Restaurant, Food And Beverage Sectors In Tourism Industry

1632 words - 7 pages

Executive Summary
This report depict the information about restaurant, food and beverage sectors in tourism industry. As everyone knows that modern era is an era of globalization and these sector attract the tourists.

1.0 Introduction
Australia is among the most developed and industrialized countries of the world and supported by various industries. One of the industry sectors of Australia is food & beverage and restaurants. (Apted 2006)
1.1Scope
Food, beverage and restaurants are the most leading business in this modern era. Among the tourism industry it is one of the most significant industries that are contributing to Australian economy very significantly.
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(Global Edge)
2.1 Subsector
The subsectors of food, beverage and restaurant industry are accommodation, hotels and motel. The purpose of hotels to provide travelers with shelter, food, refreshment and other services and other good. (Daniel F. Wheeler, 2006)

3.0 Basic Function
3.1 Sector
These industries have been very successful at attracting inbound tourist in Australia through their product innovation and superior services. (Battersby and Ewing, 2005) They are not only attracting tourists but also fulfilling the local needs of the customers. Lots of people are being employed by this sector and contributing to Australian economy very significantly. Not only tourism industry based on this many supporting industries have been built with the growth of it. Many R&D centers have been established in order to support this industry sector. There are plenty of responsibilities of staff members like they must be excellent communicator. The main function of food and beverage sector is to provide food and drinks to the hotel’s guest.
3.2 Subsector
Mostly minted hotels and restaurants provide big and convenient room with fully air conditioner in the summer. They offer steamboat breakfast and dinner. They serve mineral water in disposals.

4.0 Organizational structure
4.1 Sector
Industry structure is characterized by oligopolistic in food & beverage but monopolistic competition in restaurant. There is some level of product differentiation in both aspects of industry food & beverage and restaurants. (Coriolis, 2010) They need new product development and product differentiation in order to earn some level of economic profit. But they have to continue this strategy incessantly in order to maintain their level of profit for long term. The entry barrier in this market is virtually non-existent because anyone can start business by getting license from government. However, there is some level of concentration because of brand image by some established firms like Nestle in food industry. (IBIS, 2003) Restaurants have very specific staffing needs, and their organizational structure must be in line with those needs to function.
4.2 Subsector


5.0 Size and Scale
5.1 Sector
The size of this sector of industry is very big. If we think about only food and beverage on turnover basis it is virtually equal to the size of mining industry of Australia. It is accountable for service and sales income exceeding A$100 billion annually. It comprises 26% of the total manufacturing industry. And for restaurant business is earning 15 billion USD annually. It is expected to grow at rate of 5% annually up to 2015. The productivity of Australia is much higher than those of the other OECD countries. (R&CA, 2008)
5.2 Subsector
There may be as many as 6,807 hotels in Australia. Extrapolating from PwC’s survey findings regarding average employment per hotel would create an overall industry employment figure of 188,000. We estimate the hotel industry’s...

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