. Frozen
drinks and iceFrozen drinks and iceFrozen drinks and iceFrozen drinks and ice----cream
drinks.cream drinks.cream drinks.cream drinks. Two prices, one for well and one for call
brands. 4.4.4.4. AfterAfterAfterAfter----dinner liqueurs and brandies.dinner liqueurs and
brandies.dinner liqueurs and brandies.dinner liqueurs and brandies. Two prices, one for
FBM-343 Beverage and Bar Management . ก54545454 4.4.4.4. AfterAfterAfterAfter----dinner
liqueurs and brandies.dinner liqueurs and brandies.dinner liqueurs and brandies.dinner
liqueurs and brandies. Two prices, one for ordinary liqueurs and one for premium liqueurs
and French brandies. 5.5.5.5. Specialty drinks.Specialty drinks.Specialty drinks.Specialty
drinks. Two prices, one for well brands and one for call brands.
55. 55. ESTABLISHING PRODUCT CONTROLS ESTABLISHING PRODUCT CONTROLS 55
CONTROLSCONTROLS
56. 56. ESTABLISHING PRODUCT CONTROLS 1111. Standard Drink Size. Standard Drink
Size. Standard Drink Size. Standard Drink Size In the vocabulary of the bar the term drink
sizedrink sizedrink sizedrink size refers to the amount of the prime ingredient In the
vocabulary of the bar the term drink sizedrink sizedrink sizedrink size refers to the amount of
the prime ingredient used per drink poured, not the size of the finished drink. As such if your
drink size is 11⁄2 ounces, you will pour 11⁄2 ounces of the base liquor in each drink, whatever
it is. FBM-343 Beverage and Bar Management . ก56565656 pour 11 2 ounces of the base
liquor in each drink, whatever it is. This is your standard drink size.standard drink
size.standard drink size.standard drink size.
57. 57. ESTABLISHING PRODUCT CONTROLS 2222. Standard Drink Recipe. Standard Drink
Recipe. Standard Drink Recipe. Standard Drink Recipe A recipe that specifies exactly how a
given drink is made at a given bar is known as a A recipe that specifies exactly how a given
drink is made at a given bar is known as a standardized recipe It specifies the exact quantity
of each ingredient, the size glass to be used, and the exact procedure for preparing the
drink. FBM-343 Beverage and Bar Management . ก57575757
58. 58. ESTABLISHING PRODUCT CONTROLS Standardized RecipeStandardized
RecipeStandardized RecipeStandardized Recipe FBM-343 Beverage and Bar Management .
ก58585858
59. 59. ESTABLISHING PRODUCT CONTROLS 3333. Standard Glassware. Standard
Glassware. Standard Glassware. Standard Glassware Each standard drink should be served
in a standard glass, a glass of specified size andstandard glass, a glass of specified size and
shape that is used every time that the drink is poured. The size is the more important feature
since it controls both the quantity of the ingredients that must fill it and the taste, When
standardizing your glassware choose whatever size and shape will give each drink the FBM-
343 Beverage and Bar Management . ก59595959 When standardizing your glassware
choose whatever size and shape will give each drink the most appeal. This doesn’t mean the
glassware itself has to be special; it means that the drink in the glass should look appealing.
60. 60. ESTABLISHING CASHESTABLISHING CASH 60 ESTABLISHING CASH CONTROLS
ESTABLISHING CASH CONTROLS
61. 61. ESTABLISHING CASH CONTROLS When a customer buys a drink you must have a
way of making sure that the sale is recorded and that the money finds its way into the
cashthat the money finds its way into the cash register. There are many systems of paying
for drinks. Whatever system, you need standard procedures for handling cash and some
form of guest check for the record. You need the record. You want FBM-343 Beverage and
Bar Management . ก61616161 for the record. You need the record. You want the cash.
Some of your personnel and your customers might want the cash, too.
62. 62. The BartenderThe BartenderThe BartenderThe Bartender 1. Fails to ring up sales and
pockets the money 2. Overcharges and pockets the difference 3. Shortchanges customer
and keeps change 4. Brings in own liquor and sells it (using house mixes and 3.
Shortchanges customer and keeps change 4. Brings in own liquor and sells it (using house
mixes and garnishes) 5. Brings in empty bottle, turns it in to storeroom, then sells from bottle
that replaces it and pockets money 6. Short-pours a series of drinks, then sells others from
same bottle, keeping themoney 7. Sells liquor from one bottle without ringing up, then FBM-
343 Beverage and Bar Management . ก62626262 7. Sells liquor from one bottle without
ringing up, then waters down the remainder to cover theft 8. Substitutes well liquor for call
brand, collects for call brand but rings up well price, keeps the change 9. Smuggles out full
bottles
63. 63. The ServerThe ServerThe ServerThe Server 1. ‘‘Loses’’ guest check after collecting and
pockets the money 2. Reuses guest check and keeps the money2. Reuses guest check and
keeps the money 3. Overcharges for drinks and pockets the difference 4. Makes intentional
mistakes in totaling guest check and keeps the overage 5. Intentionally omits items from
guest check to increase tip FBM-343 Beverage and Bar Management . ก63636363 tip 6.
Changes items and prices on guest check after customer pays 7. Gives too little change and
pockets the balance
64. 64. The CashierThe CashierThe CashierThe Cashier 1. Gives too little change and pockets
the balance 2. Fails to ring up guest check, pockets the money, and ‘‘loses’’ guest check
(blame falls on server) 2. Fails to ring up guest check, pockets the money, and ‘‘loses’’ guest
check (blame falls on server) FBM-343 Beverage and Bar Management . ก64646464
65. 65. The CustomerThe CustomerThe CustomerThe Customer 1. Walks out without paying 2.
Sends back drink or wine after half-emptying glass or bottle 2. Sends back drink or wine after
half-emptying glass or bottle 3. Uses expired credit card 4. Pays with a bad check FBM-343
Beverage and Bar Management . ก65656565
66. 66. ESTABLISHING CASH CONTROLS The cash-control system that you devise to forestall
all of these little tricks should both reduce opportunity and pinpoint responsibility.reduce
opportunity and pinpoint responsibility. We suggest the following system: 1. If there is no
POS system to generate a computerized check 2. Direct staff to write all guest checks clearly
and in ink. FBM-343 Beverage and Bar Management . ก66666666 in ink. 3. If possible use a
precheck method of registering drinks.
67. 67. ESTABLISHING CASH CONTROLS 4.4.4.4. The bartender or cashier should ring up the
sale,The bartender or cashier should ring up the sale,The bartender or cashier should ring
up the sale,The bartender or cashier should ring up the sale, using the total on the POS
terminalusing the total on the POS terminalusing the total on the POS terminalusing the total
on the POS terminal 5. Instruct the server to print the amount received5. Instruct the server
to print the amount received from the customer on the bottom of the check. 6. Ring up each
check individually when paid, and close the register drawer aftereach transaction. 7. Give
receipts to customers along with their change FBM-343 Beverage and Bar Management .
ก67676767 change 8. Allow only one person at a time to operate the cash register and to be
responsible for the cash in the drawer.
68. 68. Managing yourManaging yourManaging yourManaging your Bar BusinessBar
BusinessBar BusinessBar Business Managing yourManaging yourManaging yourManaging
your Bar BusinessBar BusinessBar BusinessBar Business 68 Managing yourManaging
yourManaging yourManaging your Bar BusinessBar BusinessBar BusinessBar Business
Managing yourManaging yourManaging yourManaging your Bar BusinessBar BusinessBar
BusinessBar Business
69. 69. Creating a Business PlanCreating a Business PlanCreating a Business PlanCreating a
Business PlanCreating a Business PlanCreating a Business PlanCreating a Business
PlanCreating a Business Plan 69 Creating a Business PlanCreating a Business PlanCreating
a Business PlanCreating a Business PlanCreating a Business PlanCreating a Business
PlanCreating a Business PlanCreating a Business Plan
70. 70. Creating a Business PlanCreating a Business PlanCreating a Business PlanCreating a
Business Plan This is the ‘‘resume’’ of your business: an instrument that shows a seasoned
consideration for all aspects of running it. A good business planfor all aspects of running it. A
good business plan should accomplish three things: 1.1.1.1. It should serve as your basic
operating toolIt should serve as your basic operating toolIt should serve as your basic
operating toolIt should serve as your basic operating tool 2.2.2.2. It should be useful to
communicate exactly whoIt should be useful to communicate exactly whoIt should be useful
to communicate exactly whoIt should be useful to communicate exactly who and what you
areand what you areand what you areand what you are 3.3.3.3. It should be useful in
obtaining financingIt should be useful in obtaining financingIt should be useful in obtaining
financingIt should be useful in obtaining financing FBM-343 Beverage and Bar Management
. ก70707070 3.3.3.3. It should be useful in obtaining financingIt should be useful in obtaining
financingIt should be useful in obtaining financingIt should be useful in obtaining financing
71. 71. Creating a Business PlanCreating a Business PlanCreating a Business PlanCreating a
Business Plan Most experts suggest that you begin the research for this endeavor by
deciding which beverages you are going to sell. The raw materials to make these drinks will
take 20 to 25 percent of your gross sales. going to sell. The raw materials to make these
drinks will take 20 to 25 percent of your gross sales. Estimating labor costs is the next task
and typically the largest expense of any restaurant or bar. As much as one-third of your
gross sales may be spent on employees’ wages and benefits. Occupancy costs (rent or
mortgage payment on the space, utilities, and maintenance) should be limited to 8 percent of
annual gross sales. In addition to startup costs, it is wise to FBM-343 Beverage and Bar
Management . ก71717171 maintenance) should be limited to 8 percent of annual gross
sales. In addition to startup costs, it is wise to maintain a cash reserve of 6 months’ operating
expenses.
72. 72. FBM-343 Beverage and Bar Management . ก72727272
73. 73. 1. Using the Business Plan 1.1.1.1. Location analysisLocation analysisLocation
analysisLocation analysis 2.2.2.2. Competitor analysisCompetitor analysisCompetitor
analysisCompetitor analysis 3.3.3.3. SWOT analysisSWOT analysisSWOT analysisSWOT
analysis 2.2.2.2. Competitor analysisCompetitor analysisCompetitor analysisCompetitor
analysis 3.3.3.3. SWOT analysisSWOT analysisSWOT analysisSWOT analysis 4.4.4.4. Lack
of followLack of followLack of followLack of follow----throughthroughthroughthrough 5.5.5.5.
Much talk, minimal resourcesMuch talk, minimal resourcesMuch talk, minimal
resourcesMuch talk, minimal resources 6.6.6.6.
ProcrastinationProcrastinationProcrastinationProcrastination 7.7.7.7. Refining an idea
endlesslyRefining an idea endlesslyRefining an idea endlesslyRefining an idea endlessly
FBM-343 Beverage and Bar Management . ก73737373 7.7.7.7. Refining an idea
endlesslyRefining an idea endlesslyRefining an idea endlesslyRefining an idea endlessly
8.8.8.8. Focusing on the buyFocusing on the buyFocusing on the buyFocusing on the buy----
inininin 9.9.9.9. Lack of visionLack of visionLack of visionLack of vision
74. 74. 2222.... What Is My Bar Worth? Bar owners ask this question only occasionally, such as
during a divorce, when making estate plans, or when mulling over the idea of sellingplans, or
when mulling over the idea of selling the business. And yet, by asking this basic question on
a semiannual or annual basis, he or she can take concrete steps to increase the value of the
business. FBM-343 Beverage and Bar Management . ก74747474 business.
75. 75. 2222.... What Is My Bar Worth? Value is a highly subjective concept and you may hear
several other terms in discussions of what businesses are worth:what businesses are worth:
1.1.1.1. Investment valueInvestment valueInvestment valueInvestment value 2.2.2.2.
Liquidation valueLiquidation valueLiquidation valueLiquidation value 3.3.3.3. Intrinsic
valueIntrinsic valueIntrinsic valueIntrinsic value FBM-343 Beverage and Bar Management .
ก75757575
76. 76. MARKETINGMARKETING 76 MARKETING BAR BUSINESS MARKETING BAR
BUSINESS
77. 77. MARKETING A BAR BUSINESS Shaping your marketing plan involves the following
three major steps: 1. market segment is a more or less homogeneous subgroup of the total
consumer market; its members have similar 1. market segment is a more or less
homogeneous subgroup of the total consumer market; its members have similar needs and
wants, attitudes, lifestyles, income levels, purchasing patterns, and so on. 2. Determine
which products and services this market segment wants to buy. 3. After you have defined
these two essentials you can take the third step: Shape everything about your enterprise to
attract customers and sell the product at a profit. In the FBM-343 Beverage and Bar
Management . ก77777777 the third step: Shape everything about your enterprise to attract
customers and sell the product at a profit. In the process you can position your enterprise in
relation to the competition by creating an image that will set you apart from the rest.
78. 78. 1. Positioning Your Business The PatronThe PatronThe PatronThe Patron The success
of your bar will depend to a large degree on your ability to know your customers, The
success of your bar will depend to a large degree on your ability to know your customers,
which does not always mean calling them by their first names or remembering what they
drink, although those are certainly handy skills. The overall guest experienceguest
experienceguest experienceguest experience is always affected by how the customer felt
walking into the bar in FBM-343 Beverage and Bar Management . ก78787878 The overall
guest experienceguest experienceguest experienceguest experience is always affected by
how the customer felt walking into the bar in the first place
79. 79. 1. Positioning Your Business The other components of the guest experience are: 1. The
service encounter1. The service encounter 2. The service scape, 3. The product itself affects
the guest experience. FBM-343 Beverage and Bar Management . ก79797979
80. 80. 1. Positioning Your Business The CompetitorsThe CompetitorsThe CompetitorsThe
Competitors We have already stressed the importance of studying your competition—not just
other barsstudying your competition—not just other bars and restaurants in the area, but
others anywhere in your town that might attract similar types of customers. Primary
competitorsPrimary competitorsPrimary competitorsPrimary competitors are those bars with
concepts similar to yours. FBM-343 Beverage and Bar Management . ก80808080 similar to
yours. Secondary competitorsSecondary competitorsSecondary competitorsSecondary
competitors are those bars that could be considered competition simply because they are
located near your proposed site.
81. 81. 1. Positioning Your Business Physical AttributesPhysical AttributesPhysical
AttributesPhysical Attributes LocationLocationLocationLocation Ambiance
AttributesAmbiance AttributesAmbiance AttributesAmbiance Attributes Menus and drink
listsMenus and drink listsMenus and drink listsMenus and drink
listsLocationLocationLocationLocation AccessibilityAccessibilityAccessibilityAccessibility
VisibilityVisibilityVisibilityVisibility AppearanceAppearanceAppearanceAppearance Menus
and drink listsMenus and drink listsMenus and drink listsMenus and drink lists
PricesPricesPricesPrices FoodserviceFoodserviceFoodserviceFoodservice Service
styleService styleService styleService style AtmosphereAtmosphereAtmosphereAtmosphere
Special characteristicsSpecial characteristicsSpecial characteristicsSpecial characteristics
FBM-343 Beverage and Bar Management . ก81818181 Special characteristicsSpecial
characteristicsSpecial characteristicsSpecial characteristics
82. 82. FBM-343 Beverage and Bar Management . ก82828282
83. 83. Components of Atmosphere Your position in the market will be a positive image in the
minds of customers that sets your enterprise apart. An image is, by definition, aenterprise
apart. An image is, by definition, a subjective impression based on something unique or
memorable about your place. It may come from a single feature or it may be the customer’s
total experience. Image is the element that you will emphasize in FBM-343 Beverage and
Bar Management . ก83838383 Image is the element that you will emphasize in promotions,
advertising, and on-site merchandising.
84. 84. Components of Atmosphere By this time you probably have a pretty good idea of the
overall impression you want to create: the atmosphere, or ambience, of your place. These
words are hard to define but you know the atmosphere, or ambience, of your place. These
words are hard to define but you know what they mean. They have to do with what is seen,
heard, touched, and tasted—the total of sensory impressions, to which the customer adds a
psychological ingredient of response. FBM-343 Beverage and Bar Management . ก84848484
psychological ingredient of response. Ambience may well be the most influential part of the
customer’s experience and it is likely to make its impact immediately.
85. 85. Components of Atmosphere You must address two major components when creating
atmosphere: ((((1111) physical factors and () physical factors and () physical factors and ()
physical factors and (2222) human factors.) human factors.) human factors.) human
factors.((((1111) physical factors and () physical factors and () physical factors and ()
physical factors and (2222) human factors.) human factors.) human factors.) human factors.
Among the physical factors appearance and comfort are most important. Appearance has
the most immediate impact, from the entrance and the interior as a whole, to the lesser
details of uniforms, restrooms, tabletops, glassware, and matchbook covers. FBM-343
Beverage and Bar Management . ก85858585 matchbook covers. Restrooms deserve special
attention; they can cancel out a previously favorable impression. The types and quality of
food served may also be considered physical attributes of the bar.
86. 86. Decor, Comfort, and Service Using decor to create atmosphere was discussed You
might want to reread that discussion in light of all that you have learned since.learned since.
Think in terms of your total concept, your individuality, and your image. The look of your
establishment is one of your most potent marketing tools: It’s the packaging of your product.
FBM-343 Beverage and Bar Management . ก86868686
87. 87. Decor, Comfort, and Service Decor creates the first impression; comfort has a slower but
no less significant impact. Furnishings—part decor, part comfort—can be chosen to fill both
needs. Furnishings—part decor, part comfort—can be chosen to fill both needs. Lighting is
also both decor and comfort, and sometimes a fine line of compromise must be drawn.
Temperature is not important to the customer until it is too hot or too cold, then it becomes
FBM-343 Beverage and Bar Management . ก87878787 Temperature is not important to the
customer until it is too hot or too cold, then it becomes very important—too cold in front of the
airconditioning vent, too hot without it.
88. 88. Decor, Comfort, and Service A ventilation system that draws smoke away and keeps the
air fresh is an essential element offresh is an essential element of a comfortable bar
environment. Noise level is still another comfort factor that you can control according to
customer tastes. Sight and sound provide the FBM-343 Beverage and Bar Management .
ก88888888 tastes. Sight and sound provide the first impression, but human encounters
provide the second and most lasting.
89. 89. Bar Food and Snacks What you serve says as much about your bar as how the room
looks.how the room looks. More and more bars are replacing chips, popcorn, and pretzels
with ‘‘real food,’’ and charging for it. The simple addition of a bar menu can create a FBM-
343 Beverage and Bar Management . ก89898989 The simple addition of a bar menu can
create a completely different atmosphere.
90. 90. Bar Food and Snacks When deciding how extensive the bar menu should be, take the
following factors into account:account: 1. Understand your limitations 2. Set hours, at least
for hot-foodservice 3. Restaurant/bar combinations should function as a team 4. Be willing to
update the menu regularly FBM-343 Beverage and Bar Management . ก90909090 4. Be
willing to update the menu regularly 5. Merchandise drinks and foods together
91. 91. MARKETING TOOLS TOMARKETING TOOLS TO 91 MARKETING TOOLS TO
ATTRACT CUSTOMERS MARKETING TOOLS TO ATTRACT CUSTOMERS
92. 92. MARKETING TOOLS TO ATTRACT CUSTOMERS Word of Mouth News, Reviews, and
Feature Stories Personal Contacts News, Reviews, and Feature Stories Personal Contacts
Promotional Events Checking Your Progress Ask forAsk forAsk forAsk for it Provide a short
questionnaireit Provide a short questionnaireit Provide a short questionnaireit Provide a short
questionnaire FBM-343 Beverage and Bar Management . ก92929292 it Provide a short
questionnaireit Provide a short questionnaireit Provide a short questionnaireit Provide a short
questionnaire Hire mystery shoppersHire mystery shoppersHire mystery shoppersHire
mystery shoppers Employee feedbackEmployee feedbackEmployee feedbackEmployee
feedback
93. 93. PRICINGPRICING 93 PRICING AS A PROMOTIONAL TOOL PRICING AS A
PROMOTIONAL TOOL
94. 94. PRICING AS A PROMOTIONAL TOOL The role of pricing in promotion used to be
viewed in terms of a simple formula: Reduce a price and you increase demand.
TodayReduce a price and you increase demand. Today most bar owners and managers look
at this idea more soberly (pun intended). FBM-343 Beverage and Bar Management .
ก94949494
95. 95. PRICING AS A PROMOTIONAL TOOL Not too long ago the universal means of applying
the formula was the happy hour, a period of time in the late afternoon or early evening when
all of the drink prices were reduced, or two drinks in the late afternoon or early evening when
all of the drink prices were reduced, or two drinks were offered for the price of one. Now, the
happy hour is against the law in many states. Many managers sighed with relief since they
generally only broke even during happy hours and went along with them only to remain FBM-
343 Beverage and Bar Management . ก95959595 and went along with them only to remain
competitive. Besides in today’s climate few managers want to flirt with the risks of the
intoxicated customer.
96. 96. PRICING AS A PROMOTIONAL TOOL One of these is to make a certain high-profit
drink a ‘‘special of the day’’‘‘special of the day’’‘‘special of the day’’‘‘special of the day’’ by
cutting its profit margin in half.margin in half. Even the most upscale bars can learn from
quick-service restaurant chains about the practice of bundling, or packaging two or more
items together and selling them at a fixed price. FBM-343 Beverage and Bar Management .
ก96969696
97. 97. PROTECTING AND EXPANDING PROTECTING AND EXPANDING 97 EXPANDING
YOUR CONCEPT EXPANDING YOUR CONCEPT
98. 98. PROTECTING AND EXPANDING YOUR CONCEPT Protecting Business Identity
Branching Out As you develop the market position of the first barAs you develop the market
position of the first bar determine whether its appeal may be broader than in your existing
market area: Elsewhere in your city or county? Could the appeal be statewide, national, or
international? Establish a system to replicate the initial unit’s success. Determine exactly
what is required, and whether you and your business partners can afford to provide it. FBM-
343 Beverage and Bar Management . ก98989898 your business partners can afford to
provide it. Ensure that you can deliver the same support—in terms of both staff members
and funds—to the second unit as the first one enjoys.
99. 99. 99

