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Food and Beverage Industry Overview

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F&B Sector

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The Food and Beverage sector refers to businesses that prepare meals, snacks, and beverages to customer order for immediate consumption on and off the premises.

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Farm-to-Table

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A social movement which promotes serving local food at restaurants and school cafeterias, preferably through direct acquisition from the producer.

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Food Cost Percentage

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A ratio that compares the cost of ingredients (food inventory) used to prepare a dish to the revenue that the dish generates. Typically, an ideal food cost percentage is around 28-32%.

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Culinary Tourism

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Also known as gastronomy tourism, it refers to the pursuit of unique and memorable eating and drinking experiences.

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Mixology

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The art and science of making cocktails, which includes both traditional and innovative drinks.

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Sommelier

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A trained and knowledgeable wine professional, usually working in fine restaurants, who specializes in all aspects of wine service.

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Craft Beer

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Beer made in a traditional or non-mechanized way by a small brewery.

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Menu Engineering

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The process of analyzing and strategically designing a menu to maximize a restaurant's profitability.

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Occupancy Rate

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A metric used to measure the percentage of available dining space that is being used. It is calculated by dividing the total number of occupied tables by the total number of available tables.

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Cuisine

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Refers to a style or method of cooking, especially as characteristic of a particular country, region, or establishment.

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Cross-Contamination

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The process by which bacteria or other microorganisms are unintentionally transferred from one substance or object to another, with harmful effect.

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Farmers' Market

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A physical retail marketplace intended to sell foods directly by farmers to consumers.

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Food Miles

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A term which refers to the distance food is transported from the time of its production until it reaches the consumer.

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Organic Food

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Food produced by methods that comply with the standards of organic farming, primarily without the use of synthetic pesticides and fertilizers.

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Food Safety

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The conditions and practices that preserve the quality of food to prevent contamination and foodborne illnesses.

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Tasting Menu

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A collection of several dishes in small portions, served by a restaurant as a single meal.

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Hospitality Marketing

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The marketing practice centered on the creation and delivery of value to satisfy the needs of a target market in the hospitality industry.

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Yield Management

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A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue from a fixed, perishable resource.

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Veganism

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A lifestyle choice to abstain from consuming or using animal products and by-products for ethical, environmental or health reasons.

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Franchise

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A type of license that grants a franchisee access to a franchisor’s proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business name.

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Michelin Star

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A rating system used by the red Michelin Guide to grade restaurants on their quality with 1, 2, or 3 stars. Restaurants with these stars are considered of a particularly high standard.

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Beverage Cost Percentage

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A profitability metric that compares the cost of beverages sold to total beverage sales, similar to food cost percentage, an ideal beverage cost is around 18-24%.

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Upselling

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A sales technique where the seller invites the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.

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Locavore

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A person whose diet consists only or principally of locally grown or produced food.

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Molecular Gastronomy

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A subdiscipline of food science that seeks to investigate the physical and chemical transformations of ingredients that occur in cooking.

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Ethical Eating

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Food choices that are made with mindfulness of their ethical implications, including animal welfare, environmental sustainability, and fair labor practices.

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Alcohol Licensing

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Regulatory measures and certifications that allow an establishment to legally sell and serve alcoholic beverages.

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In-Venue Experience

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The overall experience of a customer within a food and beverage establishment that encompasses the ambiance, service quality, entertainment, and more.

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Gluten-Free

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A dietary need where individuals do not consume gluten, a protein found in wheat, barley, and rye, often due to celiac disease or gluten intolerance.

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Economies of Scale

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The cost advantage that arises with increased output of a product, seen in the food and beverage industry as larger operations can reduce their costs per unit.

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Waste Management

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The process of treating solid wastes, and includes the collection, transport, processing or disposal, managing and monitoring of waste materials.

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Seasonality

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Variation in business volume and customer flow throughout the year, often influenced by weather, holidays, and local events.

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Pairing

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The process of combining certain foods with specific beverages to enhance the dining experience.

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Prix Fixe

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A French term that translates to 'fixed price' and refers to a menu with a predetermined set of courses offered at a set price.

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Shareable Plates

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Menu items intended for group dining that encourages sampling multiple dishes rather than individual portions.

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Clean Eating

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A dietary approach that focuses on consuming whole foods in their most natural state and avoiding processed and refined foods.

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Gastro Pub

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A bar and restaurant that serves high-end beer and food.

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Zero Waste Cooking

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A concept in food preparation where the goal is to use all parts of an ingredient to minimize food waste.

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