Food and Beverage Operations

1. Introduction to Hospitality, Lodging and Food Services Operations Food and Beverage Operations John R. Walker Chapter 4

2. Chapter Contents • Introducing the Foodservices Industry • Decribe the duties and responsibilities of a food and beverage director and other key department heads • Describe a typical food and beverage director’s day • State the functions and responsibilities of the food and beverage departments • Perform computations using key food and beverage operating ratios

3. The Foodservice Industry Foodservice operations commonly are categorized as either commercial or onsite foodservices. Foodservice Operations OnsiteFoodservice CommercialFoodservice • The commercial segment includes foodservices in which selling food for profit is the primary activity of the business • The onsite (noncommercial or institutional) segment provides foodservice as a secondary activity for the business in which the foodservice is located

4. Commercial Foodservice • Limited-Service, Limited-Menu Restaurants • Full-Service Restaurants • Airport Restaurants • Cruise Ship Dining • Zoos • Museums • Sports Events • Convenience Stores

5. Commercial Foodservice • The commercial foodservice segment includes a broad range of restaurants (from limited-service to fine dining), lodging, food and beverage, recreation and sports, and convenience stores. • Limited-service, limited-menu restaurants (sometimes referred to as quick-service or fast-food) were designed to provide a limited number of food items to a customer in a relatively short period of time.

6. Commercial Foodservice Limited-service, limited-menu restaurants • Often the customer orders food at a counter and pays for it before eating. • These restaurants are targeting working professionals and parents who want to have a meal served quickly at a low price. • Full-service restaurants provide waited table service for customers. • Guests are greeted and seated by a host/hostess and orders taken and delivered by waitstaff. • Payment occurs after the meal is completed and tip is typically given for the service provided by the waitstaff member.

7. Commercial Foodservice • Airport restaurants: Airlines are decreasing onboard foodservice by serving snacks such as pretzels and peanuts and cans of cold beverages and cups of hot coffee. • Each airport operates differently - operators either bid on their own or enter into a franchising arrangement with a major concession operator. • Restaurants rely on the airlines to attract people to their concourse (crowd). • Most airports require foodservice providers to cover all day, from early morning to late at night, and offer a takeout option primarily for airline crews.

8. Commercial Foodservice • Cruise Ship Dining: Cruise ships have a reputation for service of excellent food. • No limit is set on what you choose or how much you eat - the cost of the food is included in the price of the cruise. • Some ships have theme restaurants, such as Italian, Chinese, Japanese, or Southwestern, in addition to the main dining area.

9. Full-Service Restaurants Full-Service Restaurants Fine Dining Casual Dining

10. Full-Service Restaurants • The style and ambiance of full-service restaurants varies greatly from casual to fine dining. • Casual dining restaurants are designed to attract middle-income individuals who enjoy dining out but do not want the formal atmosphere and high price found in a fine dining restaurant. • The atmosphere is casual, the mood relaxed, and the price midrange at these restaurants.

11. Full-Service Restaurants • Fine dining restaurants, often referred to as “white tablecloth” restaurants, are characterized by a high level of attentive table service, expensive-looking furnishings and décor, and fine cuisine. • Staff members in these restaurants work to create a memorable dining experience that communicates elegance and attention to every need of the guest. • Fine dining restaurants also include: • Hotel and motel restaurants • Country club restaurants

12. Convenience Stores Kiosk Expanded Mini Limited Selection Hyper Traditional Convenience Stores

13. Onsite Foodservice • Hospitals • Schools • Colleges & Universities • Child Care • Senior Care • Military • Correctional Facilities • Employee Feeding

14. Senior Care Independent Living Congregate Care Assisted Living Intermediate Care Skilled Nursing

15. A Foodservice Systems Model

16. Inputs of the Foodservice System Materials Human Resources Operational Resources Facilities Inputs of the Foodservice System • Human:labor and skills • Materials: food and supplies • Facilities: space and equipment

17. Foodservice Industry Operating Practices OperatingPractices Contracting Self-Operation Franchising Partnering Multidepartment Management

18. Outputs of the Foodservice System customer and employee satisfaction and financial accountability meals in proper quantity and quality Meal Quantity & Quality Financial Accountability Customer & Employee Satisfaction Financial accountability is an output applicable to either a for-profit or not-for-profit foodservice organizat assisting employees in achieving and coordinating personal and organizational objectives

19. Advantages & Disadvantages of DifferentForms of Small Business Ownership in Foodservices

20. Environmental Threats for Foodservices Business

21. Food and Beverage Management • In the hospitality industry the food and beverage division is led by the director of food and beverage • The director of food and beverage reports to the general manager and is responsible for the efficient and effective operation of the following departments: • Kitchen/catering/banquet • Restaurants/room service/minibars • Lounges/bars/stewarding

22. Food and Beverage Management • The skills needed by a food and beverage director: • Exceeding guests’ expectations in food and beverage offerings and service • Leadership • Identifying trends • Finding and keeping outstanding employees • Training • Motivation • Budgeting • Cost control • Finding profit from all outlets • Having a detailed working knowledge of the front-of-the-house operations

23. Food & Beverage Organization Chart

24. Kitchen • A hotel kitchen is under the charge of the executive chef,or chef in smaller and medium-sized properties • Some executive chefs are called kitchen managers • Controlling costs is an essential part of operations; as labor costs represent the most significant variable costs, staffing becomes an important factor • Financial results are generally expressed in ratios, such as food cost percentage and labor cost percentage

25. Kitchen • Labor cost benchmarks are measured by covers-per-person-hour or how many covers one personcan produce/handle in one hour • Food cost percentage is expressed by dividing the food cost by food sales • Labor cost is measured by dividing the cost of labor by food sales.