Beverage World Magazine: 100 Year History(1982)

When Beverage World magazine (successor to the National Bottlers’ Gazette) published
their 100 Year History 1882-1982 and Future Probe in 1982, they leaned heavily on the
information in Organization in the Soft Drink Industry for the “A Century of Industry History in
Review” chapter. Their centennial overview offered these thoughts on late nineteenth and early
twentieth century soft drink consumption and production:

People congregated at the local soda fountain in the late 1880s, sat at ornate fountains and ordered a
fizz-bubbling beverage in a glass…Later on part of the fun of drinking a bottled carbonated beverage
was the excitement of opening the bottle. Whether you pushed the stopper in, or snapped loose the
clamp, you didn’t know whether the contents would open with a 'pop' and then foam, spurt, gush, fizzle
or lay limp within…

Although many were entering the bottling trade, soft drink production was still considered a seasonal
business, with activity centered during the warmer months. Many plants simply locked their doors after
Labor Day.

Soft drink sales expansion was also limited in the early 1900s by the limited number of available outlets
and the consumer’s restricted mobility. Bottlers own mobility was also limited by the slow, uncertain
horse and wagon hookup. Bottlers could only make their products available where people congregated,
and that often meant delivering beverages by wagon to the general store, town picnic or church social.

Obviously, the development of the motor car and truck had a profound impact on the pattern of
beverage consumption. The automobile made a trip to the corner grocery a more frequent event and
also created the 'roadside stand' as a place to stop for a cold bottle of sodas. Furthermore, the
replacement of the delivery wagon by the motor truck during 1913-1918 and the subsequent building of
roads greatly expanded the area in which the bottler was able to deliver his drinks.

The beverage industry refers to the industry that produces drinks, in particular ready to
drink beverages. Beverage production can vary greatly depending on the beverage being made.
ManufacturingDrinks.com explains that, "bottling facilities differ in the types of bottling lines they
operate and the types of products they can run". Other bits of required information include the
knowledge of if said beverage is canned or bottled (plastic or glass), hot-fill or cold-fill, and natural or
conventional. Innovations in the beverage industry, catalysed by requests for non-alcoholic
beverages, include: beverage plants, beverage processing, and beverage packing.[1]
A bar (also known as a saloon or a tavern or sometimes a pub or club, referring to the actual
establishment, as in pub bar or savage club etc.) is a retail business establishment that
serves alcoholic beverages, such as beer, wine, liquor, cocktails, and other beverages such
as mineral water and soft drinks and often sell snack foods such as crisps (potato chips) or peanuts,
for consumption on premises.[1]Some types of bars, such as pubs, may also serve food from
a restaurant menu. The term "bar" also refers to the countertop and area where drinks are served.
The term "bar" is also derived from the metal or wooden bar that is often located at feet along the
length of the "bar".[citation needed]
Bars provide stools or chairs that are placed at tables or counters for their patrons. Bars that offer
entertainment or live music are often referred to as music bars, live venues, or nightclubs. Types of
bars range from inexpensive dive bars[2] to elegant places of entertainment often accompanying
restaurants for dining.
Many bars have a discount period, designated a "happy hour" to encourage off-peak-time
patronage. Bars that fill to capacity sometimes implement a cover charge or a minimum drink
purchase requirement during their peak hours. Bars may have bouncers to ensure patrons are of
legal age, to eject drunk or belligerent patrons, and to collect cover charges. Such bars often feature
entertainment, which may be a live band, vocalist, comedian, or disc jockey playing recorded music.
The term "bar" is derived from the typically metal bar under the countertop under which drinks are
served. Patrons may sit or stand at the counter and be served by the bartender. Depending on the
size of a bar and its approach, alcohol may be served at the bar by bartenders, at tables by servers,
or by a combination of the two. The "back bar" is a set of shelves of glasses and bottles behind that
counter. In some establishments, the back bar is elaborately decorated with woodwork, etched
glass, mirrors, and lights.

History[edit]
A Depression-era bar in Melrose, Louisiana

There have been many different names for public drinking spaces throughout history. In the colonial
era of the United States taverns were an important meeting place, as most other institutions were
weak. During the 19th century saloons were very important to the leisure time of the working
class.[3] Today, even when an establishment uses a different name, such as "tavern" or "saloon", the
area of the establishment where the bartender pours or mixes beverages is normally called "the bar".
The sale and/or consumption of alcoholic beverages was prohibited in the first half of the 20th
century in several countries, including Finland, Iceland, Norway, and the United States. In the United
States, illegal bars during Prohibition were called speakeasies, blind pigs, and blind tigers.

Legal restrictions[edit]
Laws in many jurisdictions prohibit minors from entering a bar. If those under legal drinking age are
allowed to enter, as is the case with pubs that serve food, they are not allowed to drink. In some
jurisdictions, bars cannot serve a patron who is already intoxicated. Cities and towns usually have
legal restrictions on where bars may be located and on the types of alcohol they may serve to their
customers. Some bars may have a license to serve beer and wine, but not hard liquor. In some
jurisdictions, patrons buying alcohol must also order food. In some jurisdictions, bar owners have a
legal liability for the conduct of patrons who they serve (this liability may arise in cases of driving
under the influence which cause injuries or deaths).
Many Islamic countries prohibit bars as well as the possession or sale of alcohol for religious
reasons, while others, including Qatar and the United Arab Emirates, allow bars in some specific
areas, but only permit non-Muslims to drink in them.
Types[edit]
A bar's owners and managers choose the bar's name, décor, drink menu, lighting, and other
elements which they think will attract a certain kind of patron. However, they have only limited
influence over who patronizes their establishment. Thus, a bar originally intended for one
demographic profile can become popular with another. For example, a gay or lesbian bar with a
dance or disco floor might, over time, attract an increasingly heterosexual clientele. Or a blues bar
may become a biker bar if most its patrons are bikers.
A cocktail lounge is an upscale bar that is typically located within a hotel, restaurant, or airport.
A full bar serves liquor, cocktails, wine, and beer.
A wine bar is an elegant bar that focuses on wine rather than on beer or liquor. Patrons of these bars
may taste wines before deciding to buy them. Some wine bars also serve small plates of food or
other snacks.
A beer bar focuses on beer, particularly craft beer, rather than on wine or liquor. A brew pub has an
on-site brewery and serves craft beers.
"Fern bar" is an American slang term for an upscale or preppy (or yuppie) bar.
A music bar is a bar that presents live music as an attraction.
A dive bar, often referred to simply as a "dive", is a very informal bar which may be considered by
some to be disreputable.
A non-alcoholic bar is a bar that does not serve alcoholic beverages.
A bar and grill is also a restaurant.
Some persons may designate either a room or an area of a room as a home bar. Furniture and
arrangements vary from efficient to full bars that could be suited as businesses.

