Food and Beverage

Managing Food & Beverage Operations in a Hotel

Food Service outlets include:RestaurantsLoungesBanquet and cateringRoom service

Managing Food & beverage Operations in a hotel

A large hotel should ensure that F&B units in the same hotel do not compete directly with each other.

Units must be diverse to give different segments of the market a choice.

F&B services should be treated as important revenue generator for the hotel.

However, some hotels may decide not to have any F&B operations but lease out spaces to outside companies to run F&B services.

Food service personnelAn executive chef is responsible for management

related to the food production activities.In a large hotel, he may actually perform little in

the line of food production.In a small restaurant, he may be part owner and

performs most of the food related function.Other position in the kitchen:

Sous chefPastry chefBanquet chefAssistant chef

Dining Room personnelDepending on the complexity, the positions

may be:Maitre d (host / hostess)

Greets and supervises waitering staffCaptainsServers (waiter / waitress)CashiersBartendersCocktail servers

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 concerns

Repeat 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 procedures

Completion 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 recipes

Use of portion control

Requirements for food and employee safety

Timing of incoming F&B orders

Portion control

Revenue management concerns

Revenue control concerns

Serving alcoholic beverage responsibly

Sanitation and cleanliness

F&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 guests

Hotels: 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 service

Very 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.

Communication

Guest 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 overlooked

Upselling 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 menus

Banquet 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

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