UNIT-1

SUCCESS TRIGGER OF HOSPITALITY INDUSTRY

Hotels & the Catering Industry as we know started in the 19th century with the development
of major cities, easier sea travel & coming up of railways. During Mogul rule, the forts & their
surroundings would cater to the needs of the traveller often in exchange for no more than the
story of their adventures during their travel or any news from other towns and villages they
passed by. In India, resting houses called serais/sarais and dharamshallas were established on
high ways by kings and emperors of ancient and medieval periods. Movement of people both
political and pilgrimage stressed the need for better and improved facilities to cater to the varied
needs of the various classes of the society.

In India, development of catering can also be attributed also to the legacy left by people
belonging to different cultures and ethnic groups who have ruled her. Development of catering
in India as we see it today is chiefly due to the British, who had introduced hotels and
restaurants similar to those found in Europe.

Most of modern hotels that sprouted were managed by European families. The Bombay hotel
was opened in 1799. The British brought modern hotels to Kolkata. The Oldest was John
Spence's Hotel. Spence's, the first ever hotel in Asia was opened to the public in 1830. The
credit for opening the first Western style hotel under the name of British Hotel in Bombay in
1840, goes to Pallonjee Pestonjee was the first hotel to give a la carte and table de hôte menu.
Then came the Auckland hotel by David Wilson in Calcutta in the year 1840-41 (now - The
Great Eastern Hotel - officially Lalit Great Eastern Hotel) is a colonial era hotel in the Indian
city of Kolkata - formerly Calcutta) and Connemara hotel in madras in the year 1870 by E. A.
Oakshroff. But now this property belongs to Taj group.

Today, ITDC provides a complete range of tourism services, including accommodation,

catering, and entertainment and shopping, hotel consultancy, duty free shops, and an in-house
travel agency. The India Tourism Development Corporation (ITDC) was set up in 1966 as a
corporation under the Indian Companies Act of 1956, with the merger of Janpath Hotel India
Ltd.

In 1971-72, a beautiful palace of Rajasthan was linked up to the Taj, the lake palace in Udaipur,
a marble dream, afloat lake pichola and the Rambagh palace, originally created at the height of
Rajput splendour in Jaipur. In 1903 he raised finance invested his own money, hired the best

Ihmnotes.in 11 | P a g e
architects and craftsmen and build the exquisitely beautiful Taj Mahal hotel in Bombay with
220 rooms. Mohan Singh Oberoi took Carlton hotel in Shimla on lease in 1927, renamed as
Clarks hotel. He took a building in 1933 and built grand hotel in Calcutta.

Three Welcome Group Hotels were commissioned between 1975 and 1977; these were non-
franchised hotels, inspired by the slogan "Be Indian, Buy Indian" and using Indian expertise.
Ultimately, however, these hotels adopted the Sheraton system in 1978 and used the services
of expatriates for the purposes of upgrading staff training and installing Sheraton operating
systems-all without a management contract. This gave the Welcome Group a good start.

When India agreed to host the 1982 Asian Games, the GoI granted licenses for building hotels
to the Taj Palace, Asian Hotels Hyatt Regency, India Tourism Development Corporation -
Lodhi Hotel, Samrat Hotel, Kanishka, Le Meridien, and Surya Sofitel, with the stipulation that
their new hotels had to be completed in time for the games. India hosted the Commonwealth
Games in 2010, at Delhi. It was India's most successful Commonwealth Games to date with
Indian athletes winning 38 gold, 27 silver and 36 bronze medals. This also added to growth of
hotel industry in India.

Tourism & Hospitality Industry in India contributed Foreign Exchange Earnings (FEEs) during
the month of December 2014 were Rs 12,875 crore (US$ 2.03 billion) as compared to Rs
11,994 crore (US$1.9 billion) in December 2013. Foreign Tourist Arrivals, in India, during
2014 was 7.46 million, which translates to a 7.1% growth over the previous year.

The Indian Rupee was relatively stable against the US Dollar and from 59/$ as at the beginning
of the year, the exchange rate hovered around 61/$ levels on the average and closed at 62/$ at
the yearend for the year 2014-15.

GDP growth in India during the year is estimated at 7.4%. Inflation has decreased significantly
from as high as 11.2% in November, 2013 to 5.2% in March, 2015. International tourist
arrivals, worldwide, have grown to 1.14 billion in 2014, 4.7% above 2013 and are likely to
grow 3% to 4% in 2015. Foreign Exchange Earnings (FEEs) have grown by 6.6% at US$ 19.65
billion for the year.

TAJ HOTELS RESORTS AND PALACES:

Indian Hotels Company Limited (IHCL), branded as Taj Group, is a chain of hotels and resorts
headquartered at Oxford House in Mumbai, which was incorporated by the founder of the Tata
group, Jamsetji Tata, in the year 1903. This company is a part of the Tata group, one of India's

Ihmnotes.in 12 | P a g e
largest business conglomerates. As of 2015, Taj Group operates 108 hotels across India and 17
hotels in the UK, USA, Africa, Maldives, Malaysia, Bhutan, Sri Lanka and the Middle East,
and employed over 13000 people in the year 2010. Taj Group also owns a few private islands.

Jamsetji Nusserwanji Tata (1868-1904), founder of the Tata Group, opened the Taj Mahal
Palace, a hotel in Mumbai (then, Bombay) overlooking the Arabian Sea, on 16 December 1903.
It was the first Taj property and the first Taj hotel.

The Taj Group also began its business in metropolitan hotels in the 1970s, opening the five-
star deluxe hotel Taj Coromandel in Chennai in 1974, acquiring an equity interest and operating
contract for the Taj President, a business hotel in Mumbai, in 1977, and opening the Taj Mahal
Hotel in Delhi in 1978.

Concurrently with the expansion of its luxury hotel chain in the major metropolitan cities, the
Taj Group also expanded its business hotels division in the major metropolitan and large
secondary cities in India.

With the opening of the five star deluxe hotel Taj Bengal in Kolkata in 1989; the Taj Group
became the only hotel chain with a presence in the five major metropolitan cities of Mumbai,
Delhi, Kolkatta, Bangalore and Chennai.

The Company Indian Hotels Company Limited (IHCL) was incorporated in 1902 and it opened
its first hotel, The Taj Mahal Palace & Tower, Mumbai, in 1903.

