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August 12, 2022

From the humble beginnings of guilds and roadside inns in the early Middle Ages, through the opening of the first à la carte restaurant in France in the 18th century, to today’s multi-trillion dollar industry, the he restaurant industry has become a major factor in shaping the world in which we live. Influential restaurateurs and bar owners have a huge impact on consumer trends and can help shape the future of food. Never before has the sector seen such rapid change in consumer behavior as it does today in the era of digitalisation, social media and growing ecological awareness. The challenges and opportunities ahead are manifold. This article aims to provide a definition: “what is the restaurant industry?” and an overview of F&B challenges as we enter a new decade full of uncertainties.

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What is the food and beverage service industry made of?

Food service industry definition

The food supply chain typically begins with agricultural enterprises producing the food which is then processed and served to individual consumers. Therefore, the F&B service represents the last integral step in a long chain that ends with a meal on a plate or a drink in a glass. Full-service restaurants, bars, pubs, fast-food outlets, caterers, and other places that prepare, serve, and sell food or drink to the general public are all part of the industry. The choice between self-service, full-service and take-out means many service delivery options. While the different categories of outlets serve a variety of different customer segments and each has its own unique challenges, recent developments are having a global impact on all players in this space.

Development of the modern food service industry

Global awareness of the detrimental impact of our current food system on the climate and world hunger is growing rapidly. As a result, the opinions and behaviors of consumers around the world are changing – and the industry must change with it. A growing number of restaurant customers place great importance on the organic and local production of ingredients for their meals. Many examples show a change in the interests of clients. Veganism, for example, is a trend that has shown no slowdown in virtually every major market, as illustrated by the increase in Google searches for the term over the 2015-2020 period. In 2020, the global vegan food market reached a value of approximately $15.4 billion. The global vegan food market size is expected to reach approximately USD 65.4 billion by 2030 and register growth at a CAGR of 10.41% over the forecast period 2022 to 2030, according to a report published on Global Newswire.

Many diners are also becoming more aware of the impact of what they eat on their personal health. Already, finding vegan, GMO, gluten-free, and dairy-free options on menus is more of a norm than an exception. This shift in interests combined with the advent of food delivery apps, social media food influencers and self-service ordering kiosks has resulted in an industry at a crossroads. Companies will have to constantly adapt to these new and growing trends. Additional pressure on incumbent food companies comes from a growing number of F&B start-ups. Agile and innovative, these newcomers are chomping at the bit to shake up an industry long dominated by established behemoths.

Food and beverage industry: What are its different sectors?

From the local cinema snack bar to the gourmet restaurant of a Hong Kong skyscraper, the F&B service industry offers great diversity. In general, there are two categories of commercial catering and non-commercial catering.

Commercial operators

The main purpose of commercial operators is to sell F&B products. They represent the main segment of F&B operations.

Quick-service restaurants

Limited service restaurants

Full-service restaurants

Catering & banqueting

Drinking establishments

Non-commercial operators

Non-commercial catering establishments offer F&B products, either as an adjunct to other services or for non-profit purposes.


Accommodation foodservice

Vending machines and automated food service

How big is the food service industry?

The global restaurant industry market was estimated at US$3 trillion in 2020, which had fallen due to the Covid pandemic according to research in this report. The global catering market size is growing again and is expected to reach US$4.1 trillion by 2026 growing at a CAGR of 5.4% over the analysis period. Representing over 4% of global GDP, industry is a major contributor to global economic development. On all continents, F&B service points are part of the daily life of billions of customers, allowing them to eat or simply have a good time with their friends and family.

The following section aims to give some current statistics which will help in appreciating the impressive impact of the industry along with an overview of future growth and developments.

Key food and beverage service industry statistics

Is the food and beverage service industry growing?

Currently, about 7.9 billion people live on this planet. The UN predicts that this number will increase by 2 billion by 2050. Global wealth is also expected to increase by around 26%, with emerging markets accounting for up to a third of this increase. These factors will inevitably lead to a substantial increase in global food consumption. The F&B services sector will continue to benefit from this growth. Specifically, the size of the F&B services market is expected to grow steadily at a rate of 5.4% per year.

