Food and Beverage Operation

Management

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Introduction
The food and beverage operation management is essential for resort and hotel management. This
paper will evaluate the food and beverage operation of an organization. Characteristics of food
production and beverage service system, cost and staffing implication for different system will
be discussed in this assignment. Financial statements and pricing process will also be
highlighted. Food and beverage menu will be complied for a hospitality event. Finally planning
for food and beverage service for a hospitality event, implementation of planned service
maintenance standards will be discussed.

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Table of Contents
Food and Beverage Operation Management..............................................................................................1
Task One......................................................................................................................................................3
1.1 The characteristics of food production and food and beverage service systems..............................3
1.2 Factors affecting recipes and menus for specific systems.................................................................4
1.3 Compare the cost and staffing implications for different systems.....................................................5
1.4 Justify the suitability of systems for particular food and beverage outlets.......................................6
Task Two......................................................................................................................................................7
2.1 The use of financial statement in food and beverage operations......................................................7
2.2 The use of cost and pricing process...................................................................................................8
2.3 Analyze the purchase process...........................................................................................................9
Task Three.................................................................................................................................................11
3.1 Compile food and beverage menus for a hospitality event.............................................................11
3.2 Justify the selection and suitability of recipes for menus................................................................12
Task Four...................................................................................................................................................13
4.1 Plan for a food and beverage service for a hospitality event...........................................................13
4.2 Implement the planned service maintaining standards of quality and health, safety and security. 14
4.3 Factors to determine the success of the event................................................................................15
Conclusion.................................................................................................................................................16
References.................................................................................................................................................17

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 Task One
1.1 The characteristics of food production and food and beverage service
systems.
There are mainly four types of food and beverage service systems such as conventional food
service system, beverage service, and centralized food service system.

Conventional food service system: In this system customers can enjoy the benefit of mixing or
reducing some ingredients from the food as the food is prepared after the order of customers. The
producer or seller purchase a mixer of items where some may be completely raw and other may
be fully prepared. The food is prepared on sigh and it is kept frozen or chilled (Barrows and
Poers, 2009). This system is mainly used in restaurant, schools, college, universities and
cafeterias.

Beverage service: It may comprise alcoholic or non alcoholic drinks. Normally, the beverages
are bought in their finished form and it can be categorized as conventional system. For instance,
at bars, bottles of alcohol are collected and the bartenders can use their own recipes and make
drinks out of it (Barrows and Poers, 2009).

Centralized food service system: This system has a central kitchen where foods are made and
then these foods are sent to other kitchens which are small in size. As the foods are transported
from one place to another place, it requires special care in packaging and maintaining
temperature. These systems are mainly used in airplanes, schools, ready prepared food service
systems and in some restaurants (Dopson, 2010).

Ready prepared food service systems: These systems have its oldest methods of producing food.
Food is made in a bulk and kept frozen or chilled for several days. The food is reheated before
serving to people. These systems are found at prisons, hospitals (Barrows and Poers, 2009).

Assembly server food service systems: Food items are bought in fully prepared form in this
system. The foods are normally kept in stored or chilled and junk food like sweets, ice cream and
soft drinks falls under this category. This system is found at convenience store, liquor stores,
candy shops and store that is situated in petrol station.

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1.2 Factors affecting recipes and menus for specific systems.
The factors that affect the recipes and menus for specific system are: Size of operation, Nature of
the menu, Objectives of the operation, Quality of the customers, Quality of the operation,
Customer’s needs, Budget of the customers and availability of the resources (Barrows and Poers,
2009).

The other factors that may place impact on menu and recipes for specific system are price of the
items listed, management decisions, types of service, food habits and preferences, customer
satisfaction, size of the kitchen, flavor and appearance and of dishes and nutritional value.

Manu and recipe development: Types of menus, dietary needs ethnic and social influences,
cookery style and balanced menu.

Nutritional consideration methods: using fresh food and prepared food, cook to order, batch
cooking and using prepared food and using fresh food. Nutritional balance is necessary to make
sure that the dishes of food are containing proper mixes of protein and vitamins (Barrows and
Poers, 2009).

As each food organization has a target cost for the food and the preparation and production of the
food need to be fit with the target. It becomes really difficult for the menu designer to prepare the
menu favorably for the customers and organization as the business stands for profit (Dopson,
2010).

Factors that have impact on menu compilation are taste, texture, color, appearance, temperature.

