Sample Report on Food and Beverage Operations Management

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Sample Report On
FOOD AND BEVERAGE OPERATIONS
MANAGEMENT

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TABLE OF CONTENTS
INTRODUCTION .......................................................................................................................... 1
TASK 1........................................................................................................................................... 1
1.4 Identifying Suitability of System for Particular Food and Beverage Outlets ....................... 1
1.1 Characteristics of food production and food and beverage service system.......................... 2
1.2 Affecting recipes and menus for specific system ................................................................. 4
1.3 Cost and Staffing Implication for Different Foods and Beverages System.......................... 5
TASK 3........................................................................................................................................... 6
3.1 Compiling food and beverage menus for a hospitality event ............................................... 6
3.2 Selection and suitability of recipes for menus ...................................................................... 7
TASK 4........................................................................................................................................... 7
4.1 Plan a food and beverage service for a hospitality event...................................................... 7
4.2 Implement the planned service maintaining standards of quality and health, safety and
security........................................................................................................................................ 9
4.3 Factors to determine the success of the service, making recommendations for improvement
................................................................................................................................................... 10
TASK 2......................................................................................................................................... 10
2.1 Use of Financial Statements in Food and Beverage Operations......................................... 10
2.2 Use of Cost and Pricing Processes...................................................................................... 11

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2.3 Purchasing Process.............................................................................................................. 14
CONCLUSION............................................................................................................................. 15
REFERENCES ............................................................................................................................. 16

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TABLES OF FIGURE
Figure 1: Menu.............................................................................................................................. 14
Figure 2: Purchasing Process........................................................................................................ 14
LIST OF TABLES
Table 1: Cost Sheet....................................................................................................................... 11

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INTRODUCTION
Food and beverages industry play a major role for a country in order to maintain their
economic conditions (Holm, 2005). This report is prepared to identify and evaluate the various
aspects and elements of food and beverages system. Further report will focus on different food
and beverages production and service system, financial role under this sector and planning and
devising of menus for hospitality event and focusing on maintaining standard of quality and
health regarding the preparation and serving of food items. Later on report will discuss about the
purchasing process and pros and cons of using this process.
TASK 1
1.4 Identifying Suitability of System for Particular Food and Beverage Outlets
In food and beverage industry there are several outlets used for presenting meal to
targeted customers. Suitability of system for particular food and beverage outlets for restaurants
would be counter/buffet or plate service systems, these methods can be used in different kinds of
restaurants.
Buffet service system – In general terms, buffet method of food service is an alteration of today’s
self service. In a buffet system food is delightfully displayed on one table or series of tables as
per number of food items are there in menu (Riley, 2005). Buffet system is all about presenting
simple food in effective manner. It is the perfect combination of hot and cold food offered to
customers. Buffet service system is appropriate for conference, banqueting, independent
restaurants, hotels or especially featuring special weeks, special sales, promotions and various
other events. This system is able to facilitate mammoth numbers of customers in a give specific
duration with less staff members required. In buffet system customer pay fixed price and in
which they can have meal for as many time as they want to have. Furthermore, this system
benefits in offering customers variety of choices, targeted customers are part of this system and
most important there is less skill required regarding manpower as compared to other food
services (Dopson and Hayes, 2010). Disadvantage of buffet method is that it has higher food and
labor cost requirement in kitchen, queuing and food presentation can be affected at times.

