{"id":3007,"date":"2016-11-15T16:19:38","date_gmt":"2016-11-15T16:19:38","guid":{"rendered":"https:\/\/opentextbc.ca\/introtourism\/?post_type=chapter&#038;p=3007"},"modified":"2019-06-05T22:27:58","modified_gmt":"2019-06-05T22:27:58","slug":"chapter-4-food-and-beverage-services","status":"publish","type":"chapter","link":"https:\/\/opentextbc.ca\/introtourism\/chapter\/chapter-4-food-and-beverage-services\/","title":{"raw":"Chapter 4. Food and Beverage Services","rendered":"Chapter 4. Food and Beverage Services"},"content":{"raw":"<div class=\"textbox textbox--learning-objectives\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\">Learning Objectives<\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n<ul>\r\n \t<li>Describe the origins and significance of the food and beverage sector<\/li>\r\n \t<li>Relate the importance of the sector to the Canadian economy<\/li>\r\n \t<li>Explain the various types of food and beverage providers<\/li>\r\n \t<li>Discuss differing needs and desires of residents and visitors in selecting a food and beverage provider<\/li>\r\n \t<li>Examine factors that contribute to the profitability of food and beverage operations<\/li>\r\n \t<li>Discuss key issues and trends in the sector including government influence, health and safety, human resources, and technology<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n<h2>Overview<\/h2>\r\nAccording to Statistics Canada, the <strong>food and beverage<\/strong>\u00a0sector comprises \"establishments primarily engaged in preparing meals, snacks and beverages, to customer order, for immediate consumption on and off the premises\" (Government of Canada, 2012). This sector is commonly known to tourism professionals by its initials as <strong>F&amp;B<\/strong>.\r\n\r\nThe food and beverage sector grew out of simple origins: as people travelled from their homes, going about their business, they often had a need or desire to eat or drink. Others were encouraged to meet this demand\u00a0by\u00a0supplying food and drink. As the interests\u00a0of the public became\u00a0more diverse, so too did the offerings of the food and beverage sector.\r\n\r\nIn 2014, Canadian food and beverage businesses\u00a0accounted for 1.1 million employees and more than 88,000 locations across the country\u00a0with an estimated\u00a0$71 billion in sales, representing around 4% of the country's overall economic activity. Many students are familiar with the sector through their workplace, because Canada's restaurants provide one in every five youth jobs in the country -- with 22% of Canadians starting their career in a restaurant or foodservice business. Furthermore, going out to a restaurant is the number one preferred activity for spending time with family and friends (Restaurants Canada, 2014a).\r\n<h2>Food and Beverage Sector Performance<\/h2>\r\n[caption id=\"attachment_2901\" align=\"aligncenter\" width=\"500\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/05\/FoodServiceShareofDollar.png\"><img src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/FoodServiceShareofDollar.png\" alt=\"Food service spending. Long description available\" class=\"wp-image-2901 size-full\" height=\"340\" width=\"500\" \/><\/a> Figure 4.1. Foodservice spending as a percentage of total food dollars spent in Canada and the US <a href=\"#fig4.1\">[Long Description]<\/a>[\/caption]Look at Figure 4.1,\u00a0which illustrates the\u00a0percentage of total food dollars spent in\u00a0restaurants in Canada and the United States over several years.\u00a0As you can see, Americans spend significantly more of their total food dollars in foodservice establishments than in grocery stores, and in Canada we spend more of our total food dollars in the grocery store than we do in foodservice operations. It's worth noting that Americans do not have an equivalent federal sales tax on meals comparable to\u00a0our GST on foodservice sales, although there does exist in some states a sales tax on meals and alcoholic beverages\u00a0(State Sales Tax Rates, 2015). This, combined with a larger population, cheaper food distribution costs, and other factors can often mean that it's less expensive to dine out in the United States than in Canada.\r\n\r\nFor a perspective on how sales are distributed across the country by province, and how different foodservice operations perform in terms of <strong>revenue<\/strong> (sales dollars collected from guests), look at Tables 4.1 and 4.2.\r\n<table><caption style=\"text-align: left;\"><em>Table 4.1: Performance by province for commercial foodservice -- units<\/em><\/caption>\r\n<thead>\r\n<tr>\r\n<td style=\"text-align: center;\" colspan=\"5\"><a href=\"#table4.1\">[Skip Table]<\/a><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\">Province<\/th>\r\n<th style=\"text-align: center;\" colspan=\"3\">Foodservice Units<\/th>\r\n<th rowspan=\"2\">Average Volume\/Unit ($)<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>Total<\/th>\r\n<th>Chain Share (%)<\/th>\r\n<th>Independent Share (%)<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Newfoundland and Labrador<\/td>\r\n<td>1,127<\/td>\r\n<td>44<\/td>\r\n<td>56<\/td>\r\n<td>715,976<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Prince Edward Island<\/td>\r\n<td>369<\/td>\r\n<td>35<\/td>\r\n<td>65<\/td>\r\n<td>549,428<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Nova Scotia<\/td>\r\n<td>2,089<\/td>\r\n<td>40<\/td>\r\n<td>60<\/td>\r\n<td>637,237<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>New Brunswick<\/td>\r\n<td>1,701<\/td>\r\n<td>48<\/td>\r\n<td>52<\/td>\r\n<td>579,576<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Quebec<\/td>\r\n<td>21,865<\/td>\r\n<td>31<\/td>\r\n<td>69<\/td>\r\n<td>488,712<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Ontario<\/td>\r\n<td>33,628<\/td>\r\n<td>45<\/td>\r\n<td>55<\/td>\r\n<td>623,862<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Manitoba<\/td>\r\n<td>2,448<\/td>\r\n<td>41<\/td>\r\n<td>59<\/td>\r\n<td>657,245<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Saskatchewan<\/td>\r\n<td>2,330<\/td>\r\n<td>43<\/td>\r\n<td>57<\/td>\r\n<td>744,322<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Alberta<\/td>\r\n<td>9,858<\/td>\r\n<td>47<\/td>\r\n<td>53<\/td>\r\n<td>828,860<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>British Columbia<\/td>\r\n<td>13,214<\/td>\r\n<td>33<\/td>\r\n<td>67<\/td>\r\n<td>627,599<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Canada<\/td>\r\n<td>88,795<\/td>\r\n<td>40<\/td>\r\n<td>60<\/td>\r\n<td>619,013<\/td>\r\n<\/tr>\r\n<tr>\r\n<td class=\"source\" colspan=\"5\">Data source:\u00a0Statistics Canada, 2013<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<table id=\"table4.1\"><caption style=\"text-align: left;\"><em>Table 4.2: Performance by province for commercial foodservice -- sales<\/em><\/caption>\r\n<thead>\r\n<tr>\r\n<td style=\"text-align: center;\" colspan=\"5\"><a href=\"#table4.2\">[Skip Table]<\/a><\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"2\">Province<\/th>\r\n<th style=\"text-align: center;\" colspan=\"2\">Sales Growth<\/th>\r\n<th style=\"text-align: center;\">Sales<\/th>\r\n<th rowspan=\"2\">Pre-tax Profit Margin (%)<\/th>\r\n<\/tr>\r\n<tr>\r\n<th>2013-14 Forecast (%)<\/th>\r\n<th>2012-13 (%)<\/th>\r\n<th>2013 ($ millions)<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Newfoundland and Labrador<\/td>\r\n<td>2.7<\/td>\r\n<td>9.2<\/td>\r\n<td>806.9<\/td>\r\n<td>6.7<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Prince Edward Island<\/td>\r\n<td>1.6<\/td>\r\n<td>4.4<\/td>\r\n<td>202.7<\/td>\r\n<td>5.7<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Nova Scotia<\/td>\r\n<td>3.8<\/td>\r\n<td>0.7<\/td>\r\n<td>1,330.9<\/td>\r\n<td>5.2<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>New Brunswick<\/td>\r\n<td>2.1<\/td>\r\n<td>0.3<\/td>\r\n<td>985.6<\/td>\r\n<td>5.2<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Quebec<\/td>\r\n<td>3.8<\/td>\r\n<td>2.7<\/td>\r\n<td>10,685.4<\/td>\r\n<td>3.9<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Ontario<\/td>\r\n<td>4.1<\/td>\r\n<td>4.2<\/td>\r\n<td>20,979.2<\/td>\r\n<td>2.8<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Manitoba<\/td>\r\n<td>4.6<\/td>\r\n<td>6.1<\/td>\r\n<td>1,608.6<\/td>\r\n<td>7.9<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Saskatchewan<\/td>\r\n<td>4.7<\/td>\r\n<td>7.0<\/td>\r\n<td>1,733.9<\/td>\r\n<td>7.0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Alberta<\/td>\r\n<td>5.4<\/td>\r\n<td>6.4<\/td>\r\n<td>8,170.5<\/td>\r\n<td>7.1<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>British Columbia<\/td>\r\n<td>3.7<\/td>\r\n<td>6.1<\/td>\r\n<td>8,292.8<\/td>\r\n<td>3.4<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Canada<\/td>\r\n<td>4.2<\/td>\r\n<td>4.6<\/td>\r\n<td>54,965.3<\/td>\r\n<td>4.2<\/td>\r\n<\/tr>\r\n<tr>\r\n<td class=\"source\" colspan=\"5\"><span>Data source:\u00a0<\/span><span>Statistics Canada, 2013<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p id=\"table4.2\">Table 4.1 shows that the independents in BC have a much larger share of the total number of units compared with chains than any other province except Quebec.\u00a0In terms of sales (Table 4.2), Ontario is the leader with almost $21 billion.\u00a0Quebec, BC, and Alberta each\u00a0earned $8 to $10 billion, and the other provinces had sales of less than $2 billion apiece. While BC and Alberta are almost even in total sales, BC has a third more units (restaurants), leading to lower\u00a0average sales per unit.<\/p>\r\nFoodservice sales in Alberta rose by a solid 6.4% in 2013.\u00a0Alberta boasts the highest average unit volume at $828,860 per year, more than $200,000 over the national average due to greater disposable income and no provincial sales tax on meals. In BC, the end of the HST (harmonized sales tax) and improved economic growth lifted total foodservice sales by a healthy 6.1% for the strongest annual growth since 2006 (Restaurants Canada, 2014a).\r\n\r\nNow let's take a quick look at which provinces have the most profitable foodservice operations.\r\n\r\n[caption id=\"attachment_1266\" align=\"aligncenter\" width=\"500\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/16399596290_cd8c592bff_z.jpg\"><img class=\"wp-image-1266\" alt=\"Profit margins in 2012 by province. Long description available.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/16399596290_cd8c592bff_z.jpg\" height=\"342\" width=\"500\" \/><\/a> Figure 4.2 Pre-tax profit margins. <a href=\"#fig4.2\">[Long Description]<\/a>[\/caption]Figure 4.2 indicates the\u00a0profit margins per province. <strong>Profit<\/strong>\u00a0is\u00a0<span>the amount left when expenses (including corporate income tax) are subtracted from sales revenue.<\/span>\u00a0A higher profit margin means that a greater\u00a0percentage of sales is retained by the business owner, and a lower percentage is lost to operating and other costs.\r\n\r\nThe provincial variations in total sales and profit margins are due to several factors including:\r\n<ul>\r\n \t<li>Relative level of economic activity<\/li>\r\n \t<li>Minimum wage levels<\/li>\r\n \t<li>Provincial sales taxes<\/li>\r\n \t<li>Cultural differences<\/li>\r\n \t<li>Weather<\/li>\r\n \t<li>Municipal taxes<\/li>\r\n \t<li>Percentage of market held by chains versus independents<\/li>\r\n \t<li>Number of units (restaurants)<\/li>\r\n \t<li>Density of units relative to local population<\/li>\r\n \t<li>Number of\u00a0tourists or business travellers<\/li>\r\n<\/ul>\r\nNow that we have a sense of the relative performance of F&amp;B operations by province, and some influences on success, let's delve a little deeper into the sector.\r\n<h2>Types of Food\u00a0and Beverage Providers<\/h2>\r\n[caption id=\"attachment_1473\" align=\"aligncenter\" width=\"275\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/503025281_8829d53c08_z.jpg\"><img class=\"wp-image-1473\" alt=\"An old train station that has been turned into a restaurant.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/503025281_8829d53c08_z.jpg\" height=\"412\" width=\"275\" \/><\/a> Figure 4.3 The Keg at the Station is in a former train station in New Westminster, BC[\/caption]\r\n\r\nWhile there are many ways to analyze\u00a0the sector, in this chapter, we take a market-based, business-operation approach\u00a0based on the overall Canadian market share from the Restaurants Canada Market Review and Forecast (Restaurants Canada, 2014b). The following sections explore the types of foodservice\u00a0operations in Canada.\r\n\r\nThere are two key distinctions: <strong>commercial foodservice, <\/strong>which comprises\u00a0operations whose primary business is food and beverage, and <strong>non-commercial foodservice\u00a0<\/strong>establishments where food and beverages are\u00a0served, but are not\u00a0the primary business.\r\n\r\nLet's start with the largest segment of F&amp;B operations, the commercial sector.\r\n<h3>Commercial\u00a0Operators<\/h3>\r\nCommercial operators make up the\u00a0largest segment of F&amp;B in Canada\u00a0with just over 80%\u00a0market share (Restaurants Canada, 2014b). It is made up of quick-service restaurants, full-service restaurants, catering, and drinking establishments. Let's look at each of these in more detail.\r\n<h4>Quick-Service Restaurants<\/h4>\r\nFormerly known as fast-food restaurants, <strong>quick-service restaurants,<\/strong> or <strong>QSRs,<\/strong> make up 35.4% of total food sales in Canada (Restaurants Canada, 2014b).\u00a0This prominent portion of the food sector generally caters to both residents and visitors, and is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape.\u00a0While the sector\u00a0has made steps to move away from the traditional fast-food image and style of service, it is still dominated by both fast food and food fast; in other words, food that is prepared and purchased quickly, and generally consumed quickly.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: The First McDonald's In Canada<\/strong>\r\n\r\nThe first McDonald's restaurant in Canada opened in Richmond, BC, in 1967. Located on No. 3 Road, it featured a sleek almost space-age design. To see a picture of the location, visit\u00a0<a href=\"http:\/\/www.richmond.ca\/cityhall\/archives\/exhibits\/thenandnow\/then_now_set_7.htm\" target=\"_self\">McDonald's: Then and Now<\/a>: www.richmond.ca\/cityhall\/archives\/exhibits\/thenandnow\/then_now_set_7.htm\r\n\r\n<\/div>\r\nConvenience and familiarity is key in this sector. Examples of QSRs include:\r\n<ul>\r\n \t<li>Drive-through locations<\/li>\r\n \t<li>Stand-alone locations<\/li>\r\n \t<li>Locations within retail stores<\/li>\r\n \t<li>Kiosk locations<\/li>\r\n \t<li>High-traffic areas, such as major highways or commuter routes<\/li>\r\n<\/ul>\r\n<h4>Full-Service Restaurants<\/h4>\r\nWith 35% of the market share (Restaurants Canada, 2014b), <strong>full-service restaurants<\/strong> are perhaps the most fluid of the F&amp;B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs (Parsa, Lord, Putrevu,\u00a0&amp; Kreeger, 2015). The menus offered are varied, but in general reflect the image of the restaurant or consumer\u2019s desired experience. Major segments include fine dining, family\/casual, ethnic, and upscale casual.\r\n\r\n[caption id=\"attachment_2216\" align=\"aligncenter\" width=\"300\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/04\/5895316553_d3db8dce94_z.jpg\"><img src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/5895316553_d3db8dce94_z-300x200.jpg\" alt=\"What looks like a fancy display of pink ice cream set on strawberries and whip cream.\" class=\"wp-image-2216 size-medium\" height=\"200\" width=\"300\" \/><\/a> Figure 4.4 A rhubarb pavlova with local Pemberton strawberries is served at Araxi Restaurant + Bar, a fine dining establishment in Whistler.[\/caption]\r\n\r\n<strong>Fine dining<\/strong> <strong>restaurants<\/strong> are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table\u00a0by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the <strong>average cheque<\/strong>, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs- $ $ $ or $ $ $ $).\r\n\r\nBishop's in Vancouver is one of BC's best known and longest operating fine dining restaurants. Since opening in 1985, this 45-seat restaurant has served heads of state including Bill Clinton and Boris Yeltsin, and has won awards including the Best of Vancouver. John Bishop was awarded the Governor General's Award in 2010 (<em>Georgia Straight<\/em>, 2015).\r\n\r\n<strong>Family\/casual<\/strong> <strong>restaurants<\/strong> are characterized by being open for all three meal periods. These operations offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis\u00a0of menus in family\/casual restaurants reveals a high degree of operational techniques such as menu item <strong>cross-utilization<\/strong>, where a few key ingredients are repurposed in several ways.\u00a0Both chain and independent restaurant operators flourish in this sector. Popular chain examples\u00a0in BC\u00a0include White Spot, Ricky\u2019s All Day Grill, Boston Pizza, and The Old Spaghetti Factory. Independents include the Red Wagon Caf\u00e9 in Vancouver, the Bon Voyage Restaurant near Prince George, and John\u2019s Place in Victoria.\r\n\r\n[caption id=\"attachment_1467\" align=\"aligncenter\" width=\"400\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/Spag.jpg\"><img class=\"wp-image-1467\" alt=\"This restaurant has mandy stained glass windows and stained glass lights.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/Spag.jpg\" height=\"267\" width=\"400\" \/><\/a> Figure 4.5 This is the interior of the Old Spaghetti Factory, a popular family chain, in Gastown, Vancouver. This location opened in 1970 and has stood the test of time.[\/caption]\r\n\r\n<strong>Ethnic<\/strong> <strong>restaurants<\/strong> typically reflect the owner\u2019s cultural identity. While these restaurants are popular with many markets, they are often particularly of interest\u00a0to visitors and new immigrants looking for a specific\u00a0environment and other people\u00a0with whom they have a shared culture. Food is often the medium for this sense of belonging (Koc &amp; Welsh,\u00a02001; Laroche,\u00a0Kim,\u00a0Tomiuk,\u00a0&amp; Belisle, 2005).\r\n\r\n[caption id=\"attachment_1715\" align=\"aligncenter\" width=\"400\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/03\/VIJ.jpg\"><img class=\"wp-image-1715\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/VIJ.jpg\" alt=\"&quot;&quot;\" height=\"267\" width=\"400\" \/><\/a> Figure 4.6 The exterior of Vij's, the flagship restaurant of Vikram Vij's ethnic dining legacy[\/caption]\r\n\r\nThe growth\u00a0and\u00a0changing nature of this sector reflects the acceptance of various ethnic foods within our communities.\u00a0Ethnic restaurants generally evolve along\u00a0two routes: toward remaining authentic to the cuisine of the country of origin, or\u00a0toward larger market acceptance through modifying menu items (Mak, Lumbers, Eves, &amp; Chang, 2012).\r\n\r\n<strong>Upscale casual<\/strong>\u00a0<strong>restaurants<\/strong> emerged in the 1970s, evolving out of a change in social norms. Consumers began to want the experience of a\u00a0fun social evening at a restaurant with good value (but not cheap), in contrast to the perceived stuffiness of fine dining at that time. These restaurants are typically dinner houses, but they may open for lunch or brunch depending on location. Examples in BC include the Keg, Earls, Cactus Club, Brown's Social House, and Joey Restaurants.\r\n<h4>Catering and Banqueting<\/h4>\r\nCatering makes up only 6.8% of the total share of F&amp;B in Canada (Restaurants Canada, 2014b) and comprises food served by\u00a0catering companies at banquets and special events at a diverse set of venues. Note that <em>banqueting<\/em> pertains to catered food\u00a0served on premise, while <em>catering<\/em> typically refers to\u00a0off-premise service. At a catered event, customers\u00a0typically eat at the same time, as opposed to restaurant customers who are served individually or in small groups.\r\n\r\nCatering businesses (whether on-site or at special locations) are\u00a0challenged by the episodic nature of events, and the issues of food handling and food safety with large groups. Catering businesses include:\r\n<ul>\r\n \t<li>Catering companies<\/li>\r\n \t<li>Conference centres<\/li>\r\n \t<li>Conference hotels<\/li>\r\n \t<li>Wedding venues<\/li>\r\n \t<li>Festival food coordinators<\/li>\r\n<\/ul>\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Spotlight On: Diner en Blanc<\/strong>\r\n\r\nAn interesting public event with a dining focus is Diner en Blanc, which is held in cities around the globe including Vancouver and Victoria. Diners wear all white and bring their table, chair, and place settings with them to a secret location announced only hours before. Participants\u00a0have the option to bring their own food or purchase a catered meal. Alcoholic beverages are also available for purchase on site. For more information, visit\u00a0the <a href=\"http:\/\/vancouver.dinerenblanc.info\/media\" target=\"_self\">Diner en Blanc website<\/a>: http:\/\/vancouver.dinerenblanc.info\/media\r\n\r\n<\/div>\r\n\r\n[caption id=\"attachment_1300\" align=\"aligncenter\" width=\"500\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/DeBVancouver.jpg\"><img class=\"wp-image-1300 size-full\" alt=\"Rows of tables with people dressed fancily in white sitting around them.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/DeBVancouver.jpg\" height=\"333\" width=\"500\" \/><\/a> Figure 4.7 Diner en Blanc Vancouver's first event at Jack Poole Plaza[\/caption]\r\n\r\nWhile beverages make up part of almost every dining experience, some establishments are founded on beverage sales. Let's look at these operations next.\r\n<h4>Drinking<\/h4>\r\nWith 3.5% market share (Restaurants Canada, 2014b), the drinking establishment sector comprises\u00a0bars, wine bars, cabarets, nightclubs, and pubs.\u00a0\u00a0In British Columbia, all businesses and premises selling alcohol must adhere to the BC Liquor Control and Licensing Act. At the time this chapter was written,\u00a0significant changes were taking place in the regulations governing drinking establishments, but\u00a0some general conditions have remained stable.\r\n\r\nIn BC, liquor licences are divided into <strong>liquor primary<\/strong> and <strong>food primary<\/strong>.\u00a0As the name\u00a0 suggests, a liquor primary licence is needed to operate a business that is in the primary business of selling alcohol. Most pubs, nightclubs, and cabarets fall into this category. A food primary licence is required for\u00a0an operation whose\u00a0primary business is serving food.\u00a0Some operations, such as pubs, will hold a liquor primary licence even though they serve a significant volume of food.\u00a0In this case, the licence allows for diverse patronage.\r\n\r\nOne noteworthy change to the licensing of pubs in BC is that children are permitted in them if they are\u00a0accompanied and attended by responsible adults.\u00a0While not universally adopted by pubs to date, this change in legislation is an\u00a0example of the fluctuating\u00a0social norms to which the sector must respond.\r\n\r\n[caption id=\"attachment_1305\" align=\"aligncenter\" width=\"440\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/2295348200_f7d3132c66_z.jpg\"><img class=\"wp-image-1305 size-full\" alt=\"&quot;&quot;\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/2295348200_f7d3132c66_z.jpg\" height=\"330\" width=\"440\" \/><\/a> Figure 4.8 The Six Mile Pub in Victoria, established in 1855, British Columbia's oldest public house[\/caption]\r\n\r\nTogether the commercial ventures of QSRs, full-service restaurants, catering functions, and drinking establishments make up just over 80% of the market share. Now let's look at the other 20% of businesses, which fall under the non-commercial umbrella.