The Food and beverage service sector

According to Cousins, Foskett and Gillespie (2002:11), the food and beverage service industry is divided into two sectors; the profit oriented sector and the cost provision sector. In the profit oriented sector, marketing is aimed at meeting customers demand, usually in competition with other organisations for profit. Although the profit motivation does not appear in the cost provision sector, the need to satisfy customers demand does not appear in the strains of a given budget. It is generally recognized for instance that better fed workers, work better and better satisfied patients recover more quickly. Lillicrap and Cousins (2010:3) define these sectors as follows; the General market ( profit oriented) also known as the non-captive, where customers have a full choice of what they want, and the Restricted market (cost provision) which is divide into two parts being the captive and the semi captive. The captive means that customers have no choice like in the welfare, whereas the semi captive means that customers have a choice before entering like the marines, airline, trains and some hotels. The customers could have chosen alternatives to these but once chosen, have little choice of food and drinks other than those on offer.

Davis, Stone and Hockwood (1998:6) state that the food and beverage sector is made up of two sectors being the commercial sector and the subsidized or welfare sector. The commercial sector may be defined as operations in which profit is a primary concern. Such outlets exist not only in private ownership, but also in the publicly owned sectors of the economy. Their turnovers also make part of the GDP. The subsidized or welfare are operations which making profit from catering facility is not the outlet’s primary concern. Since the operations are either completely or partially subsidized by a parent body, such establishment’s primary obligation is the well being and care of their customers or patients. Unlike customers frequenting commercial sectors, these customers often do not have a choice of the catering facility. Some non commercial operations are subsidized by the government that dictates allowance per head, or by parent companies that may have similar arrangements. According to Foskett, Ceserani and Kinton (2003:10-11), examples of commercial establishments are hotels, lodges, pubs and clubs, inns and restaurant, whereas example of non commercial sectors are institutional catering, prisons, hospitals, schools and armed forces.

References

Cousins, J. Foskett, D. Gillespie, C. (2002). Food and Beverage Management. 2^nd edn. United Kingdom. British Library Cataloguing in Publication.

Davis, B. Hockwood, A. Stone, S. (1998). Food and Beverage Management. 3^rd edn. 225 Wildwood Avenue, England, London. Buttlerworth-Heineman.

Foskett, D. Ceserani, V & Kinton, R. (2003) The Theory of Catering.Tottenham Court Road, London. British Library.

Lilicrap, D. Cousins, J. (2010). Food and Beverage Service. 8^th edn. 338 Euston Road, London. British Library Cataloguing in Publication.