Example of a typical home bar in New York City, USA

Entertainment[edit]
Bars categorized by the kind of entertainment they offer:

 Blues bars, specializing in the live blues style of music


 Comedy bars, specializing in stand-up comedy entertainment
 Dance bars, which have a dance floor where patrons dance to recorded music. Typically, if a
venue has a large dance floor, focuses primarily on dancing rather than seated drinking, and
hires professional DJs, it is considered to be a nightclub or discothèque rather than a bar.
 Karaoke bars, with nightly karaoke as entertainment
 Music bars, specializing in live music (i.e. concerts)
 Drag bars, which specialize in drag performances as entertainment
 Salsa bars, where patrons dance to Latin salsa music
 Sports bars, which are furnished with sports-related memorabilia and theming, and typically
contain a large number of televisions used to broadcast major sporting events for their patrons.
 Topless bars, where topless female employees dance or serve drinks. In India, these bars are
called dance bars, which is distinct from the type of "dance bar" discussed above.
Patrons[edit]
Bars can categorized by the kind of patrons who frequent them:

 Bicycle messenger bars, where bike messengers congregate; these are found only in cities with
large bike messenger communities
 Biker bars, which are bars frequented by motorcycle enthusiasts and (in some regions)
motorcycle club members
 Cop bars, where off-duty law enforcement agents gather
 College bars, usually located in or near universities, where most of the patrons are students
 Gay bars, where gay men or women dance and socialize
 Lesbian bars
 Mixed gay/straight bars, mainly targeting bisexuals
 Neighborhood bars, a bar that most of the patrons know each other; it is generally close to home
and is frequented regularly
 "Old man" bars, whose clientele are mainly long-time male patrons who know each other well;
since most patrons are retired, they often begin drinking much earlier in the day, consume
inexpensive beer/whisky and may spend much of the day chatting, reading the newspaper, and
watching TV
 Sailor bars, usually located in waterfront areas near commercial docks or naval bases
 Singles bars where (mostly) unmarried people of both sexes can meet and socialize
 Sports bars, where sports fans gather to cheer on their favorite teams with other like-minded
fans
 Women's bars

Bar (counter)[edit]

A row of liquor bottles behind a bar (i.e., counter)


Liquor and wine bottles behind a bar in Baden, Austria

The counter at which drinks are served by a bartender is called "the bar". This term is applied, as
a synecdoche, to drinking establishments called "bars". This counter typically stores a variety
of beers, wines, liquors, and non-alcoholic ingredients, and is organized to facilitate the bartender's
work.
The word "bar" in this context was already in use in 1591 when Robert Greene, a dramatist, referred
to one in his A Notable Discovery of Coosnage.[citation needed]
Counters for serving other types of food and drink may also be called bars. Examples of this usage
of the word include snack bars, sushi bars, juice bars, salad bars, dairy bars, and sundae bars.

Locations[edit]
Australia[edit]
In Australia, the major form of licensed commercial alcohol outlet from the colonial period to the
present was the pub, a local variant of the English original. Until the 1970s, Australian pubs were
traditionally organised into gender-segregated drinking areas—the "public bar" was only open to
men, while the "lounge bar" or "saloon bar" served both men and women (i.e. mixed drinking). This
distinction was gradually eliminated as anti-discrimination legislation and women's rights activism
broke down the concept of a public drinking area accessible to only men. Where two bars still exist
in the one establishment, one (that derived from the "public bar") will be more downmarket while the
other (deriving from the "lounge bar") will be more upmarket. Over time, with the introduction
of gaming machines into hotels, many "lounge bars" have or are being converted into gaming rooms.
Beginning in the mid-1950s, the formerly strict state liquor licensing laws were progressively relaxed
and reformed, with the result that pub trading hours were extended. This was in part to eliminate the
social problems associated with early closing times—notably the infamous "six o'clock swill"—and
the thriving trade in "sly grog" (illicit alcohol sales). More licensed liquor outlets began to appear,
including retail "bottle shops" (over-the-counter bottle sales were previously only available at pubs
and were strictly controlled). Particularly in Sydney, a new class of licensed premises, the wine bar,
appeared; there alcohol could be served on the proviso that it was provided in tandem with a meal.
These venues became very popular in the late 1960s and early 1970s and many offered free
entertainment, becoming an important facet of the Sydney music scene in that period.
In the major Australian cities today there is a large and diverse bar scene with a range of ambiences,
modes and styles catering for every echelon of cosmopolitan society.

Canada[edit]
Public drinking began with the establishment of colonial taverns in both the U.S and Canada. While
the term changed to Public house especially in the U.K., the term Tavern continued to be used
instead of Pub in both the U.S and Canada. Public drinking establishments were banned by
the Prohibition of alcohol, which was (and is) a provincial jurisdiction. Prohibition was repealed,
province by province in the 1920s. There was not a universal right to consume alcohol, and only
males of legal age were permitted to do so. "Beer parlours" were common in the wake of prohibition,
with local laws often not permitting entertainment (such as the playing of games or music) in these
establishments, which were set aside for the purpose solely of consuming alcohol.
Since the end of the Second World War, and exposure by roughly one million Canadians to
the public house traditions common in the UK by servicemen and women serving there, those
traditions became more common in Canada. These traditions include the drinking of dark ales and
stouts, the "pub" as a social gathering place for both sexes, and the playing of games (such as darts,
snooker or pool). Tavern became extremely popular during the 1960s and 1970s, especially for
working-class people. Canadian taverns, which can still be found in remote regions of Northern
Canada, have long tables with benches lining the sides. Patrons in these taverns often order beer in
large quart bottles and drink inexpensive "bar brand" Canadian rye whisky. In some provinces,
taverns used to have separate entrances for men and women. Even in a large city like Toronto the
separate entrances existed into the early 1970s.
Canada has adopted some of the newer U.S. bar traditions (such as the "sports bar") of the last
decades. As a result, the term "bar" has come to be differentiated from the term "pub", in that bars
are usually 'themed' and sometimes have a dance floor. Bars with dance floors are usually relegated
to small or Suburban communities. In larger cities bars with large dance floors are usually referred to
as clubs and are strictly for dancing, Establishments which call themselves pubs are often much
more similar to a British pub in style. Before the 1980s, most "bars" were referred to simply as
"tavern".
Often, bars and pubs in Canada will cater to supporters of a local sporting team, usually
a hockey team. There is a difference between the sports bar and the pub; sports bars focus on TV
screens showing games and showcasing uniforms, equipment, etc. Pubs will generally also show
games but do not exclusively focus on them. The Tavern was popular until the early 1980s, when
American-style bars, as we know them today became popular. In the 1990s imitation British- and
Irish-style pubs become popular and adopted names like "The Fox and Fiddle" and "The Queen and
Beaver" reflect naming trends in Britain. Tavern or pub style mixed food and drink establishment are
generally more common than bars in Canada, although both can be found.
Legal restrictions on bars are set by the Canadian provinces and territories, which has led to a great
deal of variety. While some provinces have been very restrictive with their bar regulation, setting
strict closing times and banning the removal of alcohol from the premises, other provinces have
been more liberal. Closing times generally run from 2:00 to 4:00 a.m.
In Nova Scotia, particularly in Halifax, there was, until the 1980s, a very distinct system of gender-
based laws were in effect for decades. Taverns, bars, halls, and other classifications differentiated
whether it was exclusively for men or women, men with invited women, vice versa, or mixed. After
this fell by the wayside, there was the issue of water closets. This led to many taverns adding on
"powder rooms"; sometimes they were constructed later, or used parts of kitchens or upstairs halls, if
plumbing allowed. This was also true of conversions in former "sitting rooms", for men's facilities.

Italy[edit]
The bar in the coach terminal at Udine, Italy

In Italy, a "bar" is a place more similar to a café, where people go during the morning or the
afternoon, usually to drink a coffee, a cappuccino, or a hot chocolate and eat some kind of snack
such as sandwiches (panini or tramezzini) or pastries. However, any kind of alcoholic beverages are
served. Opening hours vary: some establishments are open very early in the morning and close
relatively early in the evening; others, especially if next to a theater or a cinema, may be open until
late at night. Many larger bars are also restaurants and disco clubs. Many Italian bars have
introduced a so-called "aperitivo" time in the evening, in which everyone who purchases an alcoholic
drink then has free access to a usually abundant buffet of cold dishes such as pasta salads,
vegetables, and various appetizers.

Poland[edit]

The oldest bar serving pasztecik szczeciński in Szczecin

In modern Polish, in most cases a bar would be referred to as pub (plural puby), a loan from English.
Polish puby serve various kinds of alcoholic drinks as well as other beverages and simple snacks
such as crisps, peanuts or pretzel sticks. Most establishments feature loud music and some have
frequent live performances. While Polish word bar can be also applied to this kind of establishment,
it is often used to describe any kind of inexpensive restaurant, and therefore can be translated
as diner or cafeteria. Both in bary and in puby, the counter at which one orders is called bar, itself
being another obvious loanword from English.
Bar mleczny (literally 'milk bar') is a kind of inexpensive self-service restaurant serving wide range of
dishes, with simple interior design, usually opened during breakfast and lunch hours. It is very similar
to Russian столовая in both menu and decor. It can be also compared to what is called greasy
spoon in English-speaking countries. Bary mleczne rarely serve alcoholic beverages.
The term bar szybkiej obsługi (lit. 'quick service restaurant') also refers to eating - not drinking -
establishments. It is being gradually replaced by the English term fast food. Another name, bar
samoobsługowy may be applied for any kind of self-service restaurant. Some kinds of
Polish bar serve only one type of meal. An example are restaurants serving pasztecik szczeciński, a
traditional specialty of the city of Szczecin. It can be consumed at the table or take-out.

Spain[edit]
Bars are common in Spain and form an important part in Spanish culture. In Spain it is common for a
town to have many bars and even to have several lined up in the same street. Most bars have a
section of the street or plaza outside with tables and chairs with parasols if the weather allows it.
Spanish bars are also known for serving a wide range of sandwiches (bocadillos), as well as snacks
called tapas or pinchos.
Tapas and pinchos may be offered to customers in two ways, either complementary to order a drink
or in some cases there are charged independently, either case this is usually clearly indicated to bar
customers by display of wall information, on menus and price lists. The anti-smoking law has
entered in effect January 1, 2011 and since that date it is prohibited to smoke in bars and
restaurants as well as all other indoor areas, closed commercial and state owned facilities are now
smoke-free areas.
Spain is the country with the highest ratio of bars/population with almost 6 bars per thousand
inhabitants, that's 3 times UK's ratio and 4 times Germany's, and it alone has double the number of
bars than the oldest of the 15-members of the European Union. The meaning of the word 'bar' in
Spain, however, does not have the negative connotation inherent in the same word in many other
languages. For Spanish people a bar is essentially a meeting place, and not necessarily a place to
engage in the consumption of alcoholic beverages. As a result, children are normally allowed into
bars, and it is common to see families in bars during week-ends of the end of the day. In small
towns, the 'bar' may constitute the very center of social life, and it is customary that, after social
events, people go to bars, including seniors and children alike.

United Kingdom[edit]

Jimmy Wales at the bar during Wikimania 2014 in the Barbican Centre, London

In the UK, bars are either areas that serve alcoholic drinks within establishments such as hotels,
restaurants, universities, or are a particular type of establishment which serves alcoholic drinks such
as wine bars, "style bars", private membership only bars. However, the main type of establishment
selling alcohol for consumption on the premises is the public house or pub. Some bars are similar to
nightclubs in that they feature loud music, subdued lighting, or operate a dress code and admissions
policy, with inner city bars generally having door staff at the entrance.
'Bar' also designates a separate drinking area within a pub. Until recent years most pubs had two or
more bars – very often the Public bar or Tap room, and the Saloon Bar or Lounge, where the decor
was better and prices were sometimes higher. The designations of the bars varied regionally. In the
last two decades, many pub interiors have been opened up into single spaces, which some people
regret as it loses the flexibility, intimacy, and traditional feel of a multi-roomed public house.
One of the last dive bars in London was underneath the Kings Head Pub in Gerrard Street, Soho.

United States[edit]

The bar of the Club Moderne in Anaconda, Montana

In the United States, legal distinctions often exist between restaurants and bars, and even between
types of bars. These distinctions vary from state to state, and even among municipalities. Beer
bars (sometimes called tavernsor pubs) are legally restricted to selling only beer, and possibly wine
or cider. Liquor bars, also simply called bars, also sell hard liquor.
Bars are sometimes exempt from smoking bans that restaurants are subject to, even if those
restaurants have liquor licenses. The distinction between a restaurant that serves liquor and a bar is
usually made by the percentage of revenue earned from selling liquor, although increasingly,
smoking bans include bars as well.