The size of the global restaurant market is growing again and is expected to reach US$4.1 trillion by 2026, a slightly reduced projection due to the pandemic recovery. Much of this growth will be due to the ramping up of restaurant business in emerging markets. Global consumption is expected to reach $62 trillion by 2025, double its 2013 level, with half of this increase coming from emerging countries.

The future of food: Where is food and beverage heading?

A paradigm shift has been observed in the perspective of the masses towards the food and beverage industry. People are now more nutritionally conscious, prefer sugar-free products, and are generally more inclined to stay healthy. This builds on the fact that food products are not judged solely on quality, but also on nutritional content, origin and how they are produced. These new criteria have forced companies to incorporate changes into the existing process and address some of the major challenges in the food and beverage market. The entire food industry has evolved rapidly in recent years (and continues to evolve) trying to cope with these changes in consumer habits. In the race for competitiveness, the catering trades are adapting according to the major trends described below.

What are the top trends in the food and beverage industry?

Food and beverage online sales

Food delivery has become a global market worth over $150 billion, having more than tripled since 2017 – partly due to Covid-19. The researchers predicted a drastic increase of more than 65% in delivery demand. This means that food delivery, which was ranked 6th in outlet preferences in 2018, is expected to become the second preferred option after table service for 2030. According to the survey, there is also a growing demand for the service. take-out (31% increase from 2018 to 2030). As a result, the meal delivery service market is expected to grow by 15% in 2020. Expect delivery driver access, short-term parking, and delivery-specific menus to be commonplace in your favorite restaurants very soon.

Delivery will get even bigger with automation. Companies like Uber Eats and DoorDash have already started trials for their delivery drones or have integrated food delivery robots respectively into their offering. Businesses that want to stay relevant in this space will need to develop skills in search engine optimization and delivery apps as primary tools.

Every customer experience should fill out personal reviews on all major sites and should be checked regularly. Furthermore, the “instagramability” of dishes will become even more important thanks to the increased purchasing power of generations X and Y. Making their menu friendly for delivery will also be essential. Foods that can be transported easily and sustainable options such as organic and local produce delivered in reusable or compostable packaging ordered through smartphone channels will drive growth in the future.

Here are some additional tips on how businesses can prepare for mobile catering.

Health conscious food products

A new type of consumer has arrived: aware and well informed about what they are buying. The decision to consume a product will increasingly be based on how it was made, where it came from and the processes used to produce it. F&B businesses will need to show this new generation of customers that they are invested in creating a more sustainable future. This means more than just implementing ambitious marketing campaigns. Each product and service must meet the expectations of ethical buyers. A study by Cone Communication showed that these practices can have a direct impact on the bottom line. It revealed that 88% of consumers will be more loyal to a company that supports social or environmental issues. Additionally, they are also willing to pay more for F&B operations that meet their demands.

The growing interest in ethically and organically sourced foods is not only related to the impact on our ecosystems, but also the impact on the personal health of consumers. L.E.K. Consulting’s F&B study found that 63% of consumers try to eat healthy most or all of the time. This is leading to an unprecedented increase in the consumption of organic foods. Example: the growing popularity of organic wines in gourmet restaurants. Get ready to see many more similar products arrive on your plates.

Future Meat Technology

In October 2019, an Israeli startup with the telling name Future Meat Technology (FMT) raised $14 million for its pilot manufacturing plant. The company aims to reduce the cost of “growing” meat to as little as $10 per pound. That price could mean we could encounter lab-grown meat on restaurant menus as early as 2022.

Another approach to reducing the environmental impact of our consumption aims to completely replace meat products. Impossible Meat and Beyond Meat are the companies at the forefront of this trend. Thanks to partnerships with restaurant chains such as TGI Friday’s or Burger King in the United States, their vegetable patties containing proteins sourced from peas or soy are enjoying growing success.

Technology in food and beverage industry

A study conducted by BRP Consulting found that 38% of culinary experiences now involve smartphones or mobile devices – from initial research to sharing the experience on social media. One trend restaurants need to consider is how convenience millennials are looking for. As evidenced by their response to mobile apps, particularly in the fast food segment, one understands what this change in behavior means for restaurant owners. The more connected we are, the more often we use solutions on our phones to make decisions, order, pay, share and review.

