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Food and beverage management: Sixth edition

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Nguyễn Gia Hào

Academic year: 2023

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It explores the wide range of subject areas covering the food and beverage market and its main sectors - fast food and casual dining, hotels and quality restaurants and event, industrial and welfare catering. It also looks at some of the key trends affecting the food and drink industry, covering consumer, environmental and ethical considerations as well as developments in technology.

Frequency of eating out at a restaurant for casual/everyday and

Key operating elements of food and drink service operations 39

Individual Restaurants website with online booking facility 66

Income statement and cash flow statement 104

Example of a balance sheet 105

Part of the AHR vegetable and herb garden 115

A sample tasting menu from Guy Grossi’s Florentino in Melbourne 125

Wetherspoon gluten free menu also showing calories and other

The building blocks of competitive advantage 160

An example of a classical product specification for catering a cut of beef 166

HACCP System based on a procedure developed by the Lakeside

Extract from refrigeration temperature record book from

The main division of activities in the conventional partie food

Cost behaviour as sales change 231

Inverted pyramid of background information 284

Reasons for a fair dismissal would include the following matters 291

The development of approaches to quality management 339

Population estimates by social grade 2015 301

Frequency of eating out by family status 302

Main media advertising expenditure for selected chains 311

Key features of total quality management 342

This book is written to explain the complexities of running food and beverage stores. Identify the key responsibilities of food and beverage managers and the limitations that may be placed on them.

Table 1.1   Size and scope of the hospitality industry
Table 1.1 Size and scope of the hospitality industry

Hotels and similar accommodation

This section includes, among other things, the provision of short-term accommodation to visitors and other travelers and the provision of full meals and beverages suitable for immediate consumption. Also included is the provision of longer term accommodation for students, employees and similar individuals.

Holiday and other short-stay accommodation

Camping grounds, recreational vehicle parks and trailer parks

Other accommodation

Restaurants and mobile food service activities 0/1 Licensed restaurants

Event catering and other food service activities

Event catering activities

Other food service activities

BEVERAGE SERVING ACTIVITIES

There has been great interest over many years in the nature and definition of the manager's job. Therefore, the work of the hospitality manager can be characterized by variability, variety and volatility, representing the informal element of the hospitality manager's work.

Figure 1.2  Exploring the manager’s work in the hospitality industry Adapted from Li, Buhalis and Gray (2006)
Figure 1.2 Exploring the manager’s work in the hospitality industry Adapted from Li, Buhalis and Gray (2006)

Managing

Personal professional and

To provide meaningful and comparable statistics. In order to understand the contribution that the industry and different parts of the industry make to the economy as a whole, there needs to be a

See for example Barrows, Vieira and DiPietro (2016) and Barrows and Vieira (2013) in the references at the end of the chapter. These sectors are not included in the statistics provided by the SIC, but are a significant part of the food and beverage service industry.

Figure 2.1  Key operating elements of food and drink service operations Source: the authors
Figure 2.1 Key operating elements of food and drink service operations Source: the authors

An envelope type folder with the company’s logo, title and address clearly displayed

These sales tools should also be of a standard commensurate with the level of operation and the type of image it is trying to project. Function "folders" containing details of all the various facilities offered by an enterprise are often produced by organizations which can be distributed to potential customers advertising the enterprise's function facilities.

A personal letter from the function/banqueting manager to the client

There is such a varied type of event that a catering company or banquet department of a hotel can use any traditional marketing, such as flyers, radio, TV, magazine and newspaper advertisements. Sample function menus produced by an establishment should be of good quality and look good as the customer will often want to take them to study before making a decision on the function menu.

A list of function rooms together with details of the numbers that could be accommodated for differ- ent types of functions, for example a formal lunch or dinner, a dinner dance, a buffet type reception, a

According to Brewin Dolphin, a financial research firm, the wedding market is worth £4.2 billion every year, and with the average wedding costing around £16,000, it's no wonder that hotel banquet departments and contract food service operators are vying for this lucrative segment. A function 'map', often color coded for easy customer reference, would most likely be composed of the following:.

Plans of the room with basic dimensions, position of power points, telephone points, ceiling heights, etc

Sample menus for lunch, dinner, buffets, meetings, etc

Details of audio-visual equipment available for meetings – lecterns, microphones, overhead projectors, screens, etc

Details of accommodation facilities available, often at special rates for guests attending a function/

Coloured postcards of the hotel/function rooms

Relevant simple maps and parking arrangements where necessary

However, it is not uncommon for exclusive restaurants to be featured in many of the world's stadiums. Contract catering services have evolved significantly over the last ten years and it is not unusual to find contract food service companies investing in any of the sectors covered in this chapter.

Cost plus/management fee: These are contracts where the client is billed for the cost of the operation plus a management fee

Traditionally, contract food services are associated with non-profit or institutional food services, including workplace canteens, hospitals and schools. According to the BHA, in 2017 in the UK alone, contract catering generated revenues of just under £5 billion.

