Hospitality and Related Services - Tourism: Principles, Practices, Philosophies - page 138

operators plan to devote more resources to green initiatives in 2010 than they did in 2009, and four in ten
consumers say they choose restaurants based on their conservation practices.
The food service industry consists of restaurants, travel food service, and vending and contract
institutional food service. Local restaurants are made up of establishments that include fast-food
units, coffee shops, specialty restaurants, family restaurants, cafeterias, and full-service restaurants
with carefully orchestrated ''atmosphere.'' Travel food service consists of food operations in hotels and
motels, roadside service to automobile travelers, and all food service on airplanes, trains, and ships.
Institutional food service in companies, hospitals, nursing homes, and so on is not considered part of
the tourism industry.
Over the past two decades, the food and beverage business has grown at a phenomenal rate. This
has been especially true for , with the franchising portion in the fast-food

segment becoming the dominant growth sector. This remarkable increase has been gained at the
expense of other food service operators and supermarkets. Franchisees control approximately three-
fourths of the fast-food outlets, whose hamburgers, chickens, steaks, and pizzas dominate the fast-
food business.
Fast-food chains have enjoyed great success in part because they limit their menus, which gives
them greater purchasing power, less waste, more portion control, and, of importance to the consumer,
lower operating costs. They are leaders in labor productivity in the restaurant industry. Most fast-food
operations use disposable paper and plastic; the expense for these materials is more than offset by the
savings resulting from not providing regular service and from not employing the personnel required to
wash the dinner service. Fast-food operations also enjoy the advantages of specialization; they have
become specialists in menu items, job simpli cation, and operating systems. Franchising has been used
extensively in both the restaurant field and the lodging field as a means of achieving rapid growth.
Using the franchisee

fast-food companies

' s capital, the entrepreneur can get much more rapid penetration of the

marketplace.
As noted earlier, franchise units account for approximately three-fourths of the growing fast-food
portion of the industry. Advantages of franchising accrue to both sides. The franchisee gets the start-
up help, advice from experienced management, buying power, advertising, and low unit costs from
spreading fixed costs over large numbers of units. The franchisor has the advantage of a lower capital
investment, rapid growth, and royalty income. The fast-food franchise operators have a great deal of
concentration in their segment of the industry. The seven largest account for almost half of the fast-
food units and almost half of the sales. Franchise firms are household words: McDonald

' s, KFC

(Kentucky Fried Chicken), A&W, Wendy s, and Taco Bell.

Although the fast-food segment is the most rapidly growing segment, the high-quality segment
of the restaurant industry must not be overlooked. Much of this business is based on customers
seeking a special or different experience in dining out. Local entrepreneurs who emphasize special
menus, varying atmospheres, and high-quality food and service have most effectively satis ed this
demand. New concepts or trends include ethnic restaurants, especially those with an Asian or
Mexican flavor; increased demand for health foods, fish, local produce, and regional dishes; and
variety in portion sizes.

' s, Dairy Queen, Burger King, Pizza Hut, Arby '

Menu Trends

The annual NRA survey of American Culinary Federation member chefs is a comprehensive culinary
forecast and menu prediction report. In its latest report, Chef Survey: What's Hot in 2010, more than
1,800 professional chefs ranked 214 culinary items as a hot trend, yesterday's news, or perennial
favorite on restaurant menus.
The top five trends are locally grown produce; locally sourced meats and seafood, sustainability as
a culinary theme, mini-desserts, and local produced wine and beer. Rounding out the top ten list are
nutritious kids

meals, half-portions/smaller portions for a smaller price, farm-branded ingredients,
gluten-free/food allergy conscious meals, and sustainable seafood. Ethnic cuisines and flavors are also

'