With the completion of its initial public offering in the early 1970s, the Company began a long
term programme of geographic expansion and development of new tourist destinations in India
which led to its emergence as a leading hotel chain in India.

In 1980, the Taj Group took its first step internationally by opening its first hotel outside India,
the Taj Sheba Hotel in Sana'a, Yemen and in the late 1980s, acquired interests in the Crown
Plaza - James Court, London and 51 Buckingham Gate Luxury Suites and Apartments in
London.

In the year 2000, the company entered into a partnership with the GVK Reddy Group to set up
Taj GVK Hotels and Resorts Ltd and thereby obtained a prominent position in the market in
the southern business city of Hyderabad, holding three hotels and a major share of the market.

In the year 2001, the company took on the management contract of Taj Palace Hotel, Dubai,
and established themselves as an up-market hotel in the Middle East region.

Ihmnotes.in 13 | P a g e
In September 2002, the company acquired equity interest in the former Regent Hotel in Bandra
which gave the Taj Group access to the midtown and North Mumbai market.

In the year 2003, the company celebrated the centenary of the opening of their Flagship hotel,
the Taj Mahal Palace & Tower, Mumbai.

In the year 2005, the company acquired on lease The Pierre, a renowned hotel in New York
City, to enter the luxury end of the developed hotel markets internationally.

In October 2006, as per the scheme of arrangement, Indian Resorts Hotel Ltd, Gateway Hotels
and Getaway Resorts Ltd, Kuteeram Resorts Pvt Ltd, Asia Pacific Hotels Ltd and Taj Lands
End Ltd were amalgamated with the company.

Taj Group launched one new Vivanta by Taj hotel during the latter part of the year at Dwarka,
New Delhi, besides three new Gateway hotels at Raipur, Gondia and Gurgaon, respectively.

The company was active in converting former royal palaces in India into world class luxury
hotels such as the Taj Lake Palace in Udaipur, the Rambagh Palace in Jaipur and Umaid
Bhawan Palace in Jodhpur.

During the year 2009-10, the company added seven new hotels in the Taj portfolio which
included Vivanta by Taj at Panaji, Goa and The Gateway Hotel, Jodhpur apart from the 5
Ginger hotels at Durg, Guwahati, Pune, Jamshedpur and Surat.

The Group also entered into a new management contract for a new Taj at Downtown, Dubai
(296 rooms). Also, the Taj Group exited two of its international properties at Marrakech and
Sydney, respectively. The Group currently has a portfolio of 33 Ginger hotels with an inventory
of 3,038 rooms (including 5 hotels under management contract and one transit guest house).

The inventory of the Taj Group of Hotels now stands at 131 hotels with 15,751 rooms.

Total Income for the year ended March 31, 2015 at ` 2,103.60 crores was higher than previous
year by 6%. While Room Income was higher by 3% than the previous year due to improved
ARR, Food & Beverage income increased by 5% over the previous year, aided by growth in
restaurant sales and banqueting income

Twelve hotels of the Taj group are members of the Leading Hotels of the World. The following
table is a list of those twelve hotels:

Ihmnotes.in 14 | P a g e
 Continent Country Town / City / Location Hotel Name

Africa South Africa Cape Town Taj Cape Town

Asia India Bangalore The Taj West End

Hyderabad Taj Falaknuma Palace

Jaipur Rambagh Palace

Jodhpur Umaid Bhawan Palace

Kolkata Taj Bengal[14]

Mumbai The Taj Mahal Palace

New Delhi The Taj Mahal Hotel

Udaipur Taj Lake Palace

Maldives Malé Atoll (South) Taj Exotica Resort & Spa

North USA Boston Taj Boston

America
New York The Pierre

San Francisco Taj Campton Place

For his contributions Chairman Ratan Tata received the Padma Vibhushan in 2008 and Padma
Bhushan in 2000, the second and third highest civilian honours awarded by the Government of
India.

OBEROI HOTELS & RESORTS:

Rai Bahadur mohan Singh Oberoi, chairman and founder of Oberoi hotel was born in august
1900 in bhaun, a small village in what is now Pakistan. Soon after his marriage in 1922 he
arrived penniless in Shimla, and found a job as a front office clerk in the Cecil hotel at a salary
of Rs.40 per month. In 1934, he bought Clarks hotel by mortgaging all his assets and selling
his wife’s jewellery.

Ihmnotes.in 15 | P a g e
In the early 1930’s a cholera epidemic struck Calcutta and the grand hotel, the largest in the
city was forced to close. In 1938, Mr. Oberoi acquired the grand and converted it into a
profitable business venture. The Oberoi grand remains to this day Calcutta’ s leading hotel.

In 1943, Mr. Oberoi took over the associate of India with eight hotels in northern India
including the Cecil in Simla, maidens and imperial in Delhi, and 4 hotels now in Pakistan. The
Oberoi chain grew rapidly with hotels in Gopalpur, Darjeeling, Chandigarh and Srinagar.

The EIH Limited Company was incorporated as a public limited company in India on 26 May
1949 and its initial business activity was as the lessee and operator of The Oberoi Palace Hotel
in Srinagar, Kashmir.

The Oberoi international in New Delhi, which opened in 1965, was the first modern luxury
hotel in the capital. The 35-storey Oberoi towers opened in Bombay in 1978, the tallest building
in India. Mr. Oberois dedication to the industry is evident from the Oberoi centre of learning
and development (OCLD) based in Delhi.

Oberoi is now part of the international chain of hotels which has properties not only in India
but also in Australia, Indonesia, Egypt, Sri Lanka, Singapore, Zanzibar and Nepal.

Today The Oberoi Group, founded in 1934, operates 30 hotels, a Nile Cruiser and a Motor
Vessel in the backwaters of Kerala. The Group has presence in six countries under the luxury
'Oberoi' and five-star 'Trident' brand. The Group is also engaged in flight catering, airport
restaurants, travel and tour services, car rentals, project management and corporate air charters.
The hotels are: The Oberoi, Bengaluru, The Oberoi Grand, Kolkata, The Oberoi, Gurgaon, The
Oberoi Amarvilas, Agra, The Oberoi Rajvilas, Jaipur, The Oberoi Udaivilas, Udaipur, The
Oberoi Vanyavilas, Ranthambhore, Wildflower Hall, Shimla in the Himalayas, The Oberoi
Cecil, Shimla, The Oberoi Motor Vessel Vrinda, Kerala, The Oberoi, Dubai, The Oberoi, Sahl
Hasheesh, The Oberoi Zahra, Egypt, The Oberoi, Bali, The Oberoi, Lombok, The Oberoi,
Mauritius and The Oberoi, Madina.

