chapter 8: the food and beverage...

Chapter 8:Food and Beverage

Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

Plan by focus on menu

Menu impacts operational factors

Menu focus on guests’ wants, needs & preferences

- layout / equipment - labor for production, service & clean-up - F&B products for purchase

Marketing concernsRepeat business important to financial success

Planning issues

Similarities: Hotel & Restaurant Foodservices

All foodservice operations must assess financial status

- Operating budget- income statement / balance sheet / cash flow statement

Necessity for standard operating procedures

- Purchasing / receiving / storing / issuing / pre-preparation / preparation / serving / service

Emphasis on consumers

Financial concerns

Cost control procedures



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…)

Effective use of perpetual & physical inventory systemsControl of product quality Securing products from theft Location of products within storage areas

Step 4:Issuing

Product rotation concernsMatching issues (issue & usage)Purchasing as inventory is depleted

Development of receiving proceduresCompletion of necessary receiving reports (e.g., addressing financial and security concerns)

Develop purchase specificationSupplier selectionPurchasing correct quantitiesNo collusion between property and supplierEvaluation of purchasing process

Step 1:Purchasing

Step 2:Receiving

Step 3:Storing



Step 8:Service

Cycle of F&B Product Control (continued…)

Mise-en-place Minimizing food waste / maximizing nutrient retention

Use of standardized recipesUse of portion controlRequirements for food and employee safety

Timing of incoming F&B ordersPortion controlRevenue management concerns

Revenue control concernsServing alcoholic beverage responsiblySanitation and cleanlinessF&B server productivity

Step 5:Pre-Preparation

Step 6:Preparation

Step 7:Serving



Transferring some decision-making responsibility and power to front-line employees

Enhancing service to guests and increasing profits for the organization

Personnel Requirement Similarities: Hotel & Restaurant Foodservices

Practice of empowerment

Staff must be trained in standardized procedures.

Managers must provide clear direction to employees.

Managers must provide necessary resources.

To meet unanticipated guest needs effectively



Profitability = Revenue - Expenses

Profitability Differences: Hotel & Restaurant Foodservices

Hotel’s “bottom line” profit from F & B sales is likely to be lower than a restaurant’s.

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.

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



Marketing-related Differences: Hotel & Restaurant Foodservices

Restaurants: locations easily accessible to potential guestsHotels: locations most accessible to guests desiring lodging accommodations

Restaurants: locations easily accessible to potential guestsHotels: locations most accessible to guests desiring lodging accommodations

For hotels, F& B service is viewed as an amenity or secondary (sale of guestrooms is primary objective)

Location within the community

Location within a hotel

Menu



Room Service Operations: Profitability Concerns

Why lose money?

Relatively few properties generate profits from room serviceVery high labor costsHigh expenses incurred for capital costs - delivery carts / warming devices

Why offered?

How to offset losses?

High expenses incurred for capital costs - Delivery carts / warming devicesOffer hospitality suite business

Provide hosted events

Service to guests

Impacts hotel rating- some guests select hotels based on room service availability



Room Service Operations: Menu Planning Factors

Quality Concerns

Cross-Selling

Menu Language

Advertising availability of other hotel services- dinner menu providing info about Sunday brunch

Less likely to oversee room service food quality Must offer products maintaining quality during holding and transportation to guest room(example: problems with omelet & French fries)

Language barriers for international guests- uses of pictures and multi-lingual menu descriptions

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.

CommunicationGuest placing order / order taker / room service production-service staff / room service staff Abbreviations should be clearly understood by order taker and food production staff

TechnologyImproving the accuracy of room service orders- electronic cash register (ECR) / point-of-sale terminal / remote printer

Upselling Technique

Opportunities for upselling are overlookedUpselling increases guest check average



Training issues for room service attendants

Room Service Operations: Within-Room Service

Presenting guest check and securing payment

Opening wine bottles (where applicable)

Providing an attitude of genuine hospitality

Explaining procedures to retrieve room service items

Asking guests where room service meal should be set up



Well-planned banquets can be profitable!

Banquet Operations: Profit Opportunities

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 community’s banquet business

Increasing property’s profitability



Factors / concerns for planning banquet menusBanquet Operations: Menu Planning

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



Butler service Appetizers and pre-poured champagnes can be served by service staff at a reception while guests stand.

Banquet Operations: Service Styles

Buffet service Quantities of food are pre-arranged on a self-service line; guests pass along the line and help themselves

Family style (English style)

Platters and bowls of food are filled in the kitchen and 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 (American service)

Production staff pre-portion food on plates in kitchen; service staff serve to guests



Individual drink price

Collecting cash or a ticket when each drink is sold

Banquet Operations: Beverage Functions

Bottle charge Charging on a by-bottle basis for each bottle consumed / opened

Per-person charge

Charging a specific price for beverages based on attendance at the event

Charging the host a specific price for each hour of beverage service

Using hours of beverage service; charging number of drinks / hour X number of guests

Various ways to charge for beverage

Hourly charge

Specific per- event charge



Size Timing

Two critical

concerns

Banquet Operations: Banquet Room Set-Up

Determined by :

number of expected guests local fire safety codes / ordinances

types and sizes of tables, chairs, other equipment number of seats per table

required space for aisles, dance floors, band stands, other entertainment, head tables, etc.

reception / buffet tables

Becomes critical when:

the same room to be used same day for different functions

when large evening event precedes following day’s large breakfast event in same room



Last date that banquet space will be held without signed contract

Banquet Operations: Banquet Contracts & Billing Policies

Topics in banquet 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



Responsible service & consumption of alcoholic beverage is an integral part of the responsibility of all F & B managers in all types of operations.

Alcoholic Beverage Service in Hotels

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.

Good training protects guests, public and hotel from tragedies and lawsuits

chapter 8: the food and beverage...

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