In the Hospitality business food and beverages services form a very important and substantial part of the organisation. The hotel and catering industry is characterised with both diversity and the size of the operations which have a direct impact on the food and beverages department of that hotel or catering service provider. These outlets can be private or public organisations which can be small concerns or large international or multi-chain organisations catering to needs of a diverse variety of customers. (Letizia, 2005)
In this Unit 5 Food and Beverage Management Assignment we will study the diverse and different production, services and financial systems of food and beverages organisations and also planning of an event within a particular budget.
See Food and Beverage in Organisation with Hospitality Management brief here:
Financial controls used in food and beverage operations; and menus for hospitality events
Every business firm has to cater to the needs of the clients and the services that are rendered to the people are provided at a certain monetary value. The value is fixed in such a way that the client is ready to pay the value and it also beneficial for the company. But the process of fixing the value is very complex and has various aspects. Some of them we will study in this report.
Demonstrate the use of cost and pricing processes.
Food and beverages sector being a vital part of our everyday living and life has various unique characteristics which help in major contribution towards economic growth of the nation and creating employment. According to Maslow’s Hierarchy of Needs food forms the basic and foremost need for everyday life. It helps people in fulfilling their basic needs through enjoying with their friends, family or relative’s company along with helping in promotion of diversity of food products and cuisines of different places and regions. Food production includes processing and serving of raw, semi cooked or prepared foodstuffs through various methods and processes in ready to serve or preserved form. The various production methods or systems can be:
- Traditional: Used in most of the kitchens this method involves purchasing of raw material and storing, preparation, cooking and serving of the foodstuff at the provided facilities.
- Centralized: This involves outsourcing of either all or some part of the food production and is mainly adapted by large chains and organisations. This method helps in specializing in food and bulk production leading to costs effectiveness and high levels of hygiene.
- Cook freeze: Here the food prepared is frozen using quick freezing processes like blast freezing or blast chilling and stored at controlled freezing temperatures so that the foodstuff can be thawed and heated to be served at a later period of time.
- Sous-vide: One of the newer techniques Sous-vide methods involves vacuum cooking of food at specific temperature so that the freshness of the product is retained along with reducing the chances of cross contamination and wastage.
- Cook freeze: this method includes rapid chilling of normally prepared food which can be stored for later use. It involves minimum capital and staff for operation. (Libfsb, 2013)
Cost can be defined as the total expenses incurred for producing the goods or services including the money, time and labour whereas price is the amount of money required to purchase a product or service. These include:
- Direct costs: These are usually the costs of materials which are used in the production of the products and form part of the product.
- Indirect costs: These include costs of those materials which are used in preparation of the product but don’t form a part of the final product.
- Variable costs: These may include the meal or beverage ingredient costs which are proportional to the level of business or the operations and sales.
- VAT: This is an indirect tax which is imposed on the various goods and services provided and purchased.
- Fixed costs: These include fixed expenses such as rent, salaries which remain constant and are not affected or related to the sales or level of business.
- Discounts:These are the amount or percentage of money which is reduced from the market price of the product for specific period or persons.
- Gross profit: It is the difference between the sales and the direct costs of producing the products.
Menu pricing must be followed with the basic policies and approaches of the industry to determine the profit targets. Food costs should be around 30 to 35%, the pricing should be in such a way that it includes not only the food cost but all other costs and implications along with the desired profit margin. It also should be helpful in achieving the desired sales volumes. (Hunt, 2009)
Compile food and beverage menus for a hospitality event.
The menu provides the first impression of the organisation to its customer. It provides the centre to a food and beverage operation by communicating about everything regarding the type of operations like staffing, production, service methods etc. It is responsible for driving the image, quality and the theme of the establishment. The menu compiled by me is as follows:
Service System: Buffet or counter service
- Sausage, chips and fresh salad
- Fish, rice and fresh salad
- Jack-potatoes with vegetables
- Coffee or tea
- Fruits salad
- Mineral water
- Battered chicken fillet with chips and salad
- Assorted juice
- Ice-cream (Possector, n.d.)