But technology isn’t just changing the way outlets interact with customers. Background operations are also streamlined through the application of big data and the Internet of Things (IoT). Large restaurant chains are already collecting customer data to better understand their demographics, needs and wants, which has the effect of increasing satisfaction and average spend. Of course, the most crucial equipment in a kitchen like stoves, freezers, grills, etc. remain analog. By introducing IoT sensors into their devices, restaurants can use real-time information to save resources and improve the longevity of their investments.

Main challenges in the Food & Beverage industry

Responsible solutions to ecological issues

The excessive consumption of single-use plastics when serving food and beverages and their improper disposal is going to be one of the major challenges of the future in the F&B services industry. Particularly in the age of food delivery, food companies will need to step up their game when it comes to using recyclable materials and encouraging their proper disposal. Additionally, restaurants and bars should start sourcing entirely from sources that do the same. In the long term, there will be no alternative to this school of thought if consumers are to be continually attracted and satisfied.

Waste management is also part of this problem. The way food companies use their raw products will need to evolve to include more responsible solutions. From Starbucks to McDonald’s, many businesses are choosing to ditch single-use plastics from their day-to-day operations — and the hospitality space is no different. Hotels and airlines find themselves with a unique opportunity to have a real impact on the effects of global plastic consumption, as they often supply disposable products on a large scale.

Customer attention to product traceability

In recent years, consumers have paid increasing attention to the ingredients in their food. Mistrust in how F&B service companies source products is growing and has led to a demand for more ‘traceability’. Companies are more often than ever asked to keep reliable data records at all stages of production. The increasing deployment of advanced technologies, such as the IoT to help with various tasks, from weight measurement to temperature monitoring, will be key to solving this problem.

Public opinion and social media

The amount of information on the World Wide Web knows no bounds. Yet, all it takes is one negative message on a social network for a restaurant business’s reputation to be tarnished. Legal measures such as defamation suits often prove to be ineffective means of resolving the problem. The “rating culture” has profoundly changed the character of customer interactions. Few customers will consider the implications of a negative review posted in a situation of momentary dissatisfaction. To improve scores, managers can go back to pampering already critical customers in particular. Therefore, customer expectations and additional service offerings to gain positive reviews drive each other to the detriment of businesses. This challenge will further increase the importance of effective reputation management strategies for F&B businesses.

Why choose a career in the food and beverage industry?

Few industries are as diverse and dynamic as the F&B service sector. In millions of restaurants, bars and pubs around the world, customers enjoy delicious new creations by innovative chefs and mixologists every day. Serving as a link between people of all cultures, the industry is at the center of most human interactions. Everyone needs to eat and drink, so providing these services will never go out of style. In fact, with the global population pushing ever-changing consumer opinions and behaviors, it puts the industry at the forefront of innovation.

Choosing such a career puts you in the perfect position to make a large-scale impact – and many skills can be learned along the way. The non-exhaustive list below gives a small idea of ​​how a career in F&B can contribute to your personal development.

Skills that working in the F&B industry can teach you

Working at an entry-level position in the restaurant industry may seem unappealing to some, but the skills you’ll gain through this experience can be varied and surprising. You will definitely realize the importance of a professional work ethic and many other skills that will make you attractive to future employers!

An agile mind

In an F&B service, a lack of problems to solve will never be a problem. Whether it’s a hair in a customer’s plate of pasta, kitchen equipment not working, or a lack of staff to cover a shift, it will be up to you to find on-the-spot solutions so customers never find out just how difficult running a smooth F&B service really is. Plus, taking care of orders, adding items to the bill, and remembering daily specials will do wonders for your memory and mental fitness, turning the next Sudoku into a piece of cake.

Become a true social chameleon

F&B service is a people business. On a daily basis, you will be confronted with colleagues from your service or kitchen team, suppliers and a multitude of different customers. Dealing with all these different types of interactions, whether it’s a difficult regular guest who always asks the most ridiculous questions or a chef who directs you at lightning speed, you will have to always finding the right way to handle relationships of all types. . Eventually, you’ll learn to adapt your approach and always have the right thing to say.

Multitasking skills

Taking orders while clearing tables or preparing multiple dishes while processing incoming orders at the same time will have your multitasking skills up and running in no time. There really is no better way to learn this skill than getting a job in a busy restaurant and dealing with whatever is thrown at you at the same time.

