Food Service Industry Trends and Analysis
Food Service Formulas
Eating Natural
Establishments promoting natural, vegetarian, dietary, macrobiotic, and organic food.
Convenience Food
Pre-packaged food from vending machines, takeaway, and catering services.
Lunch Catering
Catering formulas for businesses and final consumers, including convenience options.
Traditional Eating
Traditional food from markets, independent restaurants, and regional/national establishments.
Fast Food
Fast food options like pizza, hamburgers, sandwiches, and Mediterranean food.
New Types of Restaurants
Convenience Food: Vending and Takeaway
Vending machines offer food, drinks, and snacks. Takeaways provide food consumed off-site, catering to busy lifestyles. Products include pizza, pasta, traditional recipes, desserts, drinks, and cutlery. Small family businesses preparing ready-to-go meals like chicken and cannelloni also contribute to this category. Central catering kitchens supply filling stations, service areas, and supermarkets. Fast food also falls under this category, offering takeaway and home delivery.
Fast Food
This refers to the service style, not the food type. Originating in the mid-20th century U.S. to cater to low-income consumers, it later spread to Europe and Spain, targeting those prioritizing time and cost. Characteristics include a limited menu, no table service, single-use cutlery, systematic processes, rapid service, and affordability. It appeals to a wide demographic, is available throughout the day, features attractive and functional spaces, often with open kitchens, and emphasizes product quality and consistency.
Sector Trends
- Leisure-associated restaurants: Themed restaurants (e.g., Mexican, adventure).
- Entertainment associated with the product: (e.g., McDonald’s).
- Importance of decorative aspects: (e.g., Hard Rock Cafe).
- Increased franchise units.
- Supply exceeding demand.
- Increased professionalization.
- Tendency to eat out more frequently.
- Seasonal demand.
- Proliferation of large chains and business groups to increase profits and minimize competition.
Sector Figures (2007)
The hospitality industry is diverse, encompassing food, drink, and accommodation. The largest proportion of businesses offer restaurant services. Benefits include hotel accommodations, pensions, and hostels. Non-beverage services include cafes, traditional taverns, and catering outside usual facilities (schools, health centers, etc.).
- Total establishments: 367,888
- Hotels: 16,161
- Restaurants: 81,988
- Cafes/Bars: 243,727
- Collective catering: 10,388
- GDP contribution: 7.07%
- Employment: 1,600,000 people
- Revenue: €123.88 billion
Types of Restaurants
Three variables define restaurant types: consumer choice freedom, business location, and food formula.
1. Social Restaurants
Captive market within institutions. Consumers have limited choice. Examples: hospitals, nursing homes, universities, government offices, prisons.
2. Commercial Restaurants
Free-choice market. Consumers choose where to dine. Examples: bars, cafes, restaurants, fast food.
Semi-captive Consumers
Consumers can choose where to eat within a limited area. Examples: shopping malls, airports, theme parks.
Restaurant Locations
- Health and beauty: Restaurants in gyms, spas, and beauty centers.
- Leisure and cultural centers: Restaurants in rural museums, exhibition centers, theaters.
- Accommodation: Restaurants in rural lodgings, cottages, promoting ecotourism and green tourism.
- Roadside establishments: Service areas and petrol stations catering to travelers.
- Shopping facilities: Restaurants in shopping centers and supermarkets.
- Theme parks.
Non-Collective Catering
- Captive customers: Company catering, healthcare catering, senior care.
- Residential catering: Educational institutions (universities, schools).
- Other sectors: Military, prisons.
Characteristics: No investment, guaranteed diners, short-term contracts, lower risk.
Catering Kitchen Types
- On-site kitchen: Food prepared at the client’s location (90% of business volume).
- Transported kitchen: Food prepared in a central kitchen and transported to the client (hot line, cold line).
Market Segmentation
Private Sector
Loyal to suppliers if satisfied with service, demands innovation.
Public Sector
Price is a significant factor, involves contractual rigidity, public tenders, oversized staff, and staff changes.
Collective Catering Companies
- Local: Smaller staff, competitive pricing.
- National: Professionalism, service quality, staff training, preventive controls, client satisfaction, economic stability.
Vocabulary
- Client: The person or entity purchasing a product.
- Distribution: The function linking production to consumption.
- Environment: Forces affecting markets and businesses.
- Marketing: A philosophy, a way of understanding exchange relationships, and a set of activities for mutually beneficial trade.
- Need: A sensation of lacking something (physical or psychological).
- Price: The amount paid for a product, including time, effort, and inconvenience.
- Product: Any good, service, or idea with value for the consumer.
- Promotion: Activities communicating product benefits to persuade purchase.
- Service: Application of human or mechanical effort to people, animals, or objects. Services are intangible, perishable, and cannot be stored.
Commercial Restaurants
- Airport concessions
- Independent restaurants
- Chain restaurants
- Hotel restaurants
Characteristics: High investment, location is key, client base depends on location, promotions and trends influence business, higher risk and margins.