Food and Beverage Operations Management

Student’s Name:

Institutional Affiliation:

Table of contents

Table of contents 2

Food and Beverage Operations Management 3

LO 1 Food and beverage production and service systems: 3

1.0 Introduction 3

1.1 The characteristics of food production and food and beverage service systems 3

1.2 Factors affecting menus and recipes for specific systems 5

1.3. Comparison of the cost and staffing implications for different systems. 6

1.4. Justification of the systems' suitability for specific food and beverage outlets 7

LO2, The financial controls employed in food and beverage operations 8

2.1 The use of financial statements in food and beverage operations. 8

2.2 Demonstration of the cost and pricing progress 9

2.3 Analyze the purchasing process 10

The demand of equipment and supplies 11

LO3 Devising menus for hospitality events 12

3.1 Compiling food and beverage menus for hospitality event 12

3.2 Justification of the selection and suitability of recipes for menus 13

LO 4 Being capable of providing food and beverage services for hospitality events. 14

4.1 Planning food and beverage service for a hospitality event having a budget 14

4.2 Implementation of the planned service standards of quality and health, safety and security 15

4.3 Evaluation of the factors determining the success of the service and recommendations for improvement 15

4.31 Recommendations 16

5.0 Conclusion 16

6.0 References 18

Food and Beverage Operations Management

LO 1 Food and beverage production and service systems:

1.0 Introduction

The paper presents the application of concepts learned in class on food and beverage services system. It discusses a case study of Mr. Brown. He is a client who has requested for food and beverage services from the hotel. The paper will show how the event is organized inclusive of the purchasing of the raw materials, preparation and conservation of food. In addition to that, the paper addresses the usage of the available resources and make profits. The development also includes a budget for the event. KCA limited provides the services to Mr. Brown and his colleagues, family, suppliers, and employees in celebration of 50 years in business.

1.1 The characteristics of food production and food and beverage service systems

Food production includes the planning of menu, purchasing and the reception of the raw materials, cleaning foods, preparing and storing. In addition to that, it is the department where orders are dropped and picked by the wait staff in a hotel. The purchasing of raw materials for food production is a complicated task that needs skilled personnel. Moreover, in food production and beverage services system, hospitality is highly emphasized. In hospitality, there are three things to pay attention to; one, taking a study of the supply markets. This includes the selection of the buying methods that match with the demand of the services at the hotel. Moreover, the evaluation of the value of products value and setting of prices. Two, the development of purchasing specs that are detailed with a primary aim of preventing purchasers from stealing purchasing money or cheating in the hotel. Three, the survey and selection of suppliers. That includes short-term and long-term providers of the raw materials to use in food production and beverage services system (Unklesbay, 1977).

According to Unklesbay (1977), offering food services has unique characteristics as compared to production of other products in the market. The demand for food occurs at some hour of the day, for instance, the breakfast, lunch and dinner time. Between the peak hours, order for food is slow. The demand for food also varies depending on the month of the year, production and competitive events that must be attended to accordingly. In addition to that, both skilled and unskilled personnel is required. Furthermore, food and the raw materials are perishable. Therefore, it requires proper handling before, during and after preparation. Lastly, the menus change on a daily basis, therefore, production changes daily too.

The menu selected for the celebration is party cake, coffee, soft drinks and liqueurs. The event will have 50 people attending. The budget allocated for the event is $ 153.00. The menu is suitable for the people that are attending the celebration because of the children and adults satisfaction. The cake can be designed to fit the theme of the celebration. Coffee and soft drinks are for both children attending and adults while the adults only take liqueurs in celebration. In addition to that, the room will be decorated according to the theme color of the event that is probably chosen by Mr. Brown.

Menu

Foods:

Fish, rice and fresh salad $10, 00

Jack-potatoes with vegetables $14, 00

Chicken fillet, chips and salad $10, 00

Sausage, chips and fresh salad $20, 00

Beverages:

Orange juice $17, 50

Mineral water $10, 00

Coffee or tea $13, 50

Beer $17, 00

Desserts:

Apple cake $25, 00

Fruits salad $16, 00

1.2 Factors affecting menus and recipes for specific systems

There are several factors that affect the menu and recipes for Mr. Brown’s event to be held at KCA hotel. The factors consider the budget for the celebration event, the abilities of the kitchen, the preparation for the food and beverages, cooking time and the selection of complementary foods for the guests. Firstly the budget. The allocated for the foods and beverages to be taken at Mr. Brown’s celebration. The budget varies depending on the types of meals that the event organizer is planning. In addition to that, the menu also depends on the number of guests invited whether formal or informal. Another factor is the selection of the foods to be taken. According to Jack (2012), the food selecting process should be simple. For instance, the menu selected has chicken, fish, meat and chips. In addition to that, another significant factor is the availability of the resources used to make the menu list implemented. If some components in the food and beverage preparation are unavailable, an alternative can be selected for the item. For instance, considering the budget of the customer, the money may not afford both chicken and meat. Therefore, the meat can be canceled, and chicken remains.

