Notes by - Mr. Balraj Benedict on F&B Management - Food Service Industry

1. FOOD AND BEVERAGE
MANAGEMENT
““THE FOODTHE FOOD SERVICE
INDUSTRY”

2. Introduction
• It is a substantial part of f&B activities of
the hotel and catering industry.
• F&B operations are characterized by their
diversity .
• Broadly manager’s functions are :---
• First Planning process, setting objectives,
making decisions , formulating policies .
• Second analyzing tasks and assigning
individuals or groups.
• Third involved in staff motivation to move
the organization . 2

3. 3
Objectives of f & B department
• Markets to satisfy guest’s expectations .
• The purchasing , receiving, storing, issuing and
preparation of food and beverages for final
provision .
• The formulation of an efficient control system .
• * monitoring
• *Pricing functions & restaurant .
• *Compiling on daily, weekly and monthly basis,
all relevant information on cost and sales .

4. Objectives conti………
• Reconciling actual and forecast costs and sales,
check discrepancies, bad portion control ,
incorrect pricing etc .
• Training, directing, motivating and monitoring .
• Co- operating with other departments become a
contributor for long term profitability .
• Feedback from guest ,comment, complaints and
compliments for improve overall standard .
4

5. Functions of food & Beverage
management
• Planning
Setting of several basic policies .
A financial policy & envisaged profitability .
Cost constraints of the establishment .
Marketing policy
Catering policy .
5

6. Functions of food & Beverage management
6
• Organizing
Individuals job descriptions
Responsibilities of the individuals
Job trainers to help train new staff .

7. Functions of food & Beverage
management
• Motivating
Helping individuals who are undertaking
common tasks .
Encouraging staff in management meetings
To reduce job anxieties for employees
7

8. Functions of food & Beverage
management
• Controlling
Checking of actual performance against
expectations of forecasts .
To locate the problem area and rectify it .
Take possible steps to prevent problem
occurring again .
8

9. 9
The Food Service Industry tends to be
separated into two sets of sectors:
A) Profit Oriented Sectors - Commercial Operations-
Main objective is to maximize their profit level
B) The Cost Prevision Sector - Institutional Operations-
Main objective is to minimize their cost level
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10. 10
A) Profit Oriented Sectors
- Independents (Single Unit)
-Chain Restaurants (Multi-Unit)
- Franchises
*Franchisee
*Franchisor
B) The Cost Prevision Sector
- Management Companies
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11. Constraints of food and Beverage
management
• External factors / political
Government legislation e.g. fire regulations,
health and safety acts.
Changes in the fiscal structure of the country,
e.g. regulations affecting business expense
allowances .
Specific government taxes e.g. VAT
Government policy on training and employment,
economic development, regional development
etc.
11

12. • Economic
Rising costs – foods and beverages, labour,
fuel, rates and insurance .
Sales instability – peaks and trough of
activity occur on a daily , weekly and
seasonal basis .
Changes in expenditure patterns and
people’s disposable incomes .
Expansion and retraction of credit facilities
Interest rates on borrowed capital .
12

13. • Social
Changes in population distribution e.g.
population drifting away from certain areas or
demographic such as age structure .
Changes in the socio-economic grouping of an
area .
Growth of ethnic minorities leading to a demand
for more varied foods .
Changes in food fashion e.g. current popularity
of take away foods, home delivery, trends in 13

14. • Technical
Mechanization e.g. food production and food
service equipment .
Information technology e.g. data processing in
hotel and catering establishments .
Product development e.g. organic vegetables ,
increased shelf life of foods through irradiation
, meat and dairy produce alternatives .
14

15. Internal Factors
• Food & Beverage
Perishability of food and the need for
adequate stock turnover .
Wastage and bad portion control .
Pilferage from kitchen , restaurants, bars
and stores .
15

16. • Staff
 General staff shortages and skill shortages
within the industry .
 Staff shortages .
Absenteeism , illness etc .
Use of part time or casual staff in dept.
Poor supervision and training of new staff .
High staff turnover .
16

17. • Control
Cash and credit control and collection .
Maintenance of all costs in the line with budget
guidelines and current volume of business .
Maintenance of up to date costing and pricing
of all menu items .
Maintenance of efficient food and beverage
control system giving analyses statistical data
of all business done .
17

18. 18
The satisfaction may be:
- Physiological needs
- Economical needs
- Social needs
- Psychological needs
- Convenience needs
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19. 19
What is management ?
• Using what you’ve got -resources-to do
what you want to do -attain organisational
objectives
Resources
• People
• Money
• Time
•Energy
•Product
•Equipment
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20. 20
People in Food Service
A) Managers
—Top Managers
— Middle Managers
—Supervisors
OR
– Line Managers
– Staff Managers
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21. 21
B) Production Personnel
• Chefs
• Cooks
• Assistant cooks
• Pantry Service Assistants
• Stewards
• Storeroom and Receiving Employees
• Bakers
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22. 22
C) Service Personnel
• Dining Room Managers
• Host/Captains/Maitre d’s
• Food Servers
• Buspersons
• Bartenders
• Service Bartender
• Beverage Servers
• Cashiers
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23. 23
Organization Chart for a Restaurant
R e c e iv in g / S t o r e r o o m C le r k C a s h ie r
C o n t r o lle r
F o o d S e r v ic e
W o r k e r s
S o u s C h e f
( A s s is t a n t C o o k )
C h e f
( H e a d C o o k )
S t e w a r d s
C h ie f S t e w a r d
B a r t e n d e r s B e v e r a g e S e r v e r s
H e a d B a r t e n d e r
B u s p e r s o n s
F o o d S e r v e r s
D in in g R o o m
C a p t a in
D in in g R o o m M a n a g e r
A s s is t a n t M a n a g e r
G e n e r a l M a n a g e r
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