The Rise of Food & Beverage Services in the Hospitality Industry

A beverage is a liquid meant for human consumption intended for consumption. Other than their primary function of quenching thirst, beverages also play significant roles in modern society. Common varieties of beverages contain water, fruit juices, milk and soft drinks.

Over the past decade, the beverage industry has undergone a series of transformations that have impacted both the industry and consumers. The most notable transformations have been in terms of consumer behavior and the industry’s response to those changes. The resulting globalization of the food & beverage industry and resultant emergence of ecommerce sites have created new challenges for beverage companies that are seeking to grow their businesses internationally.

Companies attempting to respond to the new digital transformation need to address two major issues. First, they need to determine the appropriate manner in which to adjust their business models to reflect the new digital technologies. Second, they need to determine the appropriate legal framework to address trademark infringement claims that may arise as a result of their business conducting business online. As we will see, the second challenge is quite parallel to the first challenge faced by many companies wishing to conduct business online. This is why it is important to consider input from leading experts in the ecommerce space before taking the steps needed to respond to this new digital transformation.

Leading food & beverage industry experts provide important context on the meaning behind the words “online eating” and “ecommerce.” According to them, the term has two distinct meanings, both of which are being used increasingly often in the news. On one hand, the term describes technological innovations that allow individuals to order take-out food items or services from a vending machine without ever leaving the house. On the other hand, the term “ecommerce” refers to a new form of business activity that is defined by a single term, such as “virtual shopping.” Regardless of the exact meanings, both terms are being increasingly used in the news and by the media to describe new business concepts and ecommerce activities.

As is true with many industry terms (such as “green tourism”), the term “ecommerce” may actually have more than one definition. The two most commonly used definitions in the US are: electronic commerce (or internet commerce) and electronic food & beverage sales. These two definitions generally overlap, but not necessarily do they always mean the same thing. The terms “ecommerce” and “digital marketing” are often used interchangeably, although the former refers more to marketing strategies, while the latter more to specific technological platforms such as ecommerce storefronts. The term “digital marketing” is increasingly being used to refer to any marketing tool that utilizes technology to transform the consumer experience via interactive screens, websites, emails, mobile devices, and other similar technological tools. This includes everything from interactive games to digital signage to digital coupons.

For decades, food & beverage operations in the hospitality industry have relied on newspapers and direct mail to get their name out. Now, the trend is moving toward online marketing. This shift is partially due to a need for stable advertising dollars, but it is also because many beverage companies are beginning to feel the pressure from the larger foodservice industry to begin to offer a broader range of services beyond simply dining.

Resolving to become more inclusive can be a challenge for food & beverage operations, especially considering the current state of the global economy. But with a strong marketing plan in place and the right tools for engaging customers, hospitality companies should be able to capitalize on changes in the global marketplace. One way to accomplish this is to begin to use the term “escoffier” more frequently. A resounding majority of consumers will know what this term means, but many of them may not have a clear image of what escoffier means. Developing an image that ties the two together and makes escoffee and food & beverage operations visible to customers can have tremendous benefits for any business.

In recent years, food & beverage operations have enjoyed a surge of popularity, but as the recession intensifies and economic pressure mounts, it is likely that this popularity will fizzle out as traditional advertising strategies become more expensive. If the beverage industry wants to continue to grow, it’s important to come up with creative new ways to connect to consumers and businesses. Creating brand loyalty and building a strong reputation online is essential in the highly competitive food & beverage market.