Color balanced is important.

The composition of the menu will be influenced by space and equipment.

Space and equipment in the kitchen will also influence the menu of the food items.

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1.3 Compare the cost and staffing implications for different systems.
Staffs are the critical factors on the success of a foodservice operation. Knowledge, experience
and skills are considered while planning for staffing into the organization. The ingredients and
suppliers availability during the off period may also influence the recipes and menu systems. The
main financial implications for the organizations are:

Equipment cost: The use of different types of equipments in the processing of foods for the
customers. The cost of the use of this equipment will place impact on the cost of food (Kotas and
Calon, 2007).

Wages: The wages for the employees also influence the food and beverage service operation.
Employees are selected for the organization for accomplishing different types of

Production cost: The cost of producing food for customer also has influence on the overall price
of the food.

Staffing implication: There are several staffing implications for the organization. The main
implications for staffing are:

Skills and deskilling: The skills of staffs like skill communication, making recommendation can
help the organization to improve the satisfaction of customers. Other skills like serving
customers appropriately, behaving empathetically with the customers, making appropriate
greeting are also essential for the staffs to provide goods service for the customers (Kotas and
Calon, 2007).

Jobs specification: The role of staffs for different tasks are specified by the organization like the
role of cleaner is the clean the hotel in specified time of the day. Staffs are assigned for the
reception, laundry services, maintenance, supervision and cleaning. Each staffs performs their
specified tasks for the convenience of customers (Bouton and Turner, 2005).

Staff training: Training for the staffs is essential for making the operation more profitably by
decreasing the amount of equipment and material required for producing in a given unit. The
organization needs to train employees for minimizing discharge cost that occurs owing to
inadequate skills, encouraging willingness, loyalty and interest in company activities. Advantage
of well producer training programs comprises standards of performance required being

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identified, more staff efficiency, improved ability of the staff and career responsibilities (Bouton
and Turner, 2005).

1.4 Justify the suitability of systems for particular food and beverage outlets.
Justification of buffet of counter service will be used for determining suitability. The buffet can
be defined as a method of food service which is a modification of self service. The food is
presented attractively. It is a composition of hot and cold and hot foods. This service system is
appropriate for conference, events, banqueting, restaurants, hotel, for special sales, for featuring
special event (Dopson, 2010).

A fixed price for the buffet is paid the customers and for this price is capable of returning as
many time to the buffet table as the customers would like. Buffet service also ensures a facility to
give food to a large numbers of people in a given time with limited staffs requirements.

There are many advantages of buffet service are: customers have choice, service staffs require
less skills, and customers are the part of the service. The buffet method has a higher food cost
and labor cost in the kitchen compared with other types of food service. Queuing is the
disadvantage of this method (Dopson, 2010).

Independent restaurant and hotels use plate service in which food is prepared and placed on
individual’s plate and delivered to the customers. Good presentation of food, keeping protein
control and high quality of food are the advantages of this method. There are also some
challenges of this method such as highly skilled chefs, sometimes the customers need to wait for
the delivery.

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 Task Two
2.1 The use of financial statement in food and beverage operations.
There are several financial statements that are used in the food and beverage service operation:

Dish costing sheet: This statement is used to calculate the selling price or menu. Chefs use a
dish costing sheet to count the cost of each portion (Banerjee, 2010).

Cost statement: Cost statement is the composition of direct and indirect expense and it is a
breakdown of all costs that incurred in the food.

Operating statements:

Variance analysis: This analysis is the difference between budgets, standards or planned amount
of dishes or beverage sold. This analysis assists the management to realize the present costs and
control potential cost. There are four types of cost that the manager must concern with are: food
cost, beverage cost, labor cost and overhead cost (Banerjee, 2010).

Sales records: It is the combination of information about customers including contact

information, purchase information and payment information. The valuable marketing
information source for the organization is sales records.

Financial statements: These statements are used to record the financial dealing of the
organization. These recordings help the manager to manage the organization. Shareholders,
suppliers, banks and lender can get information from the financial statements (Banerjee, 2010). It
is a formal record of financial activities of the organization which include:

 Balance sheet
 Statement of cash flows
 Income statement

Advantages of financial statements are that it provides reliable indication of financial position;
provide information by authoritative requirements and regulatory groups, helps management to
know more about the organization.

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2.2 The use of cost and pricing process.
Cost and pricing process include dishes, menu and beverage list, sales mix, net and gross profit,
fixed, variable and indirect cost, vat discounting and cost elements.

