1. FOOD & BEVERAGE
BUSINESSES
The future of the Indian hospitality
industry is surely upbeat. Host of
international hotel brands, each with
multiple sub-brands; have settled in
India to do business. There is hardly a
global hotel chain which is not eager to
gain an entry into India.
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2. In a similar fashion, the food &
beverage industry is growing in
geometric progressions each year. New
chains of food & beverage businesses
are being formed regularly. The
restaurant industry is witnessing number
of mergers and acquisitions. The industry
is already estimated to be worth $ 85
Billion and is growing at a rapid pace
each year.
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3. Thousands of food & beverage
businesses close down within the very
first year of operation. Most of these
businesses have good concepts, involve
large capital expenditure, and are started
with the right passion and intentions.
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ON THE FLIP SIDE
4. These food & beverage businesses fail due
to operational inefficiencies, cost-over runs,
changing customer choices, fatigue in the
restaurant-design template and MORE
OFTEN THAN NOT, due to insufficient
knowledge of ECONOMICS OF FOOD
PRODUCTION.
CULINARY ECONOMICS, a book that I have
written covers the issue eminently.
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5. What does the book “Culinary
Economics” advocate?
The main theme of the book is cost-
effectiveness of culinary operations. The 325
page book is packed with information and tips
to Chefs and operators to ensure profitability
and success of a culinary business. The book
identifies the economic pitfalls of a culinary
business and details robust preventive as well
as corrective measures.
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6. 1. THE IMPORTANCE OF
FORMULATING A CONCEPT
To start with, “Culinary Economics”
advocates a culinary business to
formulate a strong concept as its
foundation. Concept led and concept
directed - quality food pre-production and
production processes must remain as
the core activity of a culinary business.
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7. 2. BACKWARD INTEGRATION
OF FOOD PRODUCTION
Managements must create objectivity-
centric backward integration of food
production with robust standards of
purchase and supplier management as
well as those of the receipt of raw food
products and ingredients, their storage and
issuing. Food production and quantities of
food production must be planned.
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8. 3. FORWARD INTEGRATION OF
FOOD PRODUCTION
Formulations of all benchmarks must be
in line with the dictates of the concept.
The food pre-production and production
processes must be forward integrated
with service-guarantees led food service
benchmarks. Food production quality
must be in line with the concept of the
business and the marketing promises.
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9. 4. STRUCTURING AND
MAINTAINING BENCHMARKS
“Culinary Economics” advises operators
and Chefs to ensure the highest
possible concept-directed benchmarks of
tangible and intangible food and
beverage products and services to a
customer for a positive and memorable
dining experience as well as repeat
patronage.
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10. 5. CONTROLS AND
ENGINEERING
“Culinary Economics” advises cost-
efficiencies and non-negotiable controls at
each of the functional and operational
areas of a culinary business. The book
refers to Chefs and operators as “Culinary
Engineers” and provides handy and step-by-
step methodology for positive engineering
of food and beverage menu items.
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11. 6. IMPORTANCE OF CULINARY
ANALYTICS AND AUDITS
Culinary analytics are important to study
regularly to decide the immediate and future
course of action, course correction wherever
required, and the repositioning of the
business itself-if required. Structured and
regular reviews of benchmarks must be
ingrained into the functioning of a culinary
business. Audits and audit trails must be
viewed as highly supportive of future actions.
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12. 7. OBJECTIVITY IN FOOD
PRODUCTION
Food production processes are thought of
as highly subjective. “Culinary Economics”
identifies with the divide and balance
between subjectivity and objectivity in a
food-led business and directs operators and
Chefs to introduce as high objectivity into
the system, as is possible. The book
provides sequential information to achieve
the same.
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13. 8. KNOWLEDGE EXHIBITS – TRIBUTES
TO “CULINARY ECONOMICS”
“Culinary Economics” presents more than 40
exhibits. However, the true “tributes” to the
book are two exhibits-on A1 size of paper.
The first exhibit is the “CONTROL CHART”
which identifies the Control Points of a
culinary business and actions to be taken at
each Control Point. The second exhibit
details the “Cycle of Strength – Cost Effective
Culinary Operations”.
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14. This book would prove invaluable for
hospitality professionals - corporates, venture
capitalists, entrepreneurs, chefs, food &
beverage managers, students, trainers,
consultants, operations and finance auditors,
food & beverage controllers and many more
professionals.
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