The challenge of f&b operations [compatibility mode]

Introduction to Food and Beverage ControlBeverage Control

The Challenge of Food and Beverage Operations

Thursday, January 17, 2013 BAC: 4131 Food and Beverage Management-1 Cost Control Slide 1 /44

Scope

• The Umbrella Industry.• The Hospitality segment.• Overview of the Hotel Organization.• Commercial and Non commercial Food • Commercial and Non commercial Food

services.• Overview of Food Service Management.• Common Problems.• Managing a Multi unit Restaurant.


Learning Objectives

• Identifying components of the Tourism industry.

• Discussing the organization of the hotel.• Discussing similarities and differences in • Discussing similarities and differences in

commercial and non commercial food service operations.

• How to combat labor shortages.• Explain the role of technology in F&B


The Umbrella Industry


The Umbrella Industry

• The Tourism industry covers in its components 5 segments.

• Lodging Operations.• Food and Beverage Operations.• Food and Beverage Operations.• Transportations services.• Retail Stores.• Destination activities.


The Hospitality Segment

• Hotels.• Motels.• Condo-hotels.• Casinos.• Casinos.• Food and Beverage operations• Other facilities budget and Hostels.


The Food and Beverage Segment

1. Commercial Food Service operations.

2. Non Commercial of Institutional food service operation.service operation.


Overview of the hotel organization

• Rooms division• Human Resource division• Accounting• Engineering and Maintenance.• Engineering and Maintenance.• Security.• Sales and Marketing.• Food and Beverage.


The Food and Beverage Department

• Coffee shops• Dining rooms.• Room service.• Hospitality Suite Service.• Hospitality Suite Service.• Lounge, bars.• Deli shops and Employee cafeterias.• Snack and refreshments centers.


The Food and Beverage Department

• The Food and Beverage Department is capable of generating an average of 27 to 50% of the total revenue of the establishment.establishment.

• The economic success and failure of many hotels is directly tied to the ability of the food and beverage department to effectively plan and control its operations and provide food service that will attract hotel guests.


Production facilities

• Older lodging facilities were often built with separate food production facilities for each service outlet.

• The so called central kitchen was distant • The so called central kitchen was distant from most service areas.

• Many newer facilities have centralized commissary-style kitchens.

• The central kitchen design has been the best.


Operation Challenges

• Largely affecting the F&B operations in lodging facilities as compared with Free standing ones:

• Free standing is meant for profitability out • Free standing is meant for profitability out of Food Production and service whilst F&B ops in lodging properties are located in areas where the revenue comes from room rental.



• Hotel F&B operates at convenient times for guests against standalone which has fixed hours.

• Service must be provided even on low • Service must be provided even on low occupancy in many hotels the manager cannot close the outlet even if the response is lean.

• Many hotels have to manage with room service department being just value added with a negative bottom line.



• Hotel food service operations seldom offer dining benefits to employees as direct costs are not associated with employee benefits.benefits.

• The multiple food outlets make operating costs complicated to differentiate however they are lowered where as Free standing restaurants don’t enjoy that privilege.



• Free standing restaurants are visible to guests whilst its difficult to see the hotel outlet.

• It easier to manage of a restaurant owned by the hotel in contrast to a free standing restaurant.


Segregating revenue and Support Centers

• Separating revenue and support centers by levels of profitability assures the following:

• Allows finer cost accounting of the centers.• Allows finer cost accounting of the centers.• Allows concentration on support centers

so that they do not become completely loss making.


Management team and Org

Commercial and Non Commercial Food Services

• Important similarities:1. Quality awareness.2. Service delivery.3. Labor intensity.3. Labor intensity.4. Careful financial management.5. Use of automation.



• Important differences:…11. Commercial food services use Management

and Profits in vocabulary.2. Non Commercial operations use 2. Non Commercial operations use

Administration and Operational Surplus.3. Collection of revenue by direct transaction

and collection of revenue by billing.4. Hotel guests charge bills to room



• Important differences:…2• An accounts receivable system is quite

large and operationally complex especially with debt collection.with debt collection.

• Bill allocation under account heads in Hospital catering could be a bit complicated.


The Operating Control cycle

• Menu Planning.• Purchasing.• Receiving.• Storing.• Storing.• Issuing.• Production(Preparing, Cooking and holding)• Serving(Production to Service)• Service(Service personnel to Guest)


The Management System…1

• Management Programs.• Establish Procedures.• All training directed towards managing

available resources.available resources.• Management componentsa. Planningb. Organizingc. Coordinating


The Management System…2

d. Staffing.e. Directing.f. Controlling.g. Evaluating.g. Evaluating.