Justify the selection and suitability of recipes for menus.
While compiling the menu I have taken into consideration all the nutritional values and the balanced diet issues. The menu contains a mix of items that complement each other and provide a balanced diet and variety of food also taking into consideration the health, safety and hygiene issues. Separate provisions are made for vegetarian customers and children are provided with items which they readily accept and relish. Also I took into consideration the cooking time and skills needed to prepare the dishes thereby selecting sausages, chips, salads etc. as they can be prepared quickly and don’t require special skills. Jack potatoes with vegetables, provides adequate nutritional values and balance of colour. I choose fish, rice and fresh salad because this dish is low in fat, contains carbohydrate and vitamins and it is good for health conscious or diabetic persons. Battered chicken fillet with chips and salad also have good nutritional value, as they have protein and vitamins and are good for a child’s growth and health. Beverages are in accordance to the age and preferences. I chose Buffet service as less staff is required and food can be served efficiently and effectively. (Bojangles, n.d.)
By means of this report, I have thrown light on some of the factors that are always considered by the people who operate in the food and beverage industry. It is now clear that the financial statements have a lot impact on the working of the organisations of the food and beverage industry. It is also understood that the people who draft the menu have considered the needs and demands of all age groups in order to keep the customers happy.
Review of recent development
a. Plan a food and beverage service for a hospitality event within an agreed budget.
There are various factors both internal and external that affect the recipes and menus for specific systems of food and beverages operations. These include size of operations, customers’ needs, budget of customers, objectives and the quality of the business operation, nature of menu, availability of resources and the quality of the customers. Customers are the most important part of these systems so keeping in mind the customer’s needs and their satisfaction results repeat in sales and customer arrival along with image building of the company and its products. Demographic characteristics, food habits and preferences and customer value have a great effect on the menus and recipes. The size of the kitchen, prices of listed items, types of services, management cost decisions, flavour and appearance of dishes and their nutrition value also affect the menu and recipe of a specific system. Space and equipment available in the kitchen has a direct impact on the composition and variety of the menu, a small kitchen with limited equipment can provide service to a limited number of customers with a limited range of products. (Toezek, 2010)
The budget for the menu decided by me for an event is as follows:
Sausage, chips and fresh salad: £ 6. 00
Fish, rice and fresh salad: £ 6. 00
Jack-potatoes with vegetables: £ 5. 00
Battered chicken fillet with chips and salad: £4. 00
Beer: £ 3. 50
Coffee or tea: £ 1.50
Mineral water: £ 1. 00
Assorted juice: £ 1.50
Fruits salad: £ 2. 50
Ice-cream: £ 2. 00
Pastries: £ 2.50 (Possector, n.d.)
b. Implement the planned service maintaining standards of quality and health, safety and security.
In today’s time customers of a food and beverages organisation are more concerned towards quality rather than quantity. Customer satisfaction and fulfilment of their needs through maintaining standards of quality, health and safety and security are main issues for any hospitality organisation or event. Staff behaviour and communication with the customers is a great quality for the staff which symbolises the attitude of the staff and the management towards its customers. A good quality staff having polite behaviour and having excellent communication skills lead to increase in the sales of the operations and also trough proper recommendation of items from the serving staff helps the customer in choosing the right combinations and choices of the food products thus enhancing their satisfaction and experience.
Quality standards include production and service preparation and planning, cooking, presentation and setting up of standards which have to be maintained. By quality it is implied that the every standard be it staff, service or product provided, storage, preparation and handling must be of best quality and all equipment and staff must be hygienically maintained.
Health and safety is also an important issue as they are necessary for prevention of any mishap or untoward incident. The staff must be properly trained and must have knowledge of dealing with these kinds of situations and accidents. This helps in increasing the guest’s satisfaction and trust.
Security is one of the major reasons of customers coming to an event. If the customer feels safe and sound it will feel secure and thus satisfied and will be attracted towards the event. (Libfsb, 2013)
c. Evaluate factors to determine the success of the service, making recommendations for improvement.