Rai Bahadur M.S. Oberoi was named as “Man of the world” for 1983 at the annual convention
of the international hotel association in New York and selected as the outstanding hotelier of
the year by the hotels and restaurants international. In 2001, the Government of India accorded
him the Padma Bhushan.

Ihmnotes.in 16 | P a g e
M.S Oberoi’s achievements and successes did not, however, take from his simplicity and old-
fashioned charm. He retained, until his death in May 2002 at the age of 103, a unique humility.
M.S Oberoi can rightly be called as the ‘Father of the Indian hotel industry.

The EIH limited posted Profit After Tax was ` 966 million in 2014-156, as compared to ` 950
million in the previous year which is an increase of approximately 2%. The Company continues
to be largely engaged in hospitality and related services.

WELCOMGROUP: refer for short note – write matter only in text box

ITC Hotels, with its credo of “Responsible Luxury”, stands apart not only for its exquisite
signature properties, cuisine and service excellence but also for being the greenest luxury
hotel chain in the world. With 4 distinct brands – ITC Luxury Collection, WelcomHotels,
Fortune and WelcomHeritage – ITC’s properties span the luxury, five star, mid-market to
upscale and heritage leisure segments.

ITC Limited entered the hotel business on 18 October 1975 with the opening of a hotel in
Chennai, which was renamed Hotel Chola. In 2006.

ITC Restaurants Bukhara, Peshawari, Dakshin, DumPukht ‘and’ Kebabs & Kurries are well
known cuisine brands today. They market a line of food products, Kitchens of India.

ITC Hotels has one of the most extensive art collections in India. A museum of their
collection is being planned in Kolkata. ITC Grand Bharat is their latest hotel established in
Manesar, Gurgaon.

ITC hotels symbolized by its distinctive ‘Namaste’ logo, ITC Hotels integrated India’s fine
tradition of hospitality with globally benchmarked services.

The trusteeship role related to social and environmental resources, aligned to the pursuit of
economic objectives, is the cornerstone of its Environment, Health & Safety philosophy for
which it has won many awards and accolades.

With a string of firsts to its credit, ITC Hotels pioneered the concepts of branded
accommodation, branded cuisine, environment and guest safety.

Ihmnotes.in 17 | P a g e
 With more than 100 hotels in over 70 destinations in the country, each ITC Hotel is a true
reflection of the culture and ethos of the destination, with one common legacy – 'Warmth'.

ITC Hotels has a long standing tie-up with Starwood Hotels for its top of the line premium
brand, the 'Luxury Collection' for ten of its hotels as also with the “Sheraton” brand for 1 of its
hotels. ITC Hotels has strategically customized its hotels and appropriately categorized them
to fulfill the service and budgetary needs of travelers.

GROWTH UNDER FOUR BRANDS:

ITC Hotels - The Luxury Collection

The association of ITC Hotels & The Luxury Collection presents a unique set of hotels in a
bouquet of enriching experiences that celebrate the spirit & distinctive character of each
destination. Eleven exceptional hotels bring you the architectural grandeur of ancient dynasties
and the cultural ethos of different regions of the Indian peninsula. ITC Hotels - The Luxury
Collection are super deluxe and premium hotels located at strategic business and leisure
locations.

WelcomHotel | Sheraton

Synonymous with customer centricity and efficiency, an exquisite ITC Hotels have been
aligned under the renowned Sheraton brand, offering warm, comforting services to the global
traveler. Designed to cater to the discerning business and leisure traveler offering five-star
hospitality, WelcomHotels are a haven for personalized services that make every visit
memorable.

Ihmnotes.in 18 | P a g e
Fortune Hotels

Located across India including smaller towns and cities, Fortune Hotels is one of the leading
first-class, full service business hotel chains in India catering to the mid-market to upscale
segment in business and leisure destinations.

WelcomHeritage Hotels

WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a unique
experience.

ITC Hotels was perhaps the first hotel chain in the mid-1980s to foresee a boom in business
travel and realized distinct needs of the corporate traveller. Branding led to the creation of
separate categories of rooms, each with a different service design, aimed at different target
segments. The different room categories were branded Executive Club, The Towers and
lately, ITC One.

Going beyond the corporate travellers, the chain's flagship hotels, ITC Maurya, New Delhi and
ITC Windsor, Bangalore have had the proud privilege of hosting many world leaders: from
former US President Bill Clinton, Russian President Vladimir Putin, British Prime Minister
Tony Blair, German Chancellor Gerhard Schroeder, to business tycoons like Bill Gates and
Michael Dell.

There have been many other pioneering efforts at ITC Hotels and few of them are:

• ITC Maurya is the first hotel in India to be awarded the Golden Peacock Environment
Management Award for 2001 by the World Environment Foundation.

• Most recently, the Association of British Travel Agents (ABTA) in the April 2004 issue
of its magazine Business and Travel, declared ITC Sonar, Kolkata as one of the best
hotels in the world, Dublin amongst the top 20 bars and in a fitting finale, Bukhara was
rated as the best restaurant in Asia and the finest Indian restaurant in the world.

ITC achieved FY15 Post-tax Profits up 12.5% on a comparable basis and Board recommends
Dividend of Rs. 6.25 per share for FY15 (previous year Rs. 6.00 per share).

Ihmnotes.in 19 | P a g e
INDIA TOURISM DEVELOPMENT CORPORATION LTD:

In 1964 three corporations were setup by - Government of India, viz.

1. India Tourism & Hotel Corporation;

2. India Tourism Corporation Ltd., and

3. India Tourism & Transport Corporation.

• On 24th September 1966, the Government of India decided to merge these

corporations and issued “India Tourism Corporation Amalgamation Order 1966” and
formed a new corporation-India Tourism Development Corporation (ITDC) with an
authorized capital of Rs.5 crores. Soon ITDC took over tourist “bungalows at:

• Mahabalipuram, Tanjavur, Madurai.and Tiruchirapalli (Tamil Nadu)

• Bijapur and Hassan (Karnataka)
• Khajuraho, Sanchi and Mandhu (Madhya
Pradesh)
• Kullu and Manali (Himachal Pradesh)
• Bodhgaya (Bihar)
• Bhubaneswar (Orissa)
• Rashi Nagar (Uttar Pradesh)
• Ghana (Rajasthan)

The India Tourism Development Corporation Limited (ITDC) is Hospitality, retail and
Education Company owned by Government of India, under Ministry of Tourism. Established
in 1966, it owns over 17 properties under the Ashok Group of Hotels brand, across India.

