ANSWERS|LATEST UPDATE|ALREADY GRADED A+
What does NAFEM stand for? ✔Correct Answer-North American Association of Food Equipment
Manufacturers
4 developments to foodservice contributed by the Romans ✔Correct Answer-1) Developed the
first culinary schools
2) Developed the early recipe books
3) Instituted differentiation of duties in the kitchen
4) Started banqueting services
Distinguishing characteristics of the commercial segments of the foodservice industry ✔Correct
Answer-- Dominated by chains and independent operators
- Patrons have access to many alternatives (competition in the market)
- Intend to create repeat business
- Operators are profit-driven
Distinguishing characteristics of the institutional (non-commercial) segments of the foodservice
industry: ✔Correct Answer-- Encompass non-profits, government funded operations, and even
some for-profit eldercare, healthcare, and correctional facilities
- Provide meals as a supplemental service (not their main offering)
- Profit from foodservice is not a major motivation
- Relative lack of choice
List all the commercial market segments ✔Correct Answer-- QSRs
- Full Service Restaurants
- Recreation
- Supermarkets
- Bars & Taverns
- Cafeterias
- Hotels & Motels
- Convenience Stores
- Other Retailers
List all the institutional market segments ✔Correct Answer-- Business & Industry
- Schools
- Hospitals
- Military
- Vending
- Colleges & Universities
- Nursing Homes
- Airlines
- Other Non-Commercial
Describe QSR market segment ✔Correct Answer-Are commonly chains; usually fast food
Describe Full Service Restaurant market segment ✔Correct Answer-Upscale dining experience
,Describe Recreation market segment ✔Correct Answer-Foodservice operations at theme parks,
stadiums, arenas, or country clubs; customers are usually more interested in the activity than the
food
Describe the Supermarket market segment ✔Correct Answer-Devoted space for hot and cold
foodservice operations
Describe the Bars & Taverns market segment ✔Correct Answer-Primary business is bar sales and
food is secondary
Describe the Cafeteria market segment ✔Correct Answer-Usually chain operations; popular with
college students, large families, and retirees
Describe the Hotels & Motels market segment ✔Correct Answer-Most revenue comes from guests,
banquets, and conventions; breakfast and dinner are the major meals
Describe the Convenience Store market segment ✔Correct Answer-Sell mostly pre-prepared food
Describe the Business & Industry market segment ✔Correct Answer-Manufacturing concerns,
financial institutions, and utility companies that provide foodservice facilities at their companies
Describe the Schools market segment ✔Correct Answer-Public schools receive funding for assisted
meals, might get free USDA commodities like milk, butter, ground beef
Describe the Hospitals market segment ✔Correct Answer-All public and private critical and long
term care facilities; patient feeding, staff and visitor feeding in cafeterias, restaurants, coffee shops,
and snack kiosks
Describe the Military market segment ✔Correct Answer-Non-deployment base feeding of military
personnel in the army, navy, air force, marines, and coast guard
Describe the Vending market segment ✔Correct Answer-Grab-and-go units at business schools,
colleges, etc...