Price: The amount of money that customers pay for purchasing product and service (Armostrong
and Kotler, 2012).

Cost: Total amount of spent like money, time and labor.

Vat: The fixed amount of imposition on product which is imposed at each stage of production
starting from material to final product.

Direct cost: The cost of material which is directly related to the material of product.

Indirect cost: indirect cost is not directly the material of product but it helps to make the product.
for example: oil needs for cooking.

Fixed cost: The cost that remains unchanged even the product is kept stopped. For example:
rents.

Variable cost: variable cost increases or decreases with the level of production.

Profit: profit is the difference between income and expense of business.

Discount: the amount of money which is deducted from the list price.

Gross profit: the difference between sales income and cost of product is known as gross profit.

Net profit: The expense of running business is deducted from the gross profit to calculate the net
profit.

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2.3 Analyze the purchase process
Purchasing can be defined as a function which is linked to the search, selection, purchase,
receipt, storage and final use of commodity in line with the catering policy of the establishment.
The process indicates that person who is employed to purchase foods and beverages for an
establishment will be accountable for not simply purchasing but also receiving, storage and
issuing all commodities.

Requisition of equipment and supplies: requisition and inventory control must be implemented
in food and beverage operations. Supplier of equipment of food stuffs can be easily selected from
the supplier where previous purchase was made. The purchaser needs to visit to potential
supplier to see the size of the company, conditions of storage facilities, and the full range of
product. for choosing new supplier the purchaser must be conscious and need to know the details
of the supplier such as full details of the company and the range of item which is sold by the
supplier like equipment, foodstuffs (Banerjee, 2010)

Purchasing specification area is a compact description of quality, size, quantity and weights.
Purchase specifications for beverage are simple than the specification of foodstuffs. The brand
name and level of the product are used for selling beverages.

Receiving procedure is not same for all organization but the common principles are:

Checking the delivery note

Making inspection on product or raw materials to determine whether they are in agreement with
the specification

Accepting the product/ raw materials by signing the delivery note

Storing and delivering the product to the appropriate place

Quality inspection should be made in the receipt of goods.

Invoicing must comprises business identification number, supplier name, address and contact
information, name of the own organization, delivery date of the invoice, amount of VAT and the
amount which is being charged.

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Storage of equipment and supplies: it is needed to store raw materials correctly under the right
condition and temperature. Three points in storing supplies of foodstuffs are: space, stocktaking
and clerical procedure.

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 Task Three
3.1 Compile food and beverage menus for a hospitality event.
In compiling food and beverage menu for hospitality event some factors should be taken into
account:

Customer requirement: The main types of menu, style of the service, timescale and type of
customers.

Cost control: overhead cost, labour materials, and budget restriction.

Quality standards: food and beverage preparation, cooking and presentation, and maintenance
standards.

Health, safety and security of the working environment: setting and maintaining hygienic
practices.

Evaluation: customer’s satisfaction, cost effectiveness, planning and management objectives.

The central element of food and beverage operation is the menu which is the first impression of
the organization. It indicates the image, quality and mission of the establishment.

Menu-adults

Beer, chips and fresh salad, apple cake

Vegetarians: coffee or tea, fruits salad and jack potatoes with vegetables.

Diabetes: mineral water, fruits salad and fish rice and fresh salad.

Children: ice cream, orange juice and battered chicken fillet with chips and salad.

Service system: buffet or counter service.

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3.2 Justify the selection and suitability of recipes for menus.
The nutritional issues, balanced diet, health, safety issues, balance of color have been taken into
consideration while compiling the menu. The same consideration has been made as some of my
guests are vegetarians, children and diabetics. Sausage, chips and fresh salad for adult has been
chosen for the adults as it is a dish that can be made quickly, require special skills.

Jack potatoes with vegetables have been chosen for the vegetarians as this dish considers
nutritional issues and balance of color. Fish, rice and fresh salad have been chosen for the
diabetics as this dish is low in fat and contains carbohydrate and vitamins which is good for the
health of them. Battered chicken fillet with chips and salad have been chosen for the children as
this choice is nutritional value and has protein and vitamins which is good for the growing and
health of the children.

Beverages that have been chosen for menu are suitable for all as everyone has a choice for it.
Beer has been suggested for adults and vegetarians; juice and mineral water have been suggested
for children and diabetics. Coffee and tea have also suggested for them.

