Dining out and enjoying a few drinks is a popular activity for many. Going out to eat is actually becoming a daily part of life for some residents in South Dakota and the United States. The popularity of this activity has influenced worker growth in the food services and drinking places industry, a trend which has continued to grow year after year.

South Dakota Food Services & Drinking Places Average Number of Workers 1996 to 2005
Year	Workers
1996	24,064
1997	24,219
1998	24,482
1999	24,831
2000	25,294
2001	25,574
2002	25,823
2003	25,950
2004	26,679
2005	27,225

Establishments in the food services and drinking places subsector prepare meals, snacks and beverages for dine-in or takeout. There is a wide variety of establishments in this industry subsector. Although these establishments all provide some combination of food and beverage service, establishments are unique in the way they provide seating space, waiter/waitress services and incidental amenities, such as limited entertainment. Establishments in the food and drinking places subsector are grouped according to the type and level of services provided. These industry groups include full-service restaurants; limited-service eating places; special food services, such as food service contractors, caterers and mobile food services; and drinking places.

Accommodation and Food Services Industry Structure

NAICS Title

Food Services and Drinking Places

Full-Service Restaurants

Limited-Service Eating Places

Limited-Service Restaurants

Cafeterias

Snack and nonalcoholic beverage bars

Special Food Services

Food service contractors

Caterers

Mobile food services

Drinking Places (alcoholic beverages)

Food and drinking services at hotels, motels, amusement parks, theaters, casinos, country clubs and similar recreational facilities, and civic and social organizations are included in this subsector only if these services are provided by a separate establishment primarily engaged in providing food and beverage services.

Excluded from this subsector are establishments operating dinner cruises. These establishments are classified in the subsector of scenic and sightseeing transportation, because those establishments utilize transportation equipment to provide scenic recreational entertainment.

Job opportunities in food services and drinking places should continue to be plentiful, because the large number of young and part-time workers in the industry will generate substantial replacement needs. Food services and drinking places furnish many young people with their first jobs. As experienced workers move on to higher-paying jobs in other establishments within the industry or seek opportunities outside the industry, a large number of job openings will be created for new entrants. Industry expansion also will create many new jobs as diners continue to seek the convenience of prepared meals. Numerous job opportunities will be available for people with limited job skills, first-time job seekers, senior citizens and those wanting part-time work schedules. Consumer demand for convenience and ready-to-heat meal options also will offer workers a wider variety of employment settings in which to work.

South Dakota Projections for the Foods Services & Drinking Places Industry
	2004 Workers	2014 Workers	Percent Change
Food Services and Drinking Places, Total	26,680	30,660	14.9
Full Service Restaurants	12,340	14,140	14.6
Limited Service Eating Places	10,340	11,980	15.9
Special Food Services	1,110	1,370	23.4
Drinking Places (Alcoholic Beverages)	2,890	3,160	9.3
Source: Labor Market Information Center, SD Department of Labor, March 2007

Full-service restaurants comprise establishments primarily engaged in providing food services to patrons who order and are served while seated (i.e. waiter/waitress service) and pay after eating. These establishments may provide this type of food service to patrons in combination with selling alcoholic beverages, providing takeout services or presenting live, nontheatrical entertainment. Full-service restaurants offer more menu categories, including appetizers, entrées, salads, side dishes, desserts and beverages, and varied choices within each category. Chefs and cooks prepare items to order which may run from grilling a simple hamburger to composing a more complex and sophisticated menu item. Waiters and waitresses offer table service in comfortable surroundings.

One trend taking place is cost-conscious and time-strapped patrons increasingly eating at midscale or family-type restaurants rather than at more elegant dining establishments. National chains are a growing segment of full-service restaurants. These restaurants usually offer efficient table service, well-priced familiar menu items prepared by moderately skilled kitchen workers, and a substantially nicer physical setting than limited service establishments. By contrast, customers at upscale dining places tend to seek a more relaxed and elegant atmosphere with skillfully prepared cuisine and leisurely, but professional service.

Also, many popular full-service restaurants remain independently owned and locally operated. Independent full-service restaurants generally focus on providing a one-of-a-kind dining experience and distinctive design, décor and atmosphere. Food and service remain the primary focus of the restaurant’s offerings, but physical setting and character are important components of the experience. They help establish a restaurant’s reputation and build a steady clientele. Steakhouses, pizza parlors, family diners and fine or elegant dining restaurants are included in this subsector. Establishments specializing in full-service restaurants continue to expand, requiring additional workers.