\r\n<h3>Non-Commercial<\/h3>\r\nThe following non-commercial entities earn just under 20%\u00a0share of the foodservice earnings in Canada (Restaurants Canada, 2014b). While these make up a smaller share of the market, there are some advantages inherent in these business models. Non-commercial operations cater predominantly to\u00a0consumers with\u00a0limited selection or choice given their occupation or location.\u00a0This type of consumer is often referred to as a <strong>captured patron<\/strong>. In a tourism capacity such as in airports or on cruise ships, the accepted price point for these patrons is often higher for a given product, increasing profit margins.\r\n<h4>Institutional<\/h4>\r\nOften run under a predetermined contract, this sector includes:\r\n<ul>\r\n \t<li>Hospitals<\/li>\r\n \t<li>Universities, colleges, and other educational institutions<\/li>\r\n \t<li>Prisons and other detention facilities<\/li>\r\n \t<li>Corporate staff cafeterias<\/li>\r\n \t<li>Cruise ships<\/li>\r\n \t<li>Airports and other transportation terminals and operations<\/li>\r\n<\/ul>\r\n<h4>Accommodation Foodservice<\/h4>\r\nThese include hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).\u00a0 Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel chains and restaurant chains have seen reliable pairing of hotels and restaurants, such as the combination of Sandman Hotels and Moxie\u2019s Grill and Bar.\r\n<h4>Vending and Automated Foodservices<\/h4>\r\nWhile not\u00a0generally viewed as part of the food and beverage sector, automated and vending services do account for significant sales for both small and large foodservice and\u00a0accommodation providers. 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.\r\n<h2>Business Performance for Types of Food and Beverage Operators<\/h2>\r\n[caption id=\"attachment_1258\" align=\"aligncenter\" width=\"400\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/16399396738_5be9674423_z.jpg\"><img class=\"wp-image-1258\" alt=\"Market share by restaurant segment. Long description available.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/16399396738_5be9674423_z.jpg\" height=\"274\" width=\"400\" \/><\/a> Figure 4.9 Share of market for different restaurant segments <a href=\"#fig4.9\">[Long Description]<\/a>[\/caption]As mentioned, the commercial sector comprises the majority of dollars earned. Figure 4.9 illustrates the difference between share of traffic and share of dollars for each subsector.\u00a0We know that QSRs are much more economical and generally much busier than full-service restaurants.\u00a0How does that traffic and low prices translate into market share for the different segments?\r\n\r\nFigure 4.9 shows that QSRs attract\u00a0two-thirds of all the traffic, while earning\u00a0less than half of the total dollars. Family\/midscale and casual dining each attract half the dollars of QSR, but they do that from much lower shares of the traffic. Meanwhile fine dining is patronized by less than 1% of the total\u00a0restaurant traffic, but earns 4.2% of the dollars.\u00a0The growing force of convenience stores, department stores, and other retail establishments obtain a respectable 11.5% of traffic and 10.6% of the restaurant dollar.\r\n\r\nAs 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. This makes sense, of course, because the typical QSR earns relatively little per guest but attracts hundreds of customers, while\u00a0a fine dining restaurant charges high prices and serves a select few guests each day.\r\n<h3>Sales Per Segment<\/h3>\r\n<table><caption style=\"text-align: left;\"><em>Table 4.3: Sector sales and market shares for 2012-2013<\/em><\/caption>\r\n<thead>\r\n<tr>\r\n<td colspan=\"6\"><a href=\"#table4.3\">[Skip Table]<\/a><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<th>Type of Restaurant<\/th>\r\n<th>2012 Final ($ millions)<\/th>\r\n<th>Segment Market Share (%)<\/th>\r\n<th>2013 Preliminary\u00a0($ millions)<\/th>\r\n<th>Segment Market Share (%)<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<th rowspan=\"5\">COMMERCIAL<\/th>\r\n<td>QSR<\/td>\r\n<td>23,139.7<\/td>\r\n<td>35.4<\/td>\r\n<td>24,114.5<\/td>\r\n<td>35.4<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Full-service<\/td>\r\n<td>22,631.1<\/td>\r\n<td>34.7<\/td>\r\n<td>23,847.3<\/td>\r\n<td>35.0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Caterers<\/td>\r\n<td>4,443.6<\/td>\r\n<td>6.8<\/td>\r\n<td>4,644.9<\/td>\r\n<td>6.8<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Drinking places<\/td>\r\n<td>2,355.6<\/td>\r\n<td>3.6<\/td>\r\n<td>2,358.6<\/td>\r\n<td>3.5<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Commercial<\/td>\r\n<td>52,570.1<\/td>\r\n<td>80.5<\/td>\r\n<td>54,965.3<\/td>\r\n<td>80.7<\/td>\r\n<\/tr>\r\n<tr>\r\n<th rowspan=\"5\">NON-COMMERCIAL<\/th>\r\n<td>Accommodation<\/td>\r\n<td>5,456<\/td>\r\n<td>8.4<\/td>\r\n<td>5,647.0<\/td>\r\n<td>8.3<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Institutional<\/td>\r\n<td>3,668.6<\/td>\r\n<td>5.6<\/td>\r\n<td>3,898.5<\/td>\r\n<td>5.7<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Retail<\/td>\r\n<td>1,234.3<\/td>\r\n<td>1.9<\/td>\r\n<td>1,199.4<\/td>\r\n<td>1.8<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other<\/td>\r\n<td>2,362<\/td>\r\n<td>3.6<\/td>\r\n<td>2,416.3<\/td>\r\n<td>3.5<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Non-Commercial<\/td>\r\n<td>12,720.9<\/td>\r\n<td>19.5<\/td>\r\n<td>13,161.3<\/td>\r\n<td>19.3<\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"6\">Data source: Restaurants Canada, 2013<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p id=\"table4.3\">The sales revenues for the various segments\u00a0are shown in Table\u00a04.3.\u00a0Note that QSRs and full-service restaurants are almost equal in their sales and almost completely dwarf the other commercial sectors of caterers and drinking places. It is also noteworthy that the commercial components have four times the sales volume of the non-commercial components.<\/p>\r\n\r\n<h2>Types of Food and Beverage Customers<\/h2>\r\nNow that we've classified the sector\u00a0based on business type and looked at relative performance, let's look at F&amp;B\u00a0from another perspective: customer\u00a0type. The first way to classify customers is to divide them into two key markets: residents and visitors.\r\n\r\nThe first of these, the resident group, can be further divided based on their\u00a0purpose for\u00a0visiting an F&amp;B operator. \u00a0For one group, food or drink is the primary purpose for the visit. For example, think of a group of friends getting together at a local\u00a0restaurant to experience their signature sandwich. For another group, food and drink is the\u00a0secondary purpose, added spontaneously or as an ancillary activity.\u00a0For example, think of time-crunched\u00a0parents whisking their kids through a drive-through on their way from one after-school activity\u00a0to the next. Here the\u00a0food and beverage providers offer an\u00a0expedient way to access a meal.\r\n\r\n[caption id=\"attachment_1310\" align=\"aligncenter\" width=\"450\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/NanaimoBar.jpg\"><img class=\"wp-image-1310 size-full\" alt=\"&quot;&quot;\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/NanaimoBar.jpg\" height=\"300\" width=\"450\" \/><\/a> Figure 4.10 A visitor to Nanaimo eats a signature \"Nanaimo bar\" in front of a Nanaimo bar, the Jingle Pot Pub[\/caption]\r\n\r\nFoodservice providers also service the visitor market, which\u00a0presents unique challenges as guests will bring with them the tastes and eating habits of their home country or region.\u00a0Most establishments\u00a0generally follow one of two directions. One is to cater completely to visitors from the day the doors\u00a0open, with an\u00a0operational and market focus on tourists. The other is to cater primarily to residents.\r\n\r\nSometimes a\u00a0local foodservice provider\u00a0can continue\u00a0to cater to the resident market over time. In other cases, often because of financial pressures, the business shifts its focus away from the\u00a0residents\u00a0to better cater to\u00a0visitors\u2019 tastes. These changes, when they do occur, generally happen over time and can lead to questions of authenticity of the local offerings (Smart,\u00a02003; Heroux,\u00a02002;\u00a0Mak, Lumbers, Eves, &amp; Chang, 2012).\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: The Science of Addictive Food\u00a0<\/strong>\r\n\r\nFor some time, one secret recipe for success in the food sector, particularly the fast-food portion of the sector, was simple: salt, sugar, and fat --\u00a0and lots of it. There is a science behind these additives and why consumers keep coming back to satisfy their cravings. To view a CBC special on the science of addictive food, visit<a href=\"https:\/\/www.youtube.com\/watch?v=4cpdb78pWl4\" target=\"_self\"><i>The science of Addictive Food<\/i><\/a>: www.youtube.com\/watch?v=4cpdb78pWl4\r\n\r\n<\/div>\r\nIt is clear that the food and beverage sector must remain responsive to consumers\u2019 needs and desires. This is made evident by the emergence of health-concious eating in North America over the last two decades. The influence of books such as <em>Fast Food Nation<\/em>\u00a0(Schlosser, 2012) and documentaries such as <em>Super Size Me<\/em>\u00a0have created mainstream awareness about what goes into our food and our bodies. As many developed nations, including\u00a0Canada, struggle with health-care concerns including hypertension, diabetes, and obesity, food operators are taking note and developing new health-conscious\u00a0menus. Programs like BC's Informed Dining initiative are helping consumers understand their options (see the Spotlight On below).\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Spotlight On: Informed Dining<\/strong>\r\n\r\nThe Informed Dining program was created by Healthy Families BC to help consumers gain a better understanding of the ingredients in their food and their role in daily healthy eating habits and guidelines. For more information, visit\u00a0the <a href=\"https:\/\/www.healthyfamiliesbc.ca\/home\/informed-dining\" target=\"_self\">Informed Dining webpage<\/a>: www.healthyfamiliesbc.ca\/home\/informed-dining\r\n\r\n<\/div>\r\nThis awareness, coupled with an increasing interest and desire for more authentic\u00a0foods produced without using herbicides and pesticides, free of genetically modified ingredients, and even free of carbohydrates or gluten, has placed pressure on the sector to respond, and many have (Frash, DiPietro, &amp; Smith, 2014). Consumers are more aware of the plight of farmers and producers from faraway places and the support for\u00a0fair trade practices. At the same time, there is\u00a0a heightened desire for more locally grown products, and a general awareness of nutrition and the quality of products that are harvested in season and closer to home.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: Cittaslow Designation for Cowichan Bay<\/strong>\r\n\r\nThe community of Cowichan Bay on Vancouver Island was awarded the Cittaslow Designation, which helps acknowledge its focus on sustainable practices and local food harvesting best practice. For more information on the designation and community efforts, watch the video,\u00a0<a href=\"https:\/\/www.youtube.com\/watch?v=_JQ-Cnh-v5Q\" target=\"_self\">Cittaslow Cowichan Bay<\/a>: www.youtube.com\/watch?v=_JQ-Cnh-v5Q\r\n\r\n<\/div>\r\nConsumer consciousness regarding the source and distribution of food has created a movement that champions sustainable and locally grown foods.\u00a0While this trend does have its extremes, it is founded on the premise that eating food that has been produced nearby\u00a0leads to better food quality, sustainable food production processes, and increased enjoyment. This has led to a number of restaurants that incorporate these concepts in their menu planning and marketing.\r\n\r\nIn addition to this trend toward \"conscious consumerism\" (LinkBC, 2014, p.4), F&amp;B professionals must be highly aware of the importance of special diets including gluten-free, low-carb, and other dietary restrictions (LinkBC, 2014).\r\n\r\nAll of these influences are continuously shaping the food and beverage sector. Before we explore additional trends and issues in the sector, let's review the core considerations for profitability in foodservice operations.\r\n\r\n[caption id=\"attachment_2951\" align=\"aligncenter\" width=\"300\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/05\/14868822381_c46a5ce815_z.jpg\"><img src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/14868822381_c46a5ce815_z-300x200.jpg\" alt=\"Fresh fruits and vegetables and a sign saying, &quot;BC Association of Farmers' Markets&quot;\" class=\"wp-image-2951 size-medium\" height=\"200\" width=\"300\" \/><\/a> Figure 4.11 Officials announce more funding for BC farmers markets, which have become increasingly popular due to changing consumer tastes[\/caption]\r\n<h2>Profitability<\/h2>\r\nWhile many factors influence the profitability of foodservice operations, key considerations include type of business, location, cost control and profit margin, sales and marketing strategies, and human resources management. We've already examined the different types of operation, and their relative profit margins. Let's look at the other profitability considerations in more detail.\r\n<h3>Location<\/h3>\r\nThe selection of the correct location for a restaurant is often cited as the most critical factor in an operation's success (or failure) in terms of profitability. Prior to opening, site analysis is required to determine the amount of traffic (foot traffic and vehicle traffic), proximity to competing businesses, visibility to patrons, accessibility, and presence (or absence) of desired patrons (Ontario Restaurant News, 1995).\r\n<h3>Cost Control<\/h3>\r\nAccording to Restaurants Canada, QSRs have the highest profit margin at 5.1%, while full-service restaurants have a margin of 3.5%. There will be significant variances from these percentages at individual locations even within the same brand (2014b).\r\n\r\n[caption id=\"attachment_1314\" align=\"aligncenter\" width=\"470\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/16400757169_0f99e41644_z.jpg\"><img class=\"wp-image-1314 size-full\" alt=\"2012 Financial operating ratios. Long description available.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/16400757169_0f99e41644_z.jpg\" height=\"358\" width=\"470\" \/><\/a> Figure 4.12 Operating ratios for Canadian food and beverage businesses in 2012 <a href=\"#fig4.12\">[Long Description]<\/a>[\/caption]A number of costs influence the\u00a0profitability of an F&amp;B operation.\u00a0Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 4.12, above, where <strong>food cost<\/strong> and salaries &amp; wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of <strong>assets.<\/strong> These percentages represent averages, and will vary greatly by sector and location.\r\n\r\nCost control and containment is essential for all F&amp;B businesses. Demanding particular attention are the labour, food, and <strong>beverage costs<\/strong>, also known as the operator\u2019s <strong>primary costs<\/strong>. In addition to these big ticket items, there is the cost of reusable\u00a0<strong>operating supplies<\/strong>\u00a0such as\u00a0cutlery, glassware, china, and linen in full-service restaurants.\r\n\r\nGiven that most operations have both a service side (interacting directly with the consumer) and production side (preparing\u00a0food or drink to be consumed), the primary costs incurred during these activities often determine the feasibility or success of the operation. This is especially true as the main product (e.g., food and drink) is perishable;\u00a0ordering the correct amount requires skill and experience.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: Survey of Service Industries -- Foodservices and Drinking Places<\/strong>\r\n\r\nThe Statistics Canada Survey of Service Industries series features an in-depth look at the food and beverage sector. Data used in this chapter (and much more) can be found in this comprehensive overview. To explore the survey, visit\u00a0the <a href=\"http:\/\/www23.statcan.gc.ca\/imdb\/p3Instr.pl?Function=assembleInstr&amp;Item_Id=137106&amp;LI=137106&amp;TET=1\">Survey of Service Industries<\/a>: www23.statcan.gc.ca\/imdb\/p3Instr.pl?Function=assembleInstr&amp;Item_Id=137106&amp;LI=137106&amp;TET=1\r\n\r\n<\/div>\r\n<h3>Sales and Marketing<\/h3>\r\nThe two principal considerations for\u00a0sales and marketing in this sector are market share and revenue maximization. Most\u00a0F&amp;B\u00a0operations are constrained by finite time and space, so\u00a0management\u00a0must constantly seek ways to increase revenue from the\u00a0existing operation, or increase the share of the available market. Examples of revenue maximization include\u00a0upselling existing consumers (e.g., asking if they want fries with their meal; offering dessert),\u00a0and using outdoor or patio space (even using rain covers and heaters to extend the outdoor season). Examples of increasing market share in the fast-food sector include extending special offers to new, first-time customers through social media or targeted direct mail.\r\n\r\nIn today\u2019s cluttered marketplace, being noticed is a constant goal for most companies. Converting that awareness into patronage is a challenge for most operators.\u00a0Restaurant reviews have been a part of the food and beverage sector for a long time.\u00a0With the increase of online reviews by customers at sites like Yelp, Urbanspoon, and TripAdvisor, and\u00a0sharing of experiences via social media, food and beverage operators are becoming increasingly aware\u00a0of their web presence (Kwok &amp; Yu, 2013). For this reason, all major food and beverage operators carefully monitor their online reputation and their social media presence.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: McDonald's Social Media Conversation<\/strong>\r\n\r\nIn 2014, McDonald's Restaurants took to the internet to answer questions about their food production and ingredients. After months of declining sales, their strategy was to create more emotional engagement with customers and to gain their trust (Passikoff, 2014). To read more about the initiative, read the article in <em>Forbes<\/em> magazine, <a href=\"http:\/\/www.forbes.com\/sites\/robertpassikoff\/2014\/10\/14\/mcdonalds-hopes-new-social-media-qa-will-modify-food-image\/\" target=\"_self\">\"McDonald's Hopes New Social Media Question-And-Answer Will Modify Food Image\"<\/a>: www.forbes.com\/sites\/robertpassikoff\/2014\/10\/14\/mcdonalds-hopes-new-social-media-qa-will-modify-food-image\/\r\n\r\n<\/div>\r\nOne of the keys to a strong reputation, both in person, and online, is the management of human resources.\r\n<h3>Staffing and Human Resources<\/h3>\r\n[caption id=\"attachment_1348\" align=\"aligncenter\" width=\"470\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/CactusClub.jpg\"><img class=\"wp-image-1348 size-full\" alt=\"&quot;&quot;\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/CactusClub.jpg\" height=\"314\" width=\"470\" \/><\/a> Figure 4.13 Winner of Top Chef Canada Matthew Stowe\u00a0and patron at a new Cactus Club restaurant opening[\/caption]\r\n\r\nAppropriately staffing an F&amp;B\u00a0operation involves attracting\u00a0the right people, hiring them, training them, and then assigning them to the right tasks for their skills and abilities. Many businesses\u00a0operate outside the traditional workweek hours; indeed, some operate on a 24-hour schedule. Creating the right team, employing them in accordance with legal guidelines, and keeping up with the demands of the businesses\u00a0are challenges that can be\u00a0addressed by a well-thought-out and implemented human resources plan.\r\n\r\nPeople who have long-lasting careers\u00a0in the sector find the fluctuating conditions appealing; no two days are the same, and the fast-paced and energetic social environment can be motivating.\u00a0Many positions provide meaningful rewards and compensation that can lead to long-term careers.\r\n\r\nOne topic of discussion in\u00a0food and beverage human resources is that of gratuities (tipping). 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. This is not the model in countries like Australia, where service staff are paid a higher professional wage and prices are raised to accommodate this.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: Tipping and Its Alternatives<\/strong>\r\n\r\nIn 2008, Michael Lynn and Glenn Withiam wrote a paper discussing the role of tipping and potential alternatives. 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 &amp; Withiam, 2008). For instance, do tips actually improve service? These questions can apply to food and beverage businesses but also other tourism operations within the service context. It also offers some suggestions for further research. Read this paper at <a href=\"http:\/\/scholarship.sha.cornell.edu\/cgi\/viewcontent.cgi?article=1029&amp;context=articles\" target=\"_self\">\"Tipping and Its Alternatives\"<\/a>: http:\/\/scholarship.sha.cornell.edu\/cgi\/viewcontent.cgi?article=1029&amp;context=articles\r\n\r\n<\/div>\r\nIn British Columbia, tips are considered income for tax purposes but are not considered wages as they are not paid by the employer to the employee. A restaurant owner cannot use tips to cover business expenses (e.g., require an employee to use his or her tips to cover the cost of broken glassware). Employers are also not permitted to charge staff for the cost of diners who do not pay (known as a <strong>dine-and-dash<\/strong>). They can, however, require <span>front-of-house staff pool their gratuities<\/span><span>, or pay individually, to ensure back-of-house staff receive a percentage of the tips<\/span>\u00a0(British Columbia Ministry of Jobs, Tourism and Skills Training, n.d.). This is also commonly known as a <strong>tip-out<\/strong>.\r\n\r\nThere have been experiments with gratuity models in recent years. One example is a\u00a0restaurant on Vancouver Island, which tried an\u00a0all-inclusive pricing\u00a0model 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).\r\n<h2>Trends and Issues<\/h2>\r\nIn addition to having to focus on the changing needs of guests and the specific challenges of their own businesses, food and beverage operators must deal with trends and issues that affect the entire industry.\u00a0Let's take a closer look at these.\r\n<h3>Government Influence<\/h3>\r\nEach level of government affects the sector in different ways.\u00a0The federal government and its agencies have influence through\u00a0income tax rates, costs of employee benefits (e.g., employer share of Canada Pension Plan and Employment Insurance deductions), and support for specific agricultural producers such as Canadian dairy and poultry\u00a0farmers, which can lead to an increase in the price of ingredients such as milk, cheese, butter, eggs, and chicken compared to US prices (Findlay, 2014; Chapman, 1994).\r\n\r\nProvincial governments also impact the food and beverage sector, in particular with respect to employment standards; minimum wage; sales taxes (except\u00a0Alberta); liquor, wine, and beer wholesale pricing (Smith, 2015); and corporate income tax rates.\r\n\r\nMunicipal governments have\u00a0an ever-increasing impact through property and business taxes, non-smoking bylaws, zoning and bylaw restrictions, user fees, and operating hours restrictions.