Become a time manager

The typical F&B outlet has very few days off. Rotating shifts will have you working during festive seasons and weekends. The multiplicity of tasks to accomplish and sudden changes in your work schedule are among the regular problems to manage. To master everything, you will quickly learn to manage your personal and professional agenda like a pro.

Learn how to make a sale

Does the bar you work at have a holiday special, or has the chef come up with a new creation that he wants everyone to try? It will be up to you to convince your guests to choose the options your employer wants to sell. Selling has always been an invaluable skill for anyone looking to succeed professionally. Like most great business people, you’ll have to start small. However, getting your first sales will not only be enjoyable, but will also get you noticed by management. And it’s the easiest way to move up the ladder.

Get the most out of working in a team

If you think true success can only be achieved if you manage everything on your own, working in an F&B service environment will show you otherwise. In this industry, you will quickly realize how important it is to be able to function as part of a team. In fact, the highly collaborative approach of F&B companies can teach you a lot about how to function with a wide variety of colleagues, cultivating one of the skills most sought after by employers.

Better your communication skills

On a busy night it can get quite hectic in any F&B service establishment. a big event, you will no doubt need to learn how to get your message across as effectively as possible. Plus, in an industry where you deal with customers from every possible country, you’ll have plenty of opportunities to hone your language skills. After all, a few words in their native language can immediately make customers feel cared for.

Pick up insider F&B skills

Even if you are not directly involved in the preparation of the drinks or dishes that are served to customers, you will be part of the production chain that makes these products. Being constantly surrounded by a creative kitchen crew or bartender will have you learning new skills in no time about how to properly store food to keep it fresh for another day, or how to way to make a delicious cocktail that you can use to impress your guests with when inviting friends or family over for dinner.

Keep up the cleanliness

Keeping everything neat and in the right place is essential when you plan to serve hundreds of customers at a point of sale. In the F&B industry, you’ll learn from the best how to organize your supplies and equipment to keep things running smoothly. This way, making sure things are neat and clean will become second nature to you in no time.

About EHL Group

The EHL Group is the world reference in education, innovation and consulting for the hospitality and services sector.

With expertise dating back to 1893, the EHL Group today offers a wide range of leading educational programs, from apprenticeships to masters, vocational training and executive training, on three campuses in Switzerland and Singapore. The EHL Group also offers consulting and certification services to companies and learning centers around the world. True to its values ​​and committed to building a sustainable world, the EHL Group’s goal is to provide education, services and working environments that are human-centered and open to the world.

EHL Hospitality Business SchoolCommunication Department+41 21 785 1354EHL

What does service mean in a restaurant?

The Importance of Food Service Management Controlling food costs is essential to a restaurant’s success. FSMs help keep businesses profitable by educating employees on service and preparation standards, keeping a careful inventory of stock, and sourcing the most cost-effective ingredients from different vendors.

Food Service means the supply, by means of or in connection with any Service, of goods, whether in the form of food or any other article intended for human consumption or any drink, provided by a restaurant, restaurant, including a mess, a canteen, whether intended for consumption on the premises or outside the.

What are the 3 types of food service?

What type of service is a restaurant? Upscale Restaurant â Waiter Service. Casual restaurant â Waiter service/semi-self-service/self-service. Self-service/semi-self-service fast food.

  • F&B Services – Types of Services
  • Table service. In this type of service, guests enter the dining room and take their seats. …
  • Assisted service. Here, guests enter the dining room, collect their plates, walk to the buffet counters and serve themselves. …
  • Self service. …
  • Single point service. …

How many types of food service are there?

Special service.

What are the 4 types of foodservice?

There are many types of food and beverage service types or procedures, but the main category of food service is 1) Plate Service, 2) Trolley Service, 3) Plate Service, 4 ) Buffet service and 5) Family style service.

Why service in restaurant is important?

There are basically four types of catering systems: conventional, thrifty, ready-to-use, and assemble/serve.

What is more important food or service?

Good customer service is important in the restaurant industry because it can determine the overall success of the establishment. Here’s a list of why it’s so important: Happy customers generate more positive reviews and reviews for your restaurant. Excellent customer service can increase revenue.

Why is customer service important in food industry?