A bar named "Bar" in New Haven, Connecticut

In most places, bars are prohibited from selling alcoholic beverages to go, and this makes them
clearly different from liquor stores. Some brewpubs and wineries can serve alcohol to go, but under
the rules applied to a liquor store. In some areas, such as New Orleans and parts of Las
Vegas and Savannah, Georgia, open containers of alcohol may be prepared to go. This kind of
restriction is usually dependent on an open container law. In Pennsylvania and Ohio, bars may
sell six-packs of beer "to-go" in original (sealed) containers by obtaining a take-out license. New
Jersey permits all forms of packaged goods to be sold at bars, and permits packaged beer and wine
to be sold at any time on-premises sales of alcoholic beverages are allowed.
During the 19th century, drinking establishments were called saloons. In the American Old West the
most popular establishment in town was usually the Western saloon. Many of these Western
saloons survive, though their services and features have changed with the times. Newer
establishments have sometimes been built in Western saloon style for a nostalgic effect. In
American cities there were also numerous saloons, which allowed only male patrons and were
usually owned by one of the major breweries. Drunkenness, fights, and alcoholism made the saloon
into a powerful symbol of all that was wrong with alcohol.[4] Saloons were the primary target of
the Temperance movement, and the Anti-Saloon League, founded in 1892, was the most powerful
lobby in favor of Prohibition. When Prohibition was repealed, President Franklin D. Roosevelt asked
the states not to permit the return of saloons.[5]
Many Irish- or British-themed "pubs" exist throughout United States and Canada and in some
continental European countries.
As of May, 2014, Pittsburgh, Pennsylvania had the most bars per capita in the United States.[6]

Former Yugoslavia[edit]
Main article: Coffee culture in former Yugoslavia
In Bosnia and Herzegovina, Croatia, Montenegro and Serbia, modern bars overlap
with coffeehouses and larger ones are sometimes also nightclubs. Since the 1980s, they have
become similar in social function to the bars of Italy, Spain and Greece, as meeting places for
people in a city.
Origin of Food & Beverage Service Industry

Origin of Food & Beverage Service Industry

The origin of Food & Beverage Service Industry can easily be understood by studying the origin and
history of the same, which are detailed below:

1.1 Introduction to Food & Beverage Service Industry/Hospitality Industry

A very warm welcome, friendly actions - people who really care - departure with wishes to meet again -
behind these images, there is a highly trained professional for whom hospitality is not a tradition, but a
way of life. We are discussing regarding travel and tourism industry in which one out every 15
individuals living in the world is associated with. One major division of the said industry is hospitality
sector, which comprises mainly of lodging, and food and beverage divisions.

The word ‘hospitality’, according to Oxford English Dictionary, is the friendly reception and treatment of
friends, guests and strangers. Even though this sector comprises mainly of lodging and F & B division, in
a wider sense the word can be used as a synonym for travel and tourism industry.

1.2 History of Food and Beverage Industry

The ancient travelers were mainly pilgrims, traders and military men, but whenever there was a military
movement they used to carry accommodation and food with them. It was the traders and the pilgrims
who wanted the provision of food and accommodation. The first Inns had nothing more than a cot or a
bench towards the corner of the room or the stable. Here sanitation and privacy were non-existent.
People used to share room with livestock. In the 3rd century, Roman Empire built roads in Europe to
facilitate the traders. Soon a chain of roadside Inns was constructed from Spain to Turkey. This
continued to be same till the end of 17th century for common men. The wealthy used to stay at their
friends’ place or with relatives, but soon they too realized the need for accommodation for their class.
Thus the European castle-like structure sprung up. This had the provision of sanitation, privacy and all
the luxury that they demanded. This structure came to be known as ‘Hotel’, the French equivalent for
Mansion. Colonial American Inns were modeled after the Europeans and the practice of sharing was
common.

Towards the end of the 17th century, the concept of Hotel with a living room and a bath attached for
common men came into existence. The American innkeepers improved the quality of service by
providing comfort and sanitation at affordable rates. A giant leap in this direction was the establishment
of City Hotel in the year 1794.It was the largest hotel in New York, exclusively used for lodging purpose
and inspired the construction of other pioneer hotels. Another milestone was the establishment of
Tremont House in 1829 that was offering a private room with locking facility, washbasin, water pitcher,
soap in the bathroom and above all, a full time service staff. Palace Hotel established in 1874 had A.C,
fire sprinklers, plumbing system and other luxurious facilities. This was followed by the transformation
to different forms of hotels like budget hotels, resorts, motels etc.

1.3 Classification of Catering Establishments

Classification chart of catering establishments:-


Classification

Commercial/Business Industrial/Corporate Welfare/ Subsidized

Catering Catering Catering

Hotels Canteens Old age homes

Restaurants Cafeteria Prisons

Pubs Packed food outlets Orphanage

Kiosk Tiffin’s destitute homes

DRIVE – INS/ takeaways transport ashrams

Event Management Hospitals disaster catering

Fast food Institutional

Automatic vending machines Armed forces

Cyber cafe

These may also be divided into:


Classification

Commercial/Business Industrial/Corporate Welfare/ Subsidized

Catering Catering Catering

Hotels Canteens Old age homes

Restaurants Cafeteria Prisons

Pubs Packed food outlets Orphanage

Kiosk Tiffin’s destitute homes

DRIVE – INS/ takeaways transport ashrams

Event Management Hospitals disaster catering

Fast food Institutional

Automatic vending machines Armed forces

Cyber cafe

There are two sectors that work in the catering market. They are:

1. Commercial Sector

2. Non – Commercial or Welfare Sector


Commercial Sector

It is the sector, which is, profit / business oriented.

It is categorized into:-

1. Restricted Market

2. General Market

Restricted Market:

In this type of market the choice of the items, is very less or no choice at all. This market may
be classified as:

1. Transport

2. Clubs

3. Industrial, etc.
General Market:

In this type of market the choice of the items, is varied, i.e., they have full choice. This
market may be classified as:

1. Hotels

2. Pubs

3. Take Aways, etc.

Non - Commercial Sector or Welfare Sector

It is the sector, which is, profit / business oriented. This sector mainly caters for the welfare of the Public
through Government or Non – Government Organization. It includes:

1. Institutional,

2. Armed Forces,

3. Industrial,

4. Hospitals, etc.

The catering establishments may also be categorized by the nature of the requirements they fulfill:-
a. Restaurant

b. Transport Catering

c. Airline Catering

d. Railway Catering

e. Marine Catering

f. Surface Catering

g. Outdoor Catering

h. Retail Store Catering

i. Club Catering

j. Welfare Catering

k. Industrial Catering

l. Leisure-Linked Catering

Let’s understand them better


Restaurant:-

It’s an establishment that serves the customers prepared food and beverages to order, to be consumed
on the premises.

Transport Catering:-

The provision of food and beverages to passengers, before, during and after a journey on trains, aircraft
and ships and in buses or private vehicles is termed as transport catering. The major forms are:-

Airline-catering, Railways Catering, Ship Catering and Surface Catering

Airline Catering

It caters to airline passengers on board the air craft, as well as at restaurants situated at airport
terminals.

Railway Catering
It caters to railway passengers both during the journey as well as during halts at different railway
stations.
Marine Catering
It caters to cargo crew and passenger ship passengers. Ships have kitchens and restaurants on board.

Surface Catering

It caters to passengers traveling by surface transport such as buses and private vehicle; e.g. dhabas on
the highways.

Outdoor Catering

Catering includes the provision of food and drink away from home base and suppliers. The venue is left
to the peoples’ choice.

Retail Store Catering


Apart from carrying on their primary activity of retailing their own wares, provide catering as an
additional facility.

Club catering
The provision of food and beverages to a restricted member clientele. Examples - turf clubs, golf clubs,
cricket clubs etc.

Welfare Catering
The provision of food and beverages to people to fulfill a social obligation, determined by a recognized
authority.
Industrial Catering
The provision of food and beverages to ‘people at work,’ in industries and factories at highly subsidized
rates.

Leisure-Linked Catering
The provision of food and beverages to people engaged in ‘rest and recreation’ activities. Example -
exhibitions, theme parks, galleries and theatres.

1.4 Sectors of Food and Beverage Industry

There are different sectors into which the food and beverage industry may be classified. The list
however is not exhaustive, but includes most of the sectors that are found today.

These sectors are:

Sectors of Food and Beverage Industry


S. Sectors Description Example
No.

1. Hotels and other The purpose of this sector primarily is The Oberoi’s, Taj Mahal
tourist to provide accommodation along with Mumbai, etc.
accommodation food and beverage facilities

2. Restaurant The purpose is to serve food and Mainland China, Delhi


(conventional, drinks, from medium to high price and Darbar, Bukhara, etc.
specialty, theme and medium to high levels of service
ethnic)

3. Popular Catering These are run with a purpose of Indian Coffee House, Pizza
(Coffee shops, pizza provision of food and drink at low to Hut, Barista, Café Coffee
deliveries) medium price with limited levels of Day, etc.
service

4. Fast Food Outlets (Mc. Provision of food and drink in highly Mc. Donald, TGI Fridays,
Donald, Burger King) specialized environment with high etc.
investments and operational costs and
high customer turnover.

5. Take Aways Provision of food and drinks to people K.F.C’s, Pizza Huts, etc.
quickly so that they may consume it at
some other place.

6. Retail Stores Provision of food and drinks to people The Great India Place, Mega
as an adjunct to the main business of Malls, etc.
retailing.

7. Banqueting, Provision of food and drink to people Habitat World, The Ashok
Conferencing, engaged in business related activities Delhi, etc.
Exhibitions, and other on large scale. It is usually pre-booked.
Business activities.

8. Leisure Attractions Provision of food and drinks to people Wonderla, Essel world,
(theme parks, who are engaged in leisure activities. Ramoji film city, Fun n Food
theaters, amusement Village, etc.
parks)

9. Motorway Service Provision of food together with retail Reliance A-1 Food Plaza,
Stations and petrol services for motorway Midway Restaurants, etc.
travellers often at isolated locations.
10. Welfare Catering Provision of food and drink to people R.K.H.S, etc.
(Schools, Universities, by Organizations (Private,
Hospitals, Prisons) Government and Non – Government)

11. Industrial Catering Provision of food and drink to people


(Industries and who are engaged in activities related
Companies) to work.

12. Licensed Trade Provision of food and drink in Bars and Pubs, etc.
environment governed by licensing
requirements.

13. Transport Catering Provision of food and drink to people IRCTC, Star Cruise, Royal
(Airlines, Cruise/ on the move. Caribbean, Princess,
Marine, Road and etc.
Rail)

14. Outdoor Catering or Provision of food and drink away from The Grand Bhagwati,
Off – Premises the home and suppliers of food Maharaja Caterers, etc.
Catering services.

1.5 Types of Food Service Operations:

There are different types of food service operations. These may be classified on the basis of area, service
practiced and food served. The classification is as follows:

Types of Food Service Operations


S.N. Types of Operations Description

1. Bistro It is a smaller establishment with check table cloths, bent wood


chairs and friendly informal staff.

2. Coffee Shop It is open 24 hours and serves all meal types from Breakfast till
Dinner and Mid-night Snacks.

3. First Class Restaurant It is a formal dining restaurant with classical preparation and
presentation of food offering a high level of table service.

4. Restaurant In this type of establishment; price, level and type of service,


décor and choice of menu depends on the type of operation.

5. Ethnic Restaurant The type of food and design of the restaurant depends on the
demographic origin followed, i.e., Indian, Oriental, French, etc.

6. Theme Restaurant It includes themes such as jungle, rainforest, opera, etc. in


which the waiting staff, the ambience and the food served
depends on the theme followed.

7. Cafeteria Primarily, it is self-served with customers choosing their food or


drinks selection from the counters mend for the purpose.

8. Public Houses / Pubs These are licensed establishments mend for the provision of
drinks. It may be a simple bar with a standing room or the
customers may have a plush surrounding offering a varied
selection of food.

1.6 Important Questions

Classify catering establishments with examples.

What do you understand by Welfare catering? Enlist its components

What do you understand by commercial catering? Enlist its components

Explain the catering establishment by a suitable chart


5. State whether true or false:-

(i) Food service industry and catering industry are different from each other.

(ii) Provision of Food at entertainment parks comes under Leisure linked catering.

(iii) Bar does not supply food.

(iv) Provision of food to passengers is termed as transport catering.

6. Classify the different sectors of food service industry.

7. What are the two main types of catering?

8. What is industrial catering?

9. What is leisure catering?

10. Name five examples for the non-commercial catering segments.

11. What is transport catering?

What is the Banquet


What is Banquet? It is common question to many people’s why are unaware about
Banquet Hall.
Many people’s want to know the proper meaning and definitions of Banquet.
Now I am talking about Banquet. What is the Banquet?

Banquet is a large catering activity department where food & beverage are served
for pre-arranged number of peoples on pre-fixed date & time agreed menu &
price.
Banquet is a place where many guest having their Food and Beverage together. You can
say Banquet is a proper place of party. Thousands of peoples have their Food and
Beverage as well as Lunch or Dinner in Banquet Hall. But this party is held and fixed with
Date, time and Price. Like you want to hold a party with 500 peoples then you have to fix
Date, time and price of the food and Banquet hall. Some Banquet charges some money
as rent of Banquet hall.
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Basically, Banquet is a place which can use for having food & beverage with prearranged
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Banquet is the very important part of F&B section. If you think about F&B or Restaurant
then you must have to think about Banquet hall, Because Banquet is a right place to have
Food and Beverage. Without Banquet Hall, there are no place for having Food in a
Restaurant and According to myself without Banquet hall a restaurant is not suitable to
run and unable to run.

