UNIT-1

INTRODUCTION TO HOSPITALITY INDUSTRY

The word Hotel is derived from the French word “hôtel”, which refers to a French version of outhouse. The word hotel could have also derived from “hostel”, which means ‘a place to stay for travelers’.

 

A ‘hotel’ or ‘inn’ is defined by the British law as ‘the place where a bona fide traveller can receive food and shelter provided he is in a position to pay for it and is in a fit condition to be received’. Hence a hotel must provide food and lodging to a traveller on payment and has, in turn, the right to refuse if the traveller is drunk, disorderly, unkempt or is not in a position to pay for the services.

A hotel is thus an establishment that provides paid accommodation, generally for a short duration of stay. Hotels often provide a number of additional guest services, such as restaurants, bar, swimming pool, retail shops, business facilities like conference halls, banquet halls, board rooms; and space for private parties etc. Most of the modern hotels nowadays provide the basic facilities in a room- a bed, wardrobe, writing table, thermostat, and bathroom- along with other features like a telephone with STD/ISD facility, a television set with cable channel, and broadband internet connectivity. There might also be a mini bar (small refrigerator) containing snacks and drinks, and tea and coffee making unit having an electric kettle, cups, spoons, and sachets containing instant coffee, tea bags, sugar and creamer.

TYPES OF F&B OPERATIONS

Out Door Catering

The type of catering service which is done outside the premises of any hotel, restaurant. Off premises catering is classified into 3 types

  1. On Site Out Door Catering – A type of catering service where the food is prepared “on site – Within the premises of the event” and as per the guest expectations, the provision for last minute modifications is there.
  2. Off Site Out Door Catering – A type of catering establishment where the food is prepared in the parent premises then transferred to the required catering unit along with the proper utensils and equipment’s used during the service of food.
  3. Cloud Kitchen – A type of Catering service in which the food is prepared in a different unit and served in another unit.

CLASSIFICATION OF CATERING INDUSTRY

1. Classification according to priority

Primary or Commercial Catering Sector

  • These are the establishments whose main aim is to earn profit by providing food and beverage to the guests as per their demand. Hence, they are also referred as commercial catering, establishments. Such as hotels, restaurants, fast food outlets, bars, pubs, etc.

 

Secondary or Non Commercial Catering Sector

  • These are the establishments that provide food and beverage as a part of another business.
  • The examples are institutional catering, transport catering, catering services in theatres, amusement parks, departmental stores, & Industrial Canteen.
  • The primary aim of these units is not the provision of F&B to the clients but the activity for which it is setup.
  • For Example – In Theatres movie is the primary activity but to engage the guests and to earn some revenue provision for F&B is also there.

2. Classification according to motive

Commercial Sectors

These operate mainly to make profit or to earn adequate return on Investment (ROI) through their product or services. F&B facilities of hotels, resorts, motels, clubs, stand alone Restaurants, Take away outlets, Pubs & Bars, Coffee Shops, transport catering etc are the few examples of commercial catering.

They are further divided into 2 types:

  • Residential- These type of establishment provides food n beverage along with Such as hotels, motels, resorts etc
  • Non-Residential- These type of establishment provides only Food & beverage. Such as restaurants, pubs, night clubs etc.

Welfare Sectors

These operate mainly to provide services at no profit & no loss basis, and most of them are run by private bodies or government. They operate within their outlined budget for the provision of F&B Services.

School Catering, University Catering, Hospital Catering, prison Catering, Military Catering and so on are few examples of welfare catering provided these are run by their own management.

But if these catering services are given on contract then the motive of the contractor is to earn profit and hence such services will become commercial operations.

General Market :

Market which is open & accessible to each & everyone. General Market considers all the population as their potential Customers.

Restricted Market :

Market which is open & accessible to a limited number of population which are the potential customers of the restricted market. For Ex – Passengers are the potential customers for transport catering, Students are the potential customers in Institutional catering.

3. Classification according to market/type of customer

Non – Captive Market – The customers have unlimited choice where to eat.

Capitive Market – Customers don’t have any choice where to eat & have to avail services provided by a particular catering outlet.

Example – College students staying in hostels, patient in hospitals, prisoners, industrial workers.

Semi Capitive Market – Customers have the limited choice where to eat.

Example – Passengers travelling in train may take food prepared in pantry car, from the food outlets at the railway stations or wait till destination is reached.

