From humble beginnings of guilds and roadside inns in the early Middle Ages to the first à la carte restaurant opening in France in the 18th century up until today’s multi-trillion-dollar industry, the food and beverage service industry has grown to become a major factor in shaping the world we live in.
Influential restaurateurs and bar owners have a huge impact on consumption trends and can help shape the future of food. Never before has the sector known such rapid changes in consumer behavior, as in these times of digitalization, social media, and growing ecological awareness. The challenges and opportunities ahead are manifold.
What is the Food and Beverage Service Industry?
This article aims to define "What is the food service industry?" and provide an overview of what’s at stake in F&B as we move into a new decade full of uncertainties.
Food Service Industry Definition
The food supply chain generally starts with agricultural businesses producing the ingredients that are then processed and served to individual consumers. Therefore, the food and beverage (F&B) service industry is the last step of a long chain, ending with a meal on a plate or a drink in a glass.
Full-service restaurants, bars, pubs, fast food outlets, caterers, and other places that prepare, serve, and sell food or drink to the general public are all part of the industry. The choice of self-service, full-service, and take-away means many service delivery options.
While the different categories of outlets serve a variety of different customer segments, and each has its particular challenges. Recent developments are having a global impact on all players in this space.
Development of the Modern Food Service Industry
Global awareness about the harmful impact of our current food system on climate and world hunger is rapidly increasing. As a result, the opinions and behaviors of consumers around the globe are changing – and the industry must change with it.
A growing number of restaurant patrons place great importance on organic and local production of their meals’ ingredients. There are many examples to show a shift in customer experiences and expectations.
Many diners are also becoming more conscious about the impact of what they eat on their health. Finding vegan, vegetarian, gluten- and dairy-free options on menus is already more of a norm than an exception. This shift in interests combined with the advent of food delivery apps, social media food influencers, and self-order kiosks has resulted in an industry at a crossroads.
Businesses will have to continuously adapt to these growing new F&B industry trends. Additional pressure on incumbent food corporations comes from a soaring number of F&B start-ups. Agile and innovative, these newcomers are eager to disrupt an industry that established behemoths have dominated for a long time.
How Big is the Food Service Industry?
The global food service industry has demonstrated significant growth in recent years. It's a major contributor to economic development worldwide, making up more than 4% of the world’s GDP. Across all continents, F&B service outlets are part of the daily lives of billions of customers as a place to get food or spend quality time with their friends and family.
The following section gives some current statistics that showcase the tremendous impact of the industry and provide insight into future growth and developments.
Key F&B Industry Statistics 2025
- In 2023, the market was valued at approximately USD 3.1 trillion. Additionally, projections indicate that by 2030, the industry will reach around USD 3.79 trillion, growing at a compound annual growth rate (CAGR) of 3.0% from 2024 to 2030. (Grand View Research)
- 15.9M jobs in the United States restaurant industry alone by the end of 2025
- Every day, McDonald’s alone serves 69 million customers.
- Online food ordering reached 760 million users in 2024, a 20% increase year-over-year.
- The global culinary scene boasts approximately 3,500 Michelin-starred restaurants, including 146 establishments with the prestigious three-star rating.
F&B Service Industry Growth
The global food and beverage (F&B) service industry is experiencing notable growth, driven by population increases and rising global wealth. As of 2024, the world's population stands at approximately 8 billion people. The United Nations projects this number will increase by 2 billion by 2050.
Global wealth is also projected to increase by about 26%, with emerging markets accounting for up to one-third of that hike. These factors will inevitably lead to a substantial increase in worldwide food consumption.
The F&B service industry will continue to benefit from this growth. More specifically:
- The F&B service market size is expected to grow at a rate of 5.9% annually steadily.
- The global food service market size should reach USD 4.88 trillion by the year 2028
- The surge in dining-out activity in emerging markets will make up much of this growth.
- Global consumption is forecast to reach $62 trillion by 2025, twice its 2013 level, with half of this increase coming from emerging markets countries.
These projections underscore the robust expansion of the F&B service industry, fueled by demographic shifts and economic development, particularly in emerging markets.
What are its Different Sectors?
