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BSHM 1-2D
Differences between Commercial and Non-Commercial Food Service
Ownership of Business
Commercial eateries are usually either independently - owned or are part of a chain or franchise. In the case of corporate-owned chain fast food restaurants, they operate with branded menu items and floor plans. Full-service restaurants are sometimes owned by chains as well. Non-commercial 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.
How they are funded
Commercial food service operations are normally funded by profit. They depend upon profits to keep them in business. Both fast food and fine dining eateries must use financial expertise to be viable. Non-commercial food service is slightly different. If the organization where they are located benefits from its operation, the institution may subsidize the business or help funding it.
The Dining Experience
The dining experience, sometimes a combination of food quality, food presentation and ambiance, is a primary consideration of commercial food service establishments. Non-commercial operations are concerned with putting forth a good tasting product in a short time because the consumer in these places is generally on a schedule. Some of the fast food and chain restaurants are showing up in traditionally non-commercial areas such as hospitals and schools. In these cases, the commercial operations take their cue from the non-commercial and provide rapid and easy access building plans.
Types of Commercial Food Service
Types of Non-Commercial Food Service
Size of operations
Restaurants
Restaurants are of several different types: Casual dining (Midscale operations specialize in providing moderately proceed foods in a casual atmosphere while Fine dining (Upscale operations) provide luxury food items in formal environments. Ethnic restaurants provide food popular in certain nation while themed restaurants provide themed food in a themed setting
Catering and banquets
In the catering and banquet segment, the menu is chosen by the host of an event for a specified number of people. Caterers may have their own facility or may also be located in another business, such as hotel or a convention center, and provide food service to that business's customers. They may also do off-site catering, which involves preparing food at one location and delivering it to the guest's location especially at events.
A non-commercial food service establishment is embedded in an organization where food and beverage is not the primary business focus, such as in healthcare, education, the military, and transportation.
Schools and Universities
They provide on-campus food services to students and staff.
According to the Agricultural Marketing Resource Center, commercial food service operations account for 77 percent of all food expenditures away from the home while Non-commercial food service sales make up only 23 percent of revenue spent by dining out of the home.
Types of Non-Commercial Food Service
Types of Commercial Food Service
Food Service Operations
Health-care facilities
These are hospitals and long-term care facilities (including nursing homes and independent living centers for seniors, known as assisted living) offer food service.
Business and industries
They offer food service as a convenience to employers and benefit to employees in manufacturing or service industries. Examples include cafeterias, executive dining rooms, and vending machines.
A commercial food service establishment is that whose main purpose is creating and selling food and beverage.
Fast Food and Fast Casual operations
Fast food and Fast casual operations specialize in providing speedily delivered and inexpensive meals to the largest number of people. There is little diversity in the meals that such organizations have.
There are two types of food service operations. Commercial food service operations are organizations that sell food solely to make profits while Non-commercial food service are organizations which serve food as a support role to their institutions such as hospitals and schools. Fast food operations and restaurants are all examples pf commercial food service operations.