Looking at limited-service restaurants, we find that these establishments are predominantly engaged in providing food services (except snack and nonalcoholic beverage bars) where patrons generally order or select items and pay before eating. Food and drink may be consumed on the premises, taken out or delivered. Some establishments in this industry may provide these food services in combination with selling alcoholic beverages. The most common type of a limited-service eating place is a franchised operation of a nationwide restaurant chain selling fast food. Features characterizing these restaurants include a limited menu, the absence of waiters and waitresses, and emphasis on limited service. Menu selections usually offer limited variety and are prepared by workers with minimal cooking skills. Food typically is served in disposable, take-out containers that retain the food’s warmth, allowing restaurants to prepare orders in advance of customers’ requests. A growing number of fast-food restaurants provide drive-through and walk-up services. Drive-ins, delicatessens, pizza delivery shops, carryout, buffet style eating, ice cream parlors, snack bars and fast food restaurants are categorized in this subsector. Consumers with fast paced lifestyles enjoy service and convenience and rely on limited service establishments to meet their needs.

The next group of establishments is primarily engaged in providing food services at institutional, governmental, commercial or industrial locations of others based on contractual arrangements with these types of organizations for a specified period of time. The establishments of this industry provide food services for the convenience of the contracting organization or the contracting organization's customers. Management staff are always supplied by the food services contractor. These food services cover a variety of special food services establishments, including food service contractors (like those who provide cafeteria service at a college or university), concession stands at sporting events, catering firms and mobile food services, such as ice cream trucks and other street vendors who sell food.  Special food services remain popular and require additional workers on a yearly basis.

Rounding out the food service industry are drinking places. Establishments known as bars, taverns, nightclubs or drinking places primarily engaged in preparing and serving alcoholic beverages for immediate consumption are found here. Some drinking places offer patrons limited dining services in addition to providing alcoholic beverages. Some drinking places occasionally offer some form of entertainment such as live bands, karaoke or comedy performances. In some states, drinking places also sell packaged alcoholic beverages for consumption off the premises. Establishments selling alcoholic beverages are closely regulated by state and local alcoholic beverage control authorities. One characteristic of drinking establishments is they typically maintain long evening hours, working into the early morning hours; however, flexible and varied work opportunities may be offered to the staff. Many beverage serving and related workers work evenings, weekends and holidays. The need for these workers remains constant due to growth and rising demands of the customers.

Technology advancements have been influencing food service and drinking places in many ways, enhancing efficiency and productivity. Almost all establishments now use technology and computers in some method in daily business operations. Many restaurants use computers to track orders and inventory and coordinate patron seating. Servers now key in customer’s orders, either tableside using a hand-held device or from a computer terminal in the dining room, and send the order to the kitchen without delay so preparation can begin. This system is commonly referred to as point of service (POS). The same system totals and prints checks, functions as a cash register, connects to credit card authorizers and tracks sales. Many managers use inventory-tracking software to compare the record of sales from the POS with a record of present inventory to minimize food expenses and spoilage. Some establishments enter an inventory of standard ingredients and suppliers into their POS system. When supplies of particular ingredients run low, additional inventory can be ordered directly from the supplier using this preprogrammed information. Computers also allow restaurant and food service managers to more efficiently keep track of employee schedules and pay.

The Internet is used by food service and drinking places to track industry news, find recipes, conduct market research, purchase supplies or equipment, recruit employees and train staff. Internet access also makes service to customers more proficient. Many restaurants maintain websites that include menus, online promotions, the restaurant’s location and offer the option to make a reservation. Wireless communication headsets are now being used by some managers, hosts and hostesses, and chefs.

Headsets allow a means of hands-free communications with other staff so they can prevent order backups in the kitchen, better serve patrons in the dining room or more easily accommodate special requirements, such as large groups, diners with special dietary needs or disability accessible seating requirements. Other wireless technology systems allow managers to monitor orders placed through individual terminals or by particular employees, instantly check inventories and ensure timely preparation of customers’ orders.

The food services and drinking places industry has seen notable changes over the past few years. Not long ago, a typical family prepared and ate most meals in their home, while dining out only for special occasions. This has changed significantly. A number of lifestyle changes, including the increase of family members working different shifts and youth with greater involvement in activities, have resulted in increased frequency of eating out—and along with it, employment growth in this industry.