Casual Dining Segment Overview example

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Casual Dining Segment Overview


Introduction and Overview
I. Service, Staffing, Marketing, Finance and Technology
II. Management Functions in Casual Dining Segment
III. Service Quality Management

Introduction and Overview

Food and beverage industry is the industry that comprises all companies that are involved in raw food materials processing, packaging and distribution (Global Edge, 2017). The industry’s products and services include fresh and prepared foods, packaged foods, alcoholic and non-alcoholic beverages. Food and beverage industry subsectors can be classified according to the type of products they produce, i.e. bakeries, confectionery, dairy and meat products etc. The industry also includes food and beverage service sector that provides service of food prepared for customers at food and beverage outlets, such as restaurants, bars and cafés. In UAE, food and beverage market actively grows and develops having reached $12.2 billion in size in 2016 (KPMG, 2017). By 2018, the market is expected to be worth $13.2 billion primarily due to growing demand for ready-cooked meals and increasing foreign investment in the industry (KPMG, 2017).

Importance of the industry is mostly determined by the fact that it satisfies need of humans in nutrition. Besides, experts see exceptional role of the industry in possibility to combat obesity problem, as well as other nutrition-driven health problems, such as diabetes. As pointed out by Koplan and Brownell (2010), food and beverage outlets may influence their guests’ nutritional preferences to promote healthier food choices and lifestyle. The Foundation (2017) supports this claim and adds that improving the nutritional quality of products and increasing availability of healthier food options has to be the main focus of the companies operating in the industry.

I. Service, Staffing, Marketing, Finance and Technology

Restaurant industry may be further segmented into quick-service, casual-dining, fast-casual, and fine-dining sectors (Dziadkowiec & Rood, 2015). Casual dining restaurants offer food at moderate prices served in an informal setting (Dziadkowiec & Rood, 2015). Casual-dining restaurants represent a market segment between fast food restaurants and fine dining restaurants. Typically, such establishments provide table service, have a bar with separate bar staff, and offer alcoholic beverages. The sector is mostly constituted by chain restaurants, since, for instance, only 5% of casual-dining restaurants in the U.S. are independents (Dziadkowiec & Rood, 2015). In UAE, the sector is the largest and the fastest growing compared to other restaurant types with estimated size of $600 million (KPMG, 2017).

Dipietro and Partlow (2014) determined the major expectations customers have regarding casual-dining as follows: healthfulness and high quality of food, high service quality, and informal and pleasant atmosphere of the establishment. Service quality is one of the most important factors taken into account by customers, consequently, it is crucial for casual-dining establishments to maintain high standards in this aspect. Quality of services provided is directly connected to human resources management in an establishment. Pratten (2003) claimed that waiting personnel is the most important variable when talking about service …

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