ORGANISATION OF FOOD AND BEVERAGE DEPARTMENT OF HOTEL

NSS ENRICHING KNOWLEDGE FOR THE TOURISM AND HOSPITALITY STUDIES CURRICULUM SERIES (10): COMPULSORY PART II – INTRODUCTION TO HOSPITALITY - FOOD AND BEVERAGE SECTOR (NEW)

OBJECTIVES

Introduction to the food and beverage sector Sectors of the foodservice industry Food and beverage operations Classifications of food service establishments Types of food and beverage services

F & B INDUSTRY

It is usually defined by the output of products. But it doesn’t include the manufacturing of food & drink and its retai l ing.

The basic function: serve food & drink to people and to satisfy their various types of needs.

The main aim is to achieve Customer Satisfaction. The needs that customer might be seeking to satisfy are:

Physiological: the need of special food itemsEconomic: the need for good value for the price paidSocial: a friendly atmospherePsychological: the need for enhancement of self esteem‐Convenience : the desire for someone else to do the work

CHARACTERISTICS OF THE F & B OPERATIONS:

Following are the main characteristics:A vital part of everyday lifeMajor contributor to the Hong Kong economyHighly fragmented & complexCreates employmentEncourages entrepreneurshipPromotes diversity through many different food concepts &

cuisines InnovativeConsumer ledHigh competitionFulfils basic needs

THE FOODSERVICE OPERATION/CYCLE

The foodservice cycle can be used as a basis to analyze how different foodservice

operations work.

PERFORMANCE MEASURE IN FOODSERVICE OPERATION

Performance measure variables

• Seat turnover• Customer spend/ average

check• Revenue per member of staff• Productivity index• Ratio of food and beverage

sales to total sales

• Sales/ profit per seat• Sales analysis• Departmental profit• Stock turnover• Complaint levels• Level of repeat business

SECTORS OF THE FOODSERVICE INDUSTRY

CLASSIFICATION OF F & B INDUSTRY

Extremely diverse & fragmented that the size & scope of the industry creates a challenge when attempting to organize & classify i t .

Classif ication approaches & options:

• Commercial (market oriented) & non-commercial (cost oriented)

• Customer type: general market or restricted market • Ownership• Primary function or secondary function• Star rating or quality• Type of cuisine• Service method• Theme• Location

• Commercial (market oriented) & non-commercial (cost oriented)

• Customer type: general market or restricted market • Ownership• Primary function or secondary function• Star rating or quality• Type of cuisine• Service method• Theme• Location

CLASSIFICATION OF FOOD AND BEVERAGE OPERATIONS

COMMERCIAL (MARKET ORIENTED) & NON-COMMERCIAL (COST ORIENTED)

1. Market oriented business characteristics:

High % in fixed cost, for example rent, management salaries, depreciation of buildings and equipment

Reliance on sales rather than decreases in costsAn unstable market demand for the productFlexible pricing policy

2. Cost oriented business characteristics:

Lower % of fixed costs, but a higher percentage of variable costs such as F & B costs

Reliance on decreases in cost rather than increases in salesA relatively stable market demand for the productFixed pricing policy

Customer type

OWNERSHIP OF F & B OPERATIONS

Management options

Self-operated

• The owner or organization manages the operation themselves. It could be a small, large or a franchised situation.

Franchise agreement

• ‘ With a franchise, the franchisee (the owner of the facility) pays fees to the franchisor (or franchise company) in exchange for the right to use the name, building design, and business methods of the franchisor. Furthermore, the franchisee must agree to maintain the franchisor’s business & quality standards’.

Management contracting

• When an owner or operator of an establishment employs or contracts specialized hospitality or food & beverage service company to manage the whole or part of the operation. This could be either in a hotel or in a non-commercial institution, for example a university.

Outsourcing

• Increasingly, hotels are realizing that hotel-run restaurants are in some cases unprofitable due to many residents opting to dine at known branded outlets.

• Therefore, a new & emerging trend is where the hotel forms a partnership with a restaurant/coffee chain/bar brand that would operate from a designated area within the hotel.

PARTIAL LIST OF RESTAURANTS IN HONG KONGCompany Name Type of Food No. of Outlets

Maxims Chinese Restaurants/Chinese fast food/ Lunch Boxes

376

McDonalds Fast Food 232 + 77 McCafe

Café de Coral Chinese fast food/ Lunch Boxes 151

Fairwood Chinese fast food/ Lunch Boxes 107

KFC Fast Food 62

Burger King Fast Food 15

Starbucks Coffee & Snacks 115

Pacific Coffee Coffee & Snacks 110

Outback Steakhouse American style dining 7

Deli France Fast Food sandwiches 34

Oliver’s Super Sandwich Fast Food Sandwiches/ Salads 18

Pret a Manger Fast Food Sandwiches/ Salads 12

California Pizza Kitchen American style pizza 4

TGI’s Fridays American style dining 1

Dan Ryan’s American style dining 3

F & B IN ACCOMMODATION

5-star hotels Coffee shop, Fine dining restaurant, Specialty restaurant, Bar, Coffee lounge, Banqueting, Outside catering, 24hrs full room service menu, Executive lounge, In room guest amenities, Mini bar, Pool café, Employee dining

4-star hotels Coffee shop, Specialty restaurant, Bar & lounge, Guest amenities, Conference & banqueting, Mini bar, Employee dining

Budget hotels Breakfast buffet, Bar, Vending machines, Employee dining

Bed & breakfast

Breakfast, limited set menu available at set times on request

Hostel Snack bar, Vending

DEFINITION OF MEAL EXPERIENCE

The meal experience may be defined as series of events both tangible and intangible that a customer experiences when eating out. Tangible- which can be feel by touching, seeing like

restaurant tables, chairs etc. Intangible- which can be only sensed/felt like

restaurant atmosphere etc.

It is diff icult to define exactly where a meal / drink experience actually starts and ends, although it is usually assumed that the main part of the experience begins when a customer enters a restaurant and ends when he leaves the restaurant.

FOOD AND BEVERAGE DIVISION

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