The Food & Beverage (F&B) Industry encompasses all businesses producing, processing, packaging, distributing, and serving food and drinks. It includes restaurants, cafes, bars, catering services, food manufacturing, agribusiness, grocery stores, and beverage companies. The industry plays a crucial role in the global economy, adapting to trends like sustainability, health-conscious dining, and technological advancements in food production and delivery.
From the snack bar at the local cinema to the gastronomic restaurant in a Hong Kong skyscraper, the F&B service industry offers a lot of diversity. Generally, there are two categories: commercial food service and non-commercial food service.
Commercial Operators
Commercial operators have the primary goal of selling F&B products. They represent the main segment of F&B operations.
Full-Service Restaurants
Full-service restaurants provide a complete dining experience, where guests are seated and served by waitstaff. These establishments typically offer a varied menu, higher-quality ingredients, and a focus on ambiance and customer service. They range from upscale fine dining to casual eateries catering to families and groups.
- Fine Dining Restaurants: These establishments offer a high-end dining experience with gourmet cuisine, elegant decor, and meticulous service. Skilled chefs often prepare meals using premium ingredients; reservations are typically required.
- Family Restaurants: Designed to accommodate diners of all ages, family restaurants provide a relaxed atmosphere and a broad menu with kid-friendly options. They focus on comfort, affordability, and large portions suitable for sharing.
- Ethnic Restaurants: These restaurants specialize in cuisines from specific cultures or regions, often emphasizing authenticity in their ingredients, preparation methods, and ambiance. They may range from casual eateries to fine dining establishments.
- Casual Restaurants: Offering a balance between quick service and full-service dining, casual restaurants provide a comfortable setting with moderately priced meals. The atmosphere is relaxed, and guests are served at their tables without the formality of fine dining.
Catering & Banqueting
Catering and banqueting businesses focus on providing meals and drinks for events, gatherings, and special occasions. These establishments may operate from a central kitchen, partner with event venues, or offer on-site meal preparation.
- Catering Companies: These businesses specialize in preparing and delivering meals for corporate events, weddings, and private parties. Some caterers offer full-service packages, including staffing, rentals, and event planning.
- Conference Centers: Designed for business meetings and conventions, conference centers offer dining and catering options for attendees. Meals are typically served buffet-style or as plated courses, with options for coffee breaks and networking receptions.
- Wedding Venues: These locations provide dedicated spaces for wedding ceremonies and receptions, often featuring in-house catering or partnerships with external caterers. Menus can be customized to suit the couple’s preferences and guest count.
- Festival Food Coordinators: These professionals manage the selection and organization of food vendors at large-scale events such as music festivals, fairs, and street markets. They ensure a diverse range of food offerings and maintain health and safety standards.
Drinking Establishments
Drinking establishments focus primarily on serving alcoholic beverages, though many also offer food, entertainment, and social experiences. They range from casual pubs to lively nightclubs, each catering to different clientele and atmospheres.
- Bars: These establishments specialize in a wide selection of alcoholic drinks, including cocktails, beer, and wine. Bars may feature themes, live music, or mixology-focused menus, attracting both casual drinkers and nightlife enthusiasts.
- Pubs: Originating from British public houses, pubs offer a welcoming environment where patrons can enjoy drinks and hearty food. Many are community-oriented, featuring traditional decor, draft beers, and occasional live entertainment.
- Nightclubs: Nightclubs are late-night venues that emphasize music, dancing, and socializing. They often feature DJs, light shows, and VIP sections, catering to a younger crowd looking for an energetic atmosphere.
- Cabarets: Combining entertainment with dining and drinking, cabarets feature live performances such as music, comedy, burlesque, or theatrical acts. These venues offer a more immersive experience than typical bars or nightclubs.
Quick-Service Restaurants (QSRs)
Quick-service restaurants focus on speed, convenience, and affordability. They often feature standardized menus, limited table service, and high-volume sales.
- Drive-Through Outlets: These establishments prioritize speed and efficiency by allowing customers to order and receive food without leaving their vehicles. They often operate with multiple drive-through lanes, digital menu boards, and streamlined kitchen operations to handle high traffic.
- Outlets Within Retail Stores: These quick-service locations are embedded inside larger retail stores, shopping malls, or supermarkets. They provide shoppers with convenient meal options while they browse, often featuring limited menus tailored for grab-and-go consumption.
