sectors of the food service industry

Sectors of the Food Service Industry

In the foodservice industry sectors. There are many types of food and beverage operations. They may vary in size, style, location, and the market they are catering to.

From a wayside tea stall to an exclusive fine dining restaurant of a deluxe hotel, and from midday meal services for school children to meals for industrial workers, all come under the fold of the F&B sector.

Sectors of the Food Service Industry

These are various sectors of the food and beverage industry:

1. Commercial Sectors (Profit Motive)

a) General Market

  • Hotels, Motels, Resorts
  • Restaurants
  • Takeaway outlets
  • Fast food outlets
  • Pubs, Wine bars
  • Food courts
  • Functions catering

b) Restricted Market

  • Transport catering
  • Clubs
  • Industrial catering
  • Institutional catering

2. Welfare Sectors (Service Motive)

a) Restricted Market

  • Institutional catering
  • Schools
  • Colleges
  • Universities
  • Hospitals
  • Old age homes
  • Military
  • Prisons
  • Industrial catering (run by own management)

3. Other Food and beverage Industry Sectors

a) Non-Captive Market

In these areas of the food and beverage industry, the customers have a choice of where to eat.

The types of restaurants chosen may be a fine dining restaurant of a deluxe hotel, stand-alone restaurant, coffee shop, fast food outlet, specialty restaurant, or a popular restaurant depending on the following below.

b) Reason for Dining

For example- A birthday party, Valentine’s Day, Wedding anniversary, or Business meetings.

c) Time Available to Eat

Some customers have more time to spend in a restaurant while others have very little time, which influences their decision on the selection of the type of eatery.

d) Captive Market/Customers

The customers do not have a choice of where to eat. In such a market, the customers have a choice before selecting the food and beverages. Once the choice is made, the customers have no choice but to be content with what is on offer.

Sectors/Areas of the food and beverage industry can broadly be classified into the following two groups according to the priority given to the provision of food and beverages.

1. Primary Catering Sectors

The establishments under this category are primarily concerned only with the provision of food and beverages to customers.

2. Secondary Catering Sectors

The establishments in which the provision of food and beverages is not the main activity but a secondary or support activity are called secondary catering sectors.

The primary activity of these units is not the provision of food and beverages to the clients but the activity for which it is set up.

For example- Some trains have a pantry car while others do not. Short-duration flights may not provide flight catering services.