26. Food Operations • Restaurant managers are generally responsible for the followings: • Exceeding guest service expectations • Hiring, training, and developing employees • Setting and maintaining quality standards • Marketing • Banquets • Coffee service • In-room dining, minibars, or the cocktail lounge • Presenting annual, monthly, and weekly forecasts and budgets to the food and beverage director

27. Food Operations • The number (house count)and type of hotel guest (e.g., the number of conference attendees who may have separate dining arrangements) should also be considered in estimating the number of expected restaurant guests for any meal. • This figure is known as the capture rate • When coupled with historic and banquet activity and hotel occupancy, will be the restaurant’s basis for forecasting the number of expected guests.

28. Bars • The profit percentage on beverages is higher than it is on food items, making bars an important revenue source • The responsibilities of a bar manager include : • Supervising the ordering process and storage of wines • Preparing a wine list • Overseeing the staff • Maintaining cost control • Assisting guests with their wine selection • Proper service of wine • Knowledge of beers and liquors and their service

29. Bars • Bar efficiency is measured by the pour/cost percentage • Pour cost is obtained by dividing the cost of depleted inventory by sales over a period of time • Food and beverage directors expect a pour cost between 16–24% • Hotel bars are susceptible to the same problems as other bars • All beverage service staff should receive training in responsible alcoholic beverage service • Another risk bars encounter is pilferage (steal) • The best way to prevent these occurrences is to have a good control system—which should include shoppers

30. Bars • In a large hotel there are several kinds of bars: • Lobby bars • Restaurant bar • Service bar • Pool bars • Minibars • Night clubs • Sports bars • Casino bars • Catering and banquet bar

31. Stewarding Department • Responsibilities of Chief Steward: • Cleanliness of back of house • Cleanliness of glassware, china, and cutlery • Maintaining strict inventory control and monthly stock check • Maintenance of dishwashing machines • Inventory of chemical stock • Sanitation • Pest control • Forecasting labor and cleaning supply needs

32. Catering Department • Catering: • Includes a variety of occasions when people may eat at varying times • Banquets: • Refers to groups of people who eat together at one time and in one place • Terms are used interchangeably

33. Organization Chart for the Catering Department

34. Catering Department • The director of catering (DOC) reports to the food and beverage director, and is responsible for selling, servicing, catering, banquets, meetings, and exhibitions • The director of catering must be able to: • Sell conventions, banquets, and functions. • Lead a team of employees. • Make up departmental goals and objectives.

35. Catering Department • Set individual and department sales and cost budgets. • Set service standards. • Ensure that the catering department is properly maintained. • Be creative and knowledgeable about food, wine, and service. • Be very well versed in the likes, dislikes, and dietary restrictions of various ethnic groups.

36. Catering Department • For meetings, a variety of room setups are available depending on a client’s needs • the most frequently selected meeting room setups are: • Theater style • Classroom style • Horseshoe style

37. Seating Styles

38. Catering Event Order • Also know as the banquet event order • Prepared for each function to inform the client and hotel personnel about essential information to ensure a successful event • Prepared based on correspondence with the client and notes taken during the property visits

39. Catering Event Order • The Catering Event Order also mentions the guaranteed-number policy. • This is the number of guests the hotel will prepare to serve and will charge accordingly. • The guaranteed number is given about seven days prior to the event. • The hotel will usually prepare about 3 – 5% additional meals to cover extra attendees

40. Catering Coordinator • Manages the office and controlling the function diary (now on the computer) • Must see that the contracts are correctly prepared and checks on numerous last-minute details • Operates web-enabled technology tools, such as Newmarket International’s Delphi System

41. Catering Services Manager (CSM) • Duties include: • Directing the service of all functions • Supervising the catering house persons • Scheduling the banquet captains and approving staffing • Cooperating with the banquet chef to check menus and service arrangements • Checking that the client is satisfied

42. Catering Services Manager (CSM) • Checking last-minute details • Making out client bills immediately after the function • Adhering to all hotel policies and procedures • Calculating and distributing the gratuity and service charges • Coordinating the special requirements with the DOC and catering coordinator

43. Room Service/In-Room Dining • 56% of all properties offer room service and 75% of airport properties provide room service • Generally, the larger the hotel and higher the room rate, the more likely they will offer room service • Challenges include: • Delivering orders on time - especially breakfast • Making room service profitable/forecasting demand • Avoiding complaints of excessive charges • Having well-trained and competent employees

44. Sustainability Ecologically Sound Economically Viable Socially Acceptable

45. Sustainable Food andBeverage Operations • Practicing sustainable food and beverage operations can and does lead to a better bottom line. • When operators save water and electricity, recycle, and purchase local produce, they help lessen the footprint of the operation. • Guests are increasingly aware of the importance of sustainable operations of a food and

46. Sustainability Efforts in Foodservice Operations

47. Trends • The use of branded restaurants instead of hotels operating their own restaurants • Hotels opting not to offer food and beverage outlets • Making outlets more casual • Using themes for a restaurant • Standardized menus • Converting one beverage outlet into a sports-themed bar • Technology being used to enhance guest services and control costs • More low-fat, low-carb menu items

48. The End