ITDC came into existence in October 1966 and has been the prime mover in the progressive
development, promotion and expansion of tourism in the country. Broadly, the main objectives
of the Corporation are:

• To construct, take over and manage existing hotels and market hotels, Beach Resorts,
Travellers' Lodges/Restaurants
• To provide transport, entertainment, shopping and conventional services;
• To produce, distribute, tourist publicity material;
• To render consultancy-cum-managerial services in India and abroad;

Ihmnotes.in 20 | P a g e
To carry on the business as Full-Fledged Money Changers (FFMC), restricted money changers
etc;

To provide innovating, dependable and value for money solutions to the needs of tourism
development and engineering industry including providing consultancy and project
implementation.

Presently, ITDC has a network of eight Ashok Group of Hotels, five Joint Venture Hotels, 1
Restaurant, 11 Transport Units, 9 Duty Free Shop at airport and seaports and two Sound &
Light Shows Besides, ITDC is also managing a hotel at Bharatpur and a restaurant at Kosi on
behalf of the Department of Tourism.

THE ASHOK GROUP - THE LARGEST CHAIN IN INDIA

The Ashok group has 39 hotels in 32 major destination .The range of hotels varies from Five
star deluxe to first class to budget, depending on tourist needs. The Ashok group of hotel is
India’s gracious and regal host to leading national and international visitors.

The hotels have now been classified into 3 categories Elite, Classic and Comfort.

The 6 Elite hotels are Ashok group’s five star deluxe properties that cater to the up market
clientele. The classic group comprises of sixteen unites that meet the expectations of the
business travellers and mid-market guests. The comfort category provides home comfort
located across the capital.

The Ashok hotel, the group’s flagship, offers the largest conventional hall in India with the
capacity of seating 2500 people and is named after the legendary philanthropist emperor Ashok.
The hotels of the group are the Samrat, Qutab, Kanishka ,Janpath, Lodhi, Ranjeet and Ashok
Yatri Nivas - their names reflecting India’s rich heritage.

In central India, the Varanasi Ashok situated in the holy Hindu city, provides the base for
tourists to explore the city.

Jodhpur, another beautiful city of Rajasthan, has Ratanada Ashok, Aurangabad, situated in the
heart of Maharashtra, is the base for visiting Ajanta and Ellora.

Ihmnotes.in 21 | P a g e
Even within a nation as varied as India, the diversity of culture and landscape of eastern India
encapsulates the mystery and beauty of the orient .there are Ashok groups hotels at Ranchi
,Calcutta, Puri and Bhubaneswar.

Six Ashok groups of hotels are situated in west India Jaipur, Udaipur, Aurangabad, Kolhapur
and Pune.

Brahmaputra Ashok at Guwahati one can explore Kaziranga, the home of One Horned
Rhinoceros in Shillong, the capital city of Meghalaya, the Ashok group is represented by
pinewood Ashok.

Hotel Jammu Ashok, in the north of the country, provides a convenient base for excursions into
the beautiful valley of Kashmir.

Located top Shamlan Hlls in Bhopal is hotel Khajuraho Ashok Built in the shadows of the
famous , thousands years old Khajuraho Temples.

Shalie Palace Ashok in the princely town of Kolhapur and Executive Ashok in Pune
complement the Ashok group in the west.

The Ashok group offers a complete Indian experience with an ever increasing network at taking
care of its guests, with a combination of dependable comfort and traditional Indian hospitability

India Tourism Development Corporation Ltd. has achieved a total turnover of Rs. 469.58 crore
during the financial year 2013-14 as against Rs. 440.64 crore in the previous year 2012-13
indicating an overall increase by 6.57%.

Note 1: The BCEC center is ideally situated along the Western Express Highway in Goregaon,
within 10 minutes from airports, walking distance to train stations and a 20 minute drive from
the heart of the city. Bombay Convention & Exhibition Centre (BCEC) is the largest and
permanent exhibition center, in the private sector, in India and was set up in 1991. BCEC
consists of four halls occupying over 45,000 square meters of meeting and exhibition space.

Note 2 : India’s largest conference center, Hyderabad International Convention Centre (HICC),
officially opened this month.. The purpose built convention center is managed by Accor and
offers 291,000 sq. ft. (27,034 sm) of event space with a seating capacity of 5,000 delegates.
There is 250,000 sq. ft. (23,225 sm) pre-function space and 32-break out rooms. The center is

Ihmnotes.in 22 | P a g e
equipped with state-of-the-art automated facilities and A/V technologies. Plus the adjoining
Novotel Hyderabad and a nine-hole golf course has Total convention sq ft of about 9 million.

TYPES OF F&B OPERATIONS

There are many types of F&B operations. They may vary in size, style, location, and the market
they are catering to. From a wayside tea stall to an exclusive fine dining restaurant of a deluxe
hotel, and from mid-day meal services for school children to meals for industrial workers, all
come under the fold of the F&B sector.

Based on the purpose of catering, the Food and Beverage Industry is divided into two sectors:

Primary catering sectors: The establishments under this category are primarily concerned
only with the provision of food and beverages to customers. Some examples various types of
restaurants, takeaways, QSR, BAR, Pubs etc.

Secondary catering sectors: The establishments in which the provision of food and beverages
is not the main activity but a secondary or support activity is called secondary

catering sectors. The examples are institutional catering, transport catering, catering
services in theatres, amusement parks, departmental stores, and industrial catering.