- Fast Food Restaurants: Known for their standardized offerings and rapid service, these restaurants typically feature counter service, limited seating, and a focus on affordability. Their menus include popular, easily prepared items like burgers, fries, pizza, and fried chicken.
Limited-Service Restaurants (LSRs)
Limited-service restaurants balance speed and quality by offering minimal table service, allowing customers to place orders at a counter, kiosk, or online.
- Self-Service Restaurants: These establishments rely on customers serving themselves, often through buffet stations, salad bars, or automated kiosks. They reduce labor costs while providing variety and customization options.
- Takeaways: Focused on food for off-premises consumption, takeaway restaurants prepare meals quickly for customers who pick up their orders. They may have minimal seating or none at all, catering to busy consumers who prefer to eat at home or on the go.
- Food Trucks: Mobile restaurants that operate from specially equipped vehicles, serving a variety of cuisines. They offer flexibility in location, frequently appearing at events, business districts, and street food markets. Food trucks emphasize creativity, affordability, and fast service while operating with lower overhead costs than brick-and-mortar restaurants.
- Ghost kitchens: Also called cloud kitchens or dark kitchens, these businesses prepare food exclusively for online orders via delivery apps like Uber Eats, DoorDash, or Just Eat. They often house multiple restaurant brands in one location, maximizing efficiency and reducing overhead costs. Unlike vending machines, ghost kitchens still require human chefs and kitchen staff, though some are integrating automation for food prep.
Non-Commercial Operators
Non-commercial food service establishments serve F&B products, either as an addition to other services or for non-profit reasons.
Institutional Food Service
Institutional food service refers to large-scale food operations serving non-commercial meals. These establishments prioritize efficiency, nutrition, and meeting the dietary needs of a specific population, such as patients, students, employees, or travelers. Unlike traditional restaurants, institutional food service is often subsidized or included as part of a larger service package.
- Hospitals: Hospital food service focuses on providing nutritionally balanced meals tailored to patients' medical needs. These operations also cater to staff and visitors, offering cafeteria-style dining and grab-and-go options. Special dietary accommodations, such as low-sodium or allergen-free meals, are common.
- Educational Institutions: Schools and universities provide meal services to students and faculty, often through on-campus dining halls, cafés, and meal plan programs. These services range from basic cafeteria-style options to gourmet and international cuisines, with an increasing focus on sustainability and healthy eating.
- Corporate Staff Cafeterias: Many large businesses and office complexes operate in-house cafeterias to provide employees with convenient meal options. These facilities may offer subsidized meals, diverse menu choices, and wellness-oriented dining to improve workplace productivity and satisfaction.
- Cruise Ships: Cruise ship food service operates on a large scale, offering multiple dining venues ranging from buffets to fine dining restaurants. These operations must manage high volumes of passengers while ensuring food quality, variety, and strict safety standards at sea.
- Airports and Transportation Terminals & Operations: These high-traffic locations provide a mix of fast food, sit-down restaurants, and grab-and-go kiosks to accommodate travelers on tight schedules. Food service at airports must balance speed and quality while meeting security and logistical requirements.
Accommodation Food Service
These services are offered within hospitality establishments such as hotels and resorts. These services range from fine dining restaurants to automated vending solutions catering to overnight guests and visitors.
- Hotel Restaurants and Bars: Many hotels feature on-site restaurants and bars, offering guests convenient dining options without leaving the premises. These establishments may range from casual eateries to high-end dining experiences, often influenced by the hotel's theme or location.
- Room Service: Room service allows guests to order meals delivered directly to their rooms, providing a private and convenient dining experience. This service is typically available in upscale hotels and may operate 24/7, featuring a curated menu suited for in-room dining.
Vending Machines and Automated Food Service
These self-service food solutions offer quick, ready-to-eat options in hotel lobbies, office buildings, and public areas. With technological advancements, vending machines now provide fresh meals, barista-quality coffee, and gourmet snacks, reducing the need for staffed food service operations.
- Fresh Food Vending Machines: Companies like Farmer's Fridge provide machines stocked with salads, sandwiches, and healthy snacks, ensuring fresh options for consumers on the go.
- Hot Meal Dispensers: Innovations such as 24/7 pizza vending machines offer freshly prepared pizzas in under three minutes, catering to late-night and early-morning cravings.
