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Chapter 8:
Food and Beverage

Similarities: Hotel & Restaurant Foodservices
Planning issues Financial concerns
Plan by focus on menu All foodservice operations
Menu focus on guests’ wants, must assess financial status
needs & preferences - Operating budget
Menu impacts operational factors - income statement / balance
- layout / equipment sheet / cash flow statement
- labor for production, service &
clean-up
- F&B products for purchase
Emphasis on consumers Cost control procedures

Marketing concerns Necessity for standard
Repeat business important to operating procedures
financial success - Purchasing / receiving / storing
/ issuing / pre-preparation /
preparation / serving / service
Hotel Operations Management, 1/e ©2004 Pearson Education

Hayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Standard Operating Procedures: Cycle of F&B Product
Control
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
Cycle of F&B Product Control (continued…)
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.,
Receiving addressing financial and security concerns)
Effective use of perpetual & physical inventory systems

Step 3: Control of product quality
Storing Securing products from theft
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…)
Step 5: Mise-en-place
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
Service Sanitation and cleanliness
F&B server productivity
Personnel Requirement Similarities:
Hotel & Restaurant Foodservices
Practice of empowerment
Transferring some decision-making
responsibility and power to front-line
employees
Enhancing service to guests and

increasing profits for the organization
To meet unanticipated guest needs effectively

Staff must be trained in standardized procedures.
Managers must provide clear direction to employees.
Managers must provide necessary resources.

Profitability Differences:
Profitability = Revenue - Expenses
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.
Marketing-related Differences:
Restaurants: locations easily accessible
Location within to potential guests
the community Hotels: locations most accessible to guests
desiring lodging accommodations
Restaurants: locations easily accessible

Location within to potential guests
a hotel Hotels: locations most accessible to guests
desiring lodging accommodations
For hotels, F& B service is viewed as an

Menu amenity or secondary
(sale of guestrooms is primary objective)

Room Service Operations:
Profitability Concerns
Relatively few properties generate profits from room service
Why lose Very high labor costs
money? High expenses incurred for capital costs
- delivery carts / warming devices
Service to guests
Why - some guests select hotels based on room service availability
offered? Impacts hotel rating
High expenses incurred for capital costs

How to - Delivery
Offer hospitality carts
suite / warming devices
business
offset losses? Provide hosted events

Room Service Operations:
Menu Planning Factors
Less likely to oversee room service food quality
Quality Must offer products maintaining quality during
Concerns holding and transportation to guest room
(example: problems with omelet & French fries)
Cross- Advertising availability of other hotel services

Selling - dinner menu providing info about Sunday brunch
Language barriers for international guests

Menu - uses of pictures and multi-lingual menu descriptions
Language Clearly state ordering-requirements
- minimum order charges / mandatory tipping policies
Room Service Operations: Operating Issues
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

Technology - electronic cash register (ECR) / point-of-sale terminal /
remote printer
Upselling Opportunities for upselling are overlooked

Technique Upselling increases guest check average
Room Service Operations: Within-Room Service
Training issues for room service attendants
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

Banquet Operations: Profit Opportunities
Well-planned banquets can be profitable!
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 Increasing property’s

community’s banquet business profitability
Banquet Operations: Menu Planning
Factors / concerns for planning banquet menus
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: Service Styles
Butler service Appetizers and pre-poured champagnes can be served by
service staff at a reception while guests stand.
Buffet service Quantities of food are pre-arranged on a self-service line;

guests pass along the line and help themselves
Family style Platters and bowls of food are filled in the kitchen and
(English style) brought to guests’ tables
French service Meals are prepared or finished at tableside by service staff:

(e.g., tossing Caesar salad / flambéing entrée)
Platter service Production staff plate food in the kitchen; service staff bring it
to the table to place individual portions on guests’ plates
Plated service Production staff pre-portion food on plates in kitchen;

(American service) service staff serve to guests
Banquet Operations: Beverage Functions
Various ways to charge for beverage
Individual Collecting cash or a ticket when each drink is sold

drink price
Charging on a by-bottle basis for each bottle consumed /

Bottle charge
opened
Per-person Charging a specific price for beverages based on attendance

charge at the event
Charging the host a specific price for each hour of beverage

Hourly charge
service
Specific per- Using hours of beverage service;

event charge charging number of drinks / hour X number of guests

Banquet Operations: Banquet Room Set-Up
Size Timing
Determined by : Becomes critical when:
number of expected guests the same room to be used
local fire safety codes / same day for different
ordinances functions
types and sizes of tables, Two when large evening event
chairs, other equipment critical precedes following day’s
number of seats per table concerns large breakfast event in
same room
required space for aisles, dance
floors, band stands, other
entertainment, head tables, etc.
reception / buffet tables

Banquet Operations:
Banquet Contracts & Billing Policies
Topics in banquet contract
Last date that banquet space will be held without signed contract
Time by when a guarantee of attendance must be received

Cancellation policies
Guarantee reduction policy
Billing: amount & schedule for guest payment
Information about service of alcoholic beverages

Other information applicable to specific event
Alcoholic Beverage Service in Hotels
Good training protects guests, public and hotel
from tragedies and lawsuits
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.

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Chapter 8:

Food and Beverage

Emphasis on consumers Cost control procedures

Hotel Operations Management, 1/e ©2004 Pearson Education

Development of receiving procedures

Effective use of perpetual & physical inventory systems

Timing of incoming F&B orders

Revenue control concerns

Enhancing service to guests and

To meet unanticipated guest needs effectively

Hotel Operations Management, 1/e ©2004 Pearson Education

Payroll costs (or fixed labor costs) are higher than in a

Restaurants: locations easily accessible

For hotels, F& B service is viewed as an

Hotel Operations Management, 1/e ©2004 Pearson Education

High expenses incurred for capital costs

Hotel Operations Management, 1/e ©2004 Pearson Education

Cross- Advertising availability of other hotel services

Language barriers for international guests

An inaccurate room service order cannot be corrected quickly.

Guest placing order / order taker / room service production-

Improving the accuracy of room service orders

Upselling Opportunities for upselling are overlooked

Training issues for room service attendants

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

Hotel Operations Management, 1/e ©2004 Pearson Education

Banquet menu has higher contribution margin.

Forecasting & planning production, service and labor are

Beverage sales from hosted or cash bars increase profit.

Increasing market share of the Increasing property’s

Buffet service Quantities of food are pre-arranged on a self-service line;

French service Meals are prepared or finished at tableside by service staff:

Plated service Production staff pre-portion food on plates in kitchen;

Individual Collecting cash or a ticket when each drink is sold

Charging on a by-bottle basis for each bottle consumed /

Per-person Charging a specific price for beverages based on attendance

Charging the host a specific price for each hour of beverage

Specific per- Using hours of beverage service;

Hotel Operations Management, 1/e ©2004 Pearson Education

Hotel Operations Management, 1/e ©2004 Pearson Education

Time by when a guarantee of attendance must be received

Guarantee reduction policy

Billing: amount & schedule for guest payment

Information about service of alcoholic beverages

Responsible service & consumption of alcoholic beverage is an

Develop and implement ongoing training for responsible service

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