Ihmnotes.in 23 | P a g e
 Classification Food and Beverage Operations

Commercial Sectors Residential / Non-Residential / Welfare

• Hotels • Institutional Catering

• Restaurants • Industrial Catering
• Fast Food Outlets o Armed Force Catering
• Takeaway outlets ▪ Peace Station
• Pubs and Bars ▪ Garrison
• Function Catering ▪ High Altitude
• Transport Catering • Hospitals
o Airline Catering • Religious Congregation
o Railway Catering • Prisons
o Ship Catering • Orphanages
• Clubs • Disaster / Distress Catering
• Old age Homes

Variety of food & beverage operations

Ethnic restaurants Ethnic chains Educational Transport

Shopping malls, (Chinese, (Wagamama, Institutions (rail, air &
airports, food Japanese, Bombay (schools, colleges, marine)
counters French, Malaysian, Bicycle Yo Sushi, universities)
Caribbean) Nandos)
Restaurants
Welfare catering (bistros, Supermarkets – Employee dining Outside
hospitals, brasseries, coffee food catering
healthcare, shops, retail ( food to go)
prisons, military cafeterias, wine
bars,
public houses,
roadside
restaurants)
Themed Cafes &
Private clubs Street vendors Fine dining restaurants sandwich bars

Ihmnotes.in 24 | P a g e
 (Hard Rock Café,
Planet
Hollywood)
Fast food chains Accommodation Leisure Takeaway
(McDonalds, (hotels, (museums, Conference centres (kiosks, fish
Subway motels, guest theme parks, &
KFC, Wendy’s) houses, theatres, chips, snack
hostels) cinemas) bars)

COMMERCIAL SECTORS

1. Operate mainly to make profit or to earn adequate return on investment (ROI) through
their products and services.
2. Food and beverage facilities of hotels, resorts, mote clubs, stand-alone restaurants,
popular restaurants, takeaway outlets, pubs and bars, coffee shop fast food outlets,
transport catering, contract catering of industries, and so on, are examples.

Hotels: –

• The main purpose of hotels is to provide accommodation.

• It may or may not provide the service of food and beverage.
• Hotels provide F&B service to their customers in the areas like restaurant, bars, lounge,
banquets, rooms (In room dinning) etc.

Restaurants: –

• They may be stand alone or part of the hotel, but all of them are cuisine-based.
• There may be specialty restaurants serving specific cuisines like Indian, Chinese,
Spanish, Mexican, Thai, French or even Greek. Some of them offer more than one
cuisine: in which case, they are called multi-cuisine restaurants.
• Usually, these restaurants operate during specific times such as lunch and dinner; have
elaborate a la carte menus, comfortable seating, appropriate lighting, interiors and
formal table service. Items are priced higher as the turnover of guests is low.
• Nowadays, in order to improve the business and cater to quicker mealtime, many of
them offer buffet lunches. There may be more than one restaurant in large hotels.

Ihmnotes.in 25 | P a g e
Fast Food Outlets

• There is a predominant American influence in fast food style of catering.

• The service of food and beverages in a fast food restaurant is at a faster pace, than at an
a la carte restaurant as the menu is compiled with a special emphasis on the speed of
preparation and service.
• To make this type of service financially viable, a large turnover of customers is
necessary.
• The investment is rather large, due to the specialized and expensive equipment needed
and high labour costs involved.

Takeaway Outlet / Home Delivery: –

• The take-away or take out service that exploits to the full the concept of ―Fast Food.
• The take away operation offers a limited basic menu to the customer, but within this
menu there may be a number of variations on the basic items.
• The time between customer placing orders and receiving their meals, aims to be faster
than any other method of food service.
• The customer may either take the food out of the take away to eat, or it may be
consumed
• on the premises, a large number of ―take-away outlets now provide seating areas.

• Drive thru / Drive through is a type of take-out service provided by a business that
allows customers to purchase products without leaving their cars. Orders are generally
placed using a microphone and picked up in person at the window.
• A few restaurants that cannot expand due to poor location or lack of space switch to
home delivery.
• Additional resources are used for fleet.
• 3 tier insulation boxes are used containing layers of fibre glass chest, glass wool and
blanket made of thick wool.
• Timely delivery is the key to success.
• Delayed deliveries are discounted.

Ihmnotes.in 26 | P a g e
Pubs and Bars: –

• The word pub is used to refer to a place where people go to hangout. Both food and
beverages/refreshments are served here.
• The word bar is used to refer to the place/counter/stand where beverages/refreshments
are served in a restaurant/pub.
• The bar serves different types of alcoholic beverages to residential and non-residential
guest in the hotel.
• The idea of pubs is fairly new in India. It has been borrowed from the concept of public
houses in English and adapted to Indian conditions.
• They are geared to provide service of all types of alcohol with an emphasis on draught
beer and good music. Food may also be served from a limited menu.

Function Catering/ Off premise catering/ Outdoor Catering: -

• This means catering to a large number of people at a venue of their choice.

• Every site has its own challenges and difficulties temporary structure or open air.
• Hotels, restaurants and catering contractors meet this growing demand.
• Table service is generally not offered.
• Efforts are made to create a makeshift dining hall in a huge farm house.
• The types of food and set up depends entirely on the price agreed upon outdoor catering
includes catering for functions such as marriages parties and convention.
• Standard varies from simple buffet in a marriage party to open air theme parties.
• The staffs wear a uniform depicting the theme.
• Off-premise catering is an art and a science. The art is creating foods and moods, as the
caterer and client together turn a vision into reality. The science is the business of
measuring money, manpower and material.

Transport Catering: -

• It includes that sector of food and beverage establishment which makes provision of
food and beverage of people who are on the move.
• The provision of food and beverage to passengers, before, during and after a journey
on trains, aircrafts, and ships and in buses or private vehicles is termed as transport
catering.
• It involves the feeding of a large at a catering facility and who need to be catered for in
a specific time, for example, on board a plane.

Ihmnotes.in 27 | P a g e
Airline Catering: -

Catering to airlines passengers on flights, as well as at restaurants situated at airport is termed

as airline catering.

Airline catering falls in two main areas: -

Terminal Catering: The catering services provided at airport terminals through lounges,
cafeterias and takes away comes under terminal catering.

In-transit or In-flight catering:

• This is done by pre-paring all food in flight kitchens on the ground, or getting the food
cooked by hotels under contract, freezing it and reheating the food in flight.
• The reheating of food is now being done by most of the major airlines by the use of
microwave ovens in which very high frequency waves heat the food in seconds by
inducing very high frequency molecular motion within the food.
• The menu for the first class and economy class passengers are different and first-class
passengers are also served wines free of any additional charge.
• The food and beverage portions are highly standardized with meal portioned into plastic
tray which is presented to passengers and from which they eat their meals.
• Disposable cutlery, napkins etc are used which reduce the facilities for washing up and
cut down on breakage and wastages.
• For first class passenger garnishing, slicing etc, added according to their request. The
crockery used may be bone china with fine glasses and cutlery.