Nutritional value and ethnicity are important in ensuring that the dishes produced are nutritious i.e. with vitamins, proteins, and carbohydrates. The customer is likely going to be satisfied but if the items do not match the ethnicity and nutritional value of the customer, it becomes difficult to satisfy them (John, David, & Cailein, 2002).

The kitchen medium is enough as the guests are 50. The ingredients used are easily available with three waitresses adequate for the service.

In accordance to Unklesbay (1977), the buffet service is associated with advantages such as serving a large number of people, giving the guests time to choose, the guests play a role in the service, the service staff need less skills and there are few complaints due to the personal service decision making.

1.3. Comparison of the cost and staffing implications for different systems.

Staffs have a special influence on the success of the food service process. The selection of staff is given high consideration weight because of the knowledge, requirements, experience and the skill required for the personnel. In addition to that, the running of the food production and beverage services depends on the efficiency or the skills of the staff in offering the services to the customers. Moreover, the behavior of the staff and how they communicate with the customers in a polite way attracts the customers (Todd, 2006). A perfect staff with good communication skills enhances the service operation. The recommendation of items helps in the improvisation of the sales and raising the levels of customer satisfaction.

Good management of staff in food production and beverage service systems maximizes the potential of the staff and the available resources. The management invests in staff through teaching them the skills requires and the educational qualifications to satisfy customers and offer high-quality services in the industry (Todd, 2006). The hotel will assign three experienced waitresses to serve Mr. Browns guests. In addition to that the staff will answer any questions asked by the customers.

Every staff in the catering cycle must understand his or her duties, responsibilities and skills that they have been trained to perform in the industry.

According to A (2008), the training of staff makes the operations expand their profits through the reduction of equipment and materials that are required in production and selling. Staff training increases the staff efficiency improves the performance standards required in the industry, improves the capability of the staff, encourages staff willingness to work and make responsibilities clear to the staff.

1.4. Justification of the systems' suitability for specific food and beverage outlets

My choice is to justify the suitability of the buffet service. It is a method of food service that involves purely self-service. The method presents the food attractively on a series of tables; hence, the presentation is vital in the industry. A buffet includes putting together hot and cold foods and beverages. The service is usually suitable for conferences, events, restaurants, hotels, and parties and banqueting. I would firmly recommend it for Mr. Brown’s party.

Mr. Brown will have to pay a fixed price for the buffet. In addition to that, the buffet services enable feeding of a large number of people at a given time with less staff needed for the exercise. The buffet method has several advantages that out do the disadvantages. The guests attending the celebration have choice of varieties of foods and beverages; the staff needed is less with fewer skills required for the process and also it involves the customers in the process. However, buffet cost is higher than any other foodservice, and some people do not like queuing.

LO2, The financial controls employed in food and beverage operations

2.1 The use of financial statements in food and beverage operations.

The food and beverage production and services system has important financial statements that include the operating statements, sales records, variance, cost statements and dish costing sheet. The dish costing sheet is by the chefs to calculate the value of each ingredient used in the preparation of food. The total decides the selling price printed on the menu. The sales record shows the information the company has on the customers, but has a limitation of what they purchase, mode of payments and their contacts. Another statement is the cost statement that includes all the costs incurred directly or indirectly (Lea & David, 2011).

The variance analysis indicates the distinguishing characteristics between a budget, the standard amount and the actual or real amount of the foods and beverages sold. The analysis aids the management to get a clear understanding of current costs of food and beverages then plan the future (Lea & David, 2011).

Every food service manager must be concerned with the cost of foods including the cost related to the preparation, cost of labor that is the cost of all employees responsible for the running of the business, the overhead costs that include rent, linen and utilities and the cost of beverages (cost of all ingredients).