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Plate service system – System of servicing in plates is highly used and implemented by hotels
and independent restaurants. In this service system food is particularly prepared and placed on
individual’s plates and served to the desired customer (Day and Barksdale, 2000). Advantages of
this method are that it assists in presenting food in effective manner, when food is made for
individual customer’s quality of food is maintained, through plate service system customers can
order food according to their choices. Adopting this service system restaurants have to face some
challenges such as: required highly skilled chefs, often it has been noticed that customers have to
wait for their food delivery and high numbers of staff members are required to deal with each
customer (Tamime, 2009).
1.1 Characteristics of food production and food and beverage service system
Food Production in general terms can be termed as that stage of food flow which is
specifically concerned with indulgence of raw, semi processed or finished food stuffs (Zopiatis
and Orphanides, 2009). The main aim of this system is that it to prepare food and serve to the
customer. In other words, state of prepared food may be ready to serve state.
Sample Report on Food and Beverage
Operations Management
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Traditional Method – This method is basically a conventional method. In traditional method
mainly raw food is purchased. Through this method raw materials are received and stored in
large numbers and then process of preparation, cooking, innovative presentation and service of
finished food is performed. Traditional method is usually used in kitchen establishment (Ditmer
and Keefe, 2008).
Centralized method – Centralized method is adopted by those restaurants and hotel which have
large chains and are specifically looking for outsourcing all their produced goods or a part of
their food production. In this method CPU is used which is highly technical and specialized in
food and production, production is done in bulk which leads to less cost of product and company
can offer variety of finished food items at cheaper prices (Cousins, Foskett and Gillespie, 2002).
Cook chill method – Cook chill method can be termed as catering system; in this system food is
prepared normally and after cooking rapid chilling and storage of semi finished food is done.
This method require minimum capital investment and as well as low numbers of staff members.
Advantage of this method is that food remains fresh until it is properly cooked and served to the
customers.
Cook Freeze method – It also a part of catering system, but difference in cook chill method and
cook freeze method is that in cook chill method food is semi prepared and kept for freezing
whereas in cook freeze method food is prepared fully and kept for fast freezing and stored at a
managed temperature of -18C or below (Fuller, 2009).
Batch cooking method – This method of food production assist in preparing food in step by step
formation at various levels. Advantage of this system is that it assists in reducing initial capital
outlay because on single production line it can be used to produce range of products.
There are several characteristics of food production and food beverages service system
such as:
 Important aspect of everyday routine
 Highly complex and fragmented
 Creativity and innovation
 Satisfying desired needs and wants

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 Indulges in creating employment
 Promote range of choices
1.2 Affecting recipes and menus for specific system
In food and beverage industry there are several factors which affect recipes and menus of a
restaurant. These factors are as follows:
 Various needs and wants of targeted customers – In food and beverage industry target market
and targeted customers are the major factor in making direct impact on recipes and menu.
Company’s dealing in such industry need to offer foods according to need and wants of
customers to improve customer base (Allen and Albala, 2007).
 Quality of products and price stability – Main aim of customer is to have quality of food at
reasonable price which clearly indicates that restaurant like Laughing Gravy and fast food
king Domino’s have to develop their recipes in such manner that they can achieve this
criterion and attain competitive edge in near future.
 Nutrient level – In present time customers are more focused on quality of food which
includes nutrition’s. Awareness level among customers has been increased regarding their
diet and health, which directly impact on the functioning of fast food seller like Dominos,
McDonalds and Pizza Hut. These fast food giants have to make their food with proper
nutritious elements to mold their recipes according to customer’s needs and wants (Saget,
2006).
 Budget and monitory issue – Food and beverage industry is a customer oriented and they
target every segment of customers, according to this point companies have to make their
pricing strategy in order to attract more numbers of customers and retain the old ones.
 Seasonality – Season is one of the major factor influencing the menus and recipes of various
restaurants, hotels, chains of food store etc. There are several foods like Asparagus, Damson
and Marrow which are highly demanded at the time of season and hotel like Hilton should
include such food in their menu in order to attract more customers.