- Gourmet and Specialty Items: Vending machines now offer high-quality products like cheese plates or fondue and raclette cheese machines, as we’ve seen in Switzerland, providing artisanal selections around the clock.
- Seafood Vending Machines: In Australia, initiatives are underway to sell fresh seafood through vending machines at locations like Port Lincoln Airport, offering travelers convenient access to local delicacies.
- Automated Cafeterias: Modern automats have resurfaced, allowing customers to select and retrieve meals from compartments, combining nostalgia with contemporary technology.
Top Trends in the F&B Industry
We’re seeing a significant paradigm shift in consumers’ attitudes and expectations concerning the food and beverage industry. People are now more nutrition-savvy, prefer sugar-free products, and are generally more inclined to eat healthy food that promotes good health. Consequently, food products are no longer judged by taste or quality alone but by nutritional content, origin, and how they are produced.
These new criteria have forced businesses to innovate the existing food production process and tackle some of the major challenges of the food and beverage market. The whole food industry has been evolving quickly over the past few years (and still is), trying to cope with these changes in consumption habits. In the race to remain competitive, food service businesses are adapting according to the main trends outlined below.
Expansion of Mobile Ordering and Online Sales
The global online food delivery market has experienced significant growth in recent years. In 2024, the market was valued at approximately USD 380.43 billion by Grand View Research. Projections indicate that by 2030, this market will reach around USD 505.50 billion, growing at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030.
This surge is partly attributed to the COVID-19 pandemic, which accelerated the adoption of online food delivery services. In 2024 alone, route opitmization tech company, Routific, reported that delivery revenue worldwide grew by 22.2%, with the United States experiencing a 29% increase.
Looking ahead, the demand for food delivery is expected to continue its upward trajectory. The market is projected to grow at a CAGR of 11.92% from 2024 to 2033, reaching an estimated value of USD 746.55 billion by 2033.
This growth suggests a shift in consumer preferences, with food delivery services becoming increasingly popular and potentially ranking higher among dining options by 2030.
Delivery will gain even more momentum thanks to automation. Companies like Uber Eats and DoorDash have already started trials for their delivery drones or incorporated food delivery robots into their offering, respectively. Businesses that want to stay relevant in this space must develop skills in search engine optimization and delivery applications as primary tools.
Customers are increasingly willing to share their personal reviews on all large sites, which operators should review regularly.
Furthermore, the “ Instagramability” of dishes will grow more important thanks to the increase in Generations Y and Z’s buying power. Making the menu delivery-friendly will also be key. Food that can be transported easily and sustainable options, such as organic and locally sourced products delivered in reusable or compostable packaging ordered through smartphone channels, will drive growth in the future.
For more information on this subject, check out these tips on how businesses can get mobile-food-ready.
Emphasis on Healthier and Sustainable Food Options
A new type of consumer is here: conscious and well-informed about what they buy. The decision to consume a product will be increasingly based on how it was made, where it came from, and what processes were used to produce it. F&B businesses will have to show this new generation of customers that they are invested in creating a more sustainable future. This means more than just implementing lofty marketing campaigns. Every product and service will need to meet the expectations of ethical buyers.
- Recent studies show that 66% of global consumers are willing to pay more for sustainable brands.
- That figure rises to 73% among global Millennials.
These days, consumers are more loyal to a company that supports social or environmental issues and willing to pay more for F&B operations that deliver on their claims.
The growing interest in ethically and organically sourced foods is linked not only to the impact on our ecosystems but also to the impact on consumers' personal health. L.E.K. Consulting’s F&B study found that 63% of consumers are trying to eat healthy most or all of the time. This shift has led to an unprecedented rise in organic food consumption—case in point: the increasing popularity of organic wines in fine dining restaurants. Prepare to see many similar products making their way onto your plates.
In terms of healthy eating, veganism is a trend that has shown a surprising surge in recent years. Recent data indicates a growing interest in plant-based diets, though adoption rates vary. The "Grains of Truth 2024" report reveals that while 68% of people worldwide want to eat more plant-based foods, only 20% do so regularly, down from 23% in 2023. Affordability and taste are major barriers. However, in the UK, the vegan population grew by 1.1 million in 2023, totaling 2.5 million people (4.7% of adults). Globally, Veganuary 2025 saw approximately 25.8 million participants, a significant increase from previous years.