The main role of financial statements is to keep the record of all financial statements that assist managers to manage the business. Financial statements include cash flow statements, balance sheets, statement of retained earnings and the income statement (Lea & David, 2011).

2.2 Demonstration of the cost and pricing progress

Costing and pricing in a food production and beverages service operations include, menu, dishes and beverages, sales, gross and net profit, cost of elements, discounting, Value Added tax (VAT), variable, indirect and fixed cost.

Price is the funds required to buy the services or products.

Cost is defined as the total amount spent on products or services inclusive of time, labor, and money.

According to Lea & David (2011),Value Added Tax (VAT) is the tax that is imposed indirectly on goods and services during each stage of production, beginning with processing of raw materials to the final product; either food or beverages.

Direct costs are the usual cost of raw materials that enter into or from the part of the product production.

Fixed costs are costs that remain constant over time regardless of fluctuations in the level of business.

The variable costs are costs that are proportional to the business level that includes the ingredients cost for the food and the beverages.

Profit is usually the difference between the incomes and the expenses over a certain period of time.

Discount is the sum of money deducted from the market price for an item.

Gross profit is calculated as the difference between the sales income and direct costs incurred in the production.

The net profit is the gross profit that is deducted all the expenses incurred in running a business.

The pricing of the menu for Mr. Brown’s celebration for 50 years in business must follow the outlines in order to generate the targeted profits for the hotel. Mr. Brown must pay the required amount of money in order to access the services, paying for the food preparation, and cleaning after the food.

The formula for costing is the cost of the product that is equal to the menu price.

Cost of the food or beverage= menu price

Selling price is the marked price after deducting the discount.

2.3 Analyze the purchasing process

The purchasing process is the process that involves searching, selecting, reception, purchasing, storage and the usage of commodities in catering and production of foods and beverages. The person who will perform the purchasing process will not only purchase the commodities but also receive, store and issue them to the hotel. The purchased items will now serve their purpose in preparation and production of foods and beverages in the menu for Mr. Brown’s party. Purchasing plays a significant role in a business control cycle together with the balancing of inventory against the investment. A purchasing process that is performed correctly helps in the maintenance of the stock levels to serve the customers’ needs. There are different strategies of procurement needed in the purchasing of different products that depend on the season of the product.

The demand of equipment and supplies

Control must be implemented on the foods and beverage operations inventory and requisition. The selection of the supplier of the food stuffs can be done from the list of the previous suppliers. The management has to visit the a potential supplier of the commodities and look at the company’s size, conditions of the facilities used to store, the models of the products and also see the management team of the supplying company. A strong sense of carefulness must be exercised, and inquiries made detailing the company and the range of foods they are selling and the prices attached to them. In addition to that, purchasing requires a detailed description of the size, weight, quality and quantity of the commodities acquired (Bernard, Andrew, Loannis, & Peter, 2012).

The purchase of beverages is simpler than that of foodstuff materials. This is because the beverages are sold and bought when the product brand name is labeled and packed in respective of quantity and quality. The reception of the purchased commodities varies in different organizations. The check delivery note is used in the inspection of the raw materials or the products in comparison with the order of purchase and specification (Bernard, Andrew, Loannis, & Peter, 2012). The raw materials are then accepted by signing the delivery note then the products are stored in the right place.

In the inspection of the purchased products and raw materials for Mr. Brown’s party, the quantity, quality, and the inspection clerical procedures have to be carefully analyzed. Invoicing should be inclusive of the business identification number, the name of the supplier, address and contact information, our company name and the address, the date of delivery of the invoice, VAT amount if applicable, and the total amount charged. The process of invoicing builds the relationship between the supplier and the hotel.

The raw materials bought for the celebration should be stored under the right conditions with the right space of which the hotel has adequate space for that. The dry goods kept on the right conditions and the perishable kept in refrigerators. A clean food and beverage storage system is what the hotel ensures for the good of the customers like Mr. Brown.

LO3 Devising menus for hospitality events

3.1 Compiling food and beverage menus for hospitality event

The menu is the central thing in the food production and beverage company that creates the impression to the customers, in addition to that, it communicates everything on the operations of the hotel displaying the theme and quality of services.