However, if you want to run a restaurant or want to build up your career in a restaurant
then you must have to learn about Banquet and enlarge your knowledge about F&B,
Restaurant, Banquet hall and Service.
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History of catering[edit]
The earliest account of major services being catered in the United States is a 1778 ball in
Philadelphia catered by Caesar Cranshell to celebrate the departure of British General William
Howe.[1] Catering business began to form around 1820, centering in Philadelphia.[1][2] Catering being a
respectable and profitable business. The early catering industry was disproportionately founded by
African-Americans.[1][2][3]
The industry began to professionalize under the reigns of Robert Bogle who is recognized as "the
originator of catering."[2] By 1840, the second generation of Philadelphia black caterers formed, who
began to combine their catering businesses with restaurants they owned.[2] Common usage of the
word "caterer" came about in the 1880s at which point local directories began listing numerous
caterers.[1] White businessmen eventually moved into the industry and by the 1930s, the black
businesses had virtually disappeared.[1]
In the 1930s, the Soviet Union, creating more simple menus, began developing state public catering
establishments as part of its collectivization policies.[4] A rationing system was implemented during
World War II, and people became used to public catering. After the Second World War, many
businessmen embraced catering as an alternative way of staying in business after the war.[5] By the
1960s, the home-made food was overtaken by eating in public catering establishments.[4]
By the 2000s, personal chef services started gaining popularity, with more women entering the
workforce.[citation needed] People between 15 and 24 years of age spent as little as 11-17 minutes daily on
food preparation and clean-up activities in 2006-2016, according to figures revealed by the American
Time Use Survey conducted by the US Bureau of Labor Statistics[6].

Chapter 4. Food and Beverage Services

PETER BRISCOE AND GRIFF TRIPP


Learning Objectives

 Describe the origins and significance of the food and beverage sector
 Relate the importance of the sector to the Canadian economy
 Explain the various types of food and beverage providers
 Discuss differing needs and desires of residents and visitors in
selecting a food and beverage provider
 Examine factors that contribute to the profitability of food and
beverage operations
 Discuss key issues and trends in the sector including government
influence, health and safety, human resources, and technology

Overview
According to Statistics Canada, the food and beverage sector comprises
“establishments primarily engaged in preparing meals, snacks and beverages, to
customer order, for immediate consumption on and off the premises” (Government of
Canada, 2012). This sector is commonly known to tourism professionals by its initials
as F&B.
The food and beverage sector grew out of simple origins: as people travelled from their
homes, going about their business, they often had a need or desire to eat or drink.
Others were encouraged to meet this demand by supplying food and drink. As the
interests of the public became more diverse, so too did the offerings of the food and
beverage sector.

In 2014, Canadian food and beverage businesses accounted for 1.1 million employees
and more than 88,000 locations across the country with an estimated $71 billion in
sales, representing around 4% of the country’s overall economic activity. Many students
are familiar with the sector through their workplace, because Canada’s restaurants
provide one in every five youth jobs in the country — with 22% of Canadians starting
their career in a restaurant or foodservice business. Furthermore, going out to a
restaurant is the number one preferred activity for spending time with family and
friends (Restaurants Canada, 2014a).

Food and Beverage Sector Performance

Figure 4.1. Foodservice spending as a percentage of total food dollars spent in Canada and the
US [Long Description]

Look at Figure 4.1, which illustrates the percentage of total food dollars spent
in restaurants in Canada and the United States over several years. As you can see,
Americans spend significantly more of their total food dollars in foodservice
establishments than in grocery stores, and in Canada we spend more of our total food
dollars in the grocery store than we do in foodservice operations. It’s worth noting that
Americans do not have an equivalent federal sales tax on meals comparable to our GST
on foodservice sales, although there does exist in some states a sales tax on meals and
alcoholic beverages (State Sales Tax Rates, 2015). This, combined with a larger
population, cheaper food distribution costs, and other factors can often mean that it’s
less expensive to dine out in the United States than in Canada.

For a perspective on how sales are distributed across the country by province, and how
different foodservice operations perform in terms of revenue (sales dollars collected
from guests), look at Tables 4.1 and 4.2.

Table 4.1: Performance by province for commercial foodservice — units

[Skip Table]

Foodservice Units

Chain Independent Average


Province Total Share (%) Share (%) Volume/Unit ($)

Newfoundland and
1,127 44 56 715,976
Labrador

Prince Edward Island 369 35 65 549,428

Nova Scotia 2,089 40 60 637,237

New Brunswick 1,701 48 52 579,576

Quebec 21,865 31 69 488,712

Ontario 33,628 45 55 623,862


Table 4.1: Performance by province for commercial foodservice — units

[Skip Table]

Foodservice Units

Chain Independent Average


Province Total Share (%) Share (%) Volume/Unit ($)

Manitoba 2,448 41 59 657,245

Saskatchewan 2,330 43 57 744,322

Alberta 9,858 47 53 828,860

British Columbia 13,214 33 67 627,599

Canada 88,795 40 60 619,013

Data source: Statistics Canada, 2013


Table 4.2: Performance by province for commercial foodservice — sales

[Skip Table]

Sales Growth Sales

2013-14 2012-13 2013 ($ Pre-tax Profit


Province Forecast (%) (%) millions) Margin (%)

Newfoundland and
2.7 9.2 806.9 6.7
Labrador

Prince Edward Island 1.6 4.4 202.7 5.7

Nova Scotia 3.8 0.7 1,330.9 5.2

New Brunswick 2.1 0.3 985.6 5.2

Quebec 3.8 2.7 10,685.4 3.9

Ontario 4.1 4.2 20,979.2 2.8

Manitoba 4.6 6.1 1,608.6 7.9

Saskatchewan 4.7 7.0 1,733.9 7.0


Table 4.2: Performance by province for commercial foodservice — sales

[Skip Table]

Sales Growth Sales

2013-14 2012-13 2013 ($ Pre-tax Profit


Province Forecast (%) (%) millions) Margin (%)

Alberta 5.4 6.4 8,170.5 7.1

British Columbia 3.7 6.1 8,292.8 3.4

Canada 4.2 4.6 54,965.3 4.2

Data source: Statistics Canada, 2013

Table 4.1 shows that the independents in BC have a much larger share of the total
number of units compared with chains than any other province except Quebec. In terms
of sales (Table 4.2), Ontario is the leader with almost $21 billion. Quebec, BC, and
Alberta each earned $8 to $10 billion, and the other provinces had sales of less than $2
billion apiece. While BC and Alberta are almost even in total sales, BC has a third more
units (restaurants), leading to lower average sales per unit.

Foodservice sales in Alberta rose by a solid 6.4% in 2013. Alberta boasts the highest
average unit volume at $828,860 per year, more than $200,000 over the national
average due to greater disposable income and no provincial sales tax on meals. In BC,
the end of the HST (harmonized sales tax) and improved economic growth lifted total
foodservice sales by a healthy 6.1% for the strongest annual growth since 2006
(Restaurants Canada, 2014a).

Now let’s take a quick look at which provinces have the most profitable foodservice
operations.
Figure 4.2 Pre-tax profit margins. [Long Description]

Figure 4.2 indicates the profit margins per province. Profit is the amount left when
expenses (including corporate income tax) are subtracted from sales revenue. A higher
profit margin means that a greater percentage of sales is retained by the business owner,
and a lower percentage is lost to operating and other costs.

The provincial variations in total sales and profit margins are due to several factors
including:

 Relative level of economic activity


 Minimum wage levels
 Provincial sales taxes
 Cultural differences
 Weather
 Municipal taxes
 Percentage of market held by chains versus independents
 Number of units (restaurants)
 Density of units relative to local population
 Number of tourists or business travellers

Now that we have a sense of the relative performance of F&B operations by province,
and some influences on success, let’s delve a little deeper into the sector.
Types of Food and Beverage Providers

Figure 4.3 The Keg at the Station is in a former train station in New Westminster, BC

While there are many ways to analyze the sector, in this chapter, we take a market-
based, business-operation approach based on the overall Canadian market share from
the Restaurants Canada Market Review and Forecast (Restaurants Canada, 2014b). The
following sections explore the types of foodservice operations in Canada.

There are two key distinctions: commercial foodservice, which


comprises operations whose primary business is food and beverage, and non-
commercial foodservice establishments where food and beverages are served, but
are not the primary business.

Let’s start with the largest segment of F&B operations, the commercial sector.

Commercial Operators

Commercial operators make up the largest segment of F&B in Canada with just over
80% market share (Restaurants Canada, 2014b). It is made up of quick-service
restaurants, full-service restaurants, catering, and drinking establishments. Let’s look at
each of these in more detail.
Quick-Service Restaurants
Formerly known as fast-food restaurants, quick-service
restaurants, or QSRs, make up 35.4% of total food sales in Canada (Restaurants
Canada, 2014b). This prominent portion of the food sector generally caters to both
residents and visitors, and is represented in areas that are conveniently accessed by
both. Brands, chains, and franchises dominate the QSR landscape. While the sector has
made steps to move away from the traditional fast-food image and style of service, it is
still dominated by both fast food and food fast; in other words, food that is prepared and
purchased quickly, and generally consumed quickly.

Take a Closer Look: The First McDonald’s In Canada


The first McDonald’s restaurant in Canada opened in Richmond, BC, in
1967. Located on No. 3 Road, it featured a sleek almost space-age design.
To see a picture of the location, visit McDonald’s: Then and Now:
www.richmond.ca/cityhall/archives/exhibits/thenandnow/then_now_set_
7.htm

Convenience and familiarity is key in this sector. Examples of QSRs include:

 Drive-through locations
 Stand-alone locations
 Locations within retail stores
 Kiosk locations
 High-traffic areas, such as major highways or commuter routes

Full-Service Restaurants
With 35% of the market share (Restaurants Canada, 2014b), full-service
restaurants are perhaps the most fluid of the F&B operation types, adjusting and
changing to the demands of the marketplace. Consumer expectations are higher here
than with QSRs (Parsa, Lord, Putrevu, & Kreeger, 2015). The menus offered are varied,
but in general reflect the image of the restaurant or consumer’s desired experience.
Major segments include fine dining, family/casual, ethnic, and upscale casual.
Figure 4.4 A rhubarb pavlova with local Pemberton strawberries is served at Araxi Restaurant +
Bar, a fine dining establishment in Whistler.

Fine dining restaurants are characterized by highly trained chefs preparing complex
food items, exquisitely presented. Meals are brought to the table by experienced servers
with sound food and beverage knowledge in an upscale atmosphere with table linens,
fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with
fresh flowers and candles. In these businesses, the average cheque, which is the total
sales divided by number of guests served, is quite high (often reviewed with the cost
symbols of three or four dollar signs- $ $ $ or $ $ $ $).

Bishop’s in Vancouver is one of BC’s best known and longest operating fine dining
restaurants. Since opening in 1985, this 45-seat restaurant has served heads of state
including Bill Clinton and Boris Yeltsin, and has won awards including the Best of
Vancouver. John Bishop was awarded the Governor General’s Award in 2010 (Georgia
Straight, 2015).

Family/casual restaurants are characterized by being open for all three meal
periods. These operations offer affordable menu items that span a variety of customer
tastes. They also have the operational flexibility in menu and restaurant layout to
welcome large groups of diners. An analysis of menus in family/casual restaurants
reveals a high degree of operational techniques such as menu item cross-utilization,
where a few key ingredients are repurposed in several ways. Both chain and
independent restaurant operators flourish in this sector. Popular chain examples in
BC include White Spot, Ricky’s All Day Grill, Boston Pizza, and The Old Spaghetti
Factory. Independents include the Red Wagon Café in Vancouver, the Bon Voyage
Restaurant near Prince George, and John’s Place in Victoria.
Figure 4.5 This is the interior of the Old Spaghetti Factory, a popular family chain, in Gastown,
Vancouver. This location opened in 1970 and has stood the test of time.

Ethnic restaurants typically reflect the owner’s cultural identity. While these
restaurants are popular with many markets, they are often particularly of interest to
visitors and new immigrants looking for a specific environment and other people with
whom they have a shared culture. Food is often the medium for this sense of belonging
(Koc & Welsh, 2001; Laroche, Kim, Tomiuk, & Belisle, 2005).

Figure 4.6 The exterior of Vij’s, the flagship restaurant of Vikram Vij’s ethnic dining legacy

The growth and changing nature of this sector reflects the acceptance of various ethnic
foods within our communities. Ethnic restaurants generally evolve along two routes:
toward remaining authentic to the cuisine of the country of origin, or toward larger
market acceptance through modifying menu items (Mak, Lumbers, Eves, & Chang,
2012).
Upscale casual restaurants emerged in the 1970s, evolving out of a change in social
norms. Consumers began to want the experience of a fun social evening at a restaurant
with good value (but not cheap), in contrast to the perceived stuffiness of fine dining at
that time. These restaurants are typically dinner houses, but they may open for lunch or
brunch depending on location. Examples in BC include the Keg, Earls, Cactus Club,
Brown’s Social House, and Joey Restaurants.

Catering and Banqueting


Catering makes up only 6.8% of the total share of F&B in Canada (Restaurants Canada,
2014b) and comprises food served by catering companies at banquets and special events
at a diverse set of venues. Note that banqueting pertains to catered food served on
premise, while catering typically refers to off-premise service. At a catered event,
customers typically eat at the same time, as opposed to restaurant customers who are
served individually or in small groups.

Catering businesses (whether on-site or at special locations) are challenged by the


episodic nature of events, and the issues of food handling and food safety with large
groups. Catering businesses include:

 Catering companies
 Conference centres
 Conference hotels
 Wedding venues
 Festival food coordinators

Spotlight On: Diner en Blanc


An interesting public event with a dining focus is Diner en Blanc, which is
held in cities around the globe including Vancouver and Victoria. Diners
wear all white and bring their table, chair, and place settings with them to a
secret location announced only hours before. Participants have the option
to bring their own food or purchase a catered meal. Alcoholic beverages are
also available for purchase on site. For more information, visit the Diner en
Blanc website: http://vancouver.dinerenblanc.info/media
Figure 4.7 Diner en Blanc Vancouver’s first event at Jack Poole Plaza

While beverages make up part of almost every dining experience, some establishments
are founded on beverage sales. Let’s look at these operations next.

Drinking
With 3.5% market share (Restaurants Canada, 2014b), the drinking establishment
sector comprises bars, wine bars, cabarets, nightclubs, and pubs. In British Columbia,
all businesses and premises selling alcohol must adhere to the BC Liquor Control and
Licensing Act. At the time this chapter was written, significant changes were taking
place in the regulations governing drinking establishments, but some general conditions
have remained stable.