‘â Joseph Neary, a Middle Eastern and Arabic studies student from Paradise, said good food is always more important than good service. “I don’t see service as an indicator of good food,” he said. âSometimes servers have bad days, and good food is always worth the wait.â

What is service in a restaurant?

The foundation of any strong and successful restaurant begins with providing exceptional customer service. Whether you’re a large restaurant chain or a small business, going above and beyond with your customers is a tactic that will attract loyal customers and propel your revenue today and into the future.

What is the meaning of restaurant service?

Serving models in the restaurant industry are ways to prepare, present, and distribute food to your guests. The two most common service models for restaurants are table service and counter service.

What are types of services?

restaurant services means the supply of food or beverages by an establishment that provides facilities for immediate consumption at that establishment, or prepared food catering services; or sale of cooked food prepared on site; Sample 1Sample 2Sample 3.

  • Kinds of services
  • Business services. Services used by business organizations to conduct business are called business services. …
  • Social services. …
  • Personal services. …
  • Banking. …
  • Insurance. …
  • Transportation. …
  • Storage. …


What is a type of service?

What are the 3 types of services? The services are diversified into three groups; Business services, social services and personal services.

What are examples of services?

A service type is a category of related services that share schemas. It defines schema attributes common to a set of similar managed resources. Service types are profiles or templates that create services for specific instances of managed resources.

What is an example of a service?

A service is an “act or use (intangible) for which a consumer, business or government is willing to pay”. Examples include work done by barbers, doctors, lawyers, mechanics, banks, insurance companies, etc.

What is an example of a service in business?

A service is an “act or use (intangible) for which a consumer, business or government is willing to pay”. Examples include work done by barbers, doctors, lawyers, mechanics, banks, insurance companies, etc.

What are the types of service industry?

A service business is a business that performs tasks for the benefit of its customers. These tasks may include transport, cleaning, travel, reception, maintenance or advice.

Service industries include everything else: banking, communications, wholesale and retail trade, all professional services such as engineering, computer software development and medicine, non-profit economic activity, all consumer services and all government services, including the defense and administration of justice.

Is a fast-food restaurant considered a service?

What are the 5 areas included in service-producing industries? DEFINITION OF THE SERVICE INDUSTRY The service sector includes the divisions of (1) transportation, communications and utilities; (2) wholesale trade; (3) retail trade; (4) finance, insurance and real estate; (5) public administration; and (6) services.

A fast food restaurant, also known as a quick service restaurant (QSR) in the industry, is a specific type of restaurant that serves fast food cuisine and provides minimal table service.

Is food at a restaurant a service?

Is fast food a service? Fast Food/Quick Service Restaurant The current industry term for a fast food restaurant is a “Quick Service Restaurant” or QSR. It is easier to understand by thinking of restaurant concepts such as McDonald’s, KFC and Burger King.

Are restaurants considered a service?

The restaurant industry encompasses any establishment that serves food to people outside of their homes. This includes restaurants, take-out operations, cafeterias, college dining halls, catering and retail businesses, hotels and hostels, and rehabilitation and retirement centers.

What is food as a service?

What business category is a restaurant? Restaurants, bars and other similar businesses generally fall under the “food and drink” category within the hospitality industry, which falls under the wider service industry.

Is a restaurant considered a service?

Companies like GrubHub, Uber Eats, Meituan, Just Eat, and Deliveroo take the friction out of cooking and eating out.

Why is a restaurant considered a service?

What business category is a restaurant? Restaurants, bars and other similar businesses generally fall under the “food and drink” category within the hospitality industry, which falls under the wider service industry.

Is a restaurant a service or merchandising business?

The main reason the restaurant industry is considered to be so labor intensive is that the physical inventory of perishables is effectively replaced by a stored labor inventory in the form of a perishable service.

Is restaurant food a product or service?

A retail business is a business that sells products that it did not manufacture. Merchandising companies are different from manufacturing companies – companies that sell products they have made themselves, such as car manufacturers – and service companies such as fast food restaurants and hospitals.

Why is a restaurant considered a service?

A restaurant serves food, both goods and services. Products that are not consumed as they are used will last longer before needing to be replaced.

What is restaurant product?

The main reason the restaurant industry is considered to be so labor intensive is that the physical inventory of perishables is effectively replaced by a stored labor inventory in the form of a perishable service.

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