Menu

For Adults

Beer

Cake

Sausage

Salad and Chips

Vegetarian

Fruits salad

Tea or coffee

Diabetes

Fruits salad

Fish and rice

Mineral water

Children

Chicken filet, chips, and salad

Orange juice

Service System: Buffet service

3.2 Justification of the selection and suitability of recipes for menus

In the compilation of menu nutritional issues will be considered such as color of the dishes, balanced diet, hygiene and the safety of Mr. Brown and his group. In addition to that, some of the guests are vegetarians, children, and others diabetics. The sausage, fresh salads, and chips will be for the adult guests as it requires fewer skills to prepare. The diabetics, I have chosen fish, and rice because it has low-fat concentration, and it contains vitamins and carbohydrates that work for their health. The guests who are children, the menu has chicken filet, salad, and chips. This is nutritional for children and contains vitamins and proteins that are essential for their growth.

For the beverages, I choose bear for the vegetarians and adults, and mineral water and juice is for the children and the diabetics. There is also a choice for tea or coffee.

The service method is buffet because of the fewer skills and personnel required for the exercise. The method saves time and also guests choose what they like.

LO 4 Being capable of providing food and beverage services for hospitality events.

4.1 Planning food and beverage service for a hospitality event having a budget

Menu

Foods:

Fish, rice and fresh salad $10, 00

Jack-potatoes with vegetables $14, 00

Chicken filet, chips and salad $10, 00

Sausage, chips and fresh salad $20, 00

Beverages:

Orange juice $17, 50

Mineral water $10, 00

Coffee or tea $13, 50

Beer $17, 00

Desserts:

Apple cake $25, 00

Fruits salad $16, 00

4.2 Implementation of the planned service standards of quality and health, safety and security

Mr. Brown’s hospitality event should maintain high standards of safety, security, health and quality. The safety and health areas are more sensitive in Mr. Brown’s event. The premises and the equipment used by the guests at the event must be inspected and kept safe in the prevention of accidents. The staff has a duty to assess any risks in the room and the equipment. The management should ensure that the staff personnel id skilled to handle any danger or accident. This reduces the cost of insurance.

On security, the guests must stay safe during and after the event. Adequate security helps in enhancing the level of satisfaction of the guests and other customers. Finally, the quality standards of the production and service planning, cooking, presentation, the preparation of food and beverages are very important in the success of Mr. Brown’s event. The skills and knowledge of the staff enhance the qualities in preparation, storage, cooking and serving the foods and beverages. The temperatures shall be met all the time to avoid health complications for the guests (Unklesbay, 1977).

4.3 Evaluation of the factors determining the success of the service and recommendations for improvement

The following factors determine the nature of a hospitality event. The factors include planning and organization, quality assurance, cost and time effectiveness and customer satisfaction. The management selects the cooking style, food service and storage of the foods and beverages for the event.

4.31 Recommendations

The standards of food and the service systems must be maintained.

Hygiene in production and safety of the foods and beverages.

Effective communication with customers must be emphasized.

The level of satisfaction of the customers must be kept high in order to gain a good image in the market that keeps old and new customers.

In any hospitality event, the quality assurance, service of food and beverages should be kept high. The food, therefore, must be bought from a good supplier. Moreover, the service staff need proper training.

The cost and time effectiveness should be aimed at getting maximum profit as the customer gets the value of the money spent. In ensuring cost and time effectiveness, the management needs to make a good relationship with the operations of the local businesses and negotiate with suppliers.

5.0 Conclusion

In this paper, a presentation of the food and beverage operations is discussed stressing on quality of the products and services. With professionalism increasing in the market, each hotel needs to maintain high standards for customer satisfaction. Also, proper financial records have to be kept carefully to maximize the profits generated in the company. This includes the pricing of the menu and quality maintenance.

6.0 References

A, Y. T. (2008). Cleaning-in-Place: Dairy, Food and Beverage Operations. Oxford: Blackwell Publishing ltd.

Bernard, D., Andrew, L., Loannis, P., & Peter, A. (2012). Food and Beverage Management. New York: Routledge.

Jack, D. N. (2012). Management of Food and Beverage Operations. New York: Routledge.

John, C., David, F., & Cailein, G. ( 2002). Food and Beverage Management. Chicago: Prentice Hall.

Lea, R. D., & David, K. H. (2011). Food and Beverage Cost Control. New Jersey: John Wiley & Sons.

Todd, C. (2006). Case Studies in the Management of Food & Beverage Operations. Pennsylvania State University: American Hotel & Lodging Assn.

Unklesbay, N. (1977). Monitoring for quality control in alternate foodservice systems. Journal of the American Dietetic Association, 423-428.