Integration of Technology in Food Production
Emerging technologies such as cellular agriculture, 3D food printing, and vertical farming are being developed to accelerate the transformation towards sustainable food systems.
Technology is transforming food production by enhancing efficiency, sustainability, and quality control. Automation and robotics are streamlining farming and processing, reducing labor costs while increasing precision in harvesting, sorting, and packaging tasks. Precision agriculture, powered by AI and IoT sensors, enables farmers to monitor soil conditions, optimize irrigation, and reduce pesticide use, leading to higher yields and more sustainable practices.
Food safety is also improving with blockchain technology, which enhances traceability and reduces contamination risks by tracking products from farm to table. Additionally, 3D food printing and smart kitchen appliances are revolutionizing how food is prepared and customized, catering to consumer preferences with greater convenience and minimal waste.
Technology in the Food and Beverage Service
Automation and AI are becoming integral in the F&B sector. Innovations like robot food delivery services are being implemented to enhance efficiency and meet consumer expectations for convenience. The more connected people use technology, the more they seek solutions on their phones for decision-making, ordering, paying, sharing, and reviewing.
- Research by BRP Consulting found that 38% of dining experiences now involve smartphone or mobile devices - from initial research to sharing the experience on social media.
- Millennials have shown by their reaction to mobile apps, particularly in the quick service segment, that they seek convenience through technology.
However, technology is not the only thing that is changing how outlets interact with customers. Back-of-house operations are streamlined by applying big data and the Internet of Things (IoT). Here are a few examples:
- Large restaurant chains are already gathering customer data to better understand their demographics, needs, and preferences, ultimately boosting satisfaction and average spending.
- Chipotle has introduced the "Autocado," a robot that cuts, cores, and peels avocados, streamlining guacamole preparation.
- AI-powered voice assistants are being implemented in drive-thrus to improve order accuracy and speed.
- By introducing IoT sensors in their appliances, restaurants can use real-time information to save resources and improve the longevity of their investments.
While some establishments embrace these technologies to reduce labor costs and enhance operations, others are cautious due to initial investment costs and potential job displacement concerns. Therefore, while IoT is making significant inroads, its prevalence depends on individual restaurant strategies and resources.
Main Challenges in the Food & Beverage Industry
Responsible Solutions to Ecological Issues
The excessive consumption of single-use plastics when serving drinks and food and their improper disposal are the major challenges of the future in the F&B service industry. Particularly in the age of food delivery, food businesses will have to step up their game when it comes to using recyclable materials and encouraging proper discarding. What’s more, restaurants and bars should start sourcing their entire supply from sources that do the same. In the long run, there will be no alternative to this school of thought if consumers are to be continuously attracted and satisfied.
Waste management is also a part of this problem. How food businesses use their raw products must evolve to include more responsible solutions. From Starbucks to McDonald‘s, many corporations are opting to ditch single-use plastics in their day-to-day operations, and the hospitality space is no different. Hotels and airlines find themselves with a unique opportunity to impact the effects of global plastic consumption as they often provide disposable products on a mass scale.
Customer Attention to Product Traceability
These days, consumers are paying increasing attention to the ingredients of their food. Distrust in how F&B service businesses source their produce is growing and has given rise to a demand for more “traceability.” Companies are more often than ever being asked to keep reliable data records throughout all production stages. The growing deployment of advanced technology, such as IoT, to help with various tasks from weight measurement to temperature monitoring will be key in tackling this issue.
Public Opinion and Social Media
The amount of information on the internet is truly endless these days. Yet, all it takes for the reputation of an F&B business to get tarnished is one negative post on a social network going viral. Legal steps like defamation lawsuits often prove ineffective as a way to tackle the problem.
“Rating culture” has profoundly changed the character of customer experiences and interactions. Unfortunately, most guests won’t stop to consider the implications of posting a negative review in a situation of momentary discontent. Even worse, some people post absurd reviews that reflect their own strange behavior or some grudge towards the business. To improve the scores, managers may revert to pampering high-profile guests and those who have been critical in the past.
Consequently, guest expectations and additional service offerings to gain positive reviews stimulate each other, ultimately working to the disadvantage of businesses. This challenge will further increase the importance of effective reputation management strategies for F&B businesses.