Describe the Colleges & Universities market segment ✔Correct Answer-Dorm board plan feeding,
cafeterias, pubs, carts and kiosks, and food courts
Describe the Nursing Homes market segment ✔Correct Answer-Aging popular is growing, creating
a want for upscale senior housing options and meal support in healthcare facilities
Describe the Airlines market segment ✔Correct Answer-Specialized equipment needed for storing,
preparing, and dining; usually provides meals or snacks for customers
Name three ways that commercial restaurant segments can be categorized or subdivided ✔Correct
Answer-Ownership - independent, franchisee-owned, corporate-owned
Service Type - customer service, table to full service, cafeteria service, drive up, etc
Price Point or Sophistication - fast food, fast casual, family dining, casual dining, fine dining, etc
,Menu Type - sandwich, chicken, pizza, seafood, ethnic, etc
This can also be remembered as the 4 M's (Management, Method, Money, and Menu)
In what institutional segments are contract management firms most dominant? ✔Correct Answer-
Industrial, Universities, and Healthcare
List all the industry mega-trends and how they will impact all foodservice operators in the years to
come ✔Correct Answer-- Food inflation
- Technology
- Healthy Eating - healthy eating alternatives is here to stay; issues of obesity and weight loss are also
here to stay
- Food Safety - restaurants continue to be under the scrutiny of people worried about foodborne
illness
- Energy Conservation - high energy cost is an issue and continues to rise; operators will want to
invest in technology that offers energy savings
- Water Conservation - availability of water is limited to many areas west of the Mississippi river;
water conservation is a motivator from lots of people
- Labor Issues - hard to retain, train, and motivate people; pressure to increase minimum wage
- Sustainability
- Industry Demographic Shifts
- Speed of Serving
- Millennial Generation
- Greater Competition
- Changing Consumer Tastes
- Changing Channels of Distribution
Name some of the current operator segment trends and how they will impact their respective E&S
purchases ✔Correct Answer-- Quick Service Restaurants - Adding salads and healthy options
- Full Service Restaurants
- Recreation
- Hotel / Motel Foodservice - Using buffets to reduce labor
- Supermarkets
- C-Stores - More fresh foods, better quality
- Universities - More cook to order, more ethnic menus
Identify the five basic reasons for equipment or supplies purchases ✔Correct Answer-New
Construction - Equipment/supplies purchased to outfit a new restaurant or institutional foodservice
operation
Major Remodel - Equipment/supplies purchased for a remodeled kitchen or dining room
Menu Change - Equipment/supplies needed to add a menu item or revamp an existing menu
Energy or Technology Upgrade - Equipment purchased to reduce energy use or radically improve
operating efficiency
Replacement - Equipment purchased to replace an existing unit, which is broken, dysfunctional, or
incapable of performing its function. Supplies purchased to replace like items which were broken,
lost, or stolen
, What do contract foodservice management firms do? ✔Correct Answer-Provide foodservice if the
parent organization isn't qualified or willing to do the job
What are the major advantages of using independents sales reps to sell product? ✔Correct
Answer-- Commission is easier to manage than payroll
- Better geographic coverage
- Reps are often very 'close' to the market
- Reps offer training / installation services
What are the major disadvantages of using independents sales reps to sell product? ✔Correct
Answer-- Divided loyalties
- Limited accountability
Why has the role of the dealer changed? ✔Correct Answer-Internet
Selective Distribution - Manufacturers and dealers partner to take market share together, excluding
non-selected dealers and manufacturers
What services does a buying group offer? ✔Correct Answer-- Collective volume for better buying
programs
- Collective marketing / training
What functions does a dealer / fabricator perform for chains? ✔Correct Answer-- Consolidate all
equipment and supplies, plus the custom fabrication
- Typically provides complete installation
Why would a manufacturer use a distributor instead of a rep? (or vice versa) ✔Correct Answer-
Stocking Distributor - Take title to the goods and provide a service components
Independent Reps - Don't take title to the goods and are paid completely on commission
What is the key difference between a broadliner and an E&S dealer? ✔Correct Answer-Broadliner
volume is 95% food, not equipment or smallwares, so their focus is entirely different. E&S is an
ancillary offering
What are the primary roles of foodservice design consultants? ✔Correct Answer-- Efficient layout
and design
- Efficient equipment and smallwares selection
- Appropriate equipment and smallwares specifications
What is selective distribution? ✔Correct Answer-Manufacturers and dealers partner to take
market share together and exclude non-selected dealers and manufacturers
Who does NAFEM serve? ✔Correct Answer-E&S manufacturers
Who does MAFSI serve? ✔Correct Answer-E&S reps
Who does FEDA serve? ✔Correct Answer-E&S dealers
Who does FCSI serve? ✔Correct Answer-E&S design consultants