WELFARE CATERING

These are the establishments that provide food and beverage as a part of another business. Their aim is not to earn money. Instead, the establishments are there to provide welfare services at affordable prices, such as industrial canteens, hospital canteens, school/college canteens, railways caterings, airline caterings, ship or cruise lines, etc. The quality and the quantity of the food should be equally good, through this type of menu offered in this type of catering might be different from another. May be deemed as those operations in which making a profit from catering facility is not the outlet’s main concern. Since the operations are completely or partially subsidized by a parent body, such establishments’ primary obligation is in the wellbeing or care of their guests/ customers/ patients.

Unlike commercial catering establishment the guests/ customers/ patients do not have choice of catering facilities.

1)    Institutional Catering

Institutional catering includes school, colleges, universities, hospitals, orphanages, old age homes, prisons etc. In some of these establishments no charge is made to certain group of customers to for the provision of food & beverage services as they are completely or partially subsidized by various government funds.

2)    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. These services may also be utilized by the general public, who are in the vicinity of a transport catering unit. The major forms of modern day transport catering are airline-catering, railways catering, ship catering and surface catering in coaches or buses which operate on long distance routes.

  • Airline Catering-Catering to airline passengers on board the air craft, as well as at restaurants situated at airport terminals is termed as airline catering. Modern airports have a variety of food and beverage outlets to cater to the increasing number of air passengers. Catering to passengers en route is normally contracted out to a flight catering unit of a reputed hotel or to a catering contractor or to the catering unit operated by the airline itself as an independent entity.
  • Railway Catering-Catering to railway passengers both during the journey as well as during halts at different railway stations is called railway catering. Travelling by train for long distances can be very tiring; hence a constant supply of a variety of refreshment choices helps to make the journey less tedious. On-board meal services are also provided on long distance trains.

 

  •  Ship Catering-Ship catering is catering to cargo crew and passenger ship passengers. Ships have kitchens and restaurants on board. The quality of service and facilities offered depends on the class of the ship and the price the passengers are willing to pay. There are cruises to suit every pocket. They range from room service and cocktail bars to speciality dining restaurants.

 

  • Surface Catering- Catering to passengers traveling by surface transport such as buses and private vehicles is called surface catering. These eating establishments are normally located around a bus terminus or on highways. They may be either government run restaurants, or privately owned establishments. Of late there has been a growing popularity of Punjabi style eateries called dhabas on the highways.

 

3)    Industrial Catering

The provision of food and beverages to ‘people at work,’ in industries and factories at highly subsidized rates is called industrial catering. It is based on the assumption that better fed employees at concessional rates are happy and more productive. Catering for a large workforce may be undertaken by the management itself, or may be contracted out to professional caterers. Depending on the choice of the menu suggested by the management, catering contractors undertake to feed the workforce for a fixed period of time at a predetermined price.

STRUCTURE OF CATERING INDUSTRY

The structure of catering industry includes both commercial and non-commercial catering establishments. Some of the more popular and common ones are as under.

  1. Five Star Hotels: These usually have several restaurants, grill rooms, ethnic (Indian, Chinese, Italian etc. among the most popular), European and coffee shops are included. Service in these hotels is usually attentive and entertainment is nearly always available. Prices in these establishments tend to be high.
  2. Medium Class Hotels: Similar to the 5 star, though surroundings are less luxurious and prices are reflected in this.
  3. Free Standing Restaurants: Often quite high class, offering good Ala Carte menus- service is usually of high standard.
  4. Snacks Bar: popular with the working public offering everyday fare, at very reasonable prices.
  5. Fast Food Centres: The “eating out” of 80’s growing in popularity in India especially with the young, these restaurants offer fast, clean service at popular prices. Service is minimal and turnover is high.
  6. Night Clubs: usually situated only in the larger cities and offering high class entertainment with food.
  7. Industrial Canteens: Operated as a facility to staff in large factories or similar. Food of a high standard but managements working to tight budgets. Food cost is usually subsidized consequently staff pay minimal prices.
  8. Institutional Catering: Facility to provide food in various institutions like educational institutions where the need is to serve to a large number of population at a
  9. Airline Catering: A big business operation, serving good quality food in difficult and limited service areas. Competition is tough in this sector to maintain high standard.
  10. Railway Catering: similar to airlines, where the food is prepared in the pantry car if it is served in the Food is generally kept in semi prepared form in the pantry car for speedy service.
  11. Outdoor catering: Is a growing industry within the industry. Provision for serving food outside the premises of the outlet.