Fixed price/performance guarantee: Contracts where the clients agree to a total subsidy and the costs may not rise above the agreed figure

What used to be commonly referred to as contract food service has changed as contract food service operators have increased in business complexity. Notable is the decline in contract food service in healthcare, MOD, local authority and private education in terms of meals.

Profit and loss concession: The client and the caterer agree to share the profits or loss of the operation

For the purposes of this text, we will define contract catering companies as: individuals or companies that assume responsibility for the management and control of a company's catering facilities in accordance with that company's guidelines for a particular contractual arrangement. Contract catering companies are usually engaged for a fixed period of time, after which the contract can be renewed or terminated as both parties wish.

Total risk: Total investment covered by the caterer, who earns all profits

Today, however, contract food service companies such as Compass or Sodexho have branched out beyond the scope of traditional contract food service, and it is not uncommon for contract food service companies to develop brands under which they operate restaurants (Figure 4.1). Cost plus/management fee: These are contracts where the customer is charged the cost of the operation plus a management fee.

Purchasing: A contract for purchasing only

The cruise ship sector is one of the fastest moving sectors in the hospitality industry. More attention was paid to the quality of the food provided to patients.

Figure 4.1  Structure of Compass Group, the largest contract foodservice company in the UK Note: The Compass Group employs 90,000 people and has 8,500 sites in the UK alone
Figure 4.1 Structure of Compass Group, the largest contract foodservice company in the UK Note: The Compass Group employs 90,000 people and has 8,500 sites in the UK alone

Restaurants that rely on low margins but high volume of sales (fast food, take-away, etc.)

Sometimes the concept will become clear only after a feasibility study has been carried out, but most of the time the future restaurateur has a good idea of ​​what she wants to achieve based on her experience and available talent. Problems arise when a restaurateur is so engrossed in his concept that even if a feasibility study clearly shows that the concept is unlikely to work in a particular location, he goes ahead anyway.

Mid-scale restaurants that offer a full meal but at relatively low prices (casual dining)

The history of the world's largest restaurant chains (Table 5.1) reveals that even a good concept in itself is not enough, but it is of paramount importance. There are many examples of concepts that, although successful in their initial operation, failed when they then branched out and attempted to establish a chain of restaurants.

Upscale restaurants that rely on high margins (see Michelin star restaurants)

This may be because the information that emerges from the feasibility study will then be used in the development of the business plan. Depending on the size of the business and the experience of the management team, there may be a number of restaurant financing options available.

Figure 5.1  Key restaurant concept considerations
Figure 5.1 Key restaurant concept considerations

It offers the opportunity for immediate entry into business

Franchising is an arrangement where the franchisor (main company) gives the franchisee (new restaurateur) permission to use particular commercial operating methods that he has developed. The franchisee contributes the necessary capital to start an operation, effort and motivation to run the business and agrees to be controlled by the franchisor; the franchisor in turn contributes to the training of the franchisee, the operating procedures and other managerial expertise.

It offers immediate entry into a particular market with a proven successful ‘package’, that is, a brand product

Franchise arrangements are particularly applicable to fast food outlets because of the way these operations lend themselves to standardization and duplication, thereby encouraging the development of franchising within the large chain operations.

Assistance is offered in finding and evaluating sites

Assistance is given with initial layouts, shop fitting specifications and advice with planning applications

Assistance is given with initial training of management and staff

The franchisor provides all operational documents

The franchisor provides regional and national promotional support

The franchisor provides regular advice and assessment

It enables the franchisor to expand the business with speed using the franchisee’s investment capital

It enables the franchisor to achieve market penetration with relative ease and speed using the franchi- see’s capital, time and energy

It reduces the number (if any) of development staff to find sites and to be involved in lengthy openings of new units

It increases the benefits to the franchisor by providing significantly greater market exposure of the product

It enables the franchisor to be the required supplier of the food, beverages, disposable commodities, equipment and at times fixtures and fittings, to the exclusion of competitors’ products in all forms

It enables the franchisor to have the franchisee under a period contract, to pay for entry into the fran- chise, to pay a commission fee based on turnover and often to pay a specific percentage of turnover

Depending on the concept and the size of the business, there will be different requirements and priorities when designing the restaurant. Much has changed in the presentation and service style of the food and beverage offering.

Figure 5.6  AHR menus and packaging With permission of Acorn House
Figure 5.6 AHR menus and packaging With permission of Acorn House

Desirable area

This suggests that customers are most likely, on a two-page menu, to choose those dishes listed at the top of the right-hand page - the optimal position - as this is the area the customer will naturally look at first. Increasingly, as menus are presented in a multitude of different single- or multi-page or screen formats, the traditional understanding of optimal position needs to be tested more fully.

Opmum posion

Reporting to senior management usually through establishing communication channels

Quality, service, cleanliness and value are the foundations of McDonald's business, and the success of the delivery and distribution functions can be attributed to this focus. Each department of the organization will have specific stock levels and a process for stock replacement.

Figure 7.2  The building blocks of competitive advantage
Figure 7.2 The building blocks of competitive advantage

The selection of the source of supply is usually agreed in advance by the department manager or by head office so that contracts can be agreed, for example, the price to be paid, delivery performance with

This can be a request form from an authorized member of staff, for example, the head chef. The selection of the source of supply is usually agreed in advance by the department manager or head office so that contracts can be agreed, for example, the price to be paid, the delivery performance.