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Spotlight On: Restaurants Canada<\/strong>\r\n\r\nWhen Restaurants Canada was founded in 1944, it was\u00a0known as the\u00a0Canadian Restaurant Association, and later the Canadian Restaurant and Foodservices Association. Today, the organization represents over\u00a030,000 operations including restaurants, bars, caterers, institutions, and suppliers. It conducts and circulates industry research and offers its members cost savings on supplies, insurance, and other business expenses. For more information, visit\u00a0the <a href=\"https:\/\/www.restaurantscanada.org\/\" target=\"_self\">Restaurants Canada website<\/a>: www.restaurantscanada.org\r\n\r\n<\/div>\r\nOver 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 <strong>Restaurants Canada<\/strong> (see Spotlight On above).\u00a0At the provincial level, BC operators rely on the\u00a0<strong>British Columbia Restaurant &amp; Foodservices Association (BCRFA)<\/strong>.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Spotlight On: BC Restaurant &amp; Foodservices Association (BCRFA)<\/strong>\r\n\r\nFor more than 40 years, the BCRFA has represented the interests of the province's foodservice operators in matters such as wages, benefits, liquor licences and other relevant matters. Today, it offers benefits to over 3,000 members on both the supply and the operator side. For more information, visit the <a target=\"_self\" href=\"http:\/\/bcrfa.com\">BC Restaurant and Foodservices Association website<\/a>: http:\/\/bcrfa.com\r\n\r\n<\/div>\r\n<h3>Health and Safety<\/h3>\r\n[caption id=\"attachment_1313\" align=\"aligncenter\" width=\"450\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/4064551808_2cee7648f6_z.jpg\"><img class=\"wp-image-1313\" alt=\"A sign saying, &quot;Employees Must Wash Hands Before Returning to Work.&quot;\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/4064551808_2cee7648f6_z.jpg\" height=\"229\" width=\"450\" \/><\/a> Figure 4.14 A sign in a Starbucks location encouraging staff to wash their hands to prevent the spread of germs[\/caption]\r\n\r\nFood and beverage providers hold a distinct position within our society; they invite the public to consume their offerings, both on and off premise. In doing so, all food and beverage operators must adhere to standardized public safety regulations. Each province has regulations and legislation that apply in their jurisdiction. In BC, this is addressed by the FoodSafe and Serving It Right programs,\u00a0and compliance with the Occupiers Liability Act.\u00a0These regulations and legislation are enacted in the interest of public health and safety.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: Health and Safety Training<\/strong>\r\n\r\nFood and beverage professionals are strongly encouraged to take both FoodSafe and Serving It Right courses. These\u00a0certifications\u00a0are necessary to advance into specific and leadership roles in the industry. For instance, Serving It Right is required by all licensees, managers, sales staff, and servers in licensed establishments. In addition, individuals may require Serving It Right for a special occasion licence. To sign up for an online program or course near you, visit\u00a0<a href=\"http:\/\/www.foodsafe.ca\" target=\"_self\">FoodSafe<\/a>: www.foodsafe.ca and\u00a0<a href=\"http:\/\/www.servingitright.com\" target=\"_self\">Serving It Right<\/a>: www.servingitright.com\r\n\r\n<\/div>\r\nFoodSafe is the provincial food safety training program designed for the foodservice industry (FoodSafe, 2009). Serving It Right is a\u00a0mandatory course that is completed through self-study, and is required for anyone serving alcohol in a commercial setting. Its goal is to ensure that\u00a0licensees, managers, and servers know their\u00a0legal responsibilities and understand\u00a0techniques to prevent over-service and related issues (go2HR, 2014).\r\n\r\nIn broad terms, BC's Occupiers Liability Act covers the\u00a0responsibilities of the occupier of a property to ensure the safety of visitors.\u00a0Additional local health bylaws set standards of operation for health and safety under the direction of the medical officers of health. Public health inspectors regularly visit food and beverage operations to evaluate compliance. In some communities, these inspection results are posted online.\r\n\r\nCollectively, the food and beverage industry in BC has an excellent reputation for ensuring the health and safety of its patrons, the general public, and its employees.\r\n<h3>Technology Trends<\/h3>\r\nTechnology continues to play an ever-increasing role in the sector. It is most noticeable\u00a0in QSRs where many functions are automated in both the <strong>front of house\u00a0<\/strong>and <strong>back of house<\/strong>. In the kitchen, temperature sensors and alarms determine when fries are ready and notify kitchen staff. Out front, remote printers or special screens ensure the kitchen is immediately notified when a server rings in a purchase. WiFi\u00a0enables credit\/debit card hand-held devices to be brought directly to the table to process transactions, saving steps back to the serving station.\r\n\r\nOther trends include automated services such as that offered by Open Table, which provides restaurants with an online real-time restaurant reservation system so customers can make reservations\u00a0without speaking to anyone at the restaurant (Open Table, 2015). And now smartphone apps will tell customers what restaurants are nearby or where their favourite chain restaurant is located.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: Automated Cooking in Asia<\/strong>\r\n\r\nIn Singapore Changi Airport, a quick-service restaurant is using automated woks.\u00a0The cook adds the ingredients and can attend to other duties until\u00a0the item is ready for service. Check out a <a href=\"https:\/\/www.youtube.com\/watch?v=Gqiz17AsYhQ\" target=\"_self\">video of a cook using an automated wok<\/a>: www.youtube.com\/watch?v=Gqiz17AsYhQ.\u00a0And in China, watch <a href=\"http:\/\/singularityhub.com\/2013\/04\/19\/chinese-restaurant-owner-says-robot-noodle-maker-doing-a-good-job\/\" target=\"_self\">a video of robots that are\u00a0shaving\u00a0noodles \"by hand.\"<\/a>:\u00a0singularityhub.com\/2013\/04\/19\/chinese-restaurant-owner-says-robot-noodle-maker-doing-a-good-job\/\r\n\r\n<\/div>\r\n<h3>Changing Venues<\/h3>\r\nThe following trends relate to the changing nature of food and beverage venues, including the emerging importance of the third space, and the increased mainstream presence of non-permanent locations such as street vendors and pop-up restaurants.\r\n<h4>The Third Space<\/h4>\r\nThe <strong>third space<\/strong> is a concept that describes locations where customers congregate that are neither home (the first space) nor work or school (the second space). Many attribute the emergence of these spaces to the popularity of coffee shops such as Starbucks. In the third space, operators must create a comfortable venue for customers to \"hang out\" with comfortable seating, grab and go F&amp;B options, WiFi, and a relaxed ambiance. Providing these components has been shown as a way to increase traffic and customer loyalty (Mogelonski, 2014).\r\n<h4>Taking It to the Street<\/h4>\r\nStreet food has always been a component of the foodservice industry in most big cities. These operations are often run by a single owner\/operator or with minimal staff, and serve hot food that can be eaten while standing. According to research firm IBISWorld, in 2011 the \"street food business --\u00a0which includes mobile food trucks and\u00a0non mechanized carts, is a <span>$1 billion industry that has seen an 8.4 percent growth rate from 2007 to 2012\" (<em>Entrepreneur,<\/em> 2011) with 78% of owners having no more than four employees.\u00a0<\/span>\r\n\r\nRecently, in North America, where climate and weather allow, there has been a noticeable increase in both the number and type of street food vendors.\u00a0In the city of Vancouver alone there are over 100 permitted food cart\u00a0businesses, searchable by an app and sortable list -- and the city uses the terms <em>street<\/em> <em>food vendor<\/em>, <em>food cart<\/em>, and <em>food truck<\/em> interchangeably (City of Vancouver, 2014).\r\n\r\n[caption id=\"attachment_1933\" align=\"aligncenter\" width=\"500\"]<a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/03\/7178372148_7de857bc75_z.jpg\"><img src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/7178372148_7de857bc75_z.jpg\" alt=\"People lined up outside of two food trucks.\" class=\"wp-image-1933\" height=\"375\" width=\"500\" \/><\/a> Figure 4.15 Tacofino (closest), Pig on the Street, and Mom's Grilled Cheese food trucks welcome crowds to their portable kitchens in downtown Vancouver.[\/caption]\r\n\r\n<strong>Pop-up restaurants<\/strong> have also emerged, facilitated in part by the prevalent use of social media for marketing and location identification. Pop-ups are temporary restaurants with a known expiry date, which also tend to have the following in common (Knox, 2011):\r\n<ul>\r\n \t<li>A well-known or up-and-coming chef at the helm<\/li>\r\n \t<li>An interesting, but stationary, location (a warehouse, a park, the more unusual the better)<\/li>\r\n \t<li>Staff who are adept at promotions and word-of-mouth<\/li>\r\n \t<li>Strong local <strong>foodie<\/strong> (food and beverage\u00a0enthusiast) base in the area<\/li>\r\n \t<li>Involvement from local artists or musicians to add to the experience<\/li>\r\n<\/ul>\r\nAs popular they are with consumers, the ways in which pop-ups deviate from restaurants has aggravated some critics, causing <em>Bon App\u00e9tit<\/em> magazine to declare that \"pop-ups are not supposed to be restaurants,\" and that \"pop-up restaurants are over\" (Duckor, 2013). Statements like these are further evidence that food and beverage services trends are dynamic and ever-changing.\r\n<h2>Conclusion<\/h2>\r\nThe food and beverage\u00a0sector is a vibrant and multifaceted part of our society. Michael Hurst, famous restaurateur and former chair of the US National Restaurant Association, championed the idea that all guests should be received with the statement \"Glad you are here\" (Tripp, 1992; Marshall 2001). That statement is the perfect embodiment of what F&amp;B is to the hospitality industry\u00a0\u2014 a mix of service providers who welcome guests with open arms and take care of their most basic needs, as well as their emotional well-being.\r\n<div class=\"textbox shaded\">\r\n\r\n<strong>Take a Closer Look: Michael Hurst<\/strong>\r\n\r\nMichael Hurst preached to students, industry participants, and university colleagues alike, saying that \u201cThe most precious gift you can give your Guests is the gift of Friendship\" (Tripp, 1992; Marshall 2001). \u00a0To learn more about this legendary character, visit <a href=\"http:\/\/digitalcommons.fiu.edu\/cgi\/viewcontent.cgi?article=1353&amp;context=hospitalityreview\" target=\"_self\">In My Opinion: Michael E. Hurst [PDF]<\/a>: http:\/\/digitalcommons.fiu.edu\/cgi\/viewcontent.cgi?article=1353&amp;context=hospitalityreview\r\n\r\n<\/div>\r\nThe social fabric of our country, its residents, and visitors will change over time, and so too will F&amp;B. What will not change in spite of how we divide the segments \u2014 into tourists or locals\u00a0\u2014 is that the sector\u00a0is at its best when food and beverages are accompanied by a social element, extending from your dining companions to the front and back of the house.\r\n\r\nSo far, we have covered the transportation, accommodation, and food and beverage sectors. In the next two chapters, we'll explore the recreation and entertainment sector, starting with recreation in Chapter 5.\r\n<div class=\"textbox textbox--key-takeaways\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\">Key Terms<\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n<ul>\r\n \t<li><strong>Assets:<\/strong> items of value owned by the business and used in the production and service of the dining experience<\/li>\r\n \t<li><strong>Average cheque:<\/strong> total sales divided by number of guests served<\/li>\r\n \t<li><strong>Back of house: <\/strong>food production areas not accessible to guests and not generally visible; also known as heart of house<\/li>\r\n \t<li><strong>BC Restaurant &amp; Foodservices Association (BCRFA):\u00a0<\/strong>representing the interests of more than 3,000 of the province's foodservice operators in matters including wages, benefits, liquor licences, and other relevant matters<\/li>\r\n \t<li><strong>Beverage costs:<\/strong> beverages sold in liquor-licensed operations; this usually only includes alcohol, but in unlicensed operations, it includes coffee, tea milk, juices, and soft drinks<\/li>\r\n \t<li><strong>Captured patrons:<\/strong>\u00a0consumers\u00a0with\u00a0limited selection or choice of food or beverage provider given their occupation or location<\/li>\r\n \t<li><strong>Commercial foodservice:<\/strong> operations whose primary business is food and beverage<\/li>\r\n \t<li><strong>Cross-utilization:<\/strong> when a menu is created to make multiple uses of a small number of staple pantry ingredients, helping to keep food costs down<\/li>\r\n \t<li><strong>Dine-and-dash:<\/strong> the term commonly used in the industry for when a patron eats but does not pay for his or her meal<\/li>\r\n \t<li><strong>Ethnic restaurant:<\/strong> a restaurant based on the cuisine of a particular region or country, often reflecting the heritage of the head chef or owner<\/li>\r\n \t<li><strong>Family\/casual restaurant:<\/strong>\u00a0restaurant type that is typically\u00a0open for all three meal periods, offering affordable prices and\u00a0able to serve diverse tastes and accommodate large groups<\/li>\r\n \t<li><strong>Fine dining restaurant:<\/strong>\u00a0licensed food and beverage establishment characterized by high-end ingredients and preparations and highly trained service staff<\/li>\r\n \t<li><strong>Food and beverage (F&amp;B):<\/strong>\u00a0type of operation\u00a0primarily engaged in preparing meals, snacks, and beverages, to customer order, for immediate consumption on and off the premises<\/li>\r\n \t<li><strong>Food cost:<\/strong> price including freight charges of all food served to the guest for a price (does not include food and beverages given away, which are quality or promotion costs)<\/li>\r\n \t<li><strong>Food primary:<\/strong> a licence required to operate a restaurant\u00a0whose\u00a0primary business is serving food (rather than alcohol)<\/li>\r\n \t<li><strong>Foodie:<\/strong> a term (often used by the person themselves) to describe a food and beverage enthusiast<\/li>\r\n \t<li><strong>Front of house: <\/strong>public areas of the establishment; in quick-service restaurants, it includes the ordering and product serving area<\/li>\r\n \t<li><strong>Full-service restaurants:<\/strong> casual and fine dining restaurants where guests order food seated and pay after they have finished their meal<\/li>\r\n \t<li><strong>Liquor primary<\/strong> <strong>licence<\/strong>: the type of licence needed in BC to operate a business that is in the primary business of selling alcohol (most pubs, nightclubs, and cabarets fall into this category)<\/li>\r\n \t<li><strong>Non-commercial foodservice:<\/strong> establishments where food is served, but where the primary business is not food and beverage service<\/li>\r\n \t<li><strong>Operating supplies:<\/strong> generally includes reusable items including cutlery, glassware, china, and linen in full-service restaurants<\/li>\r\n \t<li><strong>Pop-up restaurants:<\/strong>\u00a0temporary restaurants with a known expiry date hosted in an unusual location, which tend to be helmed by a well-known or up-and-coming chef and use word-of-mouth in their promotions<\/li>\r\n \t<li><strong>Primary costs:<\/strong> food, beverage, and labour costs for an F&amp;B operation<\/li>\r\n \t<li><strong>Profit:<\/strong> the amount left when expenses (including corporate income tax) are subtracted from sales revenue<\/li>\r\n \t<li><strong>Quick-service restaurant (QSR): <\/strong>an establishment where guests pay before they eat;\u00a0includes\u00a0counter service, take-out, and delivery<\/li>\r\n \t<li><strong>Restaurants Canada:<\/strong><span>\u00a0representing\u00a0over\u00a030,000 food and beverage operations including restaurants, bars, caterers, institutions, and suppliers<\/span><\/li>\r\n \t<li><strong>Revenue:<\/strong> sales dollars collected from guests<\/li>\r\n \t<li><strong>Third space:<\/strong>\u00a0a term used to describe F&amp;B outlets enjoyed as \"hang out\" spaces for customers where guests and service staff co-create the experience<\/li>\r\n \t<li><strong>Tip-out:<\/strong> the practice of having front-of-house staff pool their gratuities, or pay individually, to ensure back-of-house staff receive a percentage of the tips<\/li>\r\n \t<li><strong>Upscale casual restaurant: <\/strong>emerging in the 1970s, a style of restaurant that typically only serves dinner, intended to bridge the gap between fine dining and family\/casual\u00a0restaurants<\/li>\r\n<\/ul>\r\n<\/div><\/div>\r\n<div class=\"textbox textbox--exercises\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\">Exercises <\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n<ol>\r\n \t<li>Looking at Table 4.1, what was the average volume of sales per F&amp;B establishment in BC in 2013? What was it for Alberta? What about the national average?\u00a0What might account for these differences? List at least three contributing factors.<\/li>\r\n \t<li>Looking at the same table, how many F&amp;B\u00a0\"units\" were there in BC in 2013?<\/li>\r\n \t<li>What are the two main classifications for food and beverage operations\u00a0and which is significantly larger in terms of market share?<\/li>\r\n \t<li>Should gratuities be abolished in favour of all-inclusive pricing?\u00a0Consider the point of view of the server, the owner, and the guest in your analysis.<\/li>\r\n \t<li>Think of the concept of the third space, and name two of these types of operations in your community.<\/li>\r\n \t<li>Have you worked in a restaurant or foodservice operation? What are the three important lessons you learned about work while there?\u00a0 If you have not, interview a\u00a0classmate who has experience in the field and find out what three lessons he or she would suggest.<\/li>\r\n \t<li>What is your favourite restaurant?\u00a0What does it do so well to have become your favourite?\u00a0What would you recommend it do to improve your dining experience even more?<\/li>\r\n \t<li>What was your all-time best restaurant dining experience? Compare and contrast this with one of your worst dining experiences. For each of these, include a description of:\r\n<ol>\r\n \t<li>The food<\/li>\r\n \t<li>The behaviour of restaurant staff<\/li>\r\n \t<li>Ambiance (music, decor, temperature, comfort of chairs, lighting)<\/li>\r\n \t<li>The reason for your visit<\/li>\r\n \t<li>Your mood upon entering the establishment<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n<\/div><\/div>\r\n<div class=\"textbox textbox--exercises\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\">Case Study: Restaurant Behaviour - Then and Now<\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\nThe following story made the rounds via social media in late 2014. While the claim has not been verified, it certainly rings true for a number of F&amp;B professionals who have experienced this phenomenon. The story is as follows:\r\n\r\nA busy New York City restaurant kept getting bad reviews for slow service, so they hired a firm to investigate. When they compared footage from 2004 to footage from 2014, they made some pretty startling discoveries. So shocking, in fact, that they ranted about it in an anonymous post on Craigslist:\r\n<blockquote>\r\n<div>\r\n\r\nWe are a popular restaurant for both locals and tourists alike. Having been in business for many years, we noticed that although the number of customers we serve on a daily basis is almost the same as ten\u00a0years ago, the service seems very\u00a0slow. One of the most common complaints on review sites against us and many restaurants in the area is that the service was slow and\/or they needed to wait too long for a table. We've added more staff and cut back on the menu items but we just haven't been able to figure it out.\r\n\r\nWe hired\u00a0a firm to help us solve this mystery, and naturally the first thing they blamed it on was the employees needing more training and the kitchen staff not being up to the task of serving that many customers.\r\n\r\nLike most restaurants in NYC we have a surveillance system, and unlike today where it's digital, 10 years ago we still used special high capacity tapes to record all activity. At any given time we had 4 special Sony systems recording multiple cameras. We would store the footage for 90 days just in case we needed it for something.\r\n\r\nThe investigators\u00a0suggested we locate some of the older tapes and analyze how the staff behaved ten\u00a0years ago versus how they behave now. We went down to our storage room but we couldn't find any tapes at all.\r\n\r\nWe did find the recording devices, and luckily for us, each device has 1 tape in it that we simply never removed when we upgraded to the new digital system!\r\n\r\nThe date stamp on the old footage was Thursday July 1, 2004. The restaurant was very busy that day. We loaded up the footage on a large monitor, and next to it on a separate monitor loaded up the footage of Thursday July 3 2014, with roughly the same amount of customers as ten years before.\r\n\r\nWe carefully looked at over 45 transactions in order to determine what has been happening:\r\n\r\n<strong>Here's a typical transaction from 2004:<\/strong>\r\n\r\nCustomers walk in.\u00a0They are\u00a0seated and are given menus. Out of 45 customers 3\u00a0request to be seated elsewhere.\r\n\r\nCustomers spend 8 minutes on average before closing the menu to show they are ready to order.\r\n\r\nWaiters shows up almost instantly and takes the order.\r\n\r\nAppetizers are fired within 6 minutes; obviously the more complex items take longer.\r\n\r\nOut of 45 customers 2 sent their\u00a0items back.\r\n\r\nWaiters keep an eye on\u00a0their tables so they can respond quickly if the customer needs something.\r\n\r\nAfter guests are done, the check is delivered, and within 5 minutes they leave.\r\n\r\nAverage time from start to finish: 1 hour, 5 minutes.\r\n\r\n<strong>Here's what happened in 2014:<\/strong>\r\n\r\nCustomers walk in.\u00a0Customers get seated and are given menus, and out of 45 customers 18 request to be seated elsewhere.\r\n\r\nBefore even opening the menu most customers\u00a0take their phones out, some are taking photos while others are texting or browsing.\r\n\r\nSeven of the 45 customers had waiters come over right away, they showed them something on their phone and spent an average of five minutes of the waiter's time. Given this is recent footage, we asked the waiters about this and they explained those customers had a problem connecting to the WIFI and demanded the waiters try to help them.\r\n\r\nAfter a few minutes of letting the customers review the menu,\u00a0waiters return\u00a0to their tables. The majority of customers have not even opened their menus and ask the waiter to wait a bit.\r\n\r\nWhen customers do\u00a0open their menus, many place\u00a0their phones on top and continue using their activities.\r\n\r\nWaiters return to see if they are ready to order or have any questions. Most\u00a0customers ask for more time.\r\n\r\nFinally a table is ready to order.\u00a0Total average time from when a\u00a0customer is\u00a0seated until they place their order is 21 minutes.\r\n\r\nFood starts getting delivered within 6 minutes; obviously the more complex items take way longer.\r\n\r\n26 out of 45 customers spend an average of 3 minutes taking photos of the food.\r\n\r\n14 out of 45 customers take pictures of each other with the food in front of them or as they are eating the food. This takes on average another 4 minutes as they must review and sometimes retake the photo.