Railway Catering: -

• Travelling by train for long distances can be very tiring; hence a constant supply of a
variety of refreshment choices helps to make the Journey less tedious.
• Catering to railway passengers both during the Journey as well as during halts at
different railway station is called railway catering.
• Railway catering may be divided into two Major areas:-
• Terminal Catering: - Catering at railway terminals usually comprises self-service and
waiters service restaurants, fast food and take away units, supplemented by vending
machines dispensing hot and cold foods and beverages.
• In-transit catering:- In transit catering can feature three kinds of service:-

Ihmnotes.in 28 | P a g e
 • The first is the traditional restaurant car service where breakfast, lunch and dinner are
organized in sitting and passenger go to restaurant car for service where appropriate
seating accommodation is provided, and then return to their seats on the train after their
meal.
• The second type of service is the buffet car, which is a self-service operation in which
passengers go to the car and buy light refreshments over the counter.
• The third is a trolley service where snacks and drinks are delivered to customer at their
seats. Pantry car is attached with passenger trains for production of food.

Ship Catering: -

• Both cargo and passenger ship have kitchens and restaurants on board.
• The quality of food, service and facilities offered depends on the class of the ship and
the price the passengers are willing to pay.
• All these ships provide a variety of food and beverage service outlets, to cater to the
individual needs of the passengers.
• They range from room service and cocktail bars to specialty dining restaurants.

Club Catering: -

• This refers to the provision of food and beverage to a restricted clientele.

• The origin of this service can be trace back to England where membership of a club
was considered prestigious.
• Today, in India there is a sharp increase in number of clubs to suit different needs.
• Clubs for people with similar interests such as golf clubs and cricket clubs, to name a
few, have sprung up.
• The service and food in these clubs tend to be of a fairly good standard and are
economically priced.
• Industrial Catering:
• The provision of food and beverage to people at work, in industries and factories at
highly subsidized rates is called industrial catering.
• It is based on the assumption that better fed employees are happy and more
productive.
• Catering for a large work force may be undertaken by the management itself, or may
be contracted out to professional caters.
• The service constitutes food on display on warmers or chillers, as the case may be.

Ihmnotes.in 29 | P a g e
 • The dinners are supposed to collect their trays, cutlery etc and pick up food
themselves from display or offered by servers from behind the counter.
• There is usually no payment but a monthly deduction from the staff salary is made
under Staff Meal expense.
• The cafeteria has a comfortable and hygienic seating arrangement but is nowhere close
to any luxury arrangement.
• The food served is on a subsidized rate and profit earning is not a motive.
• A few organisations may not even charge for the food served.

NON-COMMERCIAL / RESIDENTIAL / WELFARE CATERING: -

• Operate mainly to provide nutritious food at a subsidized rate or at no profit and no loss
basis.
• Profit generation is not a motive.
• Prices are fixed with a ceiling of cost price.
• The procurement of raw material is done through tenders.
• Unions and HR department is involved in setting the quality of food and price.
• Limited choices are offered.
• Nutritional value is emphasized on.
• All three meals plus tea and snacks are supplied between fixed time slots.
• The major purpose of these services is philanthropy and social welfare.
• Persons / organisations who undertake these services, aim to ensure that people are well
and properly fed, and if any profit is made through their business, it is of secondary
importance.
• This grew out of the welfare state concept, prevalent in western countries.

Institutional Catering: -

It includes schools, colleges, universities, professional education institutions, hostels, etc.

These can be broadly categorized into two types:

1. Academic Institutes
2. Professional Institutes.

1. Academic Institutes – It includes schools and colleges. The features of this type of catering
are as follows:

Ihmnotes.in 30 | P a g e
 • The main consumers here are students. The food is made and supplied by cafeterias at
very nominal rate.
• The cafeteria could have its own fully equipped kitchen, and thus prepare food or it
may even outsource food. The size of kitchen and the kinds of equipment would depend
on the number of meals the institution serves on a daily basis.
• The main focus is on health, hygiene, and nutrition. Since children needs right kind of
nutrients in right amount.
• Some schools monitor closely when serving students in dining halls as the focus is also
on developing good eating habits and etiquettes among children.

2. Professional Institutes - . The main consumers here are adults, and hence it is important to
offer some variety to them. The features of this type of cafeteria are as following:
• Kitchens of these institutes are referred to as 'mess', which may be run by a committee
called mess committee, or it could also be run with professional help from an outside
agency.
• Cyclic menus help to solve the issues of monotonous food.
• The kitchen set-up can be basic to modern depending on the type and volume of meals
that the institution cooks on a daily basis.

Industrial Catering

It refers more to shops and factories where food is made to primarily serve the needs of the
employees. This is one of the most sensitive catering, as it is believed that it is important to
keep employees happy by providing them tasty, nutritious, and a variety of food. The
characteristics are as following:

• The food is served in dining halls, often referred to as cafeterias or employee dining
halls.
• In many companies, members of the senior management eat in the same dining halls
along with other employees. However, in some companies, the members of senior
management have food in a separate area sometimes referred to as EDR or Executive
Dining Room.
• The number of meals served may range anywhere from 30 to 2,000 or more, and this
depends on the size of the organization, that is, the number of employees.

Ihmnotes.in 31 | P a g e
 • Industrial catering is a crucial and a sensitive one too because it caters to a large group
of people with multicultural and different religious beliefs.
• The food is nutritionally balanced for the type of work. Example, industrial workers
performing heavy physical work need a high calorie diet.
• In India, we also have specialized celebrations done on major festivals in cafeterias,
and the food cooked on such occasions reflects the specialities from that festive season.
• The cafeterias have tea/ coffee facilities, with some also having snack and beverage
vending machines.
• Many organizations prefer to prepare food in-house, but if that is not possible, then food
could be procured from an external agency, which would come every day and lay out
the buffet for the employees.

Armed Force Catering:

There are three specific areas of Armed Forces catering.

a) Peace station and in-cantonments:

• Here men in arms are living in familiar surroundings.