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1.3 Cost and Staffing Implication for Different Foods and Beverages System
Though, foods and beverage industry is wide in nature but still every company present
different staff and cost implications. On the basis of these elements, prices of foods are decided
and due to these reasons only some of the organization charges higher amount of food even the
quantity of that dish is very low (Wood, 2000). In the hotels like Hilton and Ritz Carlton cost
implications mainly include system cost which means in establishing and developing large and
various platforms for preparing food and storing it. Moreover, it includes cost relating to
equipments which are necessary for preparing of food such as flambé, microwave, mixer and
oven etc. Another major cost that is included in the overall cost of Hilton hotel is human resource
or staff members, because they are one of the major factors in proper functioning of hotel such as
they perform operations like preparing or food and serving it to customers. Several ingredients
and raw material also increases the cost of finished product in hotels.
In spite of these implications, there are other more implications such as staffing
implications because hotel requires quality of chefs and staff member in order to operate system
and maintain the level of coordination so that staff can achieve effectively and efficiently needs
and wants of arrived guests. Secondly, job specification should be explained very clearly too
each and every employee so that they can perform their task and duties precisely, in order to
achieve organizations goals and objectives. Furthermore, fast food chains and restaurants posses
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different kinds of cost such as preparing and storing of food costs, by indulging cost of using
different kinds of tools and techniques for serving food (Nwokah, 2008). Fast food chain like
McDonalds offers their food through self servicing which assist them in reduction of manpower
cost, on the other hand hotels like Hilton require high manpower in order to attend customers
individually with special treatment hence require butler services and assisted services.
TASK 3
3.1 Compiling food and beverage menus for a hospitality event
‘’Food Attack’’ is an event which is going to take place in hometown for that menu needs
to be decided according to the taste and preference of invited guests. The menu to be set
according to the event and preference of guests is as follows:
Items to be served Cost(£)
Cold buffets (starters for the lunch)
Deluxe sandwich bar
Mixed grill salad bar
Soup, salad sandwich buffet
8.15
11
23
Hot buffets
Seasonal fresh fish
Chef carved prime rib
Beef bourguignon
Home style fried chicken
Peach glazed pork loin
23
28
25
19
50
Boxed Lunch
Choice of smoked ham
Oven roasted turkey
Roast beef served on bakery bread with lettuce
9.25
46.99
38.79
Drinks to pair up
Domestic bottled beer 7

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House wine
Multi liquor drink
Mock tail tastes
Orange/apple/lime juices
Cold/hot coffee
Sodas
10
4/drink
6
12/glass
5
4
3.2 Selection and suitability of recipes for menus
The selection of recipes in menu is according to the taste and preferences of people which
coming from various ethnic backgrounds. On the basis of that large variety of menu is decided to
suit the needs and wants of every individual invited in the event. Recipes selected in menu are
according to the time day and venue of event “Food Attack”. Every preparation is made by
keeping in mind about the theme of event and some food items are also selected accordingly. As
per the nutritious point is concerned recipes and eatables are not much heavy and are kept in the
menu for increasing the healthiness of food (Nwokah and Maclayton, 2006). For inviting people
innovative and attractive invitations are prepared and send through special pamphlet for cordially
inviting people for indulging into event. On the basis of invitation event is organized for 250
people and according to that only other things are arranged and managed. As per the time and
health factor food is prepared light and can be easily consumed in day time. Wide range of
variety is offered to the people on the basis of their taste and preferences and especially focused
on range and quality of appetizers and starters.
TASK 4
4.1 Plan a food and beverage service for a hospitality event
“Food Attack” is a one day event, so preparations are made accordingly food and
beverages selected are those which are suppose to be consumed in a day and on that basis only
raw materials are purchased on event day to keep them fresh and hygienic (Zopiatis and
Orphanides, 2009). Though this planning waste of raw materials and can be controlled and
managed effectively. According to the menu there are around 20 items which are evenly priced