\r\n\r\n9 out of 45 customers sent their food back to reheat. Obviously if they didn't pause to do whatever on their phone the food wouldn't have gotten cold.\r\n\r\n27 out of 45 customers asked their waiter to take a group photo. 14 of those requested the waiter retake the photo as they were not pleased with the first photo. On average this entire process between the chit chatting and reviewing the photo taken added another 5 minutes and obviously caused the waiter not to be able to take care of other tables he\/she was serving.\r\n\r\nGiven in most cases the customers are constantly busy on their phones it took an average of 20 more minutes from when they were done eating until they requested a check.\r\n\r\nFurthermore once the check was delivered it took 15 minutes longer than 10 years ago for them to pay and leave.\r\n\r\n8 out of 45 customers bumped into other customers or in one case a waiter (texting while walking) as they were either walking in or out of the restaurant.\r\n\r\nAverage time from start to finish: 1:55\r\n\r\nWe are grateful for everyone who comes into our restaurant, after all there are so many choices out there. But can you please be a bit more considerate?\r\n\r\n<\/div><\/blockquote>\r\nNow it's your turn. Imagine you are the restaurant operator in question, and answer the questions below.\r\n<ol>\r\n \t<li>What could you, as the owner,\u00a0try to do to improve the <em>turnover time<\/em>? Come up with at least three ideas.<\/li>\r\n \t<li>Now put yourself in the position of a server. Do your ideas still work from this perspective?<\/li>\r\n \t<li>Lastly, look at your typical customer. How will he or she respond to your proposals?<\/li>\r\n<\/ol>\r\n<\/div><\/div>\r\n<h2>References<\/h2>\r\nBritish Columbia Ministry of Jobs, Tourism and Skills Training. (n.d.). &lt;a href=\"http:\/\/www.labour.gov.bc.ca\/esb\/igm\/esa-part-1\/igm-esa-s1-wages.htm#top\" target=\"_self\"<em>Interpretation guidelines manual, Employment Standards Branch<\/em>. Retrieved from\u00a0&gt;www.labour.gov.bc.ca\/esb\/igm\/esa-part-1\/igm-esa-s1-wages.htm#top\r\n\r\nChapman, Anthony. (1994). <a href=\"http:\/\/publications.gc.ca\/Collection-R\/LoPBdP\/BP\/bp380-e.htm\" target=\"_self\"><em>Reduction of tariffs on supply managed commodities under the GATT and the NAFTA, tarrification under the Uruguay Round<\/em><\/a>. Retrieved from: http:\/\/publications.gc.ca\/Collection-R\/LoPBdP\/BP\/bp380-e.htm\r\n\r\nCity of Vancouver. (2014, June 30). <a href=\"http:\/\/vancouver.ca\/people-programs\/find-a-food-truck-vendor.aspx\"><em>Find a street food vendor<\/em><\/a>. Retrieved from\u00a0http:\/\/vancouver.ca\/people-programs\/find-a-food-truck-vendor.aspx\r\n\r\nDuckor, M. (2013, June 27). <a href=\"http:\/\/www.bonappetit.com\/restaurants-travel\/article\/pop-up-restaurants-are-over\" target=\"_self\">Pop-up restaurants are over.<\/a> <em>Bon App\u00e9tit<\/em>. Retrieved from\u00a0www.bonappetit.com\/restaurants-travel\/article\/pop-up-restaurants-are-over\r\n\r\nDuffy, A. (2014, August 22). <a href=\"http:\/\/www.vancouversun.com\/news\/metro\/Vancouver+Island+restaurateur+regretfully+ends+policy\/10140961\/story.html\" target=\"_self\">Vancouver Island restauranteur regretfully ends his no-tip policy<\/a>. <em>Vancouver Sun<\/em>. Retrieved from\u00a0www.vancouversun.com\/news\/metro\/Vancouver+Island+restaurateur+regretfully+ends+policy\/10140961\/story.html\r\n\r\n<em>Entrepreneur<\/em>. (2011, July 24). <a href=\"http:\/\/www.entrepreneur.com\/article\/220060\" target=\"_self\">Food trucks 101: How to start a mobile food business.<\/a> Retrieved from\u00a0www.entrepreneur.com\/article\/220060\r\n\r\nFindlay, M. (2014, May 12). <a target=\"_self\" href=\"http:\/\/www.macleans.ca\/economy\/economicanalysis\/why-your-milk-costs-so-much-in-canada\/http:\/\/\">Why your milk costs so much and what to do about it<\/a>. <em>Macleans<\/em>. Retrieved from www.macleans.ca\/economy\/economicanalysis\/why-your-milk-costs-so-much-in-canada\/\r\n\r\nFoodSafe. (2009). <em>Welcome<\/em>. Retrieved from\u00a0<a href=\"http:\/\/www.foodsafe.ca\" target=\"_self\">www.foodsafe.ca<\/a>\r\n\r\nFrash, R. E., DiPietro, R., &amp; Smith, W. (2014). Pay more for McLocal? Examining motivators for willingness to pay for local food in a chain restaurant setting. <em>Journal of Hospitality Marketing &amp; Management, 24<\/em>(4), 411-434.\r\n\r\n<em>Georgia Straight.<\/em> (2015). <a target=\"_self\" href=\"http:\/\/www.straight.com\/listings\/venues\/114986\">Bishop's.<\/a> Retrieved from www.straight.com\/listings\/venues\/114986\r\n\r\ngo2HR. (2014). <em>Serving-it-Right.<\/em> Retrieved from <a href=\"http:\/\/www.servingitright.com\" target=\"_self\">www.servingitright.com<\/a>\r\n\r\nGovernment of Canada. (2012, June 14). <a href=\"http:\/\/www23.statcan.gc.ca\/imdb\/p3VD.pl?Function=getVD&amp;TVD=118464&amp;CVD=118466&amp;CPV=722&amp;CST=01012012&amp;CLV=2&amp;MLV=5\" target=\"_self\"><em>NAICS 2012 - 722 - Food services and drinking places.<\/em><\/a> Retrieved from:\u00a0www23.statcan.gc.ca\/imdb\/p3VD.pl?Function=getVD&amp;TVD=118464&amp;CVD=118466&amp;CPV=722&amp;CST=01012012&amp;CLV=2&amp;MLV=5\r\n\r\nHeroux, L. (2002). Restaurant marketing strategies in the United States and Canada: A comparative study. <em>Journal of Foodservice Business Research, 5<\/em>(4), 95-110.\r\n\r\nKnox, J. \u00a0(2011, June 13). <a href=\"http:\/\/restaurantcentral.ca\/popuprestaurant.aspx\" target=\"_self\">Ingredients for a successful pop-up restaurant<\/a>. <em>Restaurant Central.ca<\/em>. Retrieved from\u00a0http:\/\/restaurantcentral.ca\/popuprestaurant.aspx\r\n\r\nKoc, M., &amp; Welsh, J. (2001). <em>Food, foodways and immigrant experience.<\/em> Toronto: Centre for Studies in Food Security.\r\n\r\nKwok, L., &amp; Yu, B. (2013). Spreading social media messages on Facebook. An analysis of restaurant business-to-consumer communications. <em>Cornell Hospitality Quarterly<\/em>, <em>54<\/em>(1), 84-94.\r\n\r\nLaroche, M., Kim, C., Tomiuk, M. A., &amp; Belisle, D. (2005). Similarities in Italian and Greek multidimensional ethnic identity: Some implications for food consumption. <em>Canadian Journal of Administrative Sciences\/Revue Canadienne des Sciences de l'Administration, 22<\/em>(2), 143-167.\r\n\r\nLinkBC. (2014, June). <a href=\"http:\/\/linkbc.ca\/siteFiles\/85\/files\/2014RoundtableDialogueCafeReport.pdf\" target=\"_self\"><em>2014 Roundtable Dialogue Cafe Report.<\/em> [PDF]<\/a> Retrieved from\u00a0http:\/\/linkbc.ca\/siteFiles\/85\/files\/2014RoundtableDialogueCafeReport.pdf\r\n\r\nLynn, M., &amp; Withiam, G. (2008). Tipping and its alternatives: Business considerations and directions for research. <em>Journal of Services Marketing, 22<\/em>(4), 328-336.\r\n\r\nMak, A. H., Lumbers, M., &amp; Eves, A. (2012). Globalisation and food consumption in tourism. <em>Annals of Tourism Research, 39(<\/em>1), 171-196.\r\n\r\nMak, A. H., Lumbers, M., Eves, A., &amp; Chang, R. C. (2012). Factors influencing tourist food consumption. <em>International Journal of Hospitality Management, 31<\/em>(3), 928-936.\r\n\r\nMarshall, A. G. (2001). In my opinion: Michael E. Hurst: July 8, 1931-March 22, 2001. <em>Hospitality Review, 19<\/em>(2), 9.\r\n\r\nMogelonski, L. (2014, January 3). <a href=\"http:\/\/hotelnewsnow.com\/Article\/12908\/Third-spaces-enrich-guests-lives-and-loyalty\" target=\"_self\">Third spaces enrich guests' lives<\/a>. <em>Hotel News Now<\/em>. Retrieved from http:\/\/hotelnewsnow.com\/Article\/12908\/Third-spaces-enrich-guests-lives-and-loyalty\r\n\r\nOntario Restaurant News. (1995). <a target=\"_self\" href=\"http:\/\/www.fhgi.com\/publications\/articles\/selecting-a-restaurant-site-is-key-to-franchise-units-success\/\"><em>Selecting a restaurant site is key to franchise unit's success<\/em><\/a>. Reprinted in FGHI. Retrieved from www.fhgi.com\/publications\/articles\/selecting-a-restaurant-site-is-key-to-franchise-units-success\/\r\n\r\nOpen Table, Inc. (2015). <a href=\"http:\/\/www.opentable.com\/start\/home\" target=\"_self\"><em>Make restaurant reservations the easy way<\/em><\/a>. Retrieved from www.opentable.com\/start\/home\r\n\r\nParsa, H. G., Lord, K. R., Putrevu, S., &amp; Kreeger, J. (2015). Corporate social and environmental responsibility in services: Will consumers pay for it?. <em>Journal of Retailing and Consumer Services, 22<\/em>, 250-260.\r\n\r\nPassikoff, Robert. (2014, November, 14). <a href=\"http:\/\/www.forbes.com\/sites\/robertpassikoff\/2014\/10\/14\/mcdonalds-hopes-new-social-media-qa-will-modify-food-image\/\" target=\"_self\">McDonald\u2019s hopes new social media question-and-answer will modify food image.<\/a> <em>Forbes<\/em>. Retrieved \u00a0from www.forbes.com\/sites\/robertpassikoff\/2014\/10\/14\/mcdonalds-hopes-new-social-media-qa-will-modify-food-image\/\r\n\r\nRestaurants Canada (2014a).\u00a0<a href=\"https:\/\/www.restaurantscanada.org\/en\/Book-Store\/Product\/rvdsfpid\/2013-foodservice-facts-7\" target=\"_self\"><em>Foodservice facts<\/em><\/a>. Retrieved from\u00a0https:\/\/www.restaurantscanada.org\/en\/Book-Store\/Product\/rvdsfpid\/2013-foodservice-facts-7\r\n\r\nRestaurants Canada (2014b). <a href=\"https:\/\/restaurantscanada.org\" target=\"_self\"><em>Market review and forecast 2014<\/em><\/a>. Retrieved from\u00a0https:\/\/restaurantscanada.org\r\n\r\nRestaurants Canada, Statistics Canada, fsSTRATEGY Inc. and Pannell Kerr Forster. (2013).\u00a0<a href=\"https:\/\/www.restaurantscanada.org\/en\/Research#crfaResearchReports\" target=\"_self\"><em>Sector sales and market shares for 2012\/13<\/em><\/a>. Retrieved from\u00a0www.restaurantscanada.org\/en\/Research#crfaResearchReports\r\n\r\nSchlosser, E. (2012). <em>Fast food nation: The dark side of the all-American meal<\/em>. New York, NY: Houghton Mifflin Harcourt.\r\n\r\nSmart, J. (2003). Ethnic entrepreneurship, transmigration, and social integration: an ethnographic study of Chinese restaurant owners in rural western Canada.<em> Urban Anthropology and Studies of Cultural Systems and World Economic Development,<\/em> 311-342.\r\n\r\nSmith, C. (2015, March 25). <a target=\"_self\" href=\"https:\/\/www.straight.com\/food\/416961\/bc-liberal-government-liquor-reforms-pinch-private-retailers\">BC Liberal government liquor reforms pinch private retailers.<\/a> <em>Georgia Straight.<\/em> Retrieved from www.straight.com\/food\/416961\/bc-liberal-government-liquor-reforms-pinch-private-retailers\r\n\r\n<a href=\"http:\/\/www.sale-tax.com\" target=\"_self\">State Sales Tax Rates.<\/a> (2015). Retrieved from\u00a0www.sale-tax.com\r\n\r\nStatistics Canada, Restaurants Canada, Recount\/NDP Group. (2013). <a href=\"https:\/\/www.restaurantscanada.org\/en\/Research\" target=\"_self\"><em>Performance by Province (Commercial Foodservice<\/em>)<\/a>. Retrieved from\u00a0www.restaurantscanada.org\/en\/Research\r\n\r\nTripp, Griff. (1992). Personal knowledge.\r\n<h2>Attributions<\/h2>\r\n<strong>Figure 4.1<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/15964461474\/in\/photostream\/\">Foodservice Share of Total FoodDollars<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/\">LinkBC<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.\r\n\r\n<strong>Figure 4.2<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/16399596290\/in\/photostream\/\">Profit Margins for Restaurants by Province<\/a> by <a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/\">LinkBC<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.\r\n\r\n<strong>Figure 4.3<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/longjiang\/503025281\/in\/photolist-7jC67R-5zVwyM-9hoUik-6aU5zP-eqJSBt-6aU5sR-agqoKq-82BsfB-2VHS7o-aip8eo-4u86zx-9hp7D2-9hp2UX-9hp9En-9hs6Nh-4eRLkC-Ls8TF-9hoxaH-9hrYwS-6nJkwy-6nE9n8-c3TvZ-9tLVA5-axRkDT-9hoyAv-62ZdBe-4dWQbV-a9UWx7-a9S8FX-a9S934-9hoH3D-9hs1JU-9hoJfH-9hpbBt-9hoRMV-9hrX93-9hoADe-9hsdnN-9hoX18-9hpgMT-9hrL3Q-9hoLQe-9houbB-9hoDvZ-9hs4eL-9hpcTP-9hp4dM-9hsmUb-9hs8fm-9hrDvQ\">The Keg at the Station<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/longjiang\/\">Jon the Happy Web Creative<\/a> is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by\/2.0\/\">CC BY 2.0<\/a> license.\r\n\r\n<strong>Figure 4.4 <\/strong><a href=\"https:\/\/flic.kr\/p\/9YX3dR\">North Arm Farm Strawberry\u00a0 + Rhubarb Pavlova<\/a> by <a href=\"https:\/\/www.flickr.com\/photos\/ruthanddave\/5895316553\/in\/photolist-83nxZ4-83qE23-83qEau-83qEfA-83qE91-83qE9s-83nxVt-83nxTR-83nxWT-83qE5b-83nxMc-83nxNa-83nxVV-83nxNz-83nxNV-83nxQk-83qE7j-83qE3W-83qE6S-83nxMP-83nxUZ-83nxWp-83nxXe-j1TjEU-8HaNYB-9YX35p-9YZWYf-9YZWGf-9YX3dR-8HaPzX-9YZVJJ-9YX24M-9YZW6j-9YX2np-9SRXSC-9SRXrb-9SP88D-9SPquM-9SPubi-9SSg1j-9SPryz-9SPqU4-8HdWnm-8HdWCJ-8HaP68-8HaPnR-9YZWQ7-9YX2ea-9YX2W6-qwxaEZ\">Ruth Hartnup<\/a> is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by\/2.0\/\">CC-BY 2.0<\/a> license.\r\n\r\n<strong>Figure 4.5<\/strong> \u00a0<a href=\"https:\/\/www.flickr.com\/photos\/isabelle_puaut\/11371595774\/in\/photolist-5cxsj-9fCtoa-3HoyP9-5QjLFY-joMYLp-5Jevmp-9fFAm3-9fFAsW-ijSpf7-6KuZzY-7K75Cj-7vnD6Y-6L2ND3-6L2Nko-6L2N3q-os34TD-d7gLPy-bEFL9q\">The old spaghetti factory<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/isabelle_puaut\/\">Isabelle Puaut<\/a> is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/2.0\/\">CC BY-NC-ND 2.0<\/a> license.\r\n\r\n<strong>Figure 4.6\u00a0<\/strong><a href=\"https:\/\/www.flickr.com\/photos\/worldofjan\/4953582734\/in\/photolist-FDVaj-5g4ioY-8C2w5a-7Tzwr8-ccatTq-5hZhWD-5i4Duy-9i6oh3-ocFfkU-6wUC33-5hZhPk-94jkPc-9kAZfQ-5i4D2y-6Tmpcd-6ThnGF-6TmnVq-6TmnSy-ao6PH3-8xJqL7-8xFo4c-8xJpyS-8xJtc9-aAHsNx-8xJpXY-8C77si-8C9DH1-oLdWrQ-2VYTa5-8Ca7uo-8C9YyU-8C9LJm-8Cahn5-8Cah7S-8C79ZK-8C79Ha-8CafML-8Cafn3-8CaeVQ-8C77Sc-8C76ZM-8C76xK-8C76dx-8CacwJ-8C75iK-8CabeN-8CaaJU-8Ca9Hq-8Ca8Ym-8C71Tz\">Vij's<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/worldofjan\/\">jan zeschky<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.\r\n\r\n<strong>Figure 4.7<\/strong> <a href=\"https:\/\/www.flickr.com\/photos\/mauriceli\/7902140720\/in\/photolist-arbM2T-fF8QWN-fF8RYJ-areqCC-fERhzk-o7Z7q8-d3hyfS-d3hvwu-d3hx8w-9UoRxU-d3hv4L-d3hy9A-d3hxRC-o81374-o7Z7TH-opcsnp-o7Z4XS-oreGRF-optKoa-o7Z9Rv-opsjFJ-fF8vgQ-fEQV9t-fERh7r-arbM1H-o7YWmb-o7YYSb-o7YYc4-o7Z6J9-onrZaW-o817Nt-o7YS6N-o7YTU7-o7YZgi-o7YUfM-o7YWTy-optrWB-onrPEU-o814Lr-optKHZ-opskEs-opgtzE-o7YYLm-oreqWV-optNP8-ops6RW-opcxzZ-opgswY-o7YSvL-o7YQUj\">D\u00eener en Blanc Vancouver 2012<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/mauriceli\/\">Maurice Li<\/a> Photography\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/2.0\/\">CC BY-NC-ND 2.0<\/a> license.\r\n\r\n<strong>Figure 4.8<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/cogdog\/2295348200\/in\/photolist-kDpzX-7Q2xba-9NvNiJ-jC5u26-itpcV5-4uQfXm-4uQg3Y\">Six Mile<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/cogdog\/\">Alan Levine<\/a> is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/2.0\/\">CC BY-SA 2.0<\/a> license.\r\n\r\n<strong>Figure 4.9<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/16399396738\/in\/photostream\/\">Market Share by Restaurant Segment<\/a> <span>by <\/span><a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/\">LinkBC<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.\r\n\r\n<strong>Figure 4.10<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/brettohland\/4954688454\/in\/photolist-oHMtHU-9D2VZ8-5QSchC-7zeVgF-qtipC8-8GG7Ge-7Eek2R-7Eibrq-8GKixh-8GGdg6-8GKiCs-38aNec-7z3B5d-8xQ5g1-7B79VM-dQN44D-5QMUCg-DjY5-a95sYM-b5vgKz-edDNx6-5my92t-4TfKDc-b5vhAc-fmvmaB-8BKsQf-7PDme-7avJeY-6YRh8q-64WWmo-8F7W7c-ds91S9-ds8SnF-ds928S-ds8Sgv-ds91Zd-ds8SvB-ds91Jf-ds92e1-ds925N-ds91Nb-nJXcu-5S96jR-EGigZ-7CueEg-dYn7jW-dYgqoM-dYgqjg-dYn7ew-dYn7gW\">Life goal #5 complete<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/brettohland\/\">Brett Ohland<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/2.0\/\">CC BY-NC-SA 2.0<\/a>\u00a0license.\r\n\r\n<strong>Figure 4.11<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/bcgovphotos\/14868822381\/in\/photolist-gwYPX4-3brkWN-e6nQaw-a5Hxyx-oDUASz-9DU5c8-Tkbah-9DU7hX-MZEKw-a5Hyix-ahZRdG-a5Lseh-7V2W\">New funding for farmers' market program<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/bcgovphotos\/\">Province of British Columbia<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/2.0\/\">CC BY-NC-ND 2.0<\/a>\u00a0license.\r\n\r\n<strong>Figure 4.12<\/strong> <a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/16400757169\/\">Operating Ratios for Canadian Foodservice Businesses<\/a> <span>by <\/span><a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/\">LinkBC<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.\r\n\r\n<strong>Figure 4.13<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/mastermaq\/10217604495\/in\/photolist-2u4Zz-d8Xz2C-3Zed2-gyTX4j-3vf6V-2hEkp-gyTwBG-gyTZGp-gyTTQK-gyUs2r-gyTru7-gyTQmv-gyUqhz-gyTw4C-gyTMuP-gyU7rh-gyU6vQ-gyTZ9F-gyUwsa-3n7cc-3MZUG-6GTcD-3MZTf-6GTdA-6GTef-6GTeW-2hmYV-4NK44v-3vf5f-ei3XDt-74XHzC-74XHaU-74XJyb-74TPmp-3LG9C-5fsGq7-vQR8c-5fsGcm-5fsErG-5fohJz-52bba1-52bb9J-52bb9Y-52bbaf-52bbao-52bb9N-k7VTs-k7Vuq-k7VFJ-5foi7p\">Cactus Club Cafe<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/mastermaq\/\">Mack Male<\/a> used under <a href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/2.0\/\">CC BY-SA 2.0<\/a> license.\r\n\r\n<strong>Figure 4.14<\/strong> <a href=\"https:\/\/www.flickr.com\/photos\/ambernectar\/4064551808\/in\/photolist-ehvNrC-fZSTgM-deVZxE-mPa3F-9f8kJz-78Av6t-9rrrPu-7LFYbn-5yggn3-7caTDs-uhMyP-7s6fwx-54UgMg-6qXqsv-8odEg-vjAsF-sYqQi-7dP7PM-5zJ1P5-8NSFAE-8En1ZM-6CTd3u-97UvkG-ebuywd-eoQw15-6rQtU5-pd38n-8STpeN-6bYfLW-33iHyj-4FseU-7KqVfs-9kGpLD-J4Dnv-4njg6Y-wXWvq-8dXpKG-7FRCFU-8vG8HT-cgGeko-8AKTMg-4Eew28-atMZqT-cFBbMs-4msJtr-6jt9Ev-dHBL3C-dsN9rB-32eHtV-a1VJca\">must wash hands<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/ambernectar\/\">Ambernectar13<\/a> is used under <a href=\"https:\/\/creativecommons.org\/licenses\/by-nd\/2.0\/\">CC BY-ND 2.0<\/a> license.\r\n\r\n<strong>Figure 4.15<\/strong>\u00a0<span><a href=\"https:\/\/www.flickr.com\/photos\/canadianveggie\/7178372148\/in\/photolist-cWL1wq-fiVajs-bWk2X3-4yDyNx-9vn84s-9nMGV4-o6qjmY-nELTdR-9nQKW5-bgVU4c-aN3Hag-aN3H1Z-bzJDof-bYxWPW-4ySLWe-4ySLpc-brh1z9-9nMHc2-F3JZs-hv8oqw-oXUia-aBQoQx-724AwX-civau9-5NmyrA-hv6nCy-4SQ2tD-5QDc5N-92vYTu-9GwfXX-bMNvpH-5QDc9f-cLfSBJ-ckhbsU-6qQJEn-gbUfwp-31mfqr-5VsFPN-7qzfhK-ckhaTW-4m8wf9-2Mtpq-bWaPyf-8NaTMQ-5DZtKE-6mjUBs-heL8kn-9kzpA8-6CKDzi-8b41to\">Vancouver food carts on a sunny day<\/a>\u00a0b<\/span>y <a href=\"https:\/\/www.flickr.com\/photos\/canadianveggie\/\">Christopher Porter<\/a>\u00a0<span>is used under a <\/span><a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/2.0\/\">CC BY-NC-ND 2.0<\/a><span>\u00a0<\/span><span>license.<\/span>\r\n<h2>Long Descriptions<\/h2>\r\n<table id=\"fig4.1\" class=\"bcc-shrink\" summary=\"From 2001 to 2015, Americans tended to spend 46.5% to 49% of their food money on food services while Canadians spent 36.7% to 40.2% of their food money on food services.\"><caption>Figure 4.1 long description: Foodservice spending as a percentage of total food dollars spent in Canada and the US<\/caption>\r\n<thead>\r\n<tr>\r\n<th>Country<\/th>\r\n<th>2001<\/th>\r\n<th>2002<\/th>\r\n<th>2003<\/th>\r\n<th>2004<\/th>\r\n<th>2005<\/th>\r\n<th>2006<\/th>\r\n<th>2007<\/th>\r\n<th>2008<\/th>\r\n<th>2009<\/th>\r\n<th>2010<\/th>\r\n<th>2011<\/th>\r\n<th>2012<\/th>\r\n<th>2013<\/th>\r\n<th>2014<\/th>\r\n<th>2015<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<th>Percentage of food money spent on foodservices by Americans<\/th>\r\n<td>46.4%<\/td>\r\n<td>46.7%<\/td>\r\n<td>47.5%<\/td>\r\n<td>47.9%<\/td>\r\n<td>46.7%<\/td>\r\n<td>47.5%<\/td>\r\n<td>47.9%<\/td>\r\n<td>48%<\/td>\r\n<td>48%<\/td>\r\n<td>49%<\/td>\r\n<td>49%<\/td>\r\n<td>48%<\/td>\r\n<td>47%<\/td>\r\n<td>47.6%<\/td>\r\n<td>47%<\/td>\r\n<\/tr>\r\n<tr>\r\n<th>Percentage of food money spent on foodservices by Canadians<\/th>\r\n<td>40.2%<\/td>\r\n<td>40.0%<\/td>\r\n<td>39.2%<\/td>\r\n<td>39.3%<\/td>\r\n<td>39.1%<\/td>\r\n<td>39.2%<\/td>\r\n<td>38.8%<\/td>\r\n<td>38.4%<\/td>\r\n<td>37.0%<\/td>\r\n<td>36.7%<\/td>\r\n<td>36.7%<\/td>\r\n<td>37.3%<\/td>\r\n<td>37.7%<\/td>\r\n<td>38.2%<\/td>\r\n<td>38.5%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<a href=\"#attachment_2901\">[Return to Figure 4.1]<\/a>\r\n<table id=\"fig4.2\"><caption>Figure 4.2 long description: Pre-Tax Profit Margins, 2012 by Province<\/caption>\r\n<thead>\r\n<tr>\r\n<th>Province<\/th>\r\n<th>Pre-Tax profit margin<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Manitoba<\/td>\r\n<td>7.9%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Alberta<\/td>\r\n<td>7.1%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Saskatchewan<\/td>\r\n<td>7.0%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Newfoundland and Labrador<\/td>\r\n<td>6.7%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Prince Edward Island<\/td>\r\n<td>5.7%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>New Brunswick<\/td>\r\n<td>5.2%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Nova Scotia<\/td>\r\n<td>5.2%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Canada<\/td>\r\n<td>4.2%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Quebec<\/td>\r\n<td>3.9%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>British Columbia<\/td>\r\n<td>3.4%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Ontario<\/td>\r\n<td>2.8%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<a href=\"#attachment_1266\">[Return to Figure 4.2]<\/a>\r\n<table id=\"fig4.9\"><caption>Figure 4.9 long description: Market Share by Restaurant Segment<\/caption>\r\n<thead>\r\n<tr>\r\n<td><\/td>\r\n<th>Quick Service Restaurants<\/th>\r\n<th>Family\/Midscale<\/th>\r\n<th>Casual Dining<\/th>\r\n<th>Fine Dining<\/th>\r\n<th>Retail<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<th>Share of Traffic<\/th>\r\n<td>64.5%<\/td>\r\n<td>13.2%<\/td>\r\n<td>10.1%<\/td>\r\n<td>0.7%<\/td>\r\n<td>11.5%<\/td>\r\n<\/tr>\r\n<tr>\r\n<th>Share of Dollars<\/th>\r\n<td>45.8%<\/td>\r\n<td>20.6%<\/td>\r\n<td>22.5%<\/td>\r\n<td>4.2%<\/td>\r\n<td>6.9%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<a href=\"#attachment_1258\">[Return to Figure 4.9]<\/a>\r\n<table id=\"fig4.12\"><caption>Figure 4.12 long description: 2012 Financial Operating Ratios (as a percentage of operating revenue)<\/caption>\r\n<thead>\r\n<tr>\r\n<th>Expense<\/th>\r\n<th>Percentage of operating revenue<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Cost of Sales<\/td>\r\n<td>35.6%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Salaries and wages<\/td>\r\n<td>33.7%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other<\/td>\r\n<td>7.9%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Rental and Leasing<\/td>\r\n<td>7.6%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Pre-Tax profit<\/td>\r\n<td>4.2%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation<\/td>\r\n<td>3.0%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Advertising<\/td>\r\n<td>2.8%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Utilities<\/td>\r\n<td>2.7%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Repair and Maintenance<\/td>\r\n<td>2.5%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<a href=\"#attachment_1314\">[Return to Figure 4.12]<\/a>","rendered":"<div class=\"textbox textbox--learning-objectives\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\">Learning Objectives<\/p>\n<\/header>\n<div class=\"textbox__content\">\n<ul>\n<li>Describe the origins and significance of the food and beverage sector<\/li>\n<li>Relate the importance of the sector to the Canadian economy<\/li>\n<li>Explain the various types of food and beverage providers<\/li>\n<li>Discuss differing needs and desires of residents and visitors in selecting a food and beverage provider<\/li>\n<li>Examine factors that contribute to the profitability of food and beverage operations<\/li>\n<li>Discuss key issues and trends in the sector including government influence, health and safety, human resources, and technology<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Overview<\/h2>\n<p>According to Statistics Canada, the <strong>food and beverage<\/strong>\u00a0sector comprises &#8220;establishments primarily engaged in preparing meals, snacks and beverages, to customer order, for immediate consumption on and off the premises&#8221; (Government of Canada, 2012). This sector is commonly known to tourism professionals by its initials as <strong>F&amp;B<\/strong>.