• They socialize in cantonment clubs, parties and social gatherings for recreation and
leisure.
• They have large institutions called officer's institutions or clubs where a cross-section
of forces i.e. Army, Navy and Air Force can enjoy high quality services like multi-
function bar, multi-cuisine restaurant, card room, billiard room, swimming pool,
tennis court etc.
• The food is served elegantly by neatly dressed staff as per five star standards.
• There are smaller outlets called unit outlets meant for Regiments and Divisions who
enjoy their evenings, quite informally.
• The food is restricted to a small menu, drinks are highly subsidized. The choice is
narrow.
• These places are mostly visited by men without family who would also dine there.

b) Garrison catering:

• It is done for people staying in battles-ready conditions away from their families
involved in regular exercise and training.
• Here there are serious restrictions and controls.

Ihmnotes.in 32 | P a g e
 • Everybody has to follow strict timings meals which are served in platoon formation
with limited plates and other service gears in batches.
• The most complicated and difficult situation of catering is during campaign and
manoeuvring where men are constantly on the move, Electricity, water, fuel, supplies
are restricted and sometimes totally absent; makeshift arrangement is to be made in
tents and bunkers which is the only available space to carry out cooking service with
limited raw materials.
• The diet offered must be balanced, light and hygienically acceptable to prevent any
mishap that can adversely affect the fighting power.
• Due to limitation of carrying capacity compact food is used.
• Apart from this convenience food is used where cooking is difficult to carry out.
• Strict quality control and inspection of such products are very important to prevent
outbreak of food poisoning.
• Supplementary vitamins and minerals are either added in food or given orally to
compensate the processing and storage losses.
• Food research laboratories are developing lighter, more compact and instant food to
enable forces handle the war more effectively than spending time in cooking and
serving.
• Some of the food stuffs are dehydrated, vacuum dried, frozen and gamma-ray
irradiated.
• The conditions around the campaign are such that one has to rely on local supplies,
which may not be staple food for forces on the move. Often raw vegetables in the field,
fruits and cereals have to be harvested and consumed.

c) High Altitude/Space Catering:

• Unfortunately, a large chunk of Armed Forces are stationed at high altitudes, hilly
terrains, water supply is few and far between.
• The recent war in Kargil opened a new challenge for civilians and Armed Forces alike
on high altitude catering.

The difficulties which make it specialized branch are: -.

o Ignition temperature
o Type of fuel
o Low pressure and low boiling point

Ihmnotes.in 33 | P a g e
 o Erratic procurement and special dietary need
o Extensive use of Convenience food
• Solid fuels do not easily catch fire, therefore they are rarely used.
• Due to inability to reach ignition point the only effective fuel is kerosene.
• As ignition is low, and it has a very low freezing temperature.
• As high altitude poses problem in cooking due to water boiling at low temperature,
autoclave and pressure cooking is the only alternative.
• Due to avalanches and landslides roads remain blocked for a long time causing
disruption of supplies, hence people survive on rationed commodities, sometimes
animal meat like yak.
• To avoid cooking, pre-cooked items are used which lacks variety, taste and vitamins.
• Keeping in view all the above limitations meals are planned in the best possible manner.

Hospital:

• Hospital catering facilities have improved considerably over the past years.
• Hospital catering is a specialized form of catering as the patient is normally unable to
move elsewhere and choose alternative facilities and therefore special attention must
be given to the food and beverage so that encouragement is given to eat the meal
provided.
• The hospital meals may be considered for the patients, the staff and the general public
& visitors.
• The type of diets required for hospital patients may be classified as full or normal diets,
light diets, soft diets, therapeutic diets and special diets.

Prison:

• Prisoners are to be catered in prisons.

• The catering within the prisons is the responsibility of the Jailer with delegated
responsibility being given to a catering officer with much of the actual cooking and
serving being done by the prisoners themselves.
• In Tihar Jail, Delhi more than 10,000 prisoners were catered daily three times a day in
systematic manner.

Ihmnotes.in 34 | P a g e
Community Distress/Disaster Catering

• In the hours of distress due to earthquake, flood, famine and war often massive relief in
the food, drink and water has to be provided to the aggrieved population.
• This is carried out by voluntary organisations like United Nations, Salvation Army,
Bharat Sewak Samaj, Ramakrishna Mission etc.
• Here primary consideration is wholesome, nutritious, simple single item menu like
khichdi, gruel, porridge etc. prepared in community kitchens.
• The need for such activity management has been strongly felt after the Gujarat
earthquake.

Religious Catering

• The religious congregations and feeding is becoming more and more popular.
• We see in Vaisnno Devi, Amarnath, Sikh Guru Purav, meals are provided in huge
numbers from make-shift kitchens.
• In some places it is a matter of all the meals 365 days a year like T-series langar at

Vaishno Devi / Pondicherry Ashram / Gurudwara Sahib Langar

• The cooking involves unusually large pots and pans specially designed with compatible
cooking range.
• The kind of cooking involves rare experience and managerial skill from fund
procurement to materials management (purchasing, receiving, storing and issuing).
• The related services like fuel, electricity, labour, water and distribution and
management of crowd, dishwashing etc. can pose serious challenges.
• Mass feedings are connected to disasters like food poisoning and similar accidents.
• Sanitizing and sterilisation of pots and pans is of utmost care.

COMMERCIAL AND NON-COMMERCIAL DIFFERENCE

1. Profit Versus. Non-profit: Commercial restaurants operate on a for-profit basis.
Although institutions hosting non-commercial foodservice are usually operated as
non-profits, the food service operations themselves may be for-profit companies. This
is especially common when franchises such as McDonald's and Pizza Hut open
locations in schools or hospitals. These operations tend to be hybrids, combining
established and tested menus, systems and business models with the special