The suggested service style requires less staff, high skill is not needed for the staff and can be
served easily by the staff.

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 Task Four
4.1 Plan for a food and beverage service for a hospitality event.
Foods: Sausage, chips and fresh salad £4, 00, jack potatoes with vegetables £5, 00, Battered
chicken fillet with chips and salad £5, 00, Fish, rice and fresh salad £5, 00.

Beverage: Beer £3, 00, Coffee or tea £1, 60, Mineral water £1, 20, and orange juice £1, 10.

Dessert: Ice cream £2, 20, Apple cake £250 and fruit salad £2, 40.

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4.2 Implement the planned service maintaining standards of quality and
health, safety and security.
Standards of quality and health, safety security are essential for hospitality events. Customers are
more concerned about the quality of foods.

Quality standards refer to the production and service planning, setting and maintaining standards,
cooking and presentation and food and beverage preparation. The success of the event is
dependent on quality which means keeping every standard, service from the well trained
employees, foods purchased from quality suppliers, and storing food properly. Temperature of
food must be maintained and food must be prepared, handled and cooked using the procedure
which is not contaminated. Equipment that are used in the process must be cleaned and washed
properly.

The most sensitive issue for any event is health and safety issue. The premises and equipment
must be safe to prevent accidents. Any hazards or risks should be assessed by the staff and they
should be trained to deal with the accident. The protection of guest can be ensured through
proper health and safety procedure. The trust and satisfaction of guests can be increased through
health and safety procedure.

Security is another essential task of the event. The guest will require security before coming to
the event. They want security of life and their belongings. So, it is essential to ensure the security
of the guest. The environment should be safe and sound so that the guest feel comport with the
service system. To ensure the security manager can hire trained security personnel for the service
system.

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4.3 Factors to determine the success of the event.
Planning and organization of the management, customer’s satisfaction, cost and time
effectiveness and quality assurance and setting standards are the success factors for service.

Planning and organization of the management: Planning is essential for the success of service.
The planning should be made considering food service, style of cooking and other elements of
food and beverages. Controlling the deliveries and storing of food beverage are also important
for the success. Recommendations for planning and organization of the management:

 Ensure the standards of food and service systems

 Commutations with customers must be effective and smooth.
 Hygienic and safety in food and beverage department

Customer’s satisfaction is needed for any kind of organization to reach the culmination of
success. The satisfied customers are campaigner for the organization and they make repeat
purchase from the organization. It is easy to retain the current customers rather than attracting
new customers for the organization. Recommendation for customer’s satisfaction:

 Focusing on relationship marketing

 Providing excellent customer service before during and after service
 Giving personal attention to the customers
 Never disputing with the customers
 Collecting feedback from the customers

Recommendation for the improvement in quality assurance:

 Proper selection of supplier should be made.

 Training must be provided to the service staff.
 Health and safety standards must be followed.

Cost and time effectiveness are also important for the organization for ensuing maximum profit.
Recommendations for cost and time effectiveness:

 A good relationship must be made with the local business operation.

 Negotiation should be made with the suppliers.

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Conclusion
The success of food and beverage depends on many factors like quality, hygiene and safety. The
customers are more conscious regarding the health, nutrition and the behavior of staffs with the
change of time. Training and guideline must be provided to the employees to satisfy the
customers. The use of equipments for preparing food for the customers should be cleaned. The
planning should be made considering the demand of customers. after all, quality must be ensured
in all spares of food and beverage operation.

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References
1. Armstrong, G., and Kotler, P. 2012. Marketing: An Introduction.11 th Edition. Prentice
Hall.
2. Banjerjee, B. (2010), financial policy and Management Accounting, 7th Edition, Prentice
Hall Ltd.
3. Barrows, C. W. & Poers, T. (2009), Introduction to the Hospitality Industry, 7 th Edition,
John Wiley & Sons Inc.
4. Boulton, C., & Turner, P., P. 2005. Entrepreneurship, second edition, john wiley & sons,
Singapur.
5. Jagels, M. G. (2007), Hospitality Management Accounting, 9 th Edition, John Wiley and
Sons Inc.
6. Kotas, R. & Colan, M. (2007), Hospatility Accounting, 5th Edition, Thomson Learning.
7. Dopson, L. R.(2010). Food and Beverage cost control, 5th Edition, John Wiley and sons.

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