<\/p>\n<p>The food and beverage sector grew out of simple origins: as people travelled from their homes, going about their business, they often had a need or desire to eat or drink. Others were encouraged to meet this demand\u00a0by\u00a0supplying food and drink. As the interests\u00a0of the public became\u00a0more diverse, so too did the offerings of the food and beverage sector.<\/p>\n<p>In 2014, Canadian food and beverage businesses\u00a0accounted for 1.1 million employees and more than 88,000 locations across the country\u00a0with an estimated\u00a0$71 billion in sales, representing around 4% of the country&#8217;s overall economic activity. Many students are familiar with the sector through their workplace, because Canada&#8217;s restaurants provide one in every five youth jobs in the country &#8212; with 22% of Canadians starting their career in a restaurant or foodservice business. Furthermore, going out to a restaurant is the number one preferred activity for spending time with family and friends (Restaurants Canada, 2014a).<\/p>\n<h2>Food and Beverage Sector Performance<\/h2>\n<figure id=\"attachment_2901\" aria-describedby=\"caption-attachment-2901\" style=\"width: 500px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/05\/FoodServiceShareofDollar.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/FoodServiceShareofDollar.png\" alt=\"Food service spending. Long description available\" class=\"wp-image-2901 size-full\" height=\"340\" width=\"500\" \/><\/a><figcaption id=\"caption-attachment-2901\" class=\"wp-caption-text\">Figure 4.1. Foodservice spending as a percentage of total food dollars spent in Canada and the US <a href=\"#fig4.1\">[Long Description]<\/a><\/figcaption><\/figure>\n<p>Look at Figure 4.1,\u00a0which illustrates the\u00a0percentage of total food dollars spent in\u00a0restaurants in Canada and the United States over several years.\u00a0As you can see, Americans spend significantly more of their total food dollars in foodservice establishments than in grocery stores, and in Canada we spend more of our total food dollars in the grocery store than we do in foodservice operations. It&#8217;s worth noting that Americans do not have an equivalent federal sales tax on meals comparable to\u00a0our GST on foodservice sales, although there does exist in some states a sales tax on meals and alcoholic beverages\u00a0(State Sales Tax Rates, 2015). This, combined with a larger population, cheaper food distribution costs, and other factors can often mean that it&#8217;s less expensive to dine out in the United States than in Canada.<\/p>\n<p>For a perspective on how sales are distributed across the country by province, and how different foodservice operations perform in terms of <strong>revenue<\/strong> (sales dollars collected from guests), look at Tables 4.1 and 4.2.<\/p>\n<table>\n<caption style=\"text-align: left;\"><em>Table 4.1: Performance by province for commercial foodservice &#8212; units<\/em><\/caption>\n<thead>\n<tr>\n<td style=\"text-align: center;\" colspan=\"5\"><a href=\"#table4.1\">[Skip Table]<\/a><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\">Province<\/th>\n<th style=\"text-align: center;\" colspan=\"3\">Foodservice Units<\/th>\n<th rowspan=\"2\">Average Volume\/Unit ($)<\/th>\n<\/tr>\n<tr>\n<th>Total<\/th>\n<th>Chain Share (%)<\/th>\n<th>Independent Share (%)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Newfoundland and Labrador<\/td>\n<td>1,127<\/td>\n<td>44<\/td>\n<td>56<\/td>\n<td>715,976<\/td>\n<\/tr>\n<tr>\n<td>Prince Edward Island<\/td>\n<td>369<\/td>\n<td>35<\/td>\n<td>65<\/td>\n<td>549,428<\/td>\n<\/tr>\n<tr>\n<td>Nova Scotia<\/td>\n<td>2,089<\/td>\n<td>40<\/td>\n<td>60<\/td>\n<td>637,237<\/td>\n<\/tr>\n<tr>\n<td>New Brunswick<\/td>\n<td>1,701<\/td>\n<td>48<\/td>\n<td>52<\/td>\n<td>579,576<\/td>\n<\/tr>\n<tr>\n<td>Quebec<\/td>\n<td>21,865<\/td>\n<td>31<\/td>\n<td>69<\/td>\n<td>488,712<\/td>\n<\/tr>\n<tr>\n<td>Ontario<\/td>\n<td>33,628<\/td>\n<td>45<\/td>\n<td>55<\/td>\n<td>623,862<\/td>\n<\/tr>\n<tr>\n<td>Manitoba<\/td>\n<td>2,448<\/td>\n<td>41<\/td>\n<td>59<\/td>\n<td>657,245<\/td>\n<\/tr>\n<tr>\n<td>Saskatchewan<\/td>\n<td>2,330<\/td>\n<td>43<\/td>\n<td>57<\/td>\n<td>744,322<\/td>\n<\/tr>\n<tr>\n<td>Alberta<\/td>\n<td>9,858<\/td>\n<td>47<\/td>\n<td>53<\/td>\n<td>828,860<\/td>\n<\/tr>\n<tr>\n<td>British Columbia<\/td>\n<td>13,214<\/td>\n<td>33<\/td>\n<td>67<\/td>\n<td>627,599<\/td>\n<\/tr>\n<tr>\n<td>Canada<\/td>\n<td>88,795<\/td>\n<td>40<\/td>\n<td>60<\/td>\n<td>619,013<\/td>\n<\/tr>\n<tr>\n<td class=\"source\" colspan=\"5\">Data source:\u00a0Statistics Canada, 2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table id=\"table4.1\">\n<caption style=\"text-align: left;\"><em>Table 4.2: Performance by province for commercial foodservice &#8212; sales<\/em><\/caption>\n<thead>\n<tr>\n<td style=\"text-align: center;\" colspan=\"5\"><a href=\"#table4.2\">[Skip Table]<\/a><\/td>\n<\/tr>\n<tr>\n<th rowspan=\"2\">Province<\/th>\n<th style=\"text-align: center;\" colspan=\"2\">Sales Growth<\/th>\n<th style=\"text-align: center;\">Sales<\/th>\n<th rowspan=\"2\">Pre-tax Profit Margin (%)<\/th>\n<\/tr>\n<tr>\n<th>2013-14 Forecast (%)<\/th>\n<th>2012-13 (%)<\/th>\n<th>2013 ($ millions)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Newfoundland and Labrador<\/td>\n<td>2.7<\/td>\n<td>9.2<\/td>\n<td>806.9<\/td>\n<td>6.7<\/td>\n<\/tr>\n<tr>\n<td>Prince Edward Island<\/td>\n<td>1.6<\/td>\n<td>4.4<\/td>\n<td>202.7<\/td>\n<td>5.7<\/td>\n<\/tr>\n<tr>\n<td>Nova Scotia<\/td>\n<td>3.8<\/td>\n<td>0.7<\/td>\n<td>1,330.9<\/td>\n<td>5.2<\/td>\n<\/tr>\n<tr>\n<td>New Brunswick<\/td>\n<td>2.1<\/td>\n<td>0.3<\/td>\n<td>985.6<\/td>\n<td>5.2<\/td>\n<\/tr>\n<tr>\n<td>Quebec<\/td>\n<td>3.8<\/td>\n<td>2.7<\/td>\n<td>10,685.4<\/td>\n<td>3.9<\/td>\n<\/tr>\n<tr>\n<td>Ontario<\/td>\n<td>4.1<\/td>\n<td>4.2<\/td>\n<td>20,979.2<\/td>\n<td>2.8<\/td>\n<\/tr>\n<tr>\n<td>Manitoba<\/td>\n<td>4.6<\/td>\n<td>6.1<\/td>\n<td>1,608.6<\/td>\n<td>7.9<\/td>\n<\/tr>\n<tr>\n<td>Saskatchewan<\/td>\n<td>4.7<\/td>\n<td>7.0<\/td>\n<td>1,733.9<\/td>\n<td>7.0<\/td>\n<\/tr>\n<tr>\n<td>Alberta<\/td>\n<td>5.4<\/td>\n<td>6.4<\/td>\n<td>8,170.5<\/td>\n<td>7.1<\/td>\n<\/tr>\n<tr>\n<td>British Columbia<\/td>\n<td>3.7<\/td>\n<td>6.1<\/td>\n<td>8,292.8<\/td>\n<td>3.4<\/td>\n<\/tr>\n<tr>\n<td>Canada<\/td>\n<td>4.2<\/td>\n<td>4.6<\/td>\n<td>54,965.3<\/td>\n<td>4.2<\/td>\n<\/tr>\n<tr>\n<td class=\"source\" colspan=\"5\"><span>Data source:\u00a0<\/span><span>Statistics Canada, 2013<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p id=\"table4.2\">Table 4.1 shows that the independents in BC have a much larger share of the total number of units compared with chains than any other province except Quebec.\u00a0In terms of sales (Table 4.2), Ontario is the leader with almost $21 billion.\u00a0Quebec, BC, and Alberta each\u00a0earned $8 to $10 billion, and the other provinces had sales of less than $2 billion apiece. While BC and Alberta are almost even in total sales, BC has a third more units (restaurants), leading to lower\u00a0average sales per unit.<\/p>\n<p>Foodservice sales in Alberta rose by a solid 6.4% in 2013.\u00a0Alberta boasts the highest average unit volume at $828,860 per year, more than $200,000 over the national average due to greater disposable income and no provincial sales tax on meals. In BC, the end of the HST (harmonized sales tax) and improved economic growth lifted total foodservice sales by a healthy 6.1% for the strongest annual growth since 2006 (Restaurants Canada, 2014a).<\/p>\n<p>Now let&#8217;s take a quick look at which provinces have the most profitable foodservice operations.<\/p>\n<figure id=\"attachment_1266\" aria-describedby=\"caption-attachment-1266\" style=\"width: 500px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/16399596290_cd8c592bff_z.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1266\" alt=\"Profit margins in 2012 by province. Long description available.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/16399596290_cd8c592bff_z.jpg\" height=\"342\" width=\"500\" \/><\/a><figcaption id=\"caption-attachment-1266\" class=\"wp-caption-text\">Figure 4.2 Pre-tax profit margins. <a href=\"#fig4.2\">[Long Description]<\/a><\/figcaption><\/figure>\n<p>Figure 4.2 indicates the\u00a0profit margins per province. <strong>Profit<\/strong>\u00a0is\u00a0<span>the amount left when expenses (including corporate income tax) are subtracted from sales revenue.<\/span>\u00a0A higher profit margin means that a greater\u00a0percentage of sales is retained by the business owner, and a lower percentage is lost to operating and other costs.<\/p>\n<p>The provincial variations in total sales and profit margins are due to several factors including:<\/p>\n<ul>\n<li>Relative level of economic activity<\/li>\n<li>Minimum wage levels<\/li>\n<li>Provincial sales taxes<\/li>\n<li>Cultural differences<\/li>\n<li>Weather<\/li>\n<li>Municipal taxes<\/li>\n<li>Percentage of market held by chains versus independents<\/li>\n<li>Number of units (restaurants)<\/li>\n<li>Density of units relative to local population<\/li>\n<li>Number of\u00a0tourists or business travellers<\/li>\n<\/ul>\n<p>Now that we have a sense of the relative performance of F&amp;B operations by province, and some influences on success, let&#8217;s delve a little deeper into the sector.<\/p>\n<h2>Types of Food\u00a0and Beverage Providers<\/h2>\n<figure id=\"attachment_1473\" aria-describedby=\"caption-attachment-1473\" style=\"width: 275px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/503025281_8829d53c08_z.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1473\" alt=\"An old train station that has been turned into a restaurant.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/503025281_8829d53c08_z.jpg\" height=\"412\" width=\"275\" \/><\/a><figcaption id=\"caption-attachment-1473\" class=\"wp-caption-text\">Figure 4.3 The Keg at the Station is in a former train station in New Westminster, BC<\/figcaption><\/figure>\n<p>While there are many ways to analyze\u00a0the sector, in this chapter, we take a market-based, business-operation approach\u00a0based on the overall Canadian market share from the Restaurants Canada Market Review and Forecast (Restaurants Canada, 2014b). The following sections explore the types of foodservice\u00a0operations in Canada.<\/p>\n<p>There are two key distinctions: <strong>commercial foodservice, <\/strong>which comprises\u00a0operations whose primary business is food and beverage, and <strong>non-commercial foodservice\u00a0<\/strong>establishments where food and beverages are\u00a0served, but are not\u00a0the primary business.<\/p>\n<p>Let&#8217;s start with the largest segment of F&amp;B operations, the commercial sector.<\/p>\n<h3>Commercial\u00a0Operators<\/h3>\n<p>Commercial operators make up the\u00a0largest segment of F&amp;B in Canada\u00a0with just over 80%\u00a0market share (Restaurants Canada, 2014b). It is made up of quick-service restaurants, full-service restaurants, catering, and drinking establishments. Let&#8217;s look at each of these in more detail.<\/p>\n<h4>Quick-Service Restaurants<\/h4>\n<p>Formerly known as fast-food restaurants, <strong>quick-service restaurants,<\/strong> or <strong>QSRs,<\/strong> make up 35.4% of total food sales in Canada (Restaurants Canada, 2014b).\u00a0This prominent portion of the food sector generally caters to both residents and visitors, and is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape.\u00a0While the sector\u00a0has made steps to move away from the traditional fast-food image and style of service, it is still dominated by both fast food and food fast; in other words, food that is prepared and purchased quickly, and generally consumed quickly.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: The First McDonald&#8217;s In Canada<\/strong><\/p>\n<p>The first McDonald&#8217;s restaurant in Canada opened in Richmond, BC, in 1967. Located on No. 3 Road, it featured a sleek almost space-age design. To see a picture of the location, visit\u00a0<a href=\"http:\/\/www.richmond.ca\/cityhall\/archives\/exhibits\/thenandnow\/then_now_set_7.htm\" target=\"_self\">McDonald&#8217;s: Then and Now<\/a>: www.richmond.ca\/cityhall\/archives\/exhibits\/thenandnow\/then_now_set_7.htm<\/p>\n<\/div>\n<p>Convenience and familiarity is key in this sector. Examples of QSRs include:<\/p>\n<ul>\n<li>Drive-through locations<\/li>\n<li>Stand-alone locations<\/li>\n<li>Locations within retail stores<\/li>\n<li>Kiosk locations<\/li>\n<li>High-traffic areas, such as major highways or commuter routes<\/li>\n<\/ul>\n<h4>Full-Service Restaurants<\/h4>\n<p>With 35% of the market share (Restaurants Canada, 2014b), <strong>full-service restaurants<\/strong> are perhaps the most fluid of the F&amp;B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs (Parsa, Lord, Putrevu,\u00a0&amp; Kreeger, 2015). The menus offered are varied, but in general reflect the image of the restaurant or consumer\u2019s desired experience. Major segments include fine dining, family\/casual, ethnic, and upscale casual.<\/p>\n<figure id=\"attachment_2216\" aria-describedby=\"caption-attachment-2216\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/04\/5895316553_d3db8dce94_z.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/5895316553_d3db8dce94_z-300x200.jpg\" alt=\"What looks like a fancy display of pink ice cream set on strawberries and whip cream.\" class=\"wp-image-2216 size-medium\" height=\"200\" width=\"300\" \/><\/a><figcaption id=\"caption-attachment-2216\" class=\"wp-caption-text\">Figure 4.4 A rhubarb pavlova with local Pemberton strawberries is served at Araxi Restaurant + Bar, a fine dining establishment in Whistler.<\/figcaption><\/figure>\n<p><strong>Fine dining<\/strong> <strong>restaurants<\/strong> are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table\u00a0by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the <strong>average cheque<\/strong>, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs- $ $ $ or $ $ $ $).<\/p>\n<p>Bishop&#8217;s in Vancouver is one of BC&#8217;s best known and longest operating fine dining restaurants. Since opening in 1985, this 45-seat restaurant has served heads of state including Bill Clinton and Boris Yeltsin, and has won awards including the Best of Vancouver. John Bishop was awarded the Governor General&#8217;s Award in 2010 (<em>Georgia Straight<\/em>, 2015).<\/p>\n<p><strong>Family\/casual<\/strong> <strong>restaurants<\/strong> are characterized by being open for all three meal periods. These operations offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis\u00a0of menus in family\/casual restaurants reveals a high degree of operational techniques such as menu item <strong>cross-utilization<\/strong>, where a few key ingredients are repurposed in several ways.\u00a0Both chain and independent restaurant operators flourish in this sector. Popular chain examples\u00a0in BC\u00a0include White Spot, Ricky\u2019s All Day Grill, Boston Pizza, and The Old Spaghetti Factory. Independents include the Red Wagon Caf\u00e9 in Vancouver, the Bon Voyage Restaurant near Prince George, and John\u2019s Place in Victoria.<\/p>\n<figure id=\"attachment_1467\" aria-describedby=\"caption-attachment-1467\" style=\"width: 400px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/Spag.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1467\" alt=\"This restaurant has mandy stained glass windows and stained glass lights.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/Spag.jpg\" height=\"267\" width=\"400\" \/><\/a><figcaption id=\"caption-attachment-1467\" class=\"wp-caption-text\">Figure 4.5 This is the interior of the Old Spaghetti Factory, a popular family chain, in Gastown, Vancouver. This location opened in 1970 and has stood the test of time.<\/figcaption><\/figure>\n<p><strong>Ethnic<\/strong> <strong>restaurants<\/strong> typically reflect the owner\u2019s cultural identity. While these restaurants are popular with many markets, they are often particularly of interest\u00a0to visitors and new immigrants looking for a specific\u00a0environment and other people\u00a0with whom they have a shared culture. Food is often the medium for this sense of belonging (Koc &amp; Welsh,\u00a02001; Laroche,\u00a0Kim,\u00a0Tomiuk,\u00a0&amp; Belisle, 2005).<\/p>\n<figure id=\"attachment_1715\" aria-describedby=\"caption-attachment-1715\" style=\"width: 400px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/03\/VIJ.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1715\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/VIJ.jpg\" alt=\"&quot;&quot;\" height=\"267\" width=\"400\" \/><\/a><figcaption id=\"caption-attachment-1715\" class=\"wp-caption-text\">Figure 4.6 The exterior of Vij&#8217;s, the flagship restaurant of Vikram Vij&#8217;s ethnic dining legacy<\/figcaption><\/figure>\n<p>The growth\u00a0and\u00a0changing nature of this sector reflects the acceptance of various ethnic foods within our communities.\u00a0Ethnic restaurants generally evolve along\u00a0two routes: toward remaining authentic to the cuisine of the country of origin, or\u00a0toward larger market acceptance through modifying menu items (Mak, Lumbers, Eves, &amp; Chang, 2012).<\/p>\n<p><strong>Upscale casual<\/strong>\u00a0<strong>restaurants<\/strong> emerged in the 1970s, evolving out of a change in social norms. Consumers began to want the experience of a\u00a0fun social evening at a restaurant with good value (but not cheap), in contrast to the perceived stuffiness of fine dining at that time. These restaurants are typically dinner houses, but they may open for lunch or brunch depending on location. Examples in BC include the Keg, Earls, Cactus Club, Brown&#8217;s Social House, and Joey Restaurants.<\/p>\n<h4>Catering and Banqueting<\/h4>\n<p>Catering makes up only 6.8% of the total share of F&amp;B in Canada (Restaurants Canada, 2014b) and comprises food served by\u00a0catering companies at banquets and special events at a diverse set of venues. Note that <em>banqueting<\/em> pertains to catered food\u00a0served on premise, while <em>catering<\/em> typically refers to\u00a0off-premise service. At a catered event, customers\u00a0typically eat at the same time, as opposed to restaurant customers who are served individually or in small groups.<\/p>\n<p>Catering businesses (whether on-site or at special locations) are\u00a0challenged by the episodic nature of events, and the issues of food handling and food safety with large groups. Catering businesses include:<\/p>\n<ul>\n<li>Catering companies<\/li>\n<li>Conference centres<\/li>\n<li>Conference hotels<\/li>\n<li>Wedding venues<\/li>\n<li>Festival food coordinators<\/li>\n<\/ul>\n<div class=\"textbox shaded\">\n<p><strong>Spotlight On: Diner en Blanc<\/strong><\/p>\n<p>An interesting public event with a dining focus is Diner en Blanc, which is held in cities around the globe including Vancouver and Victoria. Diners wear all white and bring their table, chair, and place settings with them to a secret location announced only hours before. Participants\u00a0have the option to bring their own food or purchase a catered meal. Alcoholic beverages are also available for purchase on site. For more information, visit\u00a0the <a href=\"http:\/\/vancouver.dinerenblanc.info\/media\" target=\"_self\">Diner en Blanc website<\/a>: http:\/\/vancouver.dinerenblanc.info\/media<\/p>\n<\/div>\n<figure id=\"attachment_1300\" aria-describedby=\"caption-attachment-1300\" style=\"width: 500px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/DeBVancouver.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1300 size-full\" alt=\"Rows of tables with people dressed fancily in white sitting around them.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/DeBVancouver.jpg\" height=\"333\" width=\"500\" \/><\/a><figcaption id=\"caption-attachment-1300\" class=\"wp-caption-text\">Figure 4.7 Diner en Blanc Vancouver&#8217;s first event at Jack Poole Plaza<\/figcaption><\/figure>\n<p>While beverages make up part of almost every dining experience, some establishments are founded on beverage sales. Let&#8217;s look at these operations next.<\/p>\n<h4>Drinking<\/h4>\n<p>With 3.5% market share (Restaurants Canada, 2014b), the drinking establishment sector comprises\u00a0bars, wine bars, cabarets, nightclubs, and pubs.\u00a0\u00a0In British Columbia, all businesses and premises selling alcohol must adhere to the BC Liquor Control and Licensing Act. At the time this chapter was written,\u00a0significant changes were taking place in the regulations governing drinking establishments, but\u00a0some general conditions have remained stable.<\/p>\n<p>In BC, liquor licences are divided into <strong>liquor primary<\/strong> and <strong>food primary<\/strong>.\u00a0As the name\u00a0 suggests, a liquor primary licence is needed to operate a business that is in the primary business of selling alcohol. Most pubs, nightclubs, and cabarets fall into this category. A food primary licence is required for\u00a0an operation whose\u00a0primary business is serving food.\u00a0Some operations, such as pubs, will hold a liquor primary licence even though they serve a significant volume of food.\u00a0In this case, the licence allows for diverse patronage.<\/p>\n<p>One noteworthy change to the licensing of pubs in BC is that children are permitted in them if they are\u00a0accompanied and attended by responsible adults.\u00a0While not universally adopted by pubs to date, this change in legislation is an\u00a0example of the fluctuating\u00a0social norms to which the sector must respond.<\/p>\n<figure id=\"attachment_1305\" aria-describedby=\"caption-attachment-1305\" style=\"width: 440px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/2295348200_f7d3132c66_z.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1305 size-full\" alt=\"&quot;&quot;\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/2295348200_f7d3132c66_z.jpg\" height=\"330\" width=\"440\" \/><\/a><figcaption id=\"caption-attachment-1305\" class=\"wp-caption-text\">Figure 4.8 The Six Mile Pub in Victoria, established in 1855, British Columbia&#8217;s oldest public house<\/figcaption><\/figure>\n<p>Together the commercial ventures of QSRs, full-service restaurants, catering functions, and drinking establishments make up just over 80% of the market share. Now let&#8217;s look at the other 20% of businesses, which fall under the non-commercial umbrella.<\/p>\n<h3>Non-Commercial<\/h3>\n<p>The following non-commercial entities earn just under 20%\u00a0share of the foodservice earnings in Canada (Restaurants Canada, 2014b). While these make up a smaller share of the market, there are some advantages inherent in these business models. Non-commercial operations cater predominantly to\u00a0consumers with\u00a0limited selection or choice given their occupation or location.\u00a0This type of consumer is often referred to as a <strong>captured patron<\/strong>. In a tourism capacity such as in airports or on cruise ships, the accepted price point for these patrons is often higher for a given product, increasing profit margins.<\/p>\n<h4>Institutional<\/h4>\n<p>Often run under a predetermined contract, this sector includes:<\/p>\n<ul>\n<li>Hospitals<\/li>\n<li>Universities, colleges, and other educational institutions<\/li>\n<li>Prisons and other detention facilities<\/li>\n<li>Corporate staff cafeterias<\/li>\n<li>Cruise ships<\/li>\n<li>Airports and other transportation terminals and operations<\/li>\n<\/ul>\n<h4>Accommodation Foodservice<\/h4>\n<p>These include hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).