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Food and Beverage Operations

The foodservice industry offers millions of meals daily in various types of operation worldwide. It includes the
following sectors:
 Food can include a range of styles and cuisine types. Food items can be classified by country (e.g.,
Italian), by type of cuisine (e.g., oriental), or a particular specialty (e.g., vegetarian food).
 Beverages include all alcoholic drinks, such as wines, cocktails, spirits, and beers, and non-alcoholic
drinks, such as mineral waters, juices, coffee, and tea.

Foodservice operations in the hospitality industry are concerned with the provision of food and drink ready
for consumption. These operations are also concerned with the following (Cousins et al., 2014):
a. Consumer needs and market potential (an estimate of the maximum sales of a product or service) in
the sectors of the foodservice industry;
b. Formulation of policy and business objectives that will guide the choice of operational processes that
will be used;
c. Interpretation of demand to make decisions on the range and type of food and beverages to be
provided, as well as other services, and the service levels and prices to be charged;
d. Planning and design of facilities required for the food and beverage operations, as well as the plant
and equipment required;
e. Organization of provisioning for food and beverages and other purchasing requirements to meet the
needs of food production, beverage provision, and the service methods used;
f. Knowledge of the operational and management requirements for the food production, beverage
provision, and service processes and methods and decision-making on the appropriateness of the
various processes and methods, together with the management and staffing needs in order to meet
the requirements of the operation;
g. Control of costs associated with the operation of food production, beverage provision, and other
services, and the control of revenue; and
h. Monitoring of consumer satisfaction to continually check on the extent to which the operation is
meeting customer needs and achieving customer satisfaction.

The sequence above may be referred to as the foodservice cycle as presented in Figure 1. This summarizes
what foodservice operations are concerned with and illustrates that it is not simply about the production and
service of food and beverage. It can serve as a basis
to analyze and compare how different foodservice 1. Consumer and
operations work. It provides a standard checklist so market

that information about a certain operation can be

gathered and arranged in a specific way, which can 8. Monitoring of 2. Formulation of
then be compared with the same information consumer satisfaction policy
gathered from other foodservice operations.
The foodservice cycle is a dynamic model in a way 7. Control of costs 3. Interpretation of
and revenues demand
that it can be used to help understand how an
individual operation works. Difficulties in one (1)
element of the cycle will cause difficulties in the 6. Production and 4. Planning and
next elements that follow. For instance, difficulties services design of facilities

with purchasing will have effects on food

production and service the same way staffing
5. Provisioning
problems will cause difficulties in the service of
food and beverage.
Figure 1. The Foodservice Cycle
Source: Food and Beverage Service (9th ed.), 2014. p.6

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Classifying Foodservice Operations

Classifying foodservice operations serves the following purposes:
• For providing meaningful and comparable statistics. Statistics is important in order to understand the
contribution that the industry and its parts make to the economy as a whole.
• For benchmarking. This is a systematic way of judging the way a business performs against a reference
point, exploring where and why an operation does not work the way it should and implementing ways
to close the gap. To do this, identifying businesses with similar operating conditions is necessary.
• For identifying common issues. While each foodservice operation is unique, they still display
similarities in the way they can and should be operated. Understanding where the similarities and
differences lie can help a manager understand how to manage an operation in the best way.

These are the different approaches for classifying foodservice operations (Davis et al., 2018):
• By food type – It involves classifying an operation by the type of food it serves. Below are some ways
on how foodservice operations are divided according to food type:
o Local cuisine. Some operations only focus on using food that comes from the local area (e.g.,
Berjaya Garden Restaurant and Culinary Center in Bulacan which showcases food that is
locally produced, sourced, and served).
o National cuisine. Many operations focus on the national cuisine of a certain country (e.g., Sushi
Ninja in Muntinlupa City that features Japanese cuisine).
o Ingredient-dominated. Some operations emphasize the use of a single dominant ingredient
(e.g., fish, free-range chickens, and flatiron steak).
o Theme. Some operations prioritize concept to emphasize fun. Themes usually revolve around
movies, sports, and fantasies (e.g., Caffe Piansa, a jail restaurant, in Marikina City).
o Healthy options. Other operations concentrate on a particular food type regarded as a healthy
option such as vegan (e.g., Green Bar, a vegan café, in Makati City).
o Cooking style. Foodservice operations can focus on a particular method of cookery (e.g., the
use of a spit-roasting device, wood-fired ovens, and Argentinian grills).
• By business format – The foodservice industry operates under different business formats, such as:
o Sole Proprietorship. It is a business owned by one (1) individual or married couple.
o Partnership. It is composed of two (2) or more persons who agree to contribute money, labor,
or skill for business.
o Corporation. It is an operation that declares a business as a separate, legal entity guided by a
group of officers. Section 10 of the Revised Corporation Code of the Philippines states that,
“any person, partnership, association or corporation, singly or jointly with others but not more
than fifteen (15) in number, may organize a corporation for any lawful purpose or purposes”
(Congress of the Philippines, 2018). Additionally, incorporators must be natural persons of
legal age.
o Cooperative. It is a business organization in which the business is owned and controlled by
those who use its services. It may be organized as a legal entity or an unincorporated
association.
• By market – This divides the industry into direct or indirect market segments. Restaurants,
accommodation (hotels and membership clubs), pubs, bars, and nightclubs are all under the direct
market segment where a customer has a free choice of which operation to visit and has a direct
relationship with the organization that provides the service. Events, education (school and university
canteens), travel (in-flight, cruise, and rail), health and welfare (hospitals and care catering), military
services, and prisons are under indirect market segment where there is an indirect relationship
between the service provider and customer, and some or most of the choices are already
predetermined or restricted.