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on the basis of their cost of raw materials. Whole and sole budget of this event is estimated at
£10000 which includes all the costing relating to food, raw materials, catering staff,
infrastructure, theme decoration and furniture etc. as per the theme an open garden is booked and
decoration is based on theme very colorful with round table seating for the comfortability of
guests. Each table would be having around 5 chairs and there will be 50 tables in the
surroundings of the garden (Hooley, Saunders and Piercy, 2008). The highest amount which
needs to spend on are either dinning or catering for making event successful.
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Services Cost (£)
Raw material (food
products)
4000/-
Furniture (Catering) 3000/-
Location/ space rent 1000/-
Staffing 1000/-
Spare budget 1000/-
From the above table it can be evaluated that these will be the estimated expenditure that
would take place during event of rendering services to invited guests.
4.2 Implement the planned service maintaining standards of quality and health, safety and
security
Through effective planning and efficient implementation of production work budget is
ready to implement whereas event is set to run. For the event like “Food Attack” it is important
to concentrate on the proper hygienic conditions to be maintained regarding the starting step of
preparing food and serving to the guests. Buffet system is selected as per the quantity of invited
guest are concerned because treating them individually will require mammoth number of staff
members, which is not suitable for the provided budget (Cousins, Foskett and Gillespie, 2002).
People will be self servicing them and this manner they can have what they wish to. Through this
event will be held in more hygienic conditions and food will be served more effectively and
efficiently. By considering all the food items it can be evaluated that it is a proper buffet because
lunch is based on both half cold and half hot food recipes. There are several non-alcoholic drinks
are presented to the guest by keeping mind of families and children’s of all ages. Through ladies
and children’s will feeling food and indulging themselves to make happy environment in the
event.

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4.3 Factors to determine the success of the service, making recommendations for improvement
Event is basically planned and organised in such manner that people will enjoy in having
lunch with such facilities and variety will be attracting them the most. After being a part of such
event people will encourage such kind off activities in the hometown to be regularly held in
order to make social environment around them (Master of Management in Food and Beverage,
2013). Furthermore, changes can be made in the menu regarding the variety presented to
children’s for them separate menu can be set so that they can also enjoy food while having other
fun also. Moreover, servicing could be improved by increasing the budget if people like this
event as it will encourage to promote such event and budget will much higher than this,
according to that staff members for facilitating customers should be increased so that people
could freely enjoy the event with less inconveniency (Fuller, 2009). It is recommended that silver
style of dinning should be selected in order to improve the effectiveness and efficiency of
services.
TASK 2
2.1 Use of Financial Statements in Food and Beverage Operations
Every organization operating in any sector or industry has to prepare financial statement
in order to analyze their financial performance. There are several financial statements that can be
made in food and beverages industry such as:
Dish costing sheet – This statement assist in showing the costs incurred during production of
food item until it is sold by the company (Dopson and Hayes, 2010). Preparing dish costing sheet
helps in managing costs and making important decisions.
Cost statement – Cost statement is a statement which assists in showing the information
regarding costs and revenue indulged in the food item until it is served to the customer.
Operating statement – This statement includes the cost of those resources which are used in
preparing the ordered food item such as chef, machines, raw materials etc.
Variance analysis – Through this statement is to analyze the difference between actual and
desired cost of product. In other words, there are specific standards set for each item in the menu
and to meet those standard various measures are made this process is known as variance analysis.

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Sale records – Sales records is termed as the document which is prepared to record the entries
regarding the sold food items to the desired customers (Josiam and Foster, 2009). Through this
statement food and beverage industry can identify and evaluate their revenue earned during the
financial year.
2.2 Use of Cost and Pricing Processes
Based on the profit requirement of Mr. and Mrs. Anglo, following can be seen as the cost
and pricing process:
Table 1: Cost Sheet
PARTICULAR AMOUNT (IN £)
FIXED CHARGES 140000
RENT 30000
FOOD COST 30% of sales of food
LABOR COST 170000
OTHER CONTROLLABLE COST 90000
FIXED COST (1) 430000
LABOR COST (2) 494253
TOTAL SALES (3) 1647510
AVERAGE SALES (4) 4538
AVERAGE CHECK (5) 1745
Working note:
Total cost = fixed cost + variable cost
Fixed cost = 140000+170000+30000+90000 = 430000
Labor cost = 13% of food sale = 430000/87% = 494253
Total sales = 494253/30% = 1647510
Average sales = total sales / no. of days = 1647510/363 = 4538
Average check = average sales / seats turnover = 4538/2.6 = 1745.