Planning

• Creates goals/objectives and action plans to achieve them.

• It should be cultural at all levels of the management.management.

• The top management should insist all levels of the lower management to build viable strategies.

• Creating of long term and short term goals and planning should be time bound.


Making Planning effective

1. Information access and receiving:

2. Communication:

3. Flexibility:

4. Implementation:


Organization

• Assembling resources in order.• Establishes flow of authority and

communication.• One line supervision.• One line supervision.• Using experienced supervisor knowing the

complexity of work.• Using the philosophy of empowerment.• Update organization charts regularly.


Coordinating

• The managements task of assigning work and organizing people and resources to achieve objective.

• Coordination depends on communication.• Coordination depends on communication.• Delegation and its importance.• The overall responsibility still remains with

the head of the department even if he/she has passed down the delegation of authority.


Staffing

• Recruiting• Hiring.• Screening by the Human resource

department.department.• Selection, tests, reference checks.• Jobs must be defined in terms of tasks

performed.• Job Specifications and hiring strategies.


Directing…1

• Usually is the managers major job.• Getting work done from subordinates.• Which includes Supervising, Scheduling

and disciplining employees.and disciplining employees.• Motivation, gaining confidence, gain

cooperation.• Disciplining employees should be done

when necessary with no remorse.


Concerns in directing staff..2

• Complexity of the Human mind.• Understanding, expectations, Wants and

needs.• Relating to employee minds.• Relating to employee minds.• Recognizing quantum of job during

scheduling.• Coaching and counseling staff after

disciplinary action.


Concerns in directing staff…3

• Management meetings when infrequency in staff behavior is seen.

• Combating unionized behavior in India and corrective action.corrective action.


Controlling…1

• Most organization lose of because of lack of control.

• Control is usually implemented by using control systems and SOP’s.control systems and SOP’s.

• Further control procedures are implemented.• Controls begin with establishing budget and

budget forms.• Practices are usually discussed before.


Controlling…2

• Control warrants for corrective action and using the principles of Actual results v/s budgeted results this can be achieved.

• Thus the budget levels are brought down • Thus the budget levels are brought down to daily management information systems to avoid delayed action.

• Controls should be worth more then they cost.


Evaluating

1. Involves reviewing the operations progress towards achieving overall organizational goals.

2. Measuring employee performance.2. Measuring employee performance.3. Assessing effectiveness of training

programs.


Integration of all processes

1. Help develop the next years budget.2. Deal with problems caused by improper

delegation.3. Work and gain experience in another 3. Work and gain experience in another

department or help in other events.4. Revise job specifications.5. Carry out routine supervisory activities.6. Conduct employee performance.


Combating labor shortage

1. This is global problem except for some developing countries.

2. To address such problems the management has to use the following strategies:has to use the following strategies:

a. Increase productivity.b. Reduce turnover.c. Offer competitive salaries and benefits.d. Revise hiring procedures and accommodate

non traditional workers.Thursday, January 17, 2013 BAC: 4131 Food and Beverage Management-1 Cost Control Slide 37 /44

Other methods of managing labor shortage

• Cross training.• Self Improvement.• Courses, seminars, Standardization and

procedure control.procedure control.• Most restaurant companies have set

standards in their manuals.• High energy managers provide

motivational support to employee and accept challenges.


Assignment on Multi Unit Restaurant Companies

• Doctor’s associates Inc.• Darden restaurants, Inc.• Mc Donald's,• Burger King.• Burger King.• Chili’s.• Damons.


The feature of functioning of the Multi-Unit operations

• Brand recognition.• Consolidated method of advertizing

nationwide.• Benefits arising from centralization in • Benefits arising from centralization in

Purchasing, Premise design, Centralization of menu planning, Purchase specification development.

• Loans for acquisition.


The feature of functioning of the Multi-Unit operations

• Potentially easier recruitment because of a centralized HR.

• Availability of specialized technical assistance from experts like risk assistance from experts like risk management, law, construction.

• Other technical support from culinary, marketing operating control.


Questions ��

CommentsThursday, January 17, 2013 BAC: 4131 Food and Beverage Management-1 Cost Control Slide 43 /44

Reference

• Food & Beverage Controls –Jack D. Ninemeier

(American Hotel & Lodging Association)


The challenge of f&b operations [compatibility mode]

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