10/7/2020

FOOD AND
BEVERAGE
OPERATIONS
MANAGEMETN

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It doesn’t matter if you have a trendy looking place,

or a cool looking bar, or the greatest chef in the
world. You have to engage the people that come
into your place, day after night after day after night,
and remember who they are, and why you’re here.
Jim Parker, Red Hat on the River.

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Before we start

write down 10 different occasions when you

might eat out of the home and attach a
different business to each occasion.

Are you a FOODIE?

gourmet, connoisseurbon viveur, gourmand
.

Getz, D., Robinson, R., Vujcic, S. & Andersson, T. (2015). Foodies and food tourism.
Goodfellow Publishers, Credo Reference.

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The word restaurant covers a broad range of food

service operations. The term comes from the French
word restaurant, meaning “restorer of energy.” The
F & B industry term was used as early as the mid-1700s to describe
public places that offered soup and bread.

Today, any public place that specializes in the sale of

prepared food for consumption on- or off-premise
can be described as a restaurant.

Food service is generally used to represent the

broader term, which encompasses all sorts of public
and private locations that provide food for sale.

○ It is usually defined by the output of

What is food products. But it doesn’t include the
and beverage manufacturing of food & drink and its
operations? retailing.

○ The basic function: serve food & drink to

people and to satisfy their various types
of needs.

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What are the

characteristics of
food and
beverage
operations?

◦ A vital part of everyday life

◦ Major contributor to the economy
Characteristics ◦ Highly fragmented & complex
of the F & B ◦ Creates employment
operations:
◦ Encourages entrepreneurship
◦ Promotes diversity through many different food
concepts & cuisines
◦ Innovative
◦ Consumer led
◦ High competition
◦ Fulfils basic needs

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The foodservice
cycle

○ Cousins,J. Lillicrap, D.Weekes, S., (2014) Food and Beverage Service. 9th Edition Hodder Education

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Different ARE DESIGNED FOR THE: THE SAME CUSTOMER CAN:

foodservice ○ Needs people have at a ○ Be business customer during

particular time the week
operations
○ Rather than for the type ○ A member of a family at the
of people they are weekend
○ Wanting a quick lunch or snack
while travelling
○ Be organising a special event

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1. Hotel, motel and other tourist
accommodation
Classification 2. Restaurants including conventional and
approaches & specialist operations – e.g. fine-dining, theme
options: 3. Popular catering including cafés, pizza, grills
and steak house
4. Fast food including McDonalds and Burger
King, KFC etc.
5. Takeaway including ethnic, snacks, fish and
chips, sandwich bars
6. Outdoor catering (ODC)(or ‘off-premises
catering’ or ‘event catering’)

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1. Retail stores
2. Events/ banqueting/ conferencing/
Classification exhibitions
approaches &
3. Leisure attractions such as theme park,
options:
museums, galleries, cinemas and theatres
4. Industrial catering either in-house operations
or through catering/ foodservice contractors
5. Motorway service stations
6. Transport catering including railways, airline
and marine

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Find out prominent

restaurants
worldwide.
Classify them what
type of restaurant
each one represents.

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Classification

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○ Commercial food service operations: Food services offered

in hotels and restaurants and other organizations whose
primary purpose for existence involves generation of
Basic terms profits from the sale of food and beverage products
○ Institutional (noncommercial) food service operations: those
food services provided by health care, educational, military,
religious and numerous other organizations whose primary
reason for existence is not to generate profit from sales but
rather to support other organizational purposes
○ Repeat business – revenues generated from guests
returning to a commercial operation such as a hotel as a
result of positive experiences on previous visits

Similarities  They are both commercial food services

between operations.(Their primary purpose is to generate
hotel and profits from the sale of food and beverage
products)
independent
 Operational similarities: planning; financial
restaurant concerns, emphasis on the customer; cost
control procedures
 Personnel requirement similarities: restaurants
and dining room managers; catering managers;
kitchen staff; service staff

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 A restaurant seeks to financially support itself through sales,

while the F&B department seeks to support the hotel
Differences  F&Bs in the hotels rely extensively on banquet operations and
between in-house catered events and much less on open-to-the public
hotel and restaurants and bars.
 Marketing related differences: hotels usually emphasize on guest
independent room rentals, not restaurant operations, because rental of guest
restaurant rooms generate higher level of profit than does the sale of food
and beverage product
 Location: restaurants are easily accessible to the public, while
F&B departments in a hotel are accessible to the hotel guests
primarily
 Menu: restaurants provide more limited choice of food and
beverage options.
 Working hours: F&B departments are working 24/7, while
restaurants have limited working hours

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Market
orientation MARKET
COST ORIENTED
ORIENTED
BUSINESS BUSINESS

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Market General market (Non - Semi-captive market Captive market

captive)
orientation The customer has a The availability of This is where the
choice of eating out choice is also customer does not
opportunities both important in this have a choice of
in terms of the food market. operation, but there
and drink to be
consumed and the is still a need for
type of operation satisfaction.
they may wish to
go to.