Why Choose a Career in the Food and Beverage Industry?
Few industries are as diverse and fast-paced as the F&B service sector. In millions of restaurants, bars, and pubs worldwide, customers enjoy new delicious creations by innovative chefs and mixologists every day. Serving as a connector of people across all cultures, the industry is at the center of most human interaction. Everyone needs to eat and drink, so being in the business of providing these services will never go out of fashion. In fact, with the global population pushing ever-evolving consumer opinions and behavior, this places the industry at the forefront of innovation.
Choosing such a career puts you in the perfect position to make an impact on a large scale – and there are plenty of skills that can be acquired along the way. The non-exhaustive list below gives a small idea of how a career in F&B can aid your personal development.
Skills that Working in the F&B Industry Can Teach You
Working an entry-level job in the F&B industry might appear unappealing to some, but the skills you pick up through this experience can be varied and surprising. You will certainly realize the importance of a professional work ethic and many other skills that will make you attractive to your future employers!
Mental Agility
In an F&B service setting, a lack of problems to solve will never be an issue. Whether it is a hair in a client’s plate of pasta, the kitchen equipment not working, or a lack of personnel to cover a shift – it will be down to you to come up with solutions on the hop to ensure guests never find out how truly difficult running a smooth F&B service really is. Additionally, taking care of orders, adding up items for the bill, and remembering daily specials will work wonders for your memory and mental fitness, turning the next Sudoku into a piece of cake.
Emotional Intelligence
F&B service is a people’s business. On a daily basis, you will be facing colleagues in your service or kitchen crew, suppliers, and a multitude of different customers. Dealing with all these different types of interactions, whether it’s a problematic regular guest who always asks ridiculous questions or a head chef who keeps bossing you around at lightning speed, you will always have to find the right way to manage relationships of all types. Eventually, you will learn to adapt your approach and always have the right thing to say. This is the foundation of Emotional Intelligence (EQ).
Multitasking Abilities
Taking orders while clearing tables or preparing multiple dishes while processing incoming orders will have your multitasking skills up and running in no time. There truly is no better way to learn this skill than to get a job in a busy restaurant and deal with everything that’s thrown at you at once.
Time Management
The typical F&B outlet has very few days off. Rotating shifts will have you working during festive seasons and on weekends. Multiple tasks to be done and sudden changes to your work schedule are part of the regular issues that have to be managed. To get a hold of it all, you will quickly learn to manage your personal and professional calendar like a pro.
Persuasion to Sell
Is the bar where you work offering a holiday special, or did the chef create a new dish that they want everyone to try? It will be up to you to convince your guests to choose the options your employer wants to sell. Selling has always been an invaluable skill for anyone willing to succeed professionally. Like most great business people, you will have to start small. However, getting your first sales will not only feel great but also get you noticed by management. And that’s the easiest way to move up the ladder.
Team Work
If you believe that true success can only be achieved if you handle everything by yourself, working in an F&B service environment will show you the opposite. In this industry, you quickly realize how important it is to be able to function as a team member. In fact, the highly collaborative approach of F&B businesses can teach you a lot about how to function with a large variety of colleagues, cultivating one of the most sought-after skills by employers.
Communication
On a busy night, it can get pretty hectic in any F&B service establishment. So, when you are communicating a client’s order to your colleagues or briefing your subordinates on the set-up of a large event, you will undoubtedly have to learn how to bring across your message as effectively as possible. Furthermore, in an industry where you face customers from every possible country, you will have plenty of opportunities to brush up your language skills. After all, just a few words in their native language can immediately make guests feel that they are well taken care of.
Insider F&B Skills
Even if you are not directly involved in preparing the drinks or dishes that are served to customers, you will form part of the production chain that gets those products done. Constantly being around a creative kitchen crew or barkeeper will in no time have you picking up new knowledge on how to store food appropriately to keep it fresh for another day or how to prepare a delicious cocktail that you can use to impress your guests when having your friends or family over for dinner.
Attention to Detail
Keeping everything clean and in the right place is key when you are planning on serving hundreds of customers at an outlet. In the F&B industry, you will learn from the best how to organize your supplies and equipment to ensure smooth operations. This way, ensuring things are orderly and clean will become second nature to you in no time.
