Food and Beverage

1. Food and Beverage

2. Managing Food & Beverage Operations in a Hotel • Food Service outlets include: • Restaurants • Lounges • Banquet and catering • Room service

3. Managing Food & beverage Operations in a hotel • A large hotel should ensure that F&B units in the same hotel do not compete directly with each other. • Units must be diverse to give different segments of the market a choice. • F&B services should be treated as important revenue generator for the hotel. • However, some hotels may decide not to have any F&B operations but lease out spaces to outside companies to run F&B services.

4. Food service personnel • An executive chef is responsible for management related to the food production activities. • In a large hotel, he may actually perform little in the line of food production. • In a small restaurant, he may be part owner and performs most of the food related function. • Other position in the kitchen: • Sous chef • Pastry chef • Banquet chef • Assistant chef

5. Dining Room personnel • Depending on the complexity, the positions may be: • Maitre d (host / hostess) • Greets and supervises waitering staff • Captains • Servers (waiter / waitress) • Cashiers • Bartenders • Cocktail servers

6. Plan by focus on menu All foodservice operations must assess financial status Menu focus on guests’ wants, needs & preferences • Operating budget • income statement / balance • sheet / cash flow statement Menu impacts operational factors • layout / equipment • labor for production, service & • clean-up • F&B products for purchase Necessity for standard operating procedures Marketing concerns Repeat business important to financial success • Purchasing / receiving / storing • / issuing / pre-preparation / • preparation / serving / service Similarities: Hotel & Restaurant Foodservices Planning issues Financial concerns Cost control procedures Emphasis on consumers

7. Step 1: Purchasing Step 2: Receiving Step 3: Storing Step 4: Issuing Step 5: Pre-Preparation Step 6: Preparation Step 7: Serving Step 8: Service Standard Operating Procedures: Cycle of F&B Product Control

8. Develop purchase specification Step 1: Supplier selection Purchasing correct quantities Purchasing No collusion between property and supplier Evaluation of purchasing process Development of receiving procedures Step 2: Completion of necessary receiving reports (e.g., addressing financial and security concerns) Receiving Effective use of perpetual & physical inventory systems Step 3: Control of product quality Securing products from theft Storing Location of products within storage areas Product rotation concerns Step 4: Matching issues (issue & usage) Issuing Purchasing as inventory is depleted Cycle of F&B Product Control (continued…)

9. Mise-en-place Step 5: Minimizing food waste / maximizing nutrient retention Pre-Preparation Use of standardized recipes Step 6: Use of portion control Preparation Requirements for food and employee safety Timing of incoming F&B orders Step 7: Portion control Serving Revenue management concerns Revenue control concerns Step 8: Serving alcoholic beverage responsibly Sanitation and cleanliness Service F&B server productivity Cycle of F&B Product Control (continued…)

10. Transferring some decision-making responsibility and power to front-line employees Enhancing service to guests and increasing profits for the organization Staff must be trained in standardized procedures. Managers must provide clear direction to employees. Managers must provide necessary resources. Personnel Requirement Similarities: Hotel & Restaurant Foodservices Practice of empowerment To meet unanticipated guest needs effectively

11. Profit amounts generated by restaurant F & B is relatively easy to calculate. The process of allocating revenues and expenses applicable to F & B services in a hotel is more difficult. Costs of F & B sales is generally higher in a restaurant than in hotel. • Hotel’s “bottom line” profit from F & B sales is likely to be lower than a restaurant’s. Payroll costs (or fixed labor costs) are higher than in a restaurant. Profitability Differences: Hotel & Restaurant Foodservices Profitability = Revenue - Expenses

12. Restaurants: locations easily accessible to potential guests Location within the community Hotels: locations most accessible to guests desiring lodging accommodations Restaurants: locations easily accessible to potential guests Location within a hotel Hotels: locations most accessible to guests desiring lodging accommodations For hotels, F& B service is viewed as an amenity or secondary (sale of guestrooms is primary objective) Menu Marketing-related Differences: Hotel & Restaurant Foodservices