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• By service style/level – There are several service styles, but these are the most common:
o Fine dining. This represents luxurious and expensive dining based on the highest quality of
ingredients and cookery techniques served in a formal manner and setting.
o Casual dining. This is sometimes known as family dining or popular dining, based on more
everyday prices and a more relaxed style of service. Food and beverage orders are taken at
and delivered to the table.
o Quick service restaurants (QSR). This is the official industry term for the fast food sector
characterized by limited menus, highly standardized and automated food preparation with
orders taken and delivered at a counter.
o Coffee shops. These are distinguished by the centrality of coffee to the theme and a generally
lighter choice of food.
o Take-away/Mobile. This includes units that prepare food for take-away only or that are mobile
units used for pop-ups or special events such as markets or event functions.

The Meal Experience and Customer Service

The main goal of food and beverage operations is to achieve customer satisfaction, or meet the customers’
needs. The needs that customers might be seeking to satisfy include the following (Cousins et al., 2014):
• Physiological – e.g., the need to satisfy one’s appetite or quench one’s thirsts, or the need for special
food such as diabetic or vegetarian
• Economic – e.g., the need for good value, fast service, and a convenient location
• Social – e.g., going out with friends or business colleagues and attending a function to meet others
• Psychological – e.g., the need for enhancement of self-esteem, to fulfill lifestyle needs, and for variety
• Convenience – e.g., as a result of being unable to go home (shoppers and workers) or attending some
other event (cinema or theater), the desire for someone else to do the work, or the physical
impossibility of catering at home (weddings and special functions).

Customers may want to satisfy some or all of these needs. It is important to understand that their needs vary
and that food and beverage operators should be aware of the factors that might affect a customer’s meal
experience. These factors are as follows (Cousins et al., 2014):
• Food and beverages on offer. It includes the range, availability, and quality of food and beverages, as
well as the flexibility for special orders.
• Level of service. This depends on the needs people have at a certain time. For instance, a romantic
night out may demand a quiet table in a top-class restaurant, while a group of young friends may seek
for a more informal service. This factor also considers the importance of other services such as booking
and account facilities, acceptance of credit cards, and the reliability of the operation’s product.
• Level of cleanliness and hygiene. This relates to the cleanliness of premises and pieces of equipment
and the hygiene of staff members.
• Perceived value for money and price. It relates to the value that customers receive for the price they
paid for food and beverages. Good value for a foodservice operation is where the worth is perceived
as greater than the costs.
• Atmosphere of the establishment. This factor relates to aspects such as design, décor, lighting, and
furnishings, along with the attitude and smartness of the staff members.

Customer Service
Good customer service is often characterized by the following:
• Meeting or exceeding customer expectations
• Knowing the benefits and features of the services and products on offer

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• Listening actively
• Being friendly and polite
• Being able to adapt the methods of communication to meet individual needs of a range of customers
(e.g., customers with language difficulties, health issues, different age groups, cultural differences)
• Avoiding the use of jargon
• Achieving customer satisfaction.

Customer service in foodservice operations is a combination of the following aspects (Cousins et al., 2014):
• Service level refers to the intensity of or limitations in the personal attention given to customers.
• Service availability relates to the operating hours of an operation and the variations in the menu and
beverage list.
• Level of standards relates to the quality of food and beverage items provided, the décor, the
equipment used, and the level of staff professionalism.
• Service reliability refers to the extent to which a product is intended to be consistent in different
aspects such as quality, quantity, and presentation.
• Service flexibility pertains to the extent to which alternatives are available and to which there can be
variations in the standard products offered.
A foodservice operation determines its customer service specification by considering the service factors above.

Customer Service Specification

The level of service in a specific foodservice operation may be defined as follows (Cousins et al., 2014):
• Technical specification. This refers to the food and beverage items on offer, the portion size or
measure, the cooking method, the degree of cooking, the method of presentation, the cover, etc.
• Service specification. This refers to two (2) aspects: what the procedures for services are and how the
procedures are carried out. Procedures include meeting and greeting, order taking, seeking customer
comments, and dealing with complaints, payment, and the special needs of customers. The method
in which the service is carried out includes paying attention to the level of staff attentiveness, their
tone of voice and body language, etc.
Operations will normally have written statements of both technical and service specification (often called
customer service specification). These may also be detailed in staff manuals that outline expected standards
performance.

Level of Service and Standards of Service

The level of service in a foodservice operation is different from its standards of service.
• Level of service can range from being limited to complex, with high levels of personal attention.
• Standards of service are a measure of the ability of an operation to deliver the service level.
Therefore, an operation may offer low levels of service, like a quick service operation, but may do this at a
high standard. Similarly, an operation may offer a high level of service, like a full-service restaurant, but may
do so with low standards.

References:
Congress of the Philippines (2018). Republic Act No. 11232: Revised Corporation Code of the Philippines. Retrieved from Securities and
Exchange Commission’s website: http://www.sec.gov.ph/wp-content/uploads/2019/03/2019Legislation_RA-11232-REVISED-
CORPORATION-CODE-2019.pdf
Cousins, J., Lillicrap, D., & Weekes, S. (2014). Food and beverage service (9th ed.). Italy: Hodder Education.
Davis, B., Lockwood, A., Alcott, P., & Pantelidis, I. (2018). Food and beverage management (6th ed.). Oxon: Routledge.

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