Types of hospitality businesses

Types of Hospitality Businesses

  • Hotels and Lodgings: These provide visitors with a place to stay overnight or longer. They can range from small bed and breakfasts to large international hotel chains.

  • Restaurants and Cafes: These establishments focus on offering food and drink to customers. This category can include anything from tiny street food stalls to gourmet restaurants.

  • Pubs and Bars: Primarily focused on serving alcoholic beverages, these establishments often also serve food and offer entertainment. They can range from local neighbourhood pubs to high-end city cocktail bars.

Role of Each Business

  • Hotels and lodgings provide accommodation for people travelling or needing temporary residence. They often provide other services such as food, drink, and entertainment.

  • Restaurants and cafes offer people a place to enjoy food and beverages, either for pleasure or as a means of sustenance for those away from home.

  • Pubs and bars provide a place to socialise as well as drink. They are often a hub for local communities and play a role in providing leisure activities like quiz nights and live music.

Differences Between Businesses

  • A hotel’s main function is providing rooms to stay in, whereas a restaurant’s main function is providing meals.

  • A pub or bar’s key offering is alcoholic beverages, though many also offer food and lodging. These are typically places of social interaction and entertainment.

  • Cafes primarily serve hot beverages along with light meals and snacks, whereas the core service of a restaurant involves comprehensive multiple course meals.

Identifying Business Models

  • Franchises: e.g. McDonald’s or Starbucks, where independent business owners operate outlets of large national or multinational companies.

  • Independents: Businesses that are personally owned and managed, such as a family-owned restaurant or a small B&B.

  • Large chains: e.g. Hilton Hotels or Costa Coffee, which have many locations nationally or internationally and are owned by a single company.

Key Characteristics of Each Business

  • Franchises typically have consistent branding and product offerings. They often have access to extensive marketing resources and established operating procedures.

  • Independents are often characterised by their uniqueness. They may add personal touches to their service and have flexibility to adapt their offerings.

  • Large chains have the advantage of brand recognition and economies of scale. They often have standardised operations and offerings across all their locations.