In BC, liquor licences are divided into liquor primary and food primary. As the
name suggests, a liquor primary licence is needed to operate a business that is in the
primary business of selling alcohol. Most pubs, nightclubs, and cabarets fall into this
category. A food primary licence is required for an operation whose primary business is
serving food. Some operations, such as pubs, will hold a liquor primary licence even
though they serve a significant volume of food. In this case, the licence allows for diverse
patronage.

One noteworthy change to the licensing of pubs in BC is that children are permitted in
them if they are accompanied and attended by responsible adults. While not universally
adopted by pubs to date, this change in legislation is an example of the fluctuating social
norms to which the sector must respond.
Figure 4.8 The Six Mile Pub in Victoria, established in 1855, British Columbia’s oldest public
house

Together the commercial ventures of QSRs, full-service restaurants, catering functions,


and drinking establishments make up just over 80% of the market share. Now let’s look
at the other 20% of businesses, which fall under the non-commercial umbrella.

Non-Commercial

The following non-commercial entities earn just under 20% share of the foodservice
earnings in Canada (Restaurants Canada, 2014b). While these make up a smaller share
of the market, there are some advantages inherent in these business models. Non-
commercial operations cater predominantly to consumers with limited selection or
choice given their occupation or location. This type of consumer is often referred to as
a captured patron. In a tourism capacity such as in airports or on cruise ships, the
accepted price point for these patrons is often higher for a given product, increasing
profit margins.

Institutional
Often run under a predetermined contract, this sector includes:

 Hospitals
 Universities, colleges, and other educational institutions
 Prisons and other detention facilities
 Corporate staff cafeterias
 Cruise ships
 Airports and other transportation terminals and operations

Accommodation Foodservice
These include hotel restaurants and bars, room service, and self-serve dining operations
(such as a breakfast room). Hotel restaurants are usually open to the public and reliant
on this public patronage in addition to business from hotel guests. Collaborations
between hotel chains and restaurant chains have seen reliable pairing of hotels and
restaurants, such as the combination of Sandman Hotels and Moxie’s Grill and Bar.

Vending and Automated Foodservices


While not generally viewed as part of the food and beverage sector, automated and
vending services do account for significant sales for both small and large foodservice
and accommodation providers. Vending machines are located in motels, hotels,
transportation terminals, sporting venues, or just about any location that will allow for
the opportunity for an impulse or convenient purchase.

Business Performance for Types of Food and Beverage Operators

Figure 4.9 Share of market for different restaurant segments [Long Description]

As mentioned, the commercial sector comprises the majority of dollars earned. Figure
4.9 illustrates the difference between share of traffic and share of dollars for each
subsector. We know that QSRs are much more economical and generally much busier
than full-service restaurants. How does that traffic and low prices translate into market
share for the different segments?

Figure 4.9 shows that QSRs attract two-thirds of all the traffic, while earning less than
half of the total dollars. Family/midscale and casual dining each attract half the dollars
of QSR, but they do that from much lower shares of the traffic. Meanwhile fine dining is
patronized by less than 1% of the total restaurant traffic, but earns 4.2% of the
dollars. The growing force of convenience stores, department stores, and other retail
establishments obtain a respectable 11.5% of traffic and 10.6% of the restaurant dollar.

As you can see, while QSRs attract the greatest number of guests, the ratio of dollars
earned per transaction is significantly less than that of the fine dining sector. This makes
sense, of course, because the typical QSR earns relatively little per guest but attracts
hundreds of customers, while a fine dining restaurant charges high prices and serves a
select few guests each day.

Sales Per Segment

Table 4.3: Sector sales and market shares for 2012-2013

[Skip Table]

Segment Segment
2012 Market 2013 Market
Type of Final ($ Share Preliminary ($ Share
Restaurant millions) (%) millions) (%)

QSR 23,139.7 35.4 24,114.5 35.4

Full-service 22,631.1 34.7 23,847.3 35.0

Caterers 4,443.6 6.8 4,644.9 6.8

Drinking places 2,355.6 3.6 2,358.6 3.5

Total
52,570.1 80.5 54,965.3 80.7
COMMERCIAL Commercial
Table 4.3: Sector sales and market shares for 2012-2013

[Skip Table]

Segment Segment
2012 Market 2013 Market
Type of Final ($ Share Preliminary ($ Share
Restaurant millions) (%) millions) (%)

Accommodation 5,456 8.4 5,647.0 8.3

Institutional 3,668.6 5.6 3,898.5 5.7

Retail 1,234.3 1.9 1,199.4 1.8

Other 2,362 3.6 2,416.3 3.5

NON- Total Non-


12,720.9 19.5 13,161.3 19.3
COMMERCIAL Commercial

Data source: Restaurants Canada, 2013

The sales revenues for the various segments are shown in Table 4.3. Note that QSRs and
full-service restaurants are almost equal in their sales and almost completely dwarf the
other commercial sectors of caterers and drinking places. It is also noteworthy that the
commercial components have four times the sales volume of the non-commercial
components.
Types of Food and Beverage Customers
Now that we’ve classified the sector based on business type and looked at relative
performance, let’s look at F&B from another perspective: customer type. The first way to
classify customers is to divide them into two key markets: residents and visitors.

The first of these, the resident group, can be further divided based on their purpose
for visiting an F&B operator. For one group, food or drink is the primary purpose for
the visit. For example, think of a group of friends getting together at a local restaurant to
experience their signature sandwich. For another group, food and drink is the secondary
purpose, added spontaneously or as an ancillary activity. For example, think of time-
crunched parents whisking their kids through a drive-through on their way from one
after-school activity to the next. Here the food and beverage providers offer
an expedient way to access a meal.

Figure 4.10 A visitor to Nanaimo eats a signature “Nanaimo bar” in front of a Nanaimo bar, the
Jingle Pot Pub

Foodservice providers also service the visitor market, which presents unique challenges
as guests will bring with them the tastes and eating habits of their home country or
region. Most establishments generally follow one of two directions. One is to cater
completely to visitors from the day the doors open, with an operational and market
focus on tourists. The other is to cater primarily to residents.

Sometimes a local foodservice provider can continue to cater to the resident market over
time. In other cases, often because of financial pressures, the business shifts its focus
away from the residents to better cater to visitors’ tastes. These changes, when they do
occur, generally happen over time and can lead to questions of authenticity of the local
offerings (Smart, 2003; Heroux, 2002; Mak, Lumbers, Eves, & Chang, 2012).
Take a Closer Look: The Science of Addictive Food
For some time, one secret recipe for success in the food sector, particularly
the fast-food portion of the sector, was simple: salt, sugar, and fat — and
lots of it. There is a science behind these additives and why consumers keep
coming back to satisfy their cravings. To view a CBC special on the science
of addictive food, visitThe science of Addictive Food:
www.youtube.com/watch?v=4cpdb78pWl4

It is clear that the food and beverage sector must remain responsive to consumers’ needs
and desires. This is made evident by the emergence of health-concious eating in North
America over the last two decades. The influence of books such as Fast Food
Nation (Schlosser, 2012) and documentaries such as Super Size Me have created
mainstream awareness about what goes into our food and our bodies. As many
developed nations, including Canada, struggle with health-care concerns including
hypertension, diabetes, and obesity, food operators are taking note and developing new
health-conscious menus. Programs like BC’s Informed Dining initiative are helping
consumers understand their options (see the Spotlight On below).

Spotlight On: Informed Dining


The Informed Dining program was created by Healthy Families BC to help
consumers gain a better understanding of the ingredients in their food and
their role in daily healthy eating habits and guidelines. For more
information, visit the Informed Dining webpage:
www.healthyfamiliesbc.ca/home/informed-dining

This awareness, coupled with an increasing interest and desire for more authentic foods
produced without using herbicides and pesticides, free of genetically modified
ingredients, and even free of carbohydrates or gluten, has placed pressure on the sector
to respond, and many have (Frash, DiPietro, & Smith, 2014). Consumers are more
aware of the plight of farmers and producers from faraway places and the support
for fair trade practices. At the same time, there is a heightened desire for more locally
grown products, and a general awareness of nutrition and the quality of products that
are harvested in season and closer to home.

Take a Closer Look: Cittaslow Designation for Cowichan Bay


The community of Cowichan Bay on Vancouver Island was awarded the
Cittaslow Designation, which helps acknowledge its focus on sustainable
practices and local food harvesting best practice. For more information on
the designation and community efforts, watch the video, Cittaslow
Cowichan Bay: www.youtube.com/watch?v=_JQ-Cnh-v5Q
Consumer consciousness regarding the source and distribution of food has created a
movement that champions sustainable and locally grown foods. While this trend does
have its extremes, it is founded on the premise that eating food that has been produced
nearby leads to better food quality, sustainable food production processes, and
increased enjoyment. This has led to a number of restaurants that incorporate these
concepts in their menu planning and marketing.

In addition to this trend toward “conscious consumerism” (LinkBC, 2014, p.4), F&B
professionals must be highly aware of the importance of special diets including gluten-
free, low-carb, and other dietary restrictions (LinkBC, 2014).

All of these influences are continuously shaping the food and beverage sector. Before we
explore additional trends and issues in the sector, let’s review the core considerations
for profitability in foodservice operations.

Figure 4.11 Officials announce more funding for BC farmers markets, which have become
increasingly popular due to changing consumer tastes

Profitability
While many factors influence the profitability of foodservice operations, key
considerations include type of business, location, cost control and profit margin, sales
and marketing strategies, and human resources management. We’ve already examined
the different types of operation, and their relative profit margins. Let’s look at the other
profitability considerations in more detail.

Location

The selection of the correct location for a restaurant is often cited as the most critical
factor in an operation’s success (or failure) in terms of profitability. Prior to opening,
site analysis is required to determine the amount of traffic (foot traffic and vehicle
traffic), proximity to competing businesses, visibility to patrons, accessibility, and
presence (or absence) of desired patrons (Ontario Restaurant News, 1995).
Cost Control

According to Restaurants Canada, QSRs have the highest profit margin at 5.1%, while
full-service restaurants have a margin of 3.5%. There will be significant variances from
these percentages at individual locations even within the same brand (2014b).

Figure 4.12 Operating ratios for Canadian food and beverage businesses in 2012 [Long
Description]

A number of costs influence the profitability of an F&B operation. Some of the key
operating expenses (as a percentage of revenue) are detailed in Figure 4.12, above,
where food cost and salaries & wages are the two major expenses, each accounting for
approximately a third of the total. Other expenses include rental and leasing of venue,
utilities, advertising, and depreciation of assets.These percentages represent averages,
and will vary greatly by sector and location.

Cost control and containment is essential for all F&B businesses. Demanding particular
attention are the labour, food, and beverage costs, also known as the
operator’s primary costs. In addition to these big ticket items, there is the cost of
reusable operating supplies such as cutlery, glassware, china, and linen in full-service
restaurants.

Given that most operations have both a service side (interacting directly with the
consumer) and production side (preparing food or drink to be consumed), the primary
costs incurred during these activities often determine the feasibility or success of the
operation. This is especially true as the main product (e.g., food and drink) is
perishable; ordering the correct amount requires skill and experience.

Take a Closer Look: Survey of Service Industries — Foodservices


and Drinking Places
The Statistics Canada Survey of Service Industries series features an in-
depth look at the food and beverage sector. Data used in this chapter (and
much more) can be found in this comprehensive overview. To explore the
survey, visit the Survey of Service Industries:
www23.statcan.gc.ca/imdb/p3Instr.pl?Function=assembleInstr&Item_Id=
137106&LI=137106&TET=1

Sales and Marketing

The two principal considerations for sales and marketing in this sector are market share
and revenue maximization. Most F&B operations are constrained by finite time and
space, so management must constantly seek ways to increase revenue from the existing
operation, or increase the share of the available market. Examples of revenue
maximization include upselling existing consumers (e.g., asking if they want fries with
their meal; offering dessert), and using outdoor or patio space (even using rain covers
and heaters to extend the outdoor season). Examples of increasing market share in the
fast-food sector include extending special offers to new, first-time customers through
social media or targeted direct mail.

In today’s cluttered marketplace, being noticed is a constant goal for most companies.
Converting that awareness into patronage is a challenge for most operators. Restaurant
reviews have been a part of the food and beverage sector for a long time. With the
increase of online reviews by customers at sites like Yelp, Urbanspoon, and TripAdvisor,
and sharing of experiences via social media, food and beverage operators are becoming
increasingly aware of their web presence (Kwok & Yu, 2013). For this reason, all major
food and beverage operators carefully monitor their online reputation and their social
media presence.

Take a Closer Look: McDonald’s Social Media Conversation


In 2014, McDonald’s Restaurants took to the internet to answer questions
about their food production and ingredients. After months of declining
sales, their strategy was to create more emotional engagement with
customers and to gain their trust (Passikoff, 2014). To read more about the
initiative, read the article in Forbes magazine, “McDonald’s Hopes New
Social Media Question-And-Answer Will Modify Food Image”:
www.forbes.com/sites/robertpassikoff/2014/10/14/mcdonalds-hopes-
new-social-media-qa-will-modify-food-image/
One of the keys to a strong reputation, both in person, and online, is the management of
human resources.

Staffing and Human Resources

Figure 4.13 Winner of Top Chef Canada Matthew Stowe and patron at a new Cactus Club
restaurant opening

Appropriately staffing an F&B operation involves attracting the right people, hiring
them, training them, and then assigning them to the right tasks for their skills and
abilities. Many businesses operate outside the traditional workweek hours; indeed, some
operate on a 24-hour schedule. Creating the right team, employing them in accordance
with legal guidelines, and keeping up with the demands of the businesses are challenges
that can be addressed by a well-thought-out and implemented human resources plan.

People who have long-lasting careers in the sector find the fluctuating conditions
appealing; no two days are the same, and the fast-paced and energetic social
environment can be motivating. Many positions provide meaningful rewards and
compensation that can lead to long-term careers.

