HEIRACHY OF FOOD & BEVERAGEN DEPARTMENT

1. ORGANISATION OF FOOD AND
BEVERAGE DEPARTMENT OF HOTEL

2. NSS ENRICHING KNOWLEDGE FOR THE
TOURISM AND HOSPITALITY STUDIES
CURRICULUM SERIES (10):
COMPULSORY PART II –
INTRODUCTION TO HOSPITALITY - FOOD
AND BEVERAGE SECTOR (NEW)

3. OBJECTIVES
Introduction to the food and beverage sector
 Sectors of the foodservice industry
 Food and beverage operations
 Classifications of food service establishments
 Types of food and beverage services

4. F & B INDUSTRY
It is usually defined by the output of products.
But it doesn’t include the manufacturing of
food & drink and its retailing.
The basic function: serve food & drink to
people and to satisfy their various types of
needs.
The main aim is to achieve Customer
Satisfaction. The needs that customer might
be seeking to satisfy are:
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‐


5. CHARACTERISTICS OF THE F & B OPERATIONS:
Following are the main characteristics:
A vital part of everyday life
Major contributor to the Hong Kong economy
Highly fragmented & complex
Creates employment
Encourages entrepreneurship
Promotes diversity through many different food concepts &
cuisines
Innovative
Consumer led
High competition
Fulfils basic needs

6. THE FOODSERVICE OPERATION/CYCLE
The foodservice cycle can be
used as a basis to analyze
how different foodservice
operations work.

8. PERFORMANCE MEASURE IN
FOODSERVICE OPERATION
Performance measure variables
• Seat turnover
• Customer spend/ average
check
• Revenue per member of staff
• Productivity index
• Ratio of food and beverage
sales to total sales
• Sales/ profit per seat
• Sales analysis
• Departmental profit
• Stock turnover
• Complaint levels
• Level of repeat business

9. SECTORS OF THE FOODSERVICE INDUSTRY

10. CLASSIFICATION OF F & B INDUSTRY
Extremely diverse & fragmented that the size &
scope of the industry creates a challenge when
attempting to organize & classify it.
Classification approaches & options:
• Commercial (market oriented) & non-commercial (cost
oriented)
• Customer type: general market or restricted market
• Ownership
• Primary function or secondary function
• Star rating or quality
• Type of cuisine
• Service method
• Theme
• Location
• Commercial (market oriented) & non-commercial (cost
oriented)
• Customer type: general market or restricted market
• Ownership
• Primary function or secondary function
• Star rating or quality
• Type of cuisine
• Service method
• Theme
• Location

11. CLASSIFICATION OF FOOD AND BEVERAGE
OPERATIONS

12. COMMERCIAL (MARKET ORIENTED) &
NON-COMMERCIAL (COST ORIENTED)
1. Market oriented business
characteristics:
High % in fixed cost, for example rent, management salaries,
depreciation of buildings and equipment
Reliance on sales rather than decreases in costs
An unstable market demand for the product
Flexible pricing policy
2. Cost oriented business
characteristics:
Lower % of fixed costs, but a higher percentage of variable costs
such as F & B costs
Reliance on decreases in cost rather than increases in sales
A relatively stable market demand for the product
Fixed pricing policy

13. Customer type

14. OWNERSHIP OF F & B OPERATIONS
Management
options

15. Self-operated
• The owner or organization manages the operation themselves.
It could be a small, large or a franchised situation.
Franchise agreement
• ‘ With a franchise, the franchisee (the owner of the facility)
pays fees to the franchisor (or franchise company) in exchange
for the right to use the name, building design, and business
methods of the franchisor. Furthermore, the franchisee must
agree to maintain the franchisor’s business & quality
standards’.

16. Management contracting
• When an owner or operator of an establishment employs or contracts
specialized hospitality or food & beverage service company to manage
the whole or part of the operation. This could be either in a hotel or in
a non-commercial institution, for example a university.
Outsourcing
• Increasingly, hotels are realizing that hotel-run restaurants are in some
cases unprofitable due to many residents opting to dine at known
branded outlets.
• Therefore, a new & emerging trend is where the hotel forms a
partnership with a restaurant/coffee chain/bar brand that would
operate from a designated area within the hotel.

17. PARTIAL LIST OF RESTAURANTS IN HONG
KONGCompany Name Type of Food No. of Outlets
Maxims Chinese Restaurants/Chinese fast food/ Lunch
Boxes
376
McDonalds Fast Food 232 + 77 McCafe
Café de Coral Chinese fast food/ Lunch Boxes 151
Fairwood Chinese fast food/ Lunch Boxes 107
KFC Fast Food 62
Burger King Fast Food 15
Starbucks Coffee & Snacks 115
Pacific Coffee Coffee & Snacks 110
Outback Steakhouse American style dining 7
Deli France Fast Food sandwiches 34
Oliver’s Super Sandwich Fast Food Sandwiches/ Salads 18
Pret a Manger Fast Food Sandwiches/ Salads 12
California Pizza Kitchen American style pizza 4
TGI’s Fridays American style dining 1
Dan Ryan’s American style dining 3

18. F & B IN ACCOMMODATION
5-star hotels Coffee shop, Fine dining restaurant, Specialty restaurant, Bar,
Coffee lounge, Banqueting, Outside catering, 24hrs full room
service menu, Executive lounge, In room guest amenities, Mini
bar, Pool café, Employee dining
4-star hotels Coffee shop, Specialty restaurant, Bar & lounge, Guest
amenities, Conference & banqueting, Mini bar, Employee dining
Budget hotels Breakfast buffet, Bar, Vending machines, Employee dining
Bed &
breakfast
Breakfast, limited set menu available at set times on request
Hostel Snack bar, Vending

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

20. FOOD AND BEVERAGE DIVISION

21. THANK YOU