The process of producing, presenting, and providing food and beverages to consumers can be widely referred to as food and beverage services. Food is supplied on-site, where it is produced. The client comes to the location to use the food service.
A significant portion of the activities of the hospitality sector and, in fact, of the economy as a whole, involve the provision of food and beverages away from home. Food and beverage operations are distinguished by their diversity, much like the industry of which it forms a significant portion. Outlets range from small independently owned and run businesses to massive multinational enterprises managing global brands, from catering in prisons to catering in the most opulent hotels in the world. They include both private and public sector establishments.
However, it is particularly challenging to find reliable information about the food and beverage industry and the hotel sector because there is no universally accepted definition of the limits of the many business sectors and subsectors and what should and should not be included.
Scope and depth of the activities for food and beverages
All restaurants and bars are included if the hospitality industry is understood to include all businesses involved in providing food, drink, and lodging away from home. In other words, the provision of food and drink is only a small part of the larger hospitality business. Conceptually, this presents few issues, with the possible exception of take-out restaurants, where, in some situations, food may be brought home for consumption even though it is made and served away from the consumer's residence. However, it can be challenging to think of the hospitality sector as including all restaurants and other shops serving alcoholic beverages.
This is due to the widespread perception that the hospitality industry has a much smaller impact than it actually does, despite numerous government and corporate definitions. From the official definitions, many eateries and bars were left out.
The statistics are based on a definition taken from the SIC 1992, which will be covered in greater detail later.
According to the data, the industry experienced relatively steady growth over the first few years of the twenty-first century. With the exception of the hotel and motel industry, all other sectors have experienced significant increases in the number of enterprises, with the restaurant, café, and take-out industry expanding by about 10% over the past four years. There are around 127,000 distinct enterprises that make up the hospitality sector as it is here defined.
The truth probably lies somewhere in the middle of the two. Given that a significant portion of hotel turnover is reliant on room sales, the restaurant, pub, bar, and club sectors have exhibited extremely strong growth in turnover and can be seen as the main sectors of food and beverage operations. The contract catering and contract food service industries have both experienced rapid expansion.
Restaurants are by far the largest industry in terms of employment, followed closely by pubs, bars, and clubs. The hotel industry is increasing more slowly, while the contract food service industry is remaining stable.
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