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From the following calculation the average check for a couple in their menu will be
framed around £1745 which is assumed on the basis of per day.
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Appetizer
Veg. Amt. (£) Non-Veg. Amt.( £)
Salad with cherry
tomatoes
15 Chicken dips 22
Vegetable jumbo 10 Soy sauce with
marinated chicken
25
Romaine leaves 9 ½ dozen local rock
oyster with lime and
vodka granite
45
Main Course
Baked fillet on mash
potatoes and wilted
green
10 Storm fich and chips in
light beer
25
Courgette and mint
pasta
20 Oven baked flying fish
fillets
40
Wild mushroom and
stilton risotto
25 Roast duck breast
served with orange
sauce
55
Rigatoni pasta 20 Petit strip of loin of
beef
45
Dessert
Spiced pumpkin cheese
cake
15 Double chocolate
soufflé tart
20

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A plate of continental
and English cheeses
10 Yule log 20
Figure 1: Menu
2.3 Purchasing Process
Figure 2: Purchasing Process
(Source: Purchase process, 2013)
Every firm dealing in food and beverages in order to make purchase have to follow
certain steps which could assist them make cost effectiveness and along with that various pros
and cons can be identified and managed (Wood, 2000).
 Recognition of needs
 Specifying needs
 Determination of sourcing option
 Establish price and term
 Delivery of purchase order or contract
 Receive and inspection of purchase
 Invoice approval and payment and,
 Maintain records
Through this process any firm dealing in food and beverage industry can improve their
functioning by measuring purchase of various essential resources.

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CONCLUSION
From the above report it can be concluded that food and beverages industry plays a
major role in the hospitality industry in improving the standard of livings and raising economic
condition of the country. Furthermore, hygienic food and beverages causes welfare in the society
and is important aspect in present generation. Companies operating in such sector should indulge
these above discussed points in order to maintain sustainability in near future.
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REFERENCES
Journal and Books
Allen, J. G. and Albala, K., 2007. The Business of Food: Encyclopedia of the Food and Drink
Industries. ABC-CLIO.
Cousins, J. Foskett, D. and Gillespie, C., 2002. Food and Beverage Management. Prentice Hall.
Day, E. and Barksdale, H. C., 2000. Organizational Purchasing of Professional Services: The
Process of Selecting Providers. Journal of Business & Industrial Marketing. 9(3). Pp.44
– 51
Ditmer, R. P. and Keefe, D. J., 2008. Principles of Food, Beverage, and Labor Cost Controls.
John Wiley & Sons.
Dopson, L. R. and Hayes, D. K., 2010. Food and Beverage Cost Control. 5th ed. John Wiley &
Sons
Fuller, J., 2009. New food developments in Europe. Tourism Review. 24(1). Pp.3 – 11.
Holm, L., 2005. Construction Cost Estimating: Process and Practices. Pearson Education.
Hooley, G. J., Saunders, JA and Piercy, N. F., 2008. Marketing Strategy and Competitive
Positioning. Harlow: Financial Times Prentice Hall, 3rd
ed.
Josiam, B. and Foster, C., 2009. Nutritional information on restaurant menus: Who cares and
why restauranteurs should bother. International Journal of Contemporary Hospitality
Management. 21(7). Pp.876 – 891.
Nwokah, G. N. and Maclayton, W. D., 2006. Customer-focus and business performance: the
study of food and beverages organizations in Nigeria. Measuring Business Excellence. 10
Iss: 4, Pp.65 – 76.
Nwokah, G. N., 2008. Strategic market orientation and business performance: The study of food
and beverages organisations in Nigeria. European Journal of Marketing. 42(3/4). Pp.279
– 286.
Riley, M., 2005. Food and beverage management: A review of change. International Journal of
Contemporary Hospitality Management. 17(1). Pp.88 – 93.
Saget, A., 2006. The event marketing handbook: Beyond the logistics and planning. Kaplan
Publishing.

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Tamime, Y. A. 2009. Cleaning-in-Place: Dairy, Food and Beverage Operations. John Wiley &
Sons.
Wood, C. R., 2000. Strategic Questions in Food and Beverage Management. Routledge.
Zopiatis, A. and Orphanides, N., 2009. Investigating occupational burnout of food and beverage
employees: The case of Cyprus. British Food Journal. 111(9). Pp.930 – 947.
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