\u00a0 Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel chains and restaurant chains have seen reliable pairing of hotels and restaurants, such as the combination of Sandman Hotels and Moxie\u2019s Grill and Bar.<\/p>\n<h4>Vending and Automated Foodservices<\/h4>\n<p>While not\u00a0generally viewed as part of the food and beverage sector, automated and vending services do account for significant sales for both small and large foodservice and\u00a0accommodation providers. 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.<\/p>\n<h2>Business Performance for Types of Food and Beverage Operators<\/h2>\n<figure id=\"attachment_1258\" aria-describedby=\"caption-attachment-1258\" style=\"width: 400px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/16399396738_5be9674423_z.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1258\" alt=\"Market share by restaurant segment. Long description available.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/16399396738_5be9674423_z.jpg\" height=\"274\" width=\"400\" \/><\/a><figcaption id=\"caption-attachment-1258\" class=\"wp-caption-text\">Figure 4.9 Share of market for different restaurant segments <a href=\"#fig4.9\">[Long Description]<\/a><\/figcaption><\/figure>\n<p>As mentioned, the commercial sector comprises the majority of dollars earned. Figure 4.9 illustrates the difference between share of traffic and share of dollars for each subsector.\u00a0We know that QSRs are much more economical and generally much busier than full-service restaurants.\u00a0How does that traffic and low prices translate into market share for the different segments?<\/p>\n<p>Figure 4.9 shows that QSRs attract\u00a0two-thirds of all the traffic, while earning\u00a0less than half of the total dollars. Family\/midscale and casual dining each attract half the dollars of QSR, but they do that from much lower shares of the traffic. Meanwhile fine dining is patronized by less than 1% of the total\u00a0restaurant traffic, but earns 4.2% of the dollars.\u00a0The growing force of convenience stores, department stores, and other retail establishments obtain a respectable 11.5% of traffic and 10.6% of the restaurant dollar.<\/p>\n<p>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. This makes sense, of course, because the typical QSR earns relatively little per guest but attracts hundreds of customers, while\u00a0a fine dining restaurant charges high prices and serves a select few guests each day.<\/p>\n<h3>Sales Per Segment<\/h3>\n<table>\n<caption style=\"text-align: left;\"><em>Table 4.3: Sector sales and market shares for 2012-2013<\/em><\/caption>\n<thead>\n<tr>\n<td colspan=\"6\"><a href=\"#table4.3\">[Skip Table]<\/a><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<th>Type of Restaurant<\/th>\n<th>2012 Final ($ millions)<\/th>\n<th>Segment Market Share (%)<\/th>\n<th>2013 Preliminary\u00a0($ millions)<\/th>\n<th>Segment Market Share (%)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th rowspan=\"5\">COMMERCIAL<\/th>\n<td>QSR<\/td>\n<td>23,139.7<\/td>\n<td>35.4<\/td>\n<td>24,114.5<\/td>\n<td>35.4<\/td>\n<\/tr>\n<tr>\n<td>Full-service<\/td>\n<td>22,631.1<\/td>\n<td>34.7<\/td>\n<td>23,847.3<\/td>\n<td>35.0<\/td>\n<\/tr>\n<tr>\n<td>Caterers<\/td>\n<td>4,443.6<\/td>\n<td>6.8<\/td>\n<td>4,644.9<\/td>\n<td>6.8<\/td>\n<\/tr>\n<tr>\n<td>Drinking places<\/td>\n<td>2,355.6<\/td>\n<td>3.6<\/td>\n<td>2,358.6<\/td>\n<td>3.5<\/td>\n<\/tr>\n<tr>\n<td>Total Commercial<\/td>\n<td>52,570.1<\/td>\n<td>80.5<\/td>\n<td>54,965.3<\/td>\n<td>80.7<\/td>\n<\/tr>\n<tr>\n<th rowspan=\"5\">NON-COMMERCIAL<\/th>\n<td>Accommodation<\/td>\n<td>5,456<\/td>\n<td>8.4<\/td>\n<td>5,647.0<\/td>\n<td>8.3<\/td>\n<\/tr>\n<tr>\n<td>Institutional<\/td>\n<td>3,668.6<\/td>\n<td>5.6<\/td>\n<td>3,898.5<\/td>\n<td>5.7<\/td>\n<\/tr>\n<tr>\n<td>Retail<\/td>\n<td>1,234.3<\/td>\n<td>1.9<\/td>\n<td>1,199.4<\/td>\n<td>1.8<\/td>\n<\/tr>\n<tr>\n<td>Other<\/td>\n<td>2,362<\/td>\n<td>3.6<\/td>\n<td>2,416.3<\/td>\n<td>3.5<\/td>\n<\/tr>\n<tr>\n<td>Total Non-Commercial<\/td>\n<td>12,720.9<\/td>\n<td>19.5<\/td>\n<td>13,161.3<\/td>\n<td>19.3<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">Data source: Restaurants Canada, 2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p id=\"table4.3\">The sales revenues for the various segments\u00a0are shown in Table\u00a04.3.\u00a0Note that QSRs and full-service restaurants are almost equal in their sales and almost completely dwarf the other commercial sectors of caterers and drinking places. It is also noteworthy that the commercial components have four times the sales volume of the non-commercial components.<\/p>\n<h2>Types of Food and Beverage Customers<\/h2>\n<p>Now that we&#8217;ve classified the sector\u00a0based on business type and looked at relative performance, let&#8217;s look at F&amp;B\u00a0from another perspective: customer\u00a0type. The first way to classify customers is to divide them into two key markets: residents and visitors.<\/p>\n<p>The first of these, the resident group, can be further divided based on their\u00a0purpose for\u00a0visiting an F&amp;B operator. \u00a0For one group, food or drink is the primary purpose for the visit. For example, think of a group of friends getting together at a local\u00a0restaurant to experience their signature sandwich. For another group, food and drink is the\u00a0secondary purpose, added spontaneously or as an ancillary activity.\u00a0For example, think of time-crunched\u00a0parents whisking their kids through a drive-through on their way from one after-school activity\u00a0to the next. Here the\u00a0food and beverage providers offer an\u00a0expedient way to access a meal.<\/p>\n<figure id=\"attachment_1310\" aria-describedby=\"caption-attachment-1310\" style=\"width: 450px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/NanaimoBar.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1310 size-full\" alt=\"&quot;&quot;\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/NanaimoBar.jpg\" height=\"300\" width=\"450\" \/><\/a><figcaption id=\"caption-attachment-1310\" class=\"wp-caption-text\">Figure 4.10 A visitor to Nanaimo eats a signature &#8220;Nanaimo bar&#8221; in front of a Nanaimo bar, the Jingle Pot Pub<\/figcaption><\/figure>\n<p>Foodservice providers also service the visitor market, which\u00a0presents unique challenges as guests will bring with them the tastes and eating habits of their home country or region.\u00a0Most establishments\u00a0generally follow one of two directions. One is to cater completely to visitors from the day the doors\u00a0open, with an\u00a0operational and market focus on tourists. The other is to cater primarily to residents.<\/p>\n<p>Sometimes a\u00a0local foodservice provider\u00a0can continue\u00a0to cater to the resident market over time. In other cases, often because of financial pressures, the business shifts its focus away from the\u00a0residents\u00a0to better cater to\u00a0visitors\u2019 tastes. These changes, when they do occur, generally happen over time and can lead to questions of authenticity of the local offerings (Smart,\u00a02003; Heroux,\u00a02002;\u00a0Mak, Lumbers, Eves, &amp; Chang, 2012).<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: The Science of Addictive Food\u00a0<\/strong><\/p>\n<p>For some time, one secret recipe for success in the food sector, particularly the fast-food portion of the sector, was simple: salt, sugar, and fat &#8212;\u00a0and lots of it. There is a science behind these additives and why consumers keep coming back to satisfy their cravings. To view a CBC special on the science of addictive food, visit<a href=\"https:\/\/www.youtube.com\/watch?v=4cpdb78pWl4\" target=\"_self\"><i>The science of Addictive Food<\/i><\/a>: www.youtube.com\/watch?v=4cpdb78pWl4<\/p>\n<\/div>\n<p>It is clear that the food and beverage sector must remain responsive to consumers\u2019 needs and desires. This is made evident by the emergence of health-concious eating in North America over the last two decades. The influence of books such as <em>Fast Food Nation<\/em>\u00a0(Schlosser, 2012) and documentaries such as <em>Super Size Me<\/em>\u00a0have created mainstream awareness about what goes into our food and our bodies. As many developed nations, including\u00a0Canada, struggle with health-care concerns including hypertension, diabetes, and obesity, food operators are taking note and developing new health-conscious\u00a0menus. Programs like BC&#8217;s Informed Dining initiative are helping consumers understand their options (see the Spotlight On below).<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Spotlight On: Informed Dining<\/strong><\/p>\n<p>The Informed Dining program was created by Healthy Families BC to help consumers gain a better understanding of the ingredients in their food and their role in daily healthy eating habits and guidelines. For more information, visit\u00a0the <a href=\"https:\/\/www.healthyfamiliesbc.ca\/home\/informed-dining\" target=\"_self\">Informed Dining webpage<\/a>: www.healthyfamiliesbc.ca\/home\/informed-dining<\/p>\n<\/div>\n<p>This awareness, coupled with an increasing interest and desire for more authentic\u00a0foods produced without using herbicides and pesticides, free of genetically modified ingredients, and even free of carbohydrates or gluten, has placed pressure on the sector to respond, and many have (Frash, DiPietro, &amp; Smith, 2014). Consumers are more aware of the plight of farmers and producers from faraway places and the support for\u00a0fair trade practices. At the same time, there is\u00a0a heightened desire for more locally grown products, and a general awareness of nutrition and the quality of products that are harvested in season and closer to home.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: Cittaslow Designation for Cowichan Bay<\/strong><\/p>\n<p>The community of Cowichan Bay on Vancouver Island was awarded the Cittaslow Designation, which helps acknowledge its focus on sustainable practices and local food harvesting best practice. For more information on the designation and community efforts, watch the video,\u00a0<a href=\"https:\/\/www.youtube.com\/watch?v=_JQ-Cnh-v5Q\" target=\"_self\">Cittaslow Cowichan Bay<\/a>: www.youtube.com\/watch?v=_JQ-Cnh-v5Q<\/p>\n<\/div>\n<p>Consumer consciousness regarding the source and distribution of food has created a movement that champions sustainable and locally grown foods.\u00a0While this trend does have its extremes, it is founded on the premise that eating food that has been produced nearby\u00a0leads to better food quality, sustainable food production processes, and increased enjoyment. This has led to a number of restaurants that incorporate these concepts in their menu planning and marketing.<\/p>\n<p>In addition to this trend toward &#8220;conscious consumerism&#8221; (LinkBC, 2014, p.4), F&amp;B professionals must be highly aware of the importance of special diets including gluten-free, low-carb, and other dietary restrictions (LinkBC, 2014).<\/p>\n<p>All of these influences are continuously shaping the food and beverage sector. Before we explore additional trends and issues in the sector, let&#8217;s review the core considerations for profitability in foodservice operations.<\/p>\n<figure id=\"attachment_2951\" aria-describedby=\"caption-attachment-2951\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/05\/14868822381_c46a5ce815_z.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/14868822381_c46a5ce815_z-300x200.jpg\" alt=\"Fresh fruits and vegetables and a sign saying, &quot;BC Association of Farmers' Markets&quot;\" class=\"wp-image-2951 size-medium\" height=\"200\" width=\"300\" \/><\/a><figcaption id=\"caption-attachment-2951\" class=\"wp-caption-text\">Figure 4.11 Officials announce more funding for BC farmers markets, which have become increasingly popular due to changing consumer tastes<\/figcaption><\/figure>\n<h2>Profitability<\/h2>\n<p>While many factors influence the profitability of foodservice operations, key considerations include type of business, location, cost control and profit margin, sales and marketing strategies, and human resources management. We&#8217;ve already examined the different types of operation, and their relative profit margins. Let&#8217;s look at the other profitability considerations in more detail.<\/p>\n<h3>Location<\/h3>\n<p>The selection of the correct location for a restaurant is often cited as the most critical factor in an operation&#8217;s success (or failure) in terms of profitability. Prior to opening, site analysis is required to determine the amount of traffic (foot traffic and vehicle traffic), proximity to competing businesses, visibility to patrons, accessibility, and presence (or absence) of desired patrons (Ontario Restaurant News, 1995).<\/p>\n<h3>Cost Control<\/h3>\n<p>According to Restaurants Canada, QSRs have the highest profit margin at 5.1%, while full-service restaurants have a margin of 3.5%. There will be significant variances from these percentages at individual locations even within the same brand (2014b).<\/p>\n<figure id=\"attachment_1314\" aria-describedby=\"caption-attachment-1314\" style=\"width: 470px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/16400757169_0f99e41644_z.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1314 size-full\" alt=\"2012 Financial operating ratios. Long description available.\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/16400757169_0f99e41644_z.jpg\" height=\"358\" width=\"470\" \/><\/a><figcaption id=\"caption-attachment-1314\" class=\"wp-caption-text\">Figure 4.12 Operating ratios for Canadian food and beverage businesses in 2012 <a href=\"#fig4.12\">[Long Description]<\/a><\/figcaption><\/figure>\n<p>A number of costs influence the\u00a0profitability of an F&amp;B operation.\u00a0Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 4.12, above, where <strong>food cost<\/strong> and salaries &amp; wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of <strong>assets.<\/strong> These percentages represent averages, and will vary greatly by sector and location.<\/p>\n<p>Cost control and containment is essential for all F&amp;B businesses. Demanding particular attention are the labour, food, and <strong>beverage costs<\/strong>, also known as the operator\u2019s <strong>primary costs<\/strong>. In addition to these big ticket items, there is the cost of reusable\u00a0<strong>operating supplies<\/strong>\u00a0such as\u00a0cutlery, glassware, china, and linen in full-service restaurants.<\/p>\n<p>Given that most operations have both a service side (interacting directly with the consumer) and production side (preparing\u00a0food or drink to be consumed), the primary costs incurred during these activities often determine the feasibility or success of the operation. This is especially true as the main product (e.g., food and drink) is perishable;\u00a0ordering the correct amount requires skill and experience.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: Survey of Service Industries &#8212; Foodservices and Drinking Places<\/strong><\/p>\n<p>The Statistics Canada Survey of Service Industries series features an in-depth look at the food and beverage sector. Data used in this chapter (and much more) can be found in this comprehensive overview. To explore the survey, visit\u00a0the <a href=\"http:\/\/www23.statcan.gc.ca\/imdb\/p3Instr.pl?Function=assembleInstr&amp;Item_Id=137106&amp;LI=137106&amp;TET=1\">Survey of Service Industries<\/a>: www23.statcan.gc.ca\/imdb\/p3Instr.pl?Function=assembleInstr&amp;Item_Id=137106&amp;LI=137106&amp;TET=1<\/p>\n<\/div>\n<h3>Sales and Marketing<\/h3>\n<p>The two principal considerations for\u00a0sales and marketing in this sector are market share and revenue maximization. Most\u00a0F&amp;B\u00a0operations are constrained by finite time and space, so\u00a0management\u00a0must constantly seek ways to increase revenue from the\u00a0existing operation, or increase the share of the available market. Examples of revenue maximization include\u00a0upselling existing consumers (e.g., asking if they want fries with their meal; offering dessert),\u00a0and using outdoor or patio space (even using rain covers and heaters to extend the outdoor season). Examples of increasing market share in the fast-food sector include extending special offers to new, first-time customers through social media or targeted direct mail.<\/p>\n<p>In today\u2019s cluttered marketplace, being noticed is a constant goal for most companies. Converting that awareness into patronage is a challenge for most operators.\u00a0Restaurant reviews have been a part of the food and beverage sector for a long time.\u00a0With the increase of online reviews by customers at sites like Yelp, Urbanspoon, and TripAdvisor, and\u00a0sharing of experiences via social media, food and beverage operators are becoming increasingly aware\u00a0of their web presence (Kwok &amp; Yu, 2013). For this reason, all major food and beverage operators carefully monitor their online reputation and their social media presence.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: McDonald&#8217;s Social Media Conversation<\/strong><\/p>\n<p>In 2014, McDonald&#8217;s Restaurants took to the internet to answer questions about their food production and ingredients. After months of declining sales, their strategy was to create more emotional engagement with customers and to gain their trust (Passikoff, 2014). To read more about the initiative, read the article in <em>Forbes<\/em> magazine, <a href=\"http:\/\/www.forbes.com\/sites\/robertpassikoff\/2014\/10\/14\/mcdonalds-hopes-new-social-media-qa-will-modify-food-image\/\" target=\"_self\">&#8220;McDonald&#8217;s Hopes New Social Media Question-And-Answer Will Modify Food Image&#8221;<\/a>: www.forbes.com\/sites\/robertpassikoff\/2014\/10\/14\/mcdonalds-hopes-new-social-media-qa-will-modify-food-image\/<\/p>\n<\/div>\n<p>One of the keys to a strong reputation, both in person, and online, is the management of human resources.<\/p>\n<h3>Staffing and Human Resources<\/h3>\n<figure id=\"attachment_1348\" aria-describedby=\"caption-attachment-1348\" style=\"width: 470px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/CactusClub.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1348 size-full\" alt=\"&quot;&quot;\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/CactusClub.jpg\" height=\"314\" width=\"470\" \/><\/a><figcaption id=\"caption-attachment-1348\" class=\"wp-caption-text\">Figure 4.13 Winner of Top Chef Canada Matthew Stowe\u00a0and patron at a new Cactus Club restaurant opening<\/figcaption><\/figure>\n<p>Appropriately staffing an F&amp;B\u00a0operation involves attracting\u00a0the right people, hiring them, training them, and then assigning them to the right tasks for their skills and abilities. Many businesses\u00a0operate outside the traditional workweek hours; indeed, some operate on a 24-hour schedule. Creating the right team, employing them in accordance with legal guidelines, and keeping up with the demands of the businesses\u00a0are challenges that can be\u00a0addressed by a well-thought-out and implemented human resources plan.<\/p>\n<p>People who have long-lasting careers\u00a0in the sector find the fluctuating conditions appealing; no two days are the same, and the fast-paced and energetic social environment can be motivating.\u00a0Many positions provide meaningful rewards and compensation that can lead to long-term careers.<\/p>\n<p>One topic of discussion in\u00a0food and beverage human resources is that of gratuities (tipping). 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. This is not the model in countries like Australia, where service staff are paid a higher professional wage and prices are raised to accommodate this.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: Tipping and Its Alternatives<\/strong><\/p>\n<p>In 2008, Michael Lynn and Glenn Withiam wrote a paper discussing the role of tipping and potential alternatives. 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 &amp; Withiam, 2008). For instance, do tips actually improve service? These questions can apply to food and beverage businesses but also other tourism operations within the service context. It also offers some suggestions for further research. Read this paper at <a href=\"http:\/\/scholarship.sha.cornell.edu\/cgi\/viewcontent.cgi?article=1029&amp;context=articles\" target=\"_self\">&#8220;Tipping and Its Alternatives&#8221;<\/a>: http:\/\/scholarship.sha.cornell.edu\/cgi\/viewcontent.cgi?article=1029&amp;context=articles<\/p>\n<\/div>\n<p>In British Columbia, tips are considered income for tax purposes but are not considered wages as they are not paid by the employer to the employee. A restaurant owner cannot use tips to cover business expenses (e.g., require an employee to use his or her tips to cover the cost of broken glassware). Employers are also not permitted to charge staff for the cost of diners who do not pay (known as a <strong>dine-and-dash<\/strong>). They can, however, require <span>front-of-house staff pool their gratuities<\/span><span>, or pay individually, to ensure back-of-house staff receive a percentage of the tips<\/span>\u00a0(British Columbia Ministry of Jobs, Tourism and Skills Training, n.d.). This is also commonly known as a <strong>tip-out<\/strong>.<\/p>\n<p>There have been experiments with gratuity models in recent years. One example is a\u00a0restaurant on Vancouver Island, which tried an\u00a0all-inclusive pricing\u00a0model 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).<\/p>\n<h2>Trends and Issues<\/h2>\n<p>In addition to having to focus on the changing needs of guests and the specific challenges of their own businesses, food and beverage operators must deal with trends and issues that affect the entire industry.\u00a0Let&#8217;s take a closer look at these.<\/p>\n<h3>Government Influence<\/h3>\n<p>Each level of government affects the sector in different ways.\u00a0The federal government and its agencies have influence through\u00a0income tax rates, costs of employee benefits (e.g., employer share of Canada Pension Plan and Employment Insurance deductions), and support for specific agricultural producers such as Canadian dairy and poultry\u00a0farmers, which can lead to an increase in the price of ingredients such as milk, cheese, butter, eggs, and chicken compared to US prices (Findlay, 2014; Chapman, 1994).<\/p>\n<p>Provincial governments also impact the food and beverage sector, in particular with respect to employment standards; minimum wage; sales taxes (except\u00a0Alberta); liquor, wine, and beer wholesale pricing (Smith, 2015); and corporate income tax rates.<\/p>\n<p>Municipal governments have\u00a0an ever-increasing impact through property and business taxes, non-smoking bylaws, zoning and bylaw restrictions, user fees, and operating hours restrictions.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Spotlight On: Restaurants Canada<\/strong><\/p>\n<p>When Restaurants Canada was founded in 1944, it was\u00a0known as the\u00a0Canadian Restaurant Association, and later the Canadian Restaurant and Foodservices Association. Today, the organization represents over\u00a030,000 operations including restaurants, bars, caterers, institutions, and suppliers. It conducts and circulates industry research and offers its members cost savings on supplies, insurance, and other business expenses. For more information, visit\u00a0the <a href=\"https:\/\/www.restaurantscanada.org\/\" target=\"_self\">Restaurants Canada website<\/a>: www.restaurantscanada.org<\/p>\n<\/div>\n<p>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 <strong>Restaurants Canada<\/strong> (see Spotlight On above).