Now let’s look at the other 20% of businesses, which fall under the non-commercial umbrella. Ethnic entrepreneurship, transmigration, and social integration: an ethnographic study of Chinese restaurant owners in rural western Canada. Contact Us | Privacy Policy | Terms of Service, Adidas is a German multinational brand that designs and manufactures …, What is the Marketing Research Process? And now smartphone apps will tell customers what restaurants are nearby or where their favourite chain restaurant is located. 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. Figure 4.12 Operating Ratios for Canadian Foodservice Businesses by LinkBC is used under a CC-BY-NC 2.0 license. Retrieved  from, Restaurants Canada (2014a). They are seated and are given menus. The Japanese food and beverage industry is complex and evolving. 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. Formerly known as fast-food restaurants, quick-service restaurants, or QSRs, make up 35.4% of total food sales in Canada (Restaurants Canada, 2014b). Out of 45 customers 3 request to be seated elsewhere. 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. Today, the organization represents over 30,000 operations including restaurants, bars, caterers, institutions, and suppliers. Retrieved from Have you worked in a restaurant or foodservice operation? Figure 4.3 The Keg at the Station by Jon the Happy Web Creative is used under a CC BY 2.0 license. (2014). Convenience and familiarity is key in this sector. The two principal considerations for sales and marketing in this sector are market share and revenue maximization. Brands, chains, and franchises dominate the QSR landscape. They are fine dining, family, specialty, ethnic, or theme restaurants called Full Service Restaurants where the food and beverage menu is wide and the customer’s expectations are high. Kwok, L., & Yu, B. For instance, Serving It Right is required by all licensees, managers, sales staff, and servers in licensed establishments. Food and Beverage Services can be broadly defined as the process of preparing, presenting and serving of food and beverages to the customers. 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). Food & Beverage Industry - An Introduction 1:37. While the claim has not been verified, it certainly rings true for a number of F&B professionals who have experienced this phenomenon. Should gratuities be abolished in favour of all-inclusive pricing? The global beverage industry is supposed to touch the mark of $1.9 trillion by 2020. Retrieved from, Duckor, M. (2013, June 27). 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. Retrieved from 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). Hotels and restaurants in the food and beverage industry require a huge investment to start, and the minimum profiting period comprises of 5 years. Companies in this segment produce raw sugar from sugar cane, refine raw cane sugar, and produce refined beet sugar from sugar beets. The following story made the rounds via social media in late 2014. Figure 4.4 North Arm Farm Strawberry  + Rhubarb Pavlova by Ruth Hartnup is used under a CC-BY 2.0 license. Consumers are more aware of the plight of farmers and producers from faraway places and the support for fair trade practices. 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. 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. Figure 4.5  The old spaghetti factory by Isabelle Puaut is used under a CC BY-NC-ND 2.0 license. Heroux, L. (2002). Transportation and Distribution: How Does the Product Get to the Store? 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). The restaurant was very busy that day.


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