One topic of discussion in food and beverage human resources is that of gratuities
(tipping). In Canada, restaurants are obligated to pay staff minimum wage, and
gratuities are paid by the customer as an expression of their gratitude for service. This is
not the model in countries like Australia, where service staff are paid a higher
professional wage and prices are raised to accommodate this.

Take a Closer Look: Tipping and Its Alternatives


In 2008, Michael Lynn and Glenn Withiam wrote a paper discussing the
role of tipping and potential alternatives. While the paper focuses
particularly on the United States (where wages are structured differently
from Canada), it raises some good questions about consumer preference
and impact on businesses (Lynn & Withiam, 2008). For instance, do tips
actually improve service? These questions can apply to food and beverage
businesses but also other tourism operations within the service context. It
also offers some suggestions for further research. Read this paper
at “Tipping and Its Alternatives”:
http://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=1029&cont
ext=articles

In British Columbia, tips are considered income for tax purposes but are not considered
wages as they are not paid by the employer to the employee. A restaurant owner cannot
use tips to cover business expenses (e.g., require an employee to use his or her tips to
cover the cost of broken glassware). Employers are also not permitted to charge staff for
the cost of diners who do not pay (known as a dine-and-dash). They can, however,
require front-of-house staff pool their gratuities, or pay individually, to ensure back-of-
house staff receive a percentage of the tips (British Columbia Ministry of Jobs, Tourism
and Skills Training, n.d.). This is also commonly known as a tip-out.

There have been experiments with gratuity models in recent years. One example is
a restaurant on Vancouver Island, which tried an all-inclusive pricing model upon
opening in 2014, but reverted three months later to the traditional tipping model due to
consumer demand and resistance to higher prices (Duffy, 2014).

Trends and Issues


In addition to having to focus on the changing needs of guests and the specific
challenges of their own businesses, food and beverage operators must deal with trends
and issues that affect the entire industry. Let’s take a closer look at these.

Government Influence

Each level of government affects the sector in different ways. The federal government
and its agencies have influence through income tax rates, costs of employee benefits
(e.g., employer share of Canada Pension Plan and Employment Insurance deductions),
and support for specific agricultural producers such as Canadian dairy and
poultry farmers, which can lead to an increase in the price of ingredients such as milk,
cheese, butter, eggs, and chicken compared to US prices (Findlay, 2014; Chapman,
1994).
Provincial governments also impact the food and beverage sector, in particular with
respect to employment standards; minimum wage; sales taxes (except Alberta); liquor,
wine, and beer wholesale pricing (Smith, 2015); and corporate income tax rates.

Municipal governments have an ever-increasing impact through property and business


taxes, non-smoking bylaws, zoning and bylaw restrictions, user fees, and operating
hours restrictions.

Spotlight On: Restaurants Canada


When Restaurants Canada was founded in 1944, it was known as
the Canadian Restaurant Association, and later the Canadian Restaurant
and Foodservices Association. Today, the organization represents
over 30,000 operations including restaurants, bars, caterers, institutions,
and suppliers. It conducts and circulates industry research and offers its
members cost savings on supplies, insurance, and other business expenses.
For more information, visit the Restaurants Canada website:
www.restaurantscanada.org

Over time, the consequence of these government impacts has resulted in independent
and chain operators alike joining forces to create a national restaurant and foodservice
association now named Restaurants Canada (see Spotlight On above). At the
provincial level, BC operators rely on the British Columbia Restaurant &
Foodservices Association (BCRFA).

Spotlight On: BC Restaurant & Foodservices Association


(BCRFA)
For more than 40 years, the BCRFA has represented the interests of the
province’s foodservice operators in matters such as wages, benefits, liquor
licences and other relevant matters. Today, it offers benefits to over 3,000
members on both the supply and the operator side. For more information,
visit the BC Restaurant and Foodservices Association website:
http://bcrfa.com

Health and Safety


Figure 4.14 A sign in a Starbucks location encouraging staff to wash their hands to prevent the
spread of germs

Food and beverage providers hold a distinct position within our society; they invite the
public to consume their offerings, both on and off premise. In doing so, all food and
beverage operators must adhere to standardized public safety regulations. Each
province has regulations and legislation that apply in their jurisdiction. In BC, this is
addressed by the FoodSafe and Serving It Right programs, and compliance with the
Occupiers Liability Act. These regulations and legislation are enacted in the interest of
public health and safety.

Take a Closer Look: Health and Safety Training


Food and beverage professionals are strongly encouraged to take both
FoodSafe and Serving It Right courses. These certifications are necessary to
advance into specific and leadership roles in the industry. For instance,
Serving It Right is required by all licensees, managers, sales staff, and
servers in licensed establishments. In addition, individuals may require
Serving It Right for a special occasion licence. To sign up for an online
program or course near you, visit FoodSafe: www.foodsafe.ca and Serving It
Right: www.servingitright.com

FoodSafe is the provincial food safety training program designed for the foodservice
industry (FoodSafe, 2009). Serving It Right is a mandatory course that is completed
through self-study, and is required for anyone serving alcohol in a commercial setting.
Its goal is to ensure that licensees, managers, and servers know their legal
responsibilities and understand techniques to prevent over-service and related issues
(go2HR, 2014).

In broad terms, BC’s Occupiers Liability Act covers the responsibilities of the occupier of
a property to ensure the safety of visitors. Additional local health bylaws set standards of
operation for health and safety under the direction of the medical officers of health.
Public health inspectors regularly visit food and beverage operations to evaluate
compliance. In some communities, these inspection results are posted online.

Collectively, the food and beverage industry in BC has an excellent reputation for
ensuring the health and safety of its patrons, the general public, and its employees.

Technology Trends

Technology continues to play an ever-increasing role in the sector. It is most


noticeable in QSRs where many functions are automated in both the front of
house and back of house. In the kitchen, temperature sensors and alarms determine
when fries are ready and notify kitchen staff. Out front, remote printers or special
screens ensure the kitchen is immediately notified when a server rings in a purchase.
WiFi enables credit/debit card hand-held devices to be brought directly to the table to
process transactions, saving steps back to the serving station.

Other trends include automated services such as that offered by Open Table, which
provides restaurants with an online real-time restaurant reservation system so
customers can make reservations without speaking to anyone at the restaurant (Open
Table, 2015). And now smartphone apps will tell customers what restaurants are nearby
or where their favourite chain restaurant is located.

Take a Closer Look: Automated Cooking in Asia


In Singapore Changi Airport, a quick-service restaurant is using automated
woks. The cook adds the ingredients and can attend to other duties until the
item is ready for service. Check out a video of a cook using an automated
wok: www.youtube.com/watch?v=Gqiz17AsYhQ. And in China, watch a
video of robots that are shaving noodles “by
hand.”: singularityhub.com/2013/04/19/chinese-restaurant-owner-says-
robot-noodle-maker-doing-a-good-job/

Changing Venues

The following trends relate to the changing nature of food and beverage venues,
including the emerging importance of the third space, and the increased mainstream
presence of non-permanent locations such as street vendors and pop-up restaurants.

The Third Space


The third space is a concept that describes locations where customers congregate that
are neither home (the first space) nor work or school (the second space). Many attribute
the emergence of these spaces to the popularity of coffee shops such as Starbucks. In the
third space, operators must create a comfortable venue for customers to “hang out” with
comfortable seating, grab and go F&B options, WiFi, and a relaxed ambiance. Providing
these components has been shown as a way to increase traffic and customer loyalty
(Mogelonski, 2014).

Taking It to the Street


Street food has always been a component of the foodservice industry in most big cities.
These operations are often run by a single owner/operator or with minimal staff, and
serve hot food that can be eaten while standing. According to research firm IBISWorld,
in 2011 the “street food business — which includes mobile food trucks and non
mechanized carts, is a $1 billion industry that has seen an 8.4 percent growth rate from
2007 to 2012″ (Entrepreneur, 2011) with 78% of owners having no more than four
employees.

Recently, in North America, where climate and weather allow, there has been a
noticeable increase in both the number and type of street food vendors. In the city of
Vancouver alone there are over 100 permitted food cart businesses, searchable by an
app and sortable list — and the city uses the terms street food vendor, food cart,
and food truck interchangeably (City of Vancouver, 2014).

Figure 4.15 Tacofino (closest), Pig on the Street, and Mom’s Grilled Cheese food trucks welcome
crowds to their portable kitchens in downtown Vancouver.

Pop-up restaurants have also emerged, facilitated in part by the prevalent use of
social media for marketing and location identification. Pop-ups are temporary
restaurants with a known expiry date, which also tend to have the following in common
(Knox, 2011):

 A well-known or up-and-coming chef at the helm


 An interesting, but stationary, location (a warehouse, a park, the more unusual the
better)
 Staff who are adept at promotions and word-of-mouth
 Strong local foodie (food and beverage enthusiast) base in the area
 Involvement from local artists or musicians to add to the experience

As popular they are with consumers, the ways in which pop-ups deviate from
restaurants has aggravated some critics, causing Bon Appétit magazine to declare that
“pop-ups are not supposed to be restaurants,” and that “pop-up restaurants are over”
(Duckor, 2013). Statements like these are further evidence that food and beverage
services trends are dynamic and ever-changing.

Conclusion
The food and beverage sector is a vibrant and multifaceted part of our society. Michael
Hurst, famous restaurateur and former chair of the US National Restaurant Association,
championed the idea that all guests should be received with the statement “Glad you are
here” (Tripp, 1992; Marshall 2001). That statement is the perfect embodiment of what
F&B is to the hospitality industry — a mix of service providers who welcome guests with
open arms and take care of their most basic needs, as well as their emotional well-being.

Take a Closer Look: Michael Hurst


Michael Hurst preached to students, industry participants, and university
colleagues alike, saying that “The most precious gift you can give your
Guests is the gift of Friendship” (Tripp, 1992; Marshall 2001). To learn
more about this legendary character, visit In My Opinion: Michael E. Hurst
[PDF]:
http://digitalcommons.fiu.edu/cgi/viewcontent.cgi?article=1353&context=
hospitalityreview

The social fabric of our country, its residents, and visitors will change over time, and so
too will F&B. What will not change in spite of how we divide the segments — into
tourists or locals — is that the sector is at its best when food and beverages are
accompanied by a social element, extending from your dining companions to the front
and back of the house.

So far, we have covered the transportation, accommodation, and food and beverage
sectors. In the next two chapters, we’ll explore the recreation and entertainment sector,
starting with recreation in Chapter 5.

Key Terms
 Assets: items of value owned by the business and used in the
production and service of the dining experience
 Average cheque: total sales divided by number of guests served
 Back of house: food production areas not accessible to guests and
not generally visible; also known as heart of house
 BC Restaurant & Foodservices Association
(BCRFA): representing the interests of more than 3,000 of the
province’s foodservice operators in matters including wages, benefits,
liquor licences, and other relevant matters
 Beverage costs: beverages sold in liquor-licensed operations; this
usually only includes alcohol, but in unlicensed operations, it includes
coffee, tea milk, juices, and soft drinks
 Captured patrons: consumers with limited selection or choice of
food or beverage provider given their occupation or location
 Commercial foodservice: operations whose primary business is
food and beverage
 Cross-utilization: when a menu is created to make multiple uses of
a small number of staple pantry ingredients, helping to keep food
costs down
 Dine-and-dash: the term commonly used in the industry for when a
patron eats but does not pay for his or her meal
 Ethnic restaurant: a restaurant based on the cuisine of a particular
region or country, often reflecting the heritage of the head chef or
owner
 Family/casual restaurant: restaurant type that is typically open
for all three meal periods, offering affordable prices and able to serve
diverse tastes and accommodate large groups
 Fine dining restaurant: licensed food and beverage establishment
characterized by high-end ingredients and preparations and highly
trained service staff
 Food and beverage (F&B): type of operation primarily engaged in
preparing meals, snacks, and beverages, to customer order, for
immediate consumption on and off the premises
 Food cost: price including freight charges of all food served to the
guest for a price (does not include food and beverages given away,
which are quality or promotion costs)
 Food primary: a licence required to operate a
restaurant whose primary business is serving food (rather than
alcohol)
 Foodie: a term (often used by the person themselves) to describe a
food and beverage enthusiast
 Front of house: public areas of the establishment; in quick-service
restaurants, it includes the ordering and product serving area
 Full-service restaurants: casual and fine dining restaurants where
guests order food seated and pay after they have finished their meal
 Liquor primary licence: the type of licence needed in BC to
operate a business that is in the primary business of selling alcohol
(most pubs, nightclubs, and cabarets fall into this category)
 Non-commercial foodservice: establishments where food is
served, but where the primary business is not food and beverage
service
 Operating supplies: generally includes reusable items including
cutlery, glassware, china, and linen in full-service restaurants
 Pop-up restaurants: temporary restaurants with a known expiry
date hosted in an unusual location, which tend to be helmed by a
well-known or up-and-coming chef and use word-of-mouth in their
promotions
 Primary costs: food, beverage, and labour costs for an F&B
operation
 Profit: the amount left when expenses (including corporate income
tax) are subtracted from sales revenue
 Quick-service restaurant (QSR): an establishment where guests
pay before they eat; includes counter service, take-out, and delivery
 Restaurants Canada: representing over 30,000 food and beverage
operations including restaurants, bars, caterers, institutions, and
suppliers
 Revenue: sales dollars collected from guests
 Third space: a term used to describe F&B outlets enjoyed as “hang
out” spaces for customers where guests and service staff co-create the
experience
 Tip-out: the practice of having front-of-house staff pool their
gratuities, or pay individually, to ensure back-of-house staff receive a
percentage of the tips
 Upscale casual restaurant: emerging in the 1970s, a style of
restaurant that typically only serves dinner, intended to bridge the
gap between fine dining and family/casual restaurants