\u00a0At the provincial level, BC operators rely on the\u00a0<strong>British Columbia Restaurant &amp; Foodservices Association (BCRFA)<\/strong>.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Spotlight On: BC Restaurant &amp; Foodservices Association (BCRFA)<\/strong><\/p>\n<p>For more than 40 years, the BCRFA has represented the interests of the province&#8217;s foodservice operators in matters such as wages, benefits, liquor licences and other relevant matters. Today, it offers benefits to over 3,000 members on both the supply and the operator side. For more information, visit the <a target=\"_self\" href=\"http:\/\/bcrfa.com\">BC Restaurant and Foodservices Association website<\/a>: http:\/\/bcrfa.com<\/p>\n<\/div>\n<h3>Health and Safety<\/h3>\n<figure id=\"attachment_1313\" aria-describedby=\"caption-attachment-1313\" style=\"width: 450px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/02\/4064551808_2cee7648f6_z.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1313\" alt=\"A sign saying, &quot;Employees Must Wash Hands Before Returning to Work.&quot;\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/4064551808_2cee7648f6_z.jpg\" height=\"229\" width=\"450\" \/><\/a><figcaption id=\"caption-attachment-1313\" class=\"wp-caption-text\">Figure 4.14 A sign in a Starbucks location encouraging staff to wash their hands to prevent the spread of germs<\/figcaption><\/figure>\n<p>Food and beverage providers hold a distinct position within our society; they invite the public to consume their offerings, both on and off premise. In doing so, all food and beverage operators must adhere to standardized public safety regulations. Each province has regulations and legislation that apply in their jurisdiction. In BC, this is addressed by the FoodSafe and Serving It Right programs,\u00a0and compliance with the Occupiers Liability Act.\u00a0These regulations and legislation are enacted in the interest of public health and safety.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: Health and Safety Training<\/strong><\/p>\n<p>Food and beverage professionals are strongly encouraged to take both FoodSafe and Serving It Right courses. These\u00a0certifications\u00a0are necessary to advance into specific and leadership roles in the industry. For instance, Serving It Right is required by all licensees, managers, sales staff, and servers in licensed establishments. In addition, individuals may require Serving It Right for a special occasion licence. To sign up for an online program or course near you, visit\u00a0<a href=\"http:\/\/www.foodsafe.ca\" target=\"_self\">FoodSafe<\/a>: www.foodsafe.ca and\u00a0<a href=\"http:\/\/www.servingitright.com\" target=\"_self\">Serving It Right<\/a>: www.servingitright.com<\/p>\n<\/div>\n<p>FoodSafe is the provincial food safety training program designed for the foodservice industry (FoodSafe, 2009). Serving It Right is a\u00a0mandatory course that is completed through self-study, and is required for anyone serving alcohol in a commercial setting. Its goal is to ensure that\u00a0licensees, managers, and servers know their\u00a0legal responsibilities and understand\u00a0techniques to prevent over-service and related issues (go2HR, 2014).<\/p>\n<p>In broad terms, BC&#8217;s Occupiers Liability Act covers the\u00a0responsibilities of the occupier of a property to ensure the safety of visitors.\u00a0Additional local health bylaws set standards of operation for health and safety under the direction of the medical officers of health. Public health inspectors regularly visit food and beverage operations to evaluate compliance. In some communities, these inspection results are posted online.<\/p>\n<p>Collectively, the food and beverage industry in BC has an excellent reputation for ensuring the health and safety of its patrons, the general public, and its employees.<\/p>\n<h3>Technology Trends<\/h3>\n<p>Technology continues to play an ever-increasing role in the sector. It is most noticeable\u00a0in QSRs where many functions are automated in both the <strong>front of house\u00a0<\/strong>and <strong>back of house<\/strong>. In the kitchen, temperature sensors and alarms determine when fries are ready and notify kitchen staff. Out front, remote printers or special screens ensure the kitchen is immediately notified when a server rings in a purchase. WiFi\u00a0enables credit\/debit card hand-held devices to be brought directly to the table to process transactions, saving steps back to the serving station.<\/p>\n<p>Other trends include automated services such as that offered by Open Table, which provides restaurants with an online real-time restaurant reservation system so customers can make reservations\u00a0without speaking to anyone at the restaurant (Open Table, 2015). And now smartphone apps will tell customers what restaurants are nearby or where their favourite chain restaurant is located.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: Automated Cooking in Asia<\/strong><\/p>\n<p>In Singapore Changi Airport, a quick-service restaurant is using automated woks.\u00a0The cook adds the ingredients and can attend to other duties until\u00a0the item is ready for service. Check out a <a href=\"https:\/\/www.youtube.com\/watch?v=Gqiz17AsYhQ\" target=\"_self\">video of a cook using an automated wok<\/a>: www.youtube.com\/watch?v=Gqiz17AsYhQ.\u00a0And in China, watch <a href=\"http:\/\/singularityhub.com\/2013\/04\/19\/chinese-restaurant-owner-says-robot-noodle-maker-doing-a-good-job\/\" target=\"_self\">a video of robots that are\u00a0shaving\u00a0noodles &#8220;by hand.&#8221;<\/a>:\u00a0singularityhub.com\/2013\/04\/19\/chinese-restaurant-owner-says-robot-noodle-maker-doing-a-good-job\/<\/p>\n<\/div>\n<h3>Changing Venues<\/h3>\n<p>The following trends relate to the changing nature of food and beverage venues, including the emerging importance of the third space, and the increased mainstream presence of non-permanent locations such as street vendors and pop-up restaurants.<\/p>\n<h4>The Third Space<\/h4>\n<p>The <strong>third space<\/strong> is a concept that describes locations where customers congregate that are neither home (the first space) nor work or school (the second space). Many attribute the emergence of these spaces to the popularity of coffee shops such as Starbucks. In the third space, operators must create a comfortable venue for customers to &#8220;hang out&#8221; with comfortable seating, grab and go F&amp;B options, WiFi, and a relaxed ambiance. Providing these components has been shown as a way to increase traffic and customer loyalty (Mogelonski, 2014).<\/p>\n<h4>Taking It to the Street<\/h4>\n<p>Street food has always been a component of the foodservice industry in most big cities. These operations are often run by a single owner\/operator or with minimal staff, and serve hot food that can be eaten while standing. According to research firm IBISWorld, in 2011 the &#8220;street food business &#8212;\u00a0which includes mobile food trucks and\u00a0non mechanized carts, is a <span>$1 billion industry that has seen an 8.4 percent growth rate from 2007 to 2012&#8243; (<em>Entrepreneur,<\/em> 2011) with 78% of owners having no more than four employees.\u00a0<\/span><\/p>\n<p>Recently, in North America, where climate and weather allow, there has been a noticeable increase in both the number and type of street food vendors.\u00a0In the city of Vancouver alone there are over 100 permitted food cart\u00a0businesses, searchable by an app and sortable list &#8212; and the city uses the terms <em>street<\/em> <em>food vendor<\/em>, <em>food cart<\/em>, and <em>food truck<\/em> interchangeably (City of Vancouver, 2014).<\/p>\n<figure id=\"attachment_1933\" aria-describedby=\"caption-attachment-1933\" style=\"width: 500px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2015\/03\/7178372148_7de857bc75_z.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/opentextbc.ca\/introtourism\/wp-content\/uploads\/sites\/38\/2016\/11\/7178372148_7de857bc75_z.jpg\" alt=\"People lined up outside of two food trucks.\" class=\"wp-image-1933\" height=\"375\" width=\"500\" \/><\/a><figcaption id=\"caption-attachment-1933\" class=\"wp-caption-text\">Figure 4.15 Tacofino (closest), Pig on the Street, and Mom&#8217;s Grilled Cheese food trucks welcome crowds to their portable kitchens in downtown Vancouver.<\/figcaption><\/figure>\n<p><strong>Pop-up restaurants<\/strong> have also emerged, facilitated in part by the prevalent use of social media for marketing and location identification. Pop-ups are temporary restaurants with a known expiry date, which also tend to have the following in common (Knox, 2011):<\/p>\n<ul>\n<li>A well-known or up-and-coming chef at the helm<\/li>\n<li>An interesting, but stationary, location (a warehouse, a park, the more unusual the better)<\/li>\n<li>Staff who are adept at promotions and word-of-mouth<\/li>\n<li>Strong local <strong>foodie<\/strong> (food and beverage\u00a0enthusiast) base in the area<\/li>\n<li>Involvement from local artists or musicians to add to the experience<\/li>\n<\/ul>\n<p>As popular they are with consumers, the ways in which pop-ups deviate from restaurants has aggravated some critics, causing <em>Bon App\u00e9tit<\/em> magazine to declare that &#8220;pop-ups are not supposed to be restaurants,&#8221; and that &#8220;pop-up restaurants are over&#8221; (Duckor, 2013). Statements like these are further evidence that food and beverage services trends are dynamic and ever-changing.<\/p>\n<h2>Conclusion<\/h2>\n<p>The food and beverage\u00a0sector is a vibrant and multifaceted part of our society. Michael Hurst, famous restaurateur and former chair of the US National Restaurant Association, championed the idea that all guests should be received with the statement &#8220;Glad you are here&#8221; (Tripp, 1992; Marshall 2001). That statement is the perfect embodiment of what F&amp;B is to the hospitality industry\u00a0\u2014 a mix of service providers who welcome guests with open arms and take care of their most basic needs, as well as their emotional well-being.<\/p>\n<div class=\"textbox shaded\">\n<p><strong>Take a Closer Look: Michael Hurst<\/strong><\/p>\n<p>Michael Hurst preached to students, industry participants, and university colleagues alike, saying that \u201cThe most precious gift you can give your Guests is the gift of Friendship&#8221; (Tripp, 1992; Marshall 2001). \u00a0To learn more about this legendary character, visit <a href=\"http:\/\/digitalcommons.fiu.edu\/cgi\/viewcontent.cgi?article=1353&amp;context=hospitalityreview\" target=\"_self\">In My Opinion: Michael E. Hurst [PDF]<\/a>: http:\/\/digitalcommons.fiu.edu\/cgi\/viewcontent.cgi?article=1353&amp;context=hospitalityreview<\/p>\n<\/div>\n<p>The social fabric of our country, its residents, and visitors will change over time, and so too will F&amp;B. What will not change in spite of how we divide the segments \u2014 into tourists or locals\u00a0\u2014 is that the sector\u00a0is at its best when food and beverages are accompanied by a social element, extending from your dining companions to the front and back of the house.<\/p>\n<p>So far, we have covered the transportation, accommodation, and food and beverage sectors. In the next two chapters, we&#8217;ll explore the recreation and entertainment sector, starting with recreation in Chapter 5.<\/p>\n<div class=\"textbox textbox--key-takeaways\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\">Key Terms<\/p>\n<\/header>\n<div class=\"textbox__content\">\n<ul>\n<li><strong>Assets:<\/strong> items of value owned by the business and used in the production and service of the dining experience<\/li>\n<li><strong>Average cheque:<\/strong> total sales divided by number of guests served<\/li>\n<li><strong>Back of house: <\/strong>food production areas not accessible to guests and not generally visible; also known as heart of house<\/li>\n<li><strong>BC Restaurant &amp; Foodservices Association (BCRFA):\u00a0<\/strong>representing the interests of more than 3,000 of the province&#8217;s foodservice operators in matters including wages, benefits, liquor licences, and other relevant matters<\/li>\n<li><strong>Beverage costs:<\/strong> beverages sold in liquor-licensed operations; this usually only includes alcohol, but in unlicensed operations, it includes coffee, tea milk, juices, and soft drinks<\/li>\n<li><strong>Captured patrons:<\/strong>\u00a0consumers\u00a0with\u00a0limited selection or choice of food or beverage provider given their occupation or location<\/li>\n<li><strong>Commercial foodservice:<\/strong> operations whose primary business is food and beverage<\/li>\n<li><strong>Cross-utilization:<\/strong> when a menu is created to make multiple uses of a small number of staple pantry ingredients, helping to keep food costs down<\/li>\n<li><strong>Dine-and-dash:<\/strong> the term commonly used in the industry for when a patron eats but does not pay for his or her meal<\/li>\n<li><strong>Ethnic restaurant:<\/strong> a restaurant based on the cuisine of a particular region or country, often reflecting the heritage of the head chef or owner<\/li>\n<li><strong>Family\/casual restaurant:<\/strong>\u00a0restaurant type that is typically\u00a0open for all three meal periods, offering affordable prices and\u00a0able to serve diverse tastes and accommodate large groups<\/li>\n<li><strong>Fine dining restaurant:<\/strong>\u00a0licensed food and beverage establishment characterized by high-end ingredients and preparations and highly trained service staff<\/li>\n<li><strong>Food and beverage (F&amp;B):<\/strong>\u00a0type of operation\u00a0primarily engaged in preparing meals, snacks, and beverages, to customer order, for immediate consumption on and off the premises<\/li>\n<li><strong>Food cost:<\/strong> price including freight charges of all food served to the guest for a price (does not include food and beverages given away, which are quality or promotion costs)<\/li>\n<li><strong>Food primary:<\/strong> a licence required to operate a restaurant\u00a0whose\u00a0primary business is serving food (rather than alcohol)<\/li>\n<li><strong>Foodie:<\/strong> a term (often used by the person themselves) to describe a food and beverage enthusiast<\/li>\n<li><strong>Front of house: <\/strong>public areas of the establishment; in quick-service restaurants, it includes the ordering and product serving area<\/li>\n<li><strong>Full-service restaurants:<\/strong> casual and fine dining restaurants where guests order food seated and pay after they have finished their meal<\/li>\n<li><strong>Liquor primary<\/strong> <strong>licence<\/strong>: the type of licence needed in BC to operate a business that is in the primary business of selling alcohol (most pubs, nightclubs, and cabarets fall into this category)<\/li>\n<li><strong>Non-commercial foodservice:<\/strong> establishments where food is served, but where the primary business is not food and beverage service<\/li>\n<li><strong>Operating supplies:<\/strong> generally includes reusable items including cutlery, glassware, china, and linen in full-service restaurants<\/li>\n<li><strong>Pop-up restaurants:<\/strong>\u00a0temporary restaurants with a known expiry date hosted in an unusual location, which tend to be helmed by a well-known or up-and-coming chef and use word-of-mouth in their promotions<\/li>\n<li><strong>Primary costs:<\/strong> food, beverage, and labour costs for an F&amp;B operation<\/li>\n<li><strong>Profit:<\/strong> the amount left when expenses (including corporate income tax) are subtracted from sales revenue<\/li>\n<li><strong>Quick-service restaurant (QSR): <\/strong>an establishment where guests pay before they eat;\u00a0includes\u00a0counter service, take-out, and delivery<\/li>\n<li><strong>Restaurants Canada:<\/strong><span>\u00a0representing\u00a0over\u00a030,000 food and beverage operations including restaurants, bars, caterers, institutions, and suppliers<\/span><\/li>\n<li><strong>Revenue:<\/strong> sales dollars collected from guests<\/li>\n<li><strong>Third space:<\/strong>\u00a0a term used to describe F&amp;B outlets enjoyed as &#8220;hang out&#8221; spaces for customers where guests and service staff co-create the experience<\/li>\n<li><strong>Tip-out:<\/strong> the practice of having front-of-house staff pool their gratuities, or pay individually, to ensure back-of-house staff receive a percentage of the tips<\/li>\n<li><strong>Upscale casual restaurant: <\/strong>emerging in the 1970s, a style of restaurant that typically only serves dinner, intended to bridge the gap between fine dining and family\/casual\u00a0restaurants<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div class=\"textbox textbox--exercises\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\">Exercises <\/p>\n<\/header>\n<div class=\"textbox__content\">\n<ol>\n<li>Looking at Table 4.1, what was the average volume of sales per F&amp;B establishment in BC in 2013? What was it for Alberta? What about the national average?\u00a0What might account for these differences? List at least three contributing factors.<\/li>\n<li>Looking at the same table, how many F&amp;B\u00a0&#8220;units&#8221; were there in BC in 2013?<\/li>\n<li>What are the two main classifications for food and beverage operations\u00a0and which is significantly larger in terms of market share?<\/li>\n<li>Should gratuities be abolished in favour of all-inclusive pricing?\u00a0Consider the point of view of the server, the owner, and the guest in your analysis.<\/li>\n<li>Think of the concept of the third space, and name two of these types of operations in your community.<\/li>\n<li>Have you worked in a restaurant or foodservice operation? What are the three important lessons you learned about work while there?\u00a0 If you have not, interview a\u00a0classmate who has experience in the field and find out what three lessons he or she would suggest.<\/li>\n<li>What is your favourite restaurant?\u00a0What does it do so well to have become your favourite?\u00a0What would you recommend it do to improve your dining experience even more?<\/li>\n<li>What was your all-time best restaurant dining experience? Compare and contrast this with one of your worst dining experiences. For each of these, include a description of:\n<ol>\n<li>The food<\/li>\n<li>The behaviour of restaurant staff<\/li>\n<li>Ambiance (music, decor, temperature, comfort of chairs, lighting)<\/li>\n<li>The reason for your visit<\/li>\n<li>Your mood upon entering the establishment<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<div class=\"textbox textbox--exercises\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\">Case Study: Restaurant Behaviour &#8211; Then and Now<\/p>\n<\/header>\n<div class=\"textbox__content\">\nThe following story made the rounds via social media in late 2014. While the claim has not been verified, it certainly rings true for a number of F&amp;B professionals who have experienced this phenomenon. The story is as follows:<\/p>\n<p>A busy New York City restaurant kept getting bad reviews for slow service, so they hired a firm to investigate. When they compared footage from 2004 to footage from 2014, they made some pretty startling discoveries. So shocking, in fact, that they ranted about it in an anonymous post on Craigslist:<\/p>\n<blockquote>\n<div>\n<p>We are a popular restaurant for both locals and tourists alike. Having been in business for many years, we noticed that although the number of customers we serve on a daily basis is almost the same as ten\u00a0years ago, the service seems very\u00a0slow. One of the most common complaints on review sites against us and many restaurants in the area is that the service was slow and\/or they needed to wait too long for a table. We&#8217;ve added more staff and cut back on the menu items but we just haven&#8217;t been able to figure it out.<\/p>\n<p>We hired\u00a0a firm to help us solve this mystery, and naturally the first thing they blamed it on was the employees needing more training and the kitchen staff not being up to the task of serving that many customers.<\/p>\n<p>Like most restaurants in NYC we have a surveillance system, and unlike today where it&#8217;s digital, 10 years ago we still used special high capacity tapes to record all activity. At any given time we had 4 special Sony systems recording multiple cameras. We would store the footage for 90 days just in case we needed it for something.<\/p>\n<p>The investigators\u00a0suggested we locate some of the older tapes and analyze how the staff behaved ten\u00a0years ago versus how they behave now. We went down to our storage room but we couldn&#8217;t find any tapes at all.<\/p>\n<p>We did find the recording devices, and luckily for us, each device has 1 tape in it that we simply never removed when we upgraded to the new digital system!<\/p>\n<p>The date stamp on the old footage was Thursday July 1, 2004. The restaurant was very busy that day. We loaded up the footage on a large monitor, and next to it on a separate monitor loaded up the footage of Thursday July 3 2014, with roughly the same amount of customers as ten years before.<\/p>\n<p>We carefully looked at over 45 transactions in order to determine what has been happening:<\/p>\n<p><strong>Here&#8217;s a typical transaction from 2004:<\/strong><\/p>\n<p>Customers walk in.\u00a0They are\u00a0seated and are given menus. Out of 45 customers 3\u00a0request to be seated elsewhere.<\/p>\n<p>Customers spend 8 minutes on average before closing the menu to show they are ready to order.<\/p>\n<p>Waiters shows up almost instantly and takes the order.<\/p>\n<p>Appetizers are fired within 6 minutes; obviously the more complex items take longer.<\/p>\n<p>Out of 45 customers 2 sent their\u00a0items back.<\/p>\n<p>Waiters keep an eye on\u00a0their tables so they can respond quickly if the customer needs something.<\/p>\n<p>After guests are done, the check is delivered, and within 5 minutes they leave.<\/p>\n<p>Average time from start to finish: 1 hour, 5 minutes.<\/p>\n<p><strong>Here&#8217;s what happened in 2014:<\/strong><\/p>\n<p>Customers walk in.\u00a0Customers get seated and are given menus, and out of 45 customers 18 request to be seated elsewhere.<\/p>\n<p>Before even opening the menu most customers\u00a0take their phones out, some are taking photos while others are texting or browsing.<\/p>\n<p>Seven of the 45 customers had waiters come over right away, they showed them something on their phone and spent an average of five minutes of the waiter&#8217;s time. Given this is recent footage, we asked the waiters about this and they explained those customers had a problem connecting to the WIFI and demanded the waiters try to help them.<\/p>\n<p>After a few minutes of letting the customers review the menu,\u00a0waiters return\u00a0to their tables. The majority of customers have not even opened their menus and ask the waiter to wait a bit.<\/p>\n<p>When customers do\u00a0open their menus, many place\u00a0their phones on top and continue using their activities.<\/p>\n<p>Waiters return to see if they are ready to order or have any questions. Most\u00a0customers ask for more time.<\/p>\n<p>Finally a table is ready to order.\u00a0Total average time from when a\u00a0customer is\u00a0seated until they place their order is 21 minutes.<\/p>\n<p>Food starts getting delivered within 6 minutes; obviously the more complex items take way longer.<\/p>\n<p>26 out of 45 customers spend an average of 3 minutes taking photos of the food.<\/p>\n<p>14 out of 45 customers take pictures of each other with the food in front of them or as they are eating the food. This takes on average another 4 minutes as they must review and sometimes retake the photo.<\/p>\n<p>9 out of 45 customers sent their food back to reheat. Obviously if they didn&#8217;t pause to do whatever on their phone the food wouldn&#8217;t have gotten cold.<\/p>\n<p>27 out of 45 customers asked their waiter to take a group photo. 