What does
restaurant
sell?

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It is difficult to define
The meal experience
may be defined as series exactly where a meal /
of events both tangible drink experience actually
Definition of and intangible that a starts and ends, although
meal customer experiences it is usually assumed that
experience when eating out. the main part of the
 Tangible - which can experience begins when a
be felt by touching, customer enters a
seeing like restaurant restaurant and ends
tables, chairs etc. when he leaves the
 Intangible - which restaurant.
can be only
sensed/felt like
restaurant
atmosphere etc.

F & B services Material Product Environment Behaviour and attitude

attributes in • Quality of F & B • Cleanliness • Friendliness
meal • Portion size • Location and • Competence
experience • Variety of menu
choices
accessibility
• Size and shape of
•
•
Courtesy
Efficiency and speed
• Food and beverage room • Helpfulness
• Consistency • Furniture and fitting • Professionalism
• Range of tastes, • Atmosphere (color, • Responsiveness to
textures, aromas, lighting, temperature, special requests
color, temperature, noise level)
• Responsiveness to
appearance • Spaciousness of complaints
• Price of meal/service restaurant
• Availability of menu • Employee’s
items appearance
• Availability of parking

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○ organisational
Variables in
○ customer experience
foodservice
operations ○ performance measures.

F&B Organizational Structure

F&B
Manager

Asst. F&B Executive Restaurant

Manager Chef Manager Bar Manager

Executive
Room Service Captain Bartender /s
Sous Chef

Waiters/ Waiter/
Chef de Party Pastry Chef
Waitresses Waitress

Cooks
(canteen;
Bakery Pastry Runners
salad chef;
etc.)

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Psychlogical Ecomonic
Physiological
Customer
satisfaction

Convenience Social

The main aim is to achieve Customer

Satisfaction. The needs that customer might
be seeking to satisfy are:
F & B industry ◦ Physiological: the need of special food items
◦ Economic: the need for good value for the price
paid
◦ Social: a friendly atmosphere
◦ Psychological: the need for enhancement of
self‐esteem
◦ Convenience : the desire for someone else to
do the work

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Performance Performance measure variables

measure in • Seat turnover • Sales/ profit per seat
foodservice • Customer spend/ average • Sales analysis
check • Departmental profit
operation • Revenue per member of • Stock turnover
staff • Complaint levels
• Productivity index • Level of repeat business
• Ratio of food and
beverage sales to total
sales

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Self -
operated

Management Management
Outsourcing
contact options

Franchise
agreement

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○ Long hours
◦ Excessive fatigue can lead to health problems
Challenges of ◦ Lack of quality time with family
Restaurant ○ Little security for managers working for
Operation others
◦ Family life can suffer
◦ Possibility of losing investments and
investors
◦ Endangers financial security
◦ Failing economy
◦ Lack of consumer spending

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○ Restaurant operators and staff must:
◦ Enjoy serving people
Challenges of ◦ Handle frustration easily
Restaurant
◦ Be tireless
Operation
◦ Have lots of energy and stamina
◦ Be able to withstand pressure
◦ Be outgoing
◦ Have knowledge of food (highly
desirable)

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○ Starting a restaurant involves high risk
◦ Must be taken to achieve success
Challenges of ○ Results of Dr. Parsa’s study:
Restaurant ◦ Highest failure rate during first year:
Operation 26%
◦ Second year: 19%
◦ Third year: 14%
◦ Three year period failure rate: 59%
○ Many fail due to family problems

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○ Many of the world’s top restaurants have

similar concerns and overall goals
Global Issues ○ Creating a unique menu/supports overall
theme
○ Using more focused forms of
promotion/social media
○ Technology has shrunk the playing field
○ Optimizing investments in remodeling
and capital expenditures is the goal

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 Use of branded restaurants

 Hotels opting not to offer F&B
Trends in F&B facilities
management  More casual atmosphere
 Standardized menus
 Sports-themed bars
 Use of technology in guest services
and overall operations
 Shift in people taste and
preferences

FoodLoop Restaurant, Europa Park, Rust

https://www.youtube.com/watch?v=p0TdrtTYzDI

Thematic Unusual restaurants

restaurants
http://restoran.us/trivia/unusual.htm

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If you were interested in a

F&B management position,
how would you decide the
segment in which you would
initially seek employment?
What are some the
advantages and
disadvantages to an F&B
career in hotel versus
restaurants?

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Standards of
Professionalism

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