Ihmnotes.in 35 | P a g e
 considerations inherent in non-commercial food service. For example, speedy service
at non-commercial operations, such as university cafeterias, is even more critical than
at fast food restaurants, so layouts and serving stations must be comprehensively
designed and stocked to save time and movement.
2. Financial Viability: A commercial food service establishment, such as a fine dining
restaurant, may aim to provide an elegant dining experience that expands customer
awareness of culinary possibilities, but if the endeavour doesn't make money it will
go out of business. Noncommercially food service ventures should be financially
viable as well, but they may have more leeway if they serve the ends of the institution
as a whole, especially if funds are available to subsidize them. Schools and hospitals
need cafeterias. If a school cafeteria is losing money, the administration will look for
ways to reverse the loss, but it is unlikely to close the cafeteria.
3. Ownership: Commercial restaurants are usually privately owned, whether as
independent operations, chains or franchises. Noncommercially food service
operations may be owned and operated by their affiliate organizations. This occurs
most frequently with independent institutions such as private alternative schools,
which treat food as part of their overall educational message. Large food service
companies such as Sysco and Marriot often run large, streamlined non-commercial
food service operations, and chains and franchises such as Burger King and Taco Hut
may operate their own sections of non-commercial food courts.
4. Beautiful Food: Respected commercial restaurants are often passionate about their
food, providing fine fare and memorable dining experiences. Despite the stereotype
of hospital and school food service operations serving bland, industrial food, some
non-commercial food service venues put attention and care into their offerings and
provide meals that rival restaurant meals. Museum cafeterias, in particular, often work
to create a dining experience that complements its art. Some school and hospital
cafeterias have also begun making the connection between fresh, healthy food and the
pursuit of overall well-being that shapes the missions of these institutions.

Ihmnotes.in 36 | P a g e
Indian concept of hospitality (Values & ethics viz – a vis world),

The Indian concept of hospitality is deeply rooted in the country's culture, traditions, and values. It is
characterized by warmth, generosity, and a strong sense of welcoming guests. Here are some key values
and ethics associated with Indian hospitality compared to the world:

Atithi Devo Bhava (Guest is God) This ancient Sanskrit saying embodies the core of Indian hospitality.
It reflects the belief that guests should be treated with the utmost respect and care, similar to how one
would treat a deity. Indian hospitality is all about being really nice to guests. In India, we think of guests
as super special, almost like gods. When guests come over, we try our best to make them feel at home
and happy.

Indian hospitality is known for its warmth and generosity. Hosts go out of their way to make guests feel
comfortable and well taken care of. It is common to offer food, drinks, and comfortable
accommodations to guests.

Sharing meals is an integral part of Indian hospitality. Guests are often invited to dine with their hosts,
and elaborate meals are prepared to showcase the rich culinary traditions of the region. In India, there
is a strong emphasis on respecting elders and taking care of their needs. This extends to guests as well,
where older guests are given special attention and deference. Indian hosts may introduce their guests to
spiritual or cultural experiences, such as visiting temples, participating in rituals, or attending traditional
performances.

It is common to exchange gifts as a sign of appreciation and goodwill in Indian hospitality. Guests may
bring gifts for their hosts, and hosts often offer parting gifts to their guests.

In India, we're pretty flexible with our plans and schedules when guests are around. We're ready to
change things up to make our guests' visit enjoyable. At the same time, we also give our guests some
space when they want some alone time.

Overall, Indian hospitality is about being kind, respectful, and making our guests feel like they're part
of the family. It's a tradition that we're proud of and that makes our guests' experiences in India really
special.

Comparing these values and ethics to the world:

Many of the values associated with Indian hospitality, such as respect, generosity, and making guests
feel welcome, are universal. These values are not unique to India but are shared by people from various
cultures around the world. While the core principles of hospitality are universal, the specific customs
and traditions associated with hospitality can vary significantly from one culture to another. For

Ihmnotes.in 37 | P a g e
example, the way guests are greeted, the types of food served, and the rituals involved can differ widely.
India's diverse regional cultures and traditions mean that there can be variations in hospitality practices
within the country itself. For instance, the customs in North India may differ from those in South India.

Overview of F & B Service in India

Food and Beverage (F&B) service in India is a dynamic and rapidly evolving industry that plays a
crucial role in the country's hospitality sector. With its rich culinary heritage and diverse food culture,
India offers a wide range of dining experiences, from street food stalls to fine-dining restaurants. Here's
an overview of F&B service in India:

• Cultural Diversity: India's diverse culture is reflected in its cuisine. Each region has its unique
culinary traditions, ingredients, and flavors. North India, South India, East India, West India,
and the Northeast all offer distinct food experiences. This diversity is a significant factor in the
F&B service industry, as restaurants often specialize in regional cuisines.

• Street Food: India is famous for its street food culture, which includes dishes like chaat, dosa,
vada pav, and kebabs. Street vendors and food carts are an integral part of F&B service,
providing affordable and flavorful options to a wide range of customers.

• Traditional Restaurants: India boasts a vast number of traditional restaurants that serve
authentic regional cuisines. These restaurants often focus on family-style dining and are known
for their hospitality.

• Fine Dining: In major cities like Mumbai, Delhi, Bangalore, and Kolkata, there is a growing
trend of fine-dining restaurants offering international and fusion cuisines. These establishments
prioritize presentation, ambiance, and customer experience.

• Hotel Dining: Many hotels in India offer a range of dining options, including all-day dining,
specialty restaurants, and room service. These establishments cater to both tourists and business
travelers.

• Catering Services: Catering plays a vital role in India's F&B service sector, serving events
such as weddings, corporate gatherings, and religious ceremonies. Caterers offer a wide variety
of menus to accommodate different preferences.

Ihmnotes.in 38 | P a g e
 • Beverage Culture: India has a diverse beverage culture, encompassing traditional drinks like
chai and lassi, as well as international beverages like coffee and cocktails. Bars and lounges are
popular, and there is a growing interest in craft cocktails and locally brewed beers.

• Food Delivery and Online Ordering: The rise of food delivery apps like Zomato, Swiggy,
and Uber Eats has transformed the F&B service landscape. These platforms connect customers
with restaurants and have greatly increased the accessibility of food options.
• Health and Dietary Preferences: Indian consumers are increasingly health-conscious, leading
to a rise in demand for healthier food options, vegetarian and vegan choices, and dietary
accommodations. Many restaurants now offer menus catering to these preferences.

• Innovation: Despite challenges, the industry continues to innovate. Indian chefs and
restaurateurs are experimenting with fusion cuisines, molecular gastronomy, and farm-to-table
concepts to offer unique dining experiences.

• Traditional vs. Modern: The F&B industry in India caters to both traditional and modern
tastes. While traditional restaurants serve authentic dishes with traditional methods, there is
also a growing trend of modern, fusion, and international cuisine restaurants.

• Quick Service Restaurants (QSRs): Fast-food chains and QSRs have gained immense
popularity in India. Brands like McDonald's, Domino's, and KFC have a significant presence,
offering a quick and convenient dining experience.

Ihmnotes.in 39 | P a g e