14 of those requested the waiter retake the photo as they were not pleased with the first photo. On average this entire process between the chit chatting and reviewing the photo taken added another 5 minutes and obviously caused the waiter not to be able to take care of other tables he\/she was serving.<\/p>\n<p>Given in most cases the customers are constantly busy on their phones it took an average of 20 more minutes from when they were done eating until they requested a check.<\/p>\n<p>Furthermore once the check was delivered it took 15 minutes longer than 10 years ago for them to pay and leave.<\/p>\n<p>8 out of 45 customers bumped into other customers or in one case a waiter (texting while walking) as they were either walking in or out of the restaurant.<\/p>\n<p>Average time from start to finish: 1:55<\/p>\n<p>We are grateful for everyone who comes into our restaurant, after all there are so many choices out there. But can you please be a bit more considerate?<\/p>\n<\/div>\n<\/blockquote>\n<p>Now it&#8217;s your turn. Imagine you are the restaurant operator in question, and answer the questions below.<\/p>\n<ol>\n<li>What could you, as the owner,\u00a0try to do to improve the <em>turnover time<\/em>? Come up with at least three ideas.<\/li>\n<li>Now put yourself in the position of a server. Do your ideas still work from this perspective?<\/li>\n<li>Lastly, look at your typical customer. How will he or she respond to your proposals?<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<h2>References<\/h2>\n<p>British Columbia Ministry of Jobs, Tourism and Skills Training. (n.d.). &lt;a href=&#8221;http:\/\/www.labour.gov.bc.ca\/esb\/igm\/esa-part-1\/igm-esa-s1-wages.htm#top&#8221; target=&#8221;_self&#8221;<em>Interpretation guidelines manual, Employment Standards Branch<\/em>. Retrieved from\u00a0&gt;www.labour.gov.bc.ca\/esb\/igm\/esa-part-1\/igm-esa-s1-wages.htm#top<\/p>\n<p>Chapman, Anthony. (1994). <a href=\"http:\/\/publications.gc.ca\/Collection-R\/LoPBdP\/BP\/bp380-e.htm\" target=\"_self\"><em>Reduction of tariffs on supply managed commodities under the GATT and the NAFTA, tarrification under the Uruguay Round<\/em><\/a>. Retrieved from: http:\/\/publications.gc.ca\/Collection-R\/LoPBdP\/BP\/bp380-e.htm<\/p>\n<p>City of Vancouver. (2014, June 30). <a href=\"http:\/\/vancouver.ca\/people-programs\/find-a-food-truck-vendor.aspx\"><em>Find a street food vendor<\/em><\/a>. Retrieved from\u00a0http:\/\/vancouver.ca\/people-programs\/find-a-food-truck-vendor.aspx<\/p>\n<p>Duckor, M. (2013, June 27). <a href=\"http:\/\/www.bonappetit.com\/restaurants-travel\/article\/pop-up-restaurants-are-over\" target=\"_self\">Pop-up restaurants are over.<\/a> <em>Bon App\u00e9tit<\/em>. Retrieved from\u00a0www.bonappetit.com\/restaurants-travel\/article\/pop-up-restaurants-are-over<\/p>\n<p>Duffy, A. (2014, August 22). <a href=\"http:\/\/www.vancouversun.com\/news\/metro\/Vancouver+Island+restaurateur+regretfully+ends+policy\/10140961\/story.html\" target=\"_self\">Vancouver Island restauranteur regretfully ends his no-tip policy<\/a>. <em>Vancouver Sun<\/em>. Retrieved from\u00a0www.vancouversun.com\/news\/metro\/Vancouver+Island+restaurateur+regretfully+ends+policy\/10140961\/story.html<\/p>\n<p><em>Entrepreneur<\/em>. (2011, July 24). <a href=\"http:\/\/www.entrepreneur.com\/article\/220060\" target=\"_self\">Food trucks 101: How to start a mobile food business.<\/a> Retrieved from\u00a0www.entrepreneur.com\/article\/220060<\/p>\n<p>Findlay, M. (2014, May 12). <a target=\"_self\" href=\"http:\/\/www.macleans.ca\/economy\/economicanalysis\/why-your-milk-costs-so-much-in-canada\/http:\/\/\">Why your milk costs so much and what to do about it<\/a>. <em>Macleans<\/em>. Retrieved from www.macleans.ca\/economy\/economicanalysis\/why-your-milk-costs-so-much-in-canada\/<\/p>\n<p>FoodSafe. (2009). <em>Welcome<\/em>. Retrieved from\u00a0<a href=\"http:\/\/www.foodsafe.ca\" target=\"_self\">www.foodsafe.ca<\/a><\/p>\n<p>Frash, R. E., DiPietro, R., &amp; Smith, W. (2014). Pay more for McLocal? Examining motivators for willingness to pay for local food in a chain restaurant setting. <em>Journal of Hospitality Marketing &amp; Management, 24<\/em>(4), 411-434.<\/p>\n<p><em>Georgia Straight.<\/em> (2015). <a target=\"_self\" href=\"http:\/\/www.straight.com\/listings\/venues\/114986\">Bishop&#8217;s.<\/a> Retrieved from www.straight.com\/listings\/venues\/114986<\/p>\n<p>go2HR. (2014). <em>Serving-it-Right.<\/em> Retrieved from <a href=\"http:\/\/www.servingitright.com\" target=\"_self\">www.servingitright.com<\/a><\/p>\n<p>Government of Canada. (2012, June 14). <a href=\"http:\/\/www23.statcan.gc.ca\/imdb\/p3VD.pl?Function=getVD&amp;TVD=118464&amp;CVD=118466&amp;CPV=722&amp;CST=01012012&amp;CLV=2&amp;MLV=5\" target=\"_self\"><em>NAICS 2012 &#8211; 722 &#8211; Food services and drinking places.<\/em><\/a> Retrieved from:\u00a0www23.statcan.gc.ca\/imdb\/p3VD.pl?Function=getVD&amp;TVD=118464&amp;CVD=118466&amp;CPV=722&amp;CST=01012012&amp;CLV=2&amp;MLV=5<\/p>\n<p>Heroux, L. (2002). Restaurant marketing strategies in the United States and Canada: A comparative study. <em>Journal of Foodservice Business Research, 5<\/em>(4), 95-110.<\/p>\n<p>Knox, J. \u00a0(2011, June 13). <a href=\"http:\/\/restaurantcentral.ca\/popuprestaurant.aspx\" target=\"_self\">Ingredients for a successful pop-up restaurant<\/a>. <em>Restaurant Central.ca<\/em>. Retrieved from\u00a0http:\/\/restaurantcentral.ca\/popuprestaurant.aspx<\/p>\n<p>Koc, M., &amp; Welsh, J. (2001). <em>Food, foodways and immigrant experience.<\/em> Toronto: Centre for Studies in Food Security.<\/p>\n<p>Kwok, L., &amp; Yu, B. (2013). Spreading social media messages on Facebook. An analysis of restaurant business-to-consumer communications. <em>Cornell Hospitality Quarterly<\/em>, <em>54<\/em>(1), 84-94.<\/p>\n<p>Laroche, M., Kim, C., Tomiuk, M. A., &amp; Belisle, D. (2005). Similarities in Italian and Greek multidimensional ethnic identity: Some implications for food consumption. <em>Canadian Journal of Administrative Sciences\/Revue Canadienne des Sciences de l&#8217;Administration, 22<\/em>(2), 143-167.<\/p>\n<p>LinkBC. (2014, June). <a href=\"http:\/\/linkbc.ca\/siteFiles\/85\/files\/2014RoundtableDialogueCafeReport.pdf\" target=\"_self\"><em>2014 Roundtable Dialogue Cafe Report.<\/em> [PDF]<\/a> Retrieved from\u00a0http:\/\/linkbc.ca\/siteFiles\/85\/files\/2014RoundtableDialogueCafeReport.pdf<\/p>\n<p>Lynn, M., &amp; Withiam, G. (2008). Tipping and its alternatives: Business considerations and directions for research. <em>Journal of Services Marketing, 22<\/em>(4), 328-336.<\/p>\n<p>Mak, A. H., Lumbers, M., &amp; Eves, A. (2012). Globalisation and food consumption in tourism. <em>Annals of Tourism Research, 39(<\/em>1), 171-196.<\/p>\n<p>Mak, A. H., Lumbers, M., Eves, A., &amp; Chang, R. C. (2012). Factors influencing tourist food consumption. <em>International Journal of Hospitality Management, 31<\/em>(3), 928-936.<\/p>\n<p>Marshall, A. G. (2001). In my opinion: Michael E. Hurst: July 8, 1931-March 22, 2001. <em>Hospitality Review, 19<\/em>(2), 9.<\/p>\n<p>Mogelonski, L. (2014, January 3). <a href=\"http:\/\/hotelnewsnow.com\/Article\/12908\/Third-spaces-enrich-guests-lives-and-loyalty\" target=\"_self\">Third spaces enrich guests&#8217; lives<\/a>. <em>Hotel News Now<\/em>. Retrieved from http:\/\/hotelnewsnow.com\/Article\/12908\/Third-spaces-enrich-guests-lives-and-loyalty<\/p>\n<p>Ontario Restaurant News. (1995). <a target=\"_self\" href=\"http:\/\/www.fhgi.com\/publications\/articles\/selecting-a-restaurant-site-is-key-to-franchise-units-success\/\"><em>Selecting a restaurant site is key to franchise unit&#8217;s success<\/em><\/a>. Reprinted in FGHI. Retrieved from www.fhgi.com\/publications\/articles\/selecting-a-restaurant-site-is-key-to-franchise-units-success\/<\/p>\n<p>Open Table, Inc. (2015). <a href=\"http:\/\/www.opentable.com\/start\/home\" target=\"_self\"><em>Make restaurant reservations the easy way<\/em><\/a>. Retrieved from www.opentable.com\/start\/home<\/p>\n<p>Parsa, H. G., Lord, K. R., Putrevu, S., &amp; Kreeger, J. (2015). Corporate social and environmental responsibility in services: Will consumers pay for it?. <em>Journal of Retailing and Consumer Services, 22<\/em>, 250-260.<\/p>\n<p>Passikoff, Robert. (2014, November, 14). <a href=\"http:\/\/www.forbes.com\/sites\/robertpassikoff\/2014\/10\/14\/mcdonalds-hopes-new-social-media-qa-will-modify-food-image\/\" target=\"_self\">McDonald\u2019s hopes new social media question-and-answer will modify food image.<\/a> <em>Forbes<\/em>. Retrieved \u00a0from www.forbes.com\/sites\/robertpassikoff\/2014\/10\/14\/mcdonalds-hopes-new-social-media-qa-will-modify-food-image\/<\/p>\n<p>Restaurants Canada (2014a).\u00a0<a href=\"https:\/\/www.restaurantscanada.org\/en\/Book-Store\/Product\/rvdsfpid\/2013-foodservice-facts-7\" target=\"_self\"><em>Foodservice facts<\/em><\/a>. Retrieved from\u00a0https:\/\/www.restaurantscanada.org\/en\/Book-Store\/Product\/rvdsfpid\/2013-foodservice-facts-7<\/p>\n<p>Restaurants Canada (2014b). <a href=\"https:\/\/restaurantscanada.org\" target=\"_self\"><em>Market review and forecast 2014<\/em><\/a>. Retrieved from\u00a0https:\/\/restaurantscanada.org<\/p>\n<p>Restaurants Canada, Statistics Canada, fsSTRATEGY Inc. and Pannell Kerr Forster. (2013).\u00a0<a href=\"https:\/\/www.restaurantscanada.org\/en\/Research#crfaResearchReports\" target=\"_self\"><em>Sector sales and market shares for 2012\/13<\/em><\/a>. Retrieved from\u00a0www.restaurantscanada.org\/en\/Research#crfaResearchReports<\/p>\n<p>Schlosser, E. (2012). <em>Fast food nation: The dark side of the all-American meal<\/em>. New York, NY: Houghton Mifflin Harcourt.<\/p>\n<p>Smart, J. (2003). Ethnic entrepreneurship, transmigration, and social integration: an ethnographic study of Chinese restaurant owners in rural western Canada.<em> Urban Anthropology and Studies of Cultural Systems and World Economic Development,<\/em> 311-342.<\/p>\n<p>Smith, C. (2015, March 25). <a target=\"_self\" href=\"https:\/\/www.straight.com\/food\/416961\/bc-liberal-government-liquor-reforms-pinch-private-retailers\">BC Liberal government liquor reforms pinch private retailers.<\/a> <em>Georgia Straight.<\/em> Retrieved from www.straight.com\/food\/416961\/bc-liberal-government-liquor-reforms-pinch-private-retailers<\/p>\n<p><a href=\"http:\/\/www.sale-tax.com\" target=\"_self\">State Sales Tax Rates.<\/a> (2015). Retrieved from\u00a0www.sale-tax.com<\/p>\n<p>Statistics Canada, Restaurants Canada, Recount\/NDP Group. (2013). <a href=\"https:\/\/www.restaurantscanada.org\/en\/Research\" target=\"_self\"><em>Performance by Province (Commercial Foodservice<\/em>)<\/a>. Retrieved from\u00a0www.restaurantscanada.org\/en\/Research<\/p>\n<p>Tripp, Griff. (1992). Personal knowledge.<\/p>\n<h2>Attributions<\/h2>\n<p><strong>Figure 4.1<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/15964461474\/in\/photostream\/\">Foodservice Share of Total FoodDollars<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/\">LinkBC<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.2<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/16399596290\/in\/photostream\/\">Profit Margins for Restaurants by Province<\/a> by <a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/\">LinkBC<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.3<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/longjiang\/503025281\/in\/photolist-7jC67R-5zVwyM-9hoUik-6aU5zP-eqJSBt-6aU5sR-agqoKq-82BsfB-2VHS7o-aip8eo-4u86zx-9hp7D2-9hp2UX-9hp9En-9hs6Nh-4eRLkC-Ls8TF-9hoxaH-9hrYwS-6nJkwy-6nE9n8-c3TvZ-9tLVA5-axRkDT-9hoyAv-62ZdBe-4dWQbV-a9UWx7-a9S8FX-a9S934-9hoH3D-9hs1JU-9hoJfH-9hpbBt-9hoRMV-9hrX93-9hoADe-9hsdnN-9hoX18-9hpgMT-9hrL3Q-9hoLQe-9houbB-9hoDvZ-9hs4eL-9hpcTP-9hp4dM-9hsmUb-9hs8fm-9hrDvQ\">The Keg at the Station<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/longjiang\/\">Jon the Happy Web Creative<\/a> is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by\/2.0\/\">CC BY 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.4 <\/strong><a href=\"https:\/\/flic.kr\/p\/9YX3dR\">North Arm Farm Strawberry\u00a0 + Rhubarb Pavlova<\/a> by <a href=\"https:\/\/www.flickr.com\/photos\/ruthanddave\/5895316553\/in\/photolist-83nxZ4-83qE23-83qEau-83qEfA-83qE91-83qE9s-83nxVt-83nxTR-83nxWT-83qE5b-83nxMc-83nxNa-83nxVV-83nxNz-83nxNV-83nxQk-83qE7j-83qE3W-83qE6S-83nxMP-83nxUZ-83nxWp-83nxXe-j1TjEU-8HaNYB-9YX35p-9YZWYf-9YZWGf-9YX3dR-8HaPzX-9YZVJJ-9YX24M-9YZW6j-9YX2np-9SRXSC-9SRXrb-9SP88D-9SPquM-9SPubi-9SSg1j-9SPryz-9SPqU4-8HdWnm-8HdWCJ-8HaP68-8HaPnR-9YZWQ7-9YX2ea-9YX2W6-qwxaEZ\">Ruth Hartnup<\/a> is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by\/2.0\/\">CC-BY 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.5<\/strong> \u00a0<a href=\"https:\/\/www.flickr.com\/photos\/isabelle_puaut\/11371595774\/in\/photolist-5cxsj-9fCtoa-3HoyP9-5QjLFY-joMYLp-5Jevmp-9fFAm3-9fFAsW-ijSpf7-6KuZzY-7K75Cj-7vnD6Y-6L2ND3-6L2Nko-6L2N3q-os34TD-d7gLPy-bEFL9q\">The old spaghetti factory<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/isabelle_puaut\/\">Isabelle Puaut<\/a> is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/2.0\/\">CC BY-NC-ND 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.6\u00a0<\/strong><a href=\"https:\/\/www.flickr.com\/photos\/worldofjan\/4953582734\/in\/photolist-FDVaj-5g4ioY-8C2w5a-7Tzwr8-ccatTq-5hZhWD-5i4Duy-9i6oh3-ocFfkU-6wUC33-5hZhPk-94jkPc-9kAZfQ-5i4D2y-6Tmpcd-6ThnGF-6TmnVq-6TmnSy-ao6PH3-8xJqL7-8xFo4c-8xJpyS-8xJtc9-aAHsNx-8xJpXY-8C77si-8C9DH1-oLdWrQ-2VYTa5-8Ca7uo-8C9YyU-8C9LJm-8Cahn5-8Cah7S-8C79ZK-8C79Ha-8CafML-8Cafn3-8CaeVQ-8C77Sc-8C76ZM-8C76xK-8C76dx-8CacwJ-8C75iK-8CabeN-8CaaJU-8Ca9Hq-8Ca8Ym-8C71Tz\">Vij&#8217;s<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/worldofjan\/\">jan zeschky<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.7<\/strong> <a href=\"https:\/\/www.flickr.com\/photos\/mauriceli\/7902140720\/in\/photolist-arbM2T-fF8QWN-fF8RYJ-areqCC-fERhzk-o7Z7q8-d3hyfS-d3hvwu-d3hx8w-9UoRxU-d3hv4L-d3hy9A-d3hxRC-o81374-o7Z7TH-opcsnp-o7Z4XS-oreGRF-optKoa-o7Z9Rv-opsjFJ-fF8vgQ-fEQV9t-fERh7r-arbM1H-o7YWmb-o7YYSb-o7YYc4-o7Z6J9-onrZaW-o817Nt-o7YS6N-o7YTU7-o7YZgi-o7YUfM-o7YWTy-optrWB-onrPEU-o814Lr-optKHZ-opskEs-opgtzE-o7YYLm-oreqWV-optNP8-ops6RW-opcxzZ-opgswY-o7YSvL-o7YQUj\">D\u00eener en Blanc Vancouver 2012<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/mauriceli\/\">Maurice Li<\/a> Photography\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/2.0\/\">CC BY-NC-ND 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.8<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/cogdog\/2295348200\/in\/photolist-kDpzX-7Q2xba-9NvNiJ-jC5u26-itpcV5-4uQfXm-4uQg3Y\">Six Mile<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/cogdog\/\">Alan Levine<\/a> is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/2.0\/\">CC BY-SA 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.9<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/16399396738\/in\/photostream\/\">Market Share by Restaurant Segment<\/a> <span>by <\/span><a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/\">LinkBC<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.10<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/brettohland\/4954688454\/in\/photolist-oHMtHU-9D2VZ8-5QSchC-7zeVgF-qtipC8-8GG7Ge-7Eek2R-7Eibrq-8GKixh-8GGdg6-8GKiCs-38aNec-7z3B5d-8xQ5g1-7B79VM-dQN44D-5QMUCg-DjY5-a95sYM-b5vgKz-edDNx6-5my92t-4TfKDc-b5vhAc-fmvmaB-8BKsQf-7PDme-7avJeY-6YRh8q-64WWmo-8F7W7c-ds91S9-ds8SnF-ds928S-ds8Sgv-ds91Zd-ds8SvB-ds91Jf-ds92e1-ds925N-ds91Nb-nJXcu-5S96jR-EGigZ-7CueEg-dYn7jW-dYgqoM-dYgqjg-dYn7ew-dYn7gW\">Life goal #5 complete<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/brettohland\/\">Brett Ohland<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/2.0\/\">CC BY-NC-SA 2.0<\/a>\u00a0license.<\/p>\n<p><strong>Figure 4.11<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/bcgovphotos\/14868822381\/in\/photolist-gwYPX4-3brkWN-e6nQaw-a5Hxyx-oDUASz-9DU5c8-Tkbah-9DU7hX-MZEKw-a5Hyix-ahZRdG-a5Lseh-7V2W\">New funding for farmers&#8217; market program<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/bcgovphotos\/\">Province of British Columbia<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/2.0\/\">CC BY-NC-ND 2.0<\/a>\u00a0license.<\/p>\n<p><strong>Figure 4.12<\/strong> <a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/16400757169\/\">Operating Ratios for Canadian Foodservice Businesses<\/a> <span>by <\/span><a href=\"https:\/\/www.flickr.com\/photos\/83374808@N05\/\">LinkBC<\/a>\u00a0is used under a <a href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/2.0\/\">CC-BY-NC 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.13<\/strong>\u00a0<a href=\"https:\/\/www.flickr.com\/photos\/mastermaq\/10217604495\/in\/photolist-2u4Zz-d8Xz2C-3Zed2-gyTX4j-3vf6V-2hEkp-gyTwBG-gyTZGp-gyTTQK-gyUs2r-gyTru7-gyTQmv-gyUqhz-gyTw4C-gyTMuP-gyU7rh-gyU6vQ-gyTZ9F-gyUwsa-3n7cc-3MZUG-6GTcD-3MZTf-6GTdA-6GTef-6GTeW-2hmYV-4NK44v-3vf5f-ei3XDt-74XHzC-74XHaU-74XJyb-74TPmp-3LG9C-5fsGq7-vQR8c-5fsGcm-5fsErG-5fohJz-52bba1-52bb9J-52bb9Y-52bbaf-52bbao-52bb9N-k7VTs-k7Vuq-k7VFJ-5foi7p\">Cactus Club Cafe<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/mastermaq\/\">Mack Male<\/a> used under <a href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/2.0\/\">CC BY-SA 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.14<\/strong> <a href=\"https:\/\/www.flickr.com\/photos\/ambernectar\/4064551808\/in\/photolist-ehvNrC-fZSTgM-deVZxE-mPa3F-9f8kJz-78Av6t-9rrrPu-7LFYbn-5yggn3-7caTDs-uhMyP-7s6fwx-54UgMg-6qXqsv-8odEg-vjAsF-sYqQi-7dP7PM-5zJ1P5-8NSFAE-8En1ZM-6CTd3u-97UvkG-ebuywd-eoQw15-6rQtU5-pd38n-8STpeN-6bYfLW-33iHyj-4FseU-7KqVfs-9kGpLD-J4Dnv-4njg6Y-wXWvq-8dXpKG-7FRCFU-8vG8HT-cgGeko-8AKTMg-4Eew28-atMZqT-cFBbMs-4msJtr-6jt9Ev-dHBL3C-dsN9rB-32eHtV-a1VJca\">must wash hands<\/a>\u00a0by <a href=\"https:\/\/www.flickr.com\/photos\/ambernectar\/\">Ambernectar13<\/a> is used under <a href=\"https:\/\/creativecommons.org\/licenses\/by-nd\/2.0\/\">CC BY-ND 2.0<\/a> license.<\/p>\n<p><strong>Figure 4.15<\/strong>\u00a0<span><a href=\"https:\/\/www.flickr.com\/photos\/canadianveggie\/7178372148\/in\/photolist-cWL1wq-fiVajs-bWk2X3-4yDyNx-9vn84s-9nMGV4-o6qjmY-nELTdR-9nQKW5-bgVU4c-aN3Hag-aN3H1Z-bzJDof-bYxWPW-4ySLWe-4ySLpc-brh1z9-9nMHc2-F3JZs-hv8oqw-oXUia-aBQoQx-724AwX-civau9-5NmyrA-hv6nCy-4SQ2tD-5QDc5N-92vYTu-9GwfXX-bMNvpH-5QDc9f-cLfSBJ-ckhbsU-6qQJEn-gbUfwp-31mfqr-5VsFPN-7qzfhK-ckhaTW-4m8wf9-2Mtpq-bWaPyf-8NaTMQ-5DZtKE-6mjUBs-heL8kn-9kzpA8-6CKDzi-8b41to\">Vancouver food carts on a sunny day<\/a>\u00a0b<\/span>y <a href=\"https:\/\/www.flickr.com\/photos\/canadianveggie\/\">Christopher Porter<\/a>\u00a0<span>is used under a <\/span><a href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/2.0\/\">CC BY-NC-ND 2.0<\/a><span>\u00a0<\/span><span>license.<\/span><\/p>\n<h2>Long Descriptions<\/h2>\n<table id=\"fig4.1\" class=\"bcc-shrink\" summary=\"From 2001 to 2015, Americans tended to spend 46.5% to 49% of their food money on food services while Canadians spent 36.7% to 40.2% of their food money on food services.\">\n<caption>Figure 4.1 long description: Foodservice spending as a percentage of total food dollars spent in Canada and the US<\/caption>\n<thead>\n<tr>\n<th>Country<\/th>\n<th>2001<\/th>\n<th>2002<\/th>\n<th>2003<\/th>\n<th>2004<\/th>\n<th>2005<\/th>\n<th>2006<\/th>\n<th>2007<\/th>\n<th>2008<\/th>\n<th>2009<\/th>\n<th>2010<\/th>\n<th>2011<\/th>\n<th>2012<\/th>\n<th>2013<\/th>\n<th>2014<\/th>\n<th>2015<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th>Percentage of food money spent on foodservices by Americans<\/th>\n<td>46.4%<\/td>\n<td>46.7%<\/td>\n<td>47.5%<\/td>\n<td>47.9%<\/td>\n<td>46.7%<\/td>\n<td>47.5%<\/td>\n<td>47.9%<\/td>\n<td>48%<\/td>\n<td>48%<\/td>\n<td>49%<\/td>\n<td>49%<\/td>\n<td>48%<\/td>\n<td>47%<\/td>\n<td>47.6%<\/td>\n<td>47%<\/td>\n<\/tr>\n<tr>\n<th>Percentage of food money spent on foodservices by Canadians<\/th>\n<td>40.2%<\/td>\n<td>40.0%<\/td>\n<td>39.2%<\/td>\n<td>39.3%<\/td>\n<td>39.1%<\/td>\n<td>39.2%<\/td>\n<td>38.8%<\/td>\n<td>38.4%<\/td>\n<td>37.0%<\/td>\n<td>36.7%<\/td>\n<td>36.7%<\/td>\n<td>37.3%<\/td>\n<td>37.7%<\/td>\n<td>38.2%<\/td>\n<td>38.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"#attachment_2901\">[Return to Figure 4.1]<\/a><\/p>\n<table id=\"fig4.2\">\n<caption>Figure 4.2 long description: Pre-Tax Profit Margins, 2012 by Province<\/caption>\n<thead>\n<tr>\n<th>Province<\/th>\n<th>Pre-Tax profit margin<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Manitoba<\/td>\n<td>7.9%<\/td>\n<\/tr>\n<tr>\n<td>Alberta<\/td>\n<td>7.1%<\/td>\n<\/tr>\n<tr>\n<td>Saskatchewan<\/td>\n<td>7.0%<\/td>\n<\/tr>\n<tr>\n<td>Newfoundland and Labrador<\/td>\n<td>6.7%<\/td>\n<\/tr>\n<tr>\n<td>Prince Edward Island<\/td>\n<td>5.7%<\/td>\n<\/tr>\n<tr>\n<td>New Brunswick<\/td>\n<td>5.2%<\/td>\n<\/tr>\n<tr>\n<td>Nova Scotia<\/td>\n<td>5.2%<\/td>\n<\/tr>\n<tr>\n<td>Canada<\/td>\n<td>4.2%<\/td>\n<\/tr>\n<tr>\n<td>Quebec<\/td>\n<td>3.9%<\/td>\n<\/tr>\n<tr>\n<td>British Columbia<\/td>\n<td>3.4%<\/td>\n<\/tr>\n<tr>\n<td>Ontario<\/td>\n<td>2.8%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"#attachment_1266\">[Return to Figure 4.2]<\/a><\/p>\n<table id=\"fig4.9\">\n<caption>Figure 4.9 long description: Market Share by Restaurant Segment<\/caption>\n<thead>\n<tr>\n<td><\/td>\n<th>Quick Service Restaurants<\/th>\n<th>Family\/Midscale<\/th>\n<th>Casual Dining<\/th>\n<th>Fine Dining<\/th>\n<th>Retail<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th>Share of Traffic<\/th>\n<td>64.5%<\/td>\n<td>13.2%<\/td>\n<td>10.1%<\/td>\n<td>0.7%<\/td>\n<td>11.5%<\/td>\n<\/tr>\n<tr>\n<th>Share of Dollars<\/th>\n<td>45.8%<\/td>\n<td>20.6%<\/td>\n<td>22.5%<\/td>\n<td>4.2%<\/td>\n<td>6.9%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"#attachment_1258\">[Return to Figure 4.9]<\/a><\/p>\n<table id=\"fig4.12\">\n<caption>Figure 4.12 long description: 2012 Financial Operating Ratios (as a percentage of operating revenue)<\/caption>\n<thead>\n<tr>\n<th>Expense<\/th>\n<th>Percentage of operating revenue<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cost of Sales<\/td>\n<td>35.6%<\/td>\n<\/tr>\n<tr>\n<td>Salaries and wages<\/td>\n<td>33.7%<\/td>\n<\/tr>\n<tr>\n<td>Other<\/td>\n<td>7.9%<\/td>\n<\/tr>\n<tr>\n<td>Rental and Leasing<\/td>\n<td>7.6%<\/td>\n<\/tr>\n<tr>\n<td>Pre-Tax profit<\/td>\n<td>4.2%<\/td>\n<\/tr>\n<tr>\n<td>Depreciation<\/td>\n<td>3.0%<\/td>\n<\/tr>\n<tr>\n<td>Advertising<\/td>\n<td>2.8%<\/td>\n<\/tr>\n<tr>\n<td>Utilities<\/td>\n<td>2.7%<\/td>\n<\/tr>\n<tr>\n<td>Repair and Maintenance<\/td>\n<td>2.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"#attachment_1314\">[Return to Figure 4.12]<\/a><\/p>\n","protected":false},"author":90,"menu_order":4,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":["peter-briscoe-and-griff-tripp"],"pb_section_license":""},"chapter-type":[],"contributor":[60],"license":[],"class_list":["post-3007","chapter","type-chapter","status-publish","hentry","contributor-peter-briscoe-and-griff-tripp"],"part":2957,"_links":{"self":[{"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/pressbooks\/v2\/chapters\/3007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/wp\/v2\/users\/90"}],"version-history":[{"count":4,"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/pressbooks\/v2\/chapters\/3007\/revisions"}],"predecessor-version":[{"id":3182,"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/pressbooks\/v2\/chapters\/3007\/revisions\/3182"}],"part":[{"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/pressbooks\/v2\/parts\/2957"}],"metadata":[{"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/pressbooks\/v2\/chapters\/3007\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/wp\/v2\/media?parent=3007"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/pressbooks\/v2\/chapter-type?post=3007"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/wp\/v2\/contributor?post=3007"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/opentextbc.ca\/introtourism\/wp-json\/wp\/v2\/license?post=3007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}