Exercises
1. Looking at Table 4.1, what was the average volume of sales per F&B
establishment in BC in 2013? What was it for Alberta? What about
the national average? What might account for these differences? List
at least three contributing factors.
2. Looking at the same table, how many F&B “units” were there in BC in
2013?
3. What are the two main classifications for food and beverage
operations and which is significantly larger in terms of market share?
4. Should gratuities be abolished in favour of all-inclusive
pricing? Consider the point of view of the server, the owner, and the
guest in your analysis.
5. Think of the concept of the third space, and name two of these types
of operations in your community.
6. Have you worked in a restaurant or foodservice operation? What are
the three important lessons you learned about work while there? If
you have not, interview a classmate who has experience in the field
and find out what three lessons he or she would suggest.
7. What is your favourite restaurant? What does it do so well to have
become your favourite? What would you recommend it do to improve
your dining experience even more?
8. What was your all-time best restaurant dining experience? Compare
and contrast this with one of your worst dining experiences. For each
of these, include a description of:
a. The food
b. The behaviour of restaurant staff
c. Ambiance (music, decor, temperature, comfort of chairs,
lighting)
d. The reason for your visit
e. Your mood upon entering the establishment

Case Study: Restaurant Behaviour — Then and Now

The following story made the rounds via social media in late 2014. While
the claim has not been verified, it certainly rings true for a number of F&B
professionals who have experienced this phenomenon. The story is as
follows:
A busy New York City restaurant kept getting bad reviews for slow service,
so they hired a firm to investigate. When they compared footage from 2004
to footage from 2014, they made some pretty startling discoveries. So
shocking, in fact, that they ranted about it in an anonymous post on
Craigslist:
We are a popular restaurant for both locals and tourists alike. Having been in
business for many years, we noticed that although the number of customers we serve
on a daily basis is almost the same as ten years ago, the service seems very slow. One
of the most common complaints on review sites against us and many restaurants in
the area is that the service was slow and/or they needed to wait too long for a table.
We’ve added more staff and cut back on the menu items but we just haven’t been
able to figure it out.
We hired a firm to help us solve this mystery, and naturally the first thing they
blamed it on was the employees needing more training and the kitchen staff not
being up to the task of serving that many customers.
Like most restaurants in NYC we have a surveillance system, and unlike today where
it’s digital, 10 years ago we still used special high capacity tapes to record all activity.
At any given time we had 4 special Sony systems recording multiple cameras. We
would store the footage for 90 days just in case we needed it for something.
The investigators suggested we locate some of the older tapes and analyze how the
staff behaved ten years ago versus how they behave now. We went down to our
storage room but we couldn’t find any tapes at all.
We did find the recording devices, and luckily for us, each device has 1 tape in it that
we simply never removed when we upgraded to the new digital system!
The date stamp on the old footage was Thursday July 1, 2004. The restaurant was
very busy that day. We loaded up the footage on a large monitor, and next to it on a
separate monitor loaded up the footage of Thursday July 3 2014, with roughly the
same amount of customers as ten years before.
We carefully looked at over 45 transactions in order to determine what has been
happening:
Here’s a typical transaction from 2004:
Customers walk in. They are seated and are given menus. Out of 45 customers
3 request to be seated elsewhere.
Customers spend 8 minutes on average before closing the menu to show they are
ready to order.
Waiters shows up almost instantly and takes the order.
Appetizers are fired within 6 minutes; obviously the more complex items take
longer.
Out of 45 customers 2 sent their items back.
Waiters keep an eye on their tables so they can respond quickly if the customer
needs something.
After guests are done, the check is delivered, and within 5 minutes they leave.
Average time from start to finish: 1 hour, 5 minutes.
Here’s what happened in 2014:
Customers walk in. Customers get seated and are given menus, and out of 45
customers 18 request to be seated elsewhere.
Before even opening the menu most customers take their phones out, some are
taking photos while others are texting or browsing.
Seven of the 45 customers had waiters come over right away, they showed them
something on their phone and spent an average of five minutes of the waiter’s time.
Given this is recent footage, we asked the waiters about this and they explained those
customers had a problem connecting to the WIFI and demanded the waiters try to
help them.
After a few minutes of letting the customers review the menu, waiters return to their
tables. The majority of customers have not even opened their menus and ask the
waiter to wait a bit.
When customers do open their menus, many place their phones on top and continue
using their activities.
Waiters return to see if they are ready to order or have any questions.
Most customers ask for more time.
Finally a table is ready to order. Total average time from when a customer is seated
until they place their order is 21 minutes.
Food starts getting delivered within 6 minutes; obviously the more complex items
take way longer.
26 out of 45 customers spend an average of 3 minutes taking photos of the food.
14 out of 45 customers take pictures of each other with the food in front of them or
as they are eating the food. This takes on average another 4 minutes as they must
review and sometimes retake the photo.
9 out of 45 customers sent their food back to reheat. Obviously if they didn’t pause to
do whatever on their phone the food wouldn’t have gotten cold.
27 out of 45 customers asked their waiter to take a group photo. 14 of those
requested the waiter retake the photo as they were not pleased with the first photo.
On average this entire process between the chit chatting and reviewing the photo
taken added another 5 minutes and obviously caused the waiter not to be able to
take care of other tables he/she was serving.
Given in most cases the customers are constantly busy on their phones it took an
average of 20 more minutes from when they were done eating until they requested a
check.
Furthermore once the check was delivered it took 15 minutes longer than 10 years
ago for them to pay and leave.
8 out of 45 customers bumped into other customers or in one case a waiter (texting
while walking) as they were either walking in or out of the restaurant.
Average time from start to finish: 1:55
We are grateful for everyone who comes into our restaurant, after all there are so
many choices out there. But can you please be a bit more considerate?
Now it’s your turn. Imagine you are the restaurant operator in question,
and answer the questions below.

1. What could you, as the owner, try to do to improve the turnover


time? Come up with at least three ideas.
2. Now put yourself in the position of a server. Do your ideas still work
from this perspective?
3. Lastly, look at your typical customer. How will he or she respond to
your proposals?

Alcoholic Beverages: Types and uses


An alcoholic beverage is fermented liquor that is prepared by the composition of various fermented
substances and the amount of alcohol is different in different types of wine. There are various types
of 'wine like beer, champagne, cider, port and sherry, whisky, Rum, Brandy, and Gin etc. Also in the
beer the amount of alcohol is extremely low, while in the Rum this amount is extremely high and the
champagne is the most costly wine among all.

Types of Alcoholic Beverages


Broadly, alcoholic beverage has been classified into two categories: Distilled beverage; Undistilled
beverage

Distilled beverage: These types of beverages are prepared by the distillation of without distilled
beverage and the amounts of alcohol vary from (40-55) % as below-

Undistilled beverage: These types of beverage are prepared by the fermentation of fruits juices or
food grains and on filtration of fermented liquid and some wanted flavour; colour and perfumes are
accessed (intermixed). The amounts of alcohol vary from (3-15) % as below;

Uses of Alcohol

Alcoholic Drinks: The term "alcohol" in alcoholic beverages refers to ethanol (CH3CH2OH).

Industrial methylated spirits: Ethanol is usually sold as industrial methylated spirits, which is ethanol
with a small quantity of methanol and possibly some colour added. Because methanol is poisonous,
industrial methylated spirits are unfit to drink, allowing purchasers to avoid the high taxes levied on
alcoholic drinks.

Use of ethanol as a fuel: Ethanol burns to produce carbon dioxide and water, as shown in the
equation below, and can be used as a fuel in its own right or in mixtures with petrol (gasoline).
CH3CH2OH+3O2→2CO2+3H2O

"Gasohol" is a petrol/ethanol mixture containing approximately 10–20% ethanol. Because ethanol can
be produced by fermentation, this is a useful method for countries without an oil industry to reduce the
amount of petrol imports.

Ethanol as a solvent: Ethanol is widely used as a solvent. It is relatively safe and can be used to
dissolve many organic compounds that are insoluble in water. It is used, for example, in many
perfumes and cosmetics.

Methanol as a fuel: Methanol also burns to form carbon dioxide and water:
2CH3OH+3O2→2CO2+4H2O

It can be used a petrol additive to improve combustion, and its use as a fuel in its own right is under
investigation.

Methanol as an industrial feedstock: Methanol is also used to make other compounds, for example,
methanal (formaldehyde), ethanoic acid, and methyl esters of various acids. In most cases, these are
then converted into further products.

Terms related to alcohol

• Wood spirit: Methyl alcohol is also called wood spirit because in early stage it was obtained by the
destructive distillation of wood.

• Grain alcohol: Ethyl alcohol is also called grain alcohol because it is obtained by the starch enriched
substances.

• Absolute alcohol: The alcohol which is 100% pure is called absolute alcohol and it is completely
pure and anhydrate.

• Rectified spirit: This is also called commercial alcohol in which 95.6% ethyl alcohol and 4.4% water
exist.

• Power alcohol: The mixture of purified spirit, benzene and petrol is called power alcohol and it is
used in propelling engine. As it is directly related to the power to carry out the engine so it is called
power alcohol.

• Denatured alcohol: Ethyl alcohol which cannot be used for the beverage purposes is called
denatured alcohol. To obtain such type of alcohol usually in purified spirit, methyl alcohol, piridin,
acetone etc. type of toxic substances are mixed.
Bartender
Profession
A bartender is a person who formulates and serves alcoholic or soft drink beverages
behind the bar, usually in a licensed establishment. Bartenders also usually maintain
the supplies and inventory for the bar
Bar personnel

How to Become a Bartender

Bartenders mix and serve alcoholic beverages and other drinks to bar and restaurant patrons.
Bartenders must know about different varieties and brands of beer, wine, and spirits and how to
serve each. They must also learn and master cocktail-making techniques like shaking, stirring,
pouring, and muddling.

An important part of being a bartender is providing good customer service. Bartenders take
orders, collect payment and make change, recommend drinks, and make conversation with their
customers. They also maintain a clean working area and may be responsible for keeping their bar
well-stocked.

What kind of training is required to become a bartender?

Most bartenders don’t complete formal training for their jobs. Bartenders may teach themselves
or learn on the job by working as a bartender helper or assistant.

Some bartenders go to bartending schools to receive their initial training. Bartending schools
exist across the United States, and experts recommend choosing one that is licensed by your
state’s department of education and offers programs that take at least 40 hours to complete.

Students in bartending courses learn how to use bar equipment, mix a wide variety of cocktails,
pour different types of beverages, and provide good customer service. They may also learn about
health and safety issues, working with cash registers, and interviewing for bartender positions.

Are there any certification or licensure requirements?


Very few states require bartenders to meet any licensing or certification requirements.
Washington state, for example, requires bartenders to complete an alcohol server training course
and apply for a permit. Wisconsin has similar requirements. Check with your state’s liquor
control board to see what, if anything, bartenders must do before they can start working.

How long does it take to become a bartender?

There is no one strict path to becoming a bartender, and you could begin working as a bartender
as soon as you meet your state’s age requirements. Some states set the minimum age for
bartenders at 18, while others require bartenders to be at least 21 years old.

What does a bartender earn?

Most bartenders rely heavily upon tips to supplement their hourly wage. The Bureau of Labor
Statistics reports that in 2012, bartenders in the United States earned a median of $9.09 per hour,
including tips. The top ten percent of bartenders made more than $15 per hour that year.

What are the job prospects?

The BLS expects that employment of bartenders in the United States will grow by 12 percent
between 2012 and 2020, about as fast as the average growth for all occupations. While
employment will grow, competition for bartending jobs may be strong. Bartenders can enhance
their job prospects by gaining experience and training.

What are the long term career prospects for bartenders?

Bartenders who gain working experience will be more likely to land lucrative jobs with busy,
successful bars and restaurants. Some bartenders may advance into restaurant management or
even open their own bars.

How can I find a job as a bartender?

Search for job openings in your area and apply and interview in a professional manner. Search
for openings that might be a good fit for your interests; if you are interested in sports, for
example, then a sports bar may be a good place for you. Network with other bartenders to find
out about job openings in your area.

How can I learn more about becoming a bartender?

If you want to learn more about bartending, you can learn a lot by talking to a bartender. Build a
rapport with bartenders in various bars and restaurants to learn more about the profession and the
job scene in your area.
Top 10 Qualities of a Great Bartender

Bartending can be a terrific occupation for the right person. Tips can be through the roof, and the
atmosphere and clientele can make for fun shifts. The most successful bartenders have certain qualities
that get them the more lucrative positions and best tips. Some of those top qualities include:

 1. Knowledgeable About Drinks: Mixology skills are an essential quality of a great bartender.
Bartenders should know off-hand how to make the most common drinks, but not be afraid to consult
reference books as needed to make drinks that they are not familiar with.
 2. Has Good Customer Service Skills: A great bartender has outstanding customer service skills.
The very nature of the job is to serve customers, and pay largely depends on tips. A great bartender
has a personality that connects with customers and keeps them coming back to the bar.
 3. Maintains Cleanliness: A great bartender keeps the bar and dishes in top form. When working
with food and beverages, keeping things clean and sanitary is vital.
 4. Is Well Prepared to Handle Unusual Situation: Bartenders should always be prepared for
anything, such as uncommon drinks or larger-than-usual crowds. Liquors and wines should always
be well stocked and the bar clean and ready for customers.
 5. Is Attentive: A great bartender stays on top of everything. They know when their customers need
drink refills or when something in the bar needs to be restocked.
 6. Has a Good Personality: The most successful bartenders have friendly personalities that connect
with customers. When a customer feels like he or she has a friend in a bartender, they become a
repeat customer and leave generous tips.
 7. Has a Keen Memory: Great bartenders have excellent memories. They remember regular
customers' drinks, as well as what new customers are currently drinking. They also have dozens of
drink recipes memorized.
 8. Possesses Strong Money-Handling Skills: Bartenders also act as cashiers and must be good
handling money. They should be able to quickly make calculations and figure out change.
 9. Is Highly Efficient: A great bartender works quickly and efficiently. When serving multiple
customers, speed is an important quality to have.
 10. Acts Responsibly: Other staff members depend on a bartender to be on time and efficient.
Bartenders have to remember to check IDs and keep things in their area under control.

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