Food, Drinks, and Dollars: Inside the Industry That's Bigger Than You Think

When most people think of hospitality, images of stylish hotels and buzzing restaurants often come to mind. But behind every beautiful plate and cocktail lies a powerhouse industry that fuels economies, preserves traditions, and brings people together: Food & Beverage.

The food and beverage (F&B) sector forms the beating heart of hospitality. From cozy neighborhood cafés to bustling hotel restaurants and expansive catering operations, F&B covers everything involving the preparation, distribution, and service of food and drinks. That includes bars, food manufacturing companies, delivery apps, ghost kitchens, and more. It’s an ever-evolving landscape that blends creativity with operational complexity—and its impact extends far beyond what shows up on your plate.

Understanding the Economic Backbone

Let’s talk numbers. The U.S. foodservice industry contributes to the national economy over 2.1 trillion annually since 2021 and reached $2.63 trillion in 2024, accounting for about 6% of GDP. It also provides jobs for over 15.7 million individuals—one of the largest employment sectors in the country. In the hotel sector specifically, F&B services can contribute up to 50% of overall revenue. That means restaurants, room service, and banquet events are not just guest perks—they are essential profit drivers.

This financial weight carries global implications. Countries that prioritize tourism often rely heavily on a thriving F&B presence to attract and satisfy visitors. Cities like Tokyo, Paris, and Mexico City are known not just for their landmarks, but for their culinary landscapes. And as travelers grow increasingly experience-focused, a destination’s food culture often becomes the main event.

The Cultural Core of Community

F&B is also one of the most powerful storytellers. It reflects heritage, migration, innovation, and community. Through food and drink, people connect with their roots, express creativity, and welcome others into their world.

At the same time, it creates shared moments. Think of birthday dinners, wedding receptions, first dates, and late-night bites with friends. These aren’t just meals; they’re memories. In a society that moves quickly, F&B provides a pause—a place to gather, converse, and celebrate. For consumers, these experiences build emotional loyalty that goes beyond taste.

For businesses, understanding this emotional pull is key. Menus and service styles should do more than fill bellies—they should reflect intention. Is your food telling a story? Are you offering an environment that feels inclusive and warm? Hospitality brands that weave cultural understanding into their operations foster deeper customer relationships and community support.

Where Health and Sustainability Intersect

Of course, F&B also carries responsibility. It has enormous influence on public health, dietary trends, and environmental impact. Globally, food systems account for about one-third of greenhouse gas emissions, with much of that linked to production and waste.

But things are changing. Many brands are adopting sustainable practices, like using compostable packaging, offering plant-forward menus, and tracking inventory to reduce waste. AI-powered inventory systems, for example, are helping kitchens avoid over-ordering, while food rescue programs partner with local nonprofits to redistribute excess meals.

From a wellness perspective, today’s consumers are also more label-conscious than ever. They want to know what’s in their food, where it comes from, and how it aligns with their lifestyle. Terms like "clean ingredients" and "nutrient-dense" are no longer buzzwords—they are expected.

For F&B operators, transparency and education are now part of the job. Posting sourcing details, nutritional info, and allergen alerts builds trust. But beyond that, engaging with your audience on why these choices matter helps shift entire community mindsets.

The Business of Serving Better

For those in the hospitality space, thriving in F&B today means balancing experience, responsibility, and agility. It means understanding that customers don’t just want good food—they want purpose behind it. They want to feel like their choices reflect their values. Operators who take the time to listen, adapt, and deliver with thoughtfulness will not only succeed—they’ll set the bar.

This could look like partnering with local farms to support regional supply chains, building menus that accommodate a range of diets, or investing in staff education around cultural cuisine accuracy. These aren’t trends; they’re table stakes for businesses that want to thrive long-term.

What Can Consumers Do?

You might not run a kitchen, but your choices hold weight. Supporting independent eateries, giving feedback to restaurant teams, asking questions about ingredients, and tipping fairly all contribute to shaping the future of the industry.

Pay attention to who you support and how. Is your favorite brunch spot paying its workers a livable wage? Does your go-to café source ethically? These considerations send signals to businesses about what customers value. In many ways, guests are co-creators of the industry’s future.

Why It Matters More Than Ever

In a post-pandemic world, the F&B industry continues to rebuild. Labor shortages, inflation, and changing consumer behaviors all create pressure. But within that challenge lies an invitation: to reimagine what hospitality can be.

At its best, food and beverage service is a celebration—of craft, culture, and connection. It’s both an economic engine and a human one. When we treat it with the attention and care it deserves, the results are better for everyone.

How HoCo Fits Into the Future of F&B

At HoCo, we believe hospitality should be more than a transaction—it should be a force for good. That’s why we partner with innovative brands, creators, and operators to help elevate every touchpoint of the guest experience. Through immersive events, curated strategy, and operational support, we help our clients bridge the gap between vision and impact. F&B is at the core of our mission, and we're proud to contribute to its continued evolution.

Don’t Miss: The 5th Annual Battle of the Babes Cocktail Competition

Speaking of celebrating culinary talent—join us Sunday, September 28th at Merchant + Trade for a rooftop experience like no other. The Battle of the Babes Cocktail Competition returns for its 5th year with top-tier mixology, women-led innovation, and electrifying energy.

Your ticket includes 8 cocktails, hors d'oeuvres, swag bags, and a night full of entertainment. This event sells out quickly every year—grab your spot and raise a glass to the power of women in F&B.