There are many varieties of hospitality establishments however not necessarily catering for differing market. For example, a cafeteria can be found in a supermarket, hospital, motorway, high street location, a shopping centre. The type of outlet isn’t relevant from a marketing view point. The question is does the establishment satisfy a customer demand i.e. fit for purpose.
Classifying hospitality businesses by purpose helps identify and determine immediate competitors for example a B&B a guest house owner operates in single market. Whereas a large company may occupy a number of markets such as hotels, pubs, fast food outlets, contract catering, leisure attractions, motorway service stations. While other sectors may not be direct competition they may attract the same customer at different times or as alternatives.
The foodservice industry is generally divided into two distinct sectors: One profit orientated the second welfare for example meals on meals.
Regardless of sector, customer demand must be satisfied notwithstanding the constraints of budget. Think of it this way, well fed and entertained customer will return and possibly refer the establishment to others a well fed and satisfied patient will recovery more quickly.