The ordering process is electronic, telephone or written order

This can be an application form from an authorized member of staff, for example a chef, restaurant manager or from the retailer. With more advanced Electronic Point of Sale (EPOS) systems currently in use, many stock or low stock alerts are automatically generated by the system.

The acceptance of goods ordered and the adjustment of any discrepancies in quality or quantity of goods delivered, checking delivery notes/invoices

Checking the temperature of the goods on delivery and recording this in writing

Checking the condition of packaging or containers and rejecting those that are not in good condition

Periodically checking the temperature of the delivery vehicle and recording this in writing

The transfer of commodities to the ordering department or to the stores or cellar

Whatever the site, a sound purchasing policy and control system must be put in place to achieve satisfactory standards. Searching for a new supplier requires caution and detailed questions should be asked in at least the six areas below.

Full details of the firm and the range of items they are selling

A copy of recent prices lists

Details of trading terms

Details of other customers

Samples of products

Integrity of the supply chain; environmental, economic and political

This is the ability of the supplier to adhere to agreed delivery times and dates with the customer. On the previous pages, we tried to reduce the complexity of the entire purchasing activity to a simplified outline.

Keeping up to date with what is available in all the markets in which they are dealing

The cheapest product is not necessarily the best buy; it is often a cheap product of low quality and may not perform well according to the purchase specifications, for example the product was not ethically sourced, is genetically modified or is not organically grown. Food delivery is regulated in accordance with the Food Safety Act of 1995 on temperature control and belongs to the HACCP records of the plant.

Internal and external supply chain integrity

The supply trade press: Trade journals are published weekly and cover most of the commodities to be purchased. They give valuable current general information and indications of future trends

The commodity trade organizations: These organizations will readily provide information to caterers about a particular commodity, such as the types available, how they should be stored and names of local and

The catering trade press: These papers and journals contain items of commodity news and information of present and future prices

The national press: Leading newspapers publish commodity market news with details of the range of prices being paid in certain markets

Government publications: These are available from agricultural departments and give a variety of infor- mation such as a national food survey responses, availability of specific commodities and current food

The particular method chosen often depends on the location of the establishment, the type and size of the business, its purchasing power and the type of food being purchased. It is important for buyers to have accurate figures of consumption/usage of key items available to them so that they can decide which method of purchase to use and also as essential data for negotiating the purchase price.

The specific period contract aims at determining the source of supply and the price of goods for a stated period, often of three or six months. This reduces the time and labour of negotiating and ordering to a

The organization will announce the tender in the trade press; for example, tenders are invited to supply fresh fruit and vegetables for a period of one year or for a specific event. A fixed-term contract aims to determine the source of supply and the price of goods for a specified period, often three or six months.

The quantity contract aims at ensuring continuity of supply of a given quantity of an essential item at an agreed price over a particular trading period. The purchase of frozen fruit and vegetables for use in a

A purchase specification is a concise description of the quality, size and weight (or quantity) required for a particular product. It provides the consignee and the storekeeper with detailed information about the food standard to be accepted.

Figure 7.5  Supply chain planning and control
Figure 7.5 Supply chain planning and control

The quantity of goods delivered matches the quantity that has been ordered. This means that goods may have to be weighed or counted

In many catering establishments, the reception department is not considered very important and is often staffed by people with little or no special knowledge. It is important to realize that all goods received by the company have a monetary value and that it is essential to ensure that exactly this value in the goods is correctly accounted for and received.

The quality of goods delivered is in accordance with the specification stated

Unless this department functions effectively, it becomes the weak link in the food control cycle and negates all efforts in the rest of the control cycle. It is also important to remember that these items will often have a sales value several times their original purchase price within hours and certainly fall within the requirements of the Food Temperature Control Regulations.

The prices where stated are correct

An accurate record is made on the delivery note, recording details of the delivery, including tempera- ture and condition of packaging

Goods should be decanted into clean storage containers where appropriate; for example, meat should be unwrapped and stored in clean, covered containers before being placed in refrigeration

On receiving the items, they are read by a bar code reader attached to a commuter system

This matches the item to the order/stock item/purchase requisition

Receipt of the goods is logged onto the EPOS control system, where it may be identified in a number of different formats depending on the company, for example per kilo or per portion

The system is accessed as required by sector manager accounts office, chef or bar manager

As sales go through the till the EPOS system reduces the stock holding proportionately

In a sophisticated system, EPOS may generate a new order requisition or order directly from the supplier

This will highlight any changes and show the efficiency of the stock control system in operation. Inventory lists should be printed in a standard format and in some way related to the layout of the warehouse.

Hình ảnh

Table 1.1   Size and scope of the hospitality industry
Figure 1.2  Exploring the manager’s work in the hospitality industry Adapted from Li, Buhalis and Gray (2006)
Figure 1.3  Main areas of management activity Source: author’s personal research
Table 1.3   Cross tabulation of main activity areas by management level (%)
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