Food & Beverage Management

By :
Dr. Dino Leonandri, MM, CHA
Size and Scope Food and Beverage Operations

• Food and beverage provision is simply one element of a

broader hospitality industry.
• The restaurant and pubs, bars and clubs sectors have
shown very strong growth in turnover and can be seen to
be the dominant sectors of food and beverage
operations as a large part of hotel turn over is dependent
on room sales.
• The canteen and contract catering or contract food
service sectors have also shown strong growth.
• In employment terms, restaurants are easily the largest
sector, closely followed by pubs, bars and clubs, with the
hotel sector growing more slowly, and the contract food
service sector holding steady.
Standard Industrial Classification

Classification usually starts with a small number of broad groups of

activities that are then subdivided into progressively narrower groups so
that the classification can be used with varying amounts of detail for
different purposes.
 Cost and Marketing
These two terms are closely associated with the particular sectors of
the industry that have been identified.
cost orientation are identified particularly in the welfare sector such as
catering in prisons, for patients in hospitals
market orientation examples are found in the hotels, restaurants,
popular and fast-food sectors
 Cost and Marketing
A market oriented business displays the following characteristics:
A high percentage of fixed costs
A greater reliance on increases in revenue rather than decreases in
costs to contribute to the profit levels of the establishment

An unstable market demand for the product

More likely to have a more flexible pricing policy in order to
attract customers at off-peak times.
 Cost and Marketing
A cost oriented business displays the following characteristics:
A lower percentage of fixed costs, but a higher percentage of variable
costs such as food and beverage costs
A greater reliance on decreases in costs rather than increases in
sales to contribute to the budgeted profit levels of the establishment.
A relatively stable market demand for the product.
More likely to have a more traditional fixed-pricing policy.
Food and Beverage Management
• What do managers do?
• For hospitality firms, there are three main types of objectives that management must be
concerned with, which are:
a) to ensure that the guest feels welcome,
b) that facilities work for the guest
c) that the operation will continue to provide service while also making a profit
Factors that shape managers goals include:

i. The organization culture and structure

ii. The economic situation
iii. National culture
iv. Available resource
v. Cognitive and moral rules
vi. Their own personal contribute
 Management Level
• Managing a selection within an operating unit
Department • This would equate to the coffee shop manager in a hotel operation or the assistant manager of a
head/ Junior fast-food operation
Management

• Managing a complete unit or a section within a larger unit

Unit • This would equate to a unit catering manager working for a contract catering company, an
manager/Sectio executive chef, or the food and beverage manager of a small hotel.
n manager

• Overall control of one large unit composed of a number of sections or a collection of smaller units.
• This would equate to the food and beverage manager of a large hotel with extensive restaurant,
General
manager conference and banqueting facilities, or the manager of a small number of catering contracts.

• Overall responsibility for a number of separate large units or geographic areas.

Area
manager

• responsibility for the operation and management of a complete organization.

Director
Responsibilities of food and beverage management

1. Planning
2. Decision making
3. Staff motivation
4. Controlling
Constrain on food and beverage management
❖External factors
a)Governmental/political
- Government tax
- Government regulation
ex: smoking regulation
b)Economical
- Rising cost
- Change in expenditure
c)Social
- Change in population
- Change in eating pattern
❖Technical
- Information technology
- Equipment
❖Internal factors
a) Food and beverage
- Wastage
- Portion control
b) Staffs
- Absenteeism, illness
- Poor supervision and
training of new staffs
c) Control
- Cash and credit control
and collection
- Mantainance
Managing the Meal Experience
• The experience economy
• Social
• One of the most common reasons for eating out
• Ex: Birthday, special date (CNY, Hari Raya, etc.)
• Business
• Business lunch and dinner etc.
• Convenience and time
• Due to its location because of its speed od service
• Atmosphere and service
• Ex: Lunch and dinner offer
• Price
Managing the Meal Experience Cont.
• Understand eating out
• Food and drink
• Factors affecting the type of food and beverages:
a. Popularity of food
b. Gender factor
c. Age
d. Food quality
e. Food presentation
• Variety in menu choice
a. Price
b. Amount of time available
c. Level of market
• Level of service
a. The higher the cost paid, the more service the customer accept
• Price and value for money
• Interior design
Managing the Meal Experience Cont.
• Atmosphere and mood
a. Include décor and interior
b. Table setting arrangement
c. Staffs attire
• Expectation and Identification
• Ex.: The type of service, the price that will be pay..
• Location and accessibility
• Food and beverage service employees
 QUIZ
Question : What´s the main characteristic of food
and beverage operations?

Please answer the questions above and email to:

dinoleonandri@stptrisakti.ac.id
by email no later than 1 week ahead.
In the email subject, write the name of the campus, course and class
example :
1. Poltekpar Plb/DIK 6A/Hospitality Business
2. STPT/Class A/Revenue Management
3. Poltek Intl Jkt/AJ/Hotel Management
THANK YOU