There are various factors affecting and determining the success of the services like planning and organisation of the management which include proper selection of food service, style of cooking, style of menu, procurement, storage and deliverance of food and beverages. Customer satisfaction, setting and implementing standards, quality control etc. also determine the success of a service.
There are many recommendations that can be implemented for improvement in planning and organisation of management:
- Clear and effective communication with the customer
- Setting and maintaining of food and services standards
- Proper hygiene and safety standards maintained at the various departments
- Customer satisfaction and need fulfilment
Customer satisfaction is one of the most important tasks for an organisation to achieve success. Proper attention to customers should be provided to the customers during the period so that they don’t feel neglected and feel special. This increases the loyalty of the existing customers leading to repeat arrival and also recommendations to others by the customers. (William, n.d.)
Of the various systems of food and beverages outlets, Buffet or counter method of food service is a unique system involving a modified version of true self-service style of system. In this system the food is provided by displaying and providing the various food items and products attractively on a series of counters or tables from where the customer can choose the products of his choice. Presentation and display of the food stuff is the most important factor in this kind of service. Buffet service system is most suitable and convenient for large events, conferences, banqueting, restaurants, hotels and places where large numbers of customers are involves such as sales, promotions or special weeks or food festivals. The customer after paying a fixed price can eat from the Buffet table as much and as many repeated times as he wants or needs. Through least number of staff a large number of customers can be provided with facility to eat.
Buffet services provide various advantages to the customers such as a large variety to choose from, being a part of the process whereas the organisation is able to minimize the staff requirement and services. Buffet system also often lead to wastage by the customer and also has high food and production cost implications. Sometimes queuing and shortage of a particular product or its bad presentation can lead to negative impact on the sales or customer satisfaction.
Apart from production there are various services systems and procedures that can be adapted in the food and beverages industry like Table/Plate service, Buffet, A La Carte, Table d’hôtel, Family service, Flambé Service, Silver service and specialist food service to name a few. These systems adapt various different methods of serving the prepared food to the customer in their own unique and different way. (Libfsb, 2013
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Through this Unit 5 Food and Beverage Management Assignment we understood the various food and beverages production and service systems and what factors affect their operations and success. The food and beverage operations in today’s scenario are continuing to improve their quality and services. Professionalism through better training and development is increasing and the quality of service provided and customer satisfaction has become the major differentiating factor for the customers to choose a particular establishment.
Bojangles, Nutrition Fact Calculations,
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Hunt, K., (2009), Determining Portion Costs and Selling Prices, [PDF], Available: http://www.kendallhunt.com/uploadedFiles/Kendall_Hunt/Content/Higher_Education/Uploads/McVety_Ch7_4e.pdf [Accessed 18 October 2014]
Letizia, G., (2005), Food and Beverage, [PDF], Available: http://www.emarketservices.com/clubs/ems/prod/report050801_food%20and%20beverage.pdf [Accessed 17 October 2014]
Libfsb, (2013),Food and Beverage Operations, [Online], Available: http://www.slideshare.net/libfsb/food-and-beverageoperations [Accessed 17 October 2014]
Possector, How to Calculate Food Costs and Price Your Restaurant Menu,[Online], Available: http://possector.com/en/blog/how-to-calculate-food-costs [Accessed 20 October 2014]
Professional Chef Association, F&B Control,[Online], Available: http://www.professionalchef.com/Certification/Volume/F&BCostControl/v-4-C-1Finance101.htm [Accessed 18 October 2014]
Toezek, W., (2010), Using a Production System,[PDF], Available: http://www.anfponline.org/Publications/articles/2010_11_production.pdf [Accessed 17 October 2014]
William, G., Top 20 Factors for Success in the Restaurant Business, [Online], Available: http://www.restaurantcentral.ca/Top20factorsforsuccessintherestaurant.aspx [Accessed 20 October 2014]
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