13. Relatively few properties generate profits from room service Why lose money? Very high labor costs High expenses incurred for capital costs - delivery carts / warming devices Service to guests Why offered? - some guests select hotels based on room service availability Impacts hotel rating High expenses incurred for capital costs - Delivery carts / warming devices How to offset losses? Offer hospitality suite business Provide hosted events Room Service Operations: Profitability Concerns

14. Less likely to oversee room service food quality Quality Concerns Must offer products maintaining quality during holding and transportation to guest room (example: problems with omelet & French fries) Cross-Selling Advertising availability of other hotel services - dinner menu providing info about Sunday brunch Language barriers for international guests - uses of pictures and multi-lingual menu descriptions Menu Language Clearly state ordering-requirements - minimum order charges / mandatory tipping policies Room Service Operations: Menu Planning Factors

15. An inaccurate room service order cannot be corrected quickly. A minor problem in room service may impact guest’s perceptions about the entire lodging experience. Guest placing order / order taker / room service production-service staff / room service staff Communication Abbreviations should be clearly understood by order taker and food production staff • Improving the accuracy of room service orders • electronic cash register (ECR) / point-of-sale terminal / • remote printer Technology Upselling Technique Opportunities for upselling are overlooked Upselling increases guest check average Room Service Operations: Operating Issues

16. Explaining procedures to retrieve room service items Asking guests where room service meal should be set up Presenting guest check and securing payment Opening wine bottles (where applicable) Providing an attitude of genuine hospitality Room Service Operations: Within-Room Service Training issues for room service attendants

17. Banquet menu has higher contribution margin. - banquets frequently celebrate special events Forecasting & planning production, service and labor are relatively easy. - formal guarantee is made - less likelihood of overproduction of food with subsequent waste Beverage sales from hosted or cash bars increase profit. - capable of increasing alcoholic beverage sales Increasing market share of the community’s banquet business Increasing property’s profitability Banquet Operations: Profit Opportunities Well-planned banquets can be profitable!

18. Guest preferences Ability to deliver desired quality products Availability of ingredients required to produce the menu Production / service staff with appropriate skills Equipment / layout / facility design issues Nutrition issues Sanitation issues Peak volume production / operating concerns Ability to generate required profit levels Banquet Operations: Menu Planning Factors / concerns for planning banquet menus

19. Appetizers and pre-poured champagnes can be served by service staff at a reception while guests stand. Butler service Quantities of food are pre-arranged on a self-service line; guests pass along the line and help themselves Buffet service Platters and bowls of food are filled in the kitchen and brought to guests’ tables Family style (English style) Meals are prepared or finished at tableside by service staff: (e.g., tossing Caesar salad / flambéing entrée) French service Production staff plate food in the kitchen; service staff bring it to the table to place individual portions on guests’ plates Platter service Plated service (American service) Production staff pre-portion food on plates in kitchen; service staff serve to guests Banquet Operations: Service Styles

20. Individual drink price Collecting cash or a ticket when each drink is sold Charging on a by-bottle basis for each bottle consumed / opened Bottle charge Charging a specific price for beverages based on attendance at the event Per-person charge Charging the host a specific price for each hour of beverage service Hourly charge Using hours of beverage service; charging number of drinks / hour X number of guests Specific per- event charge Banquet Operations: Beverage Functions Various ways to charge for beverage

21. Responsible service & consumption of alcoholic beverage is an integral part of the responsibility of all F & B managers in all types of operations. • Train for all staff in the hotel (i.e. including non-F&B positions, e.g. front desk, housekeeping, maintenance and/or security staff ) to recognize and respond to visible signs of guests’ (non-guests’) intoxication. • Develop and implement ongoing training for responsible service of alcoholic beverages. Alcoholic Beverage Service in Hotels Good training protects guests, public and hotel from tragedies and lawsuits