Food And Beverage Operations Management

Food And Beverage Operations Management

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Table of contents
LO 1, Understand different food and beverage production and service systems:
Discuss the characteristics of food and beverage service systems……………………………………..3
Discuss factors affecting recipes and menu for specific systems………………………………………..8
Compare the cost and staffing implications for different systems……………………………………..9
Justify the suitability of systems for particular food and beverage…………………………………..10
LO2, Understand the financial controls used in food and beverage operations:
2.1 Discuss the use of the financial statements in food and beverage operations…………………11
2.2 Demonstrate the use of cost and pricing processes………………………………………………………….12
2.3 Analyse the purchasing process………………………………………………………………………………………..13
LO3, Be able to devise menus for hospitality events:
3.1 Compile food and beverage menus for a hospitality event………………………………………………15
3.2 Justify the selection and suitability of recipes for menus…………………………………………………16
LO4, Be able to provide food and beverage services for hospitality events:
4.1 Plan a food and beverage service for a hospitality event within an agreed budget………….17
4.2 Implement the planned service maintaining standards of quality and health, safety and security. Please use the case as an example…………………………………………………………………………………..18
4.3 Evaluate factors to determine the success of the service, making recommendations for improvement………………………………………………………………………………………………………………………………….18


The provision of food and beverage services away from home forms a substantial part of the activities of the hotel and catering industry and like the industry of which it is a part , the food and beverage function is characterised both by its diversity and its size. Outlets include private and public sector establishments and they range from small privately-owned concerns to large international organisations and from prison catering to catering in the most luxurious hotels.
In this assignment I will try to find out the different food and beverage production, service system, financial controls, hospitality events and also I will plan an event with an agreed budget.

LO 1, Understand different food and beverage production and service systems:

Discuss the characteristics of food production and food and beverage service systems

Characteristics of the food and beverage sector are:
A vital part of everyday life
Major contributor to the national economy
Creates employment
Promotes diversity through many different food concepts & cuisines
An opportunity to enjoy the company of friends, family and colleagues
Fulfils basic needs
Food is a basic need for everyday life
(Maslow’s Hierarchy of Needs)
Food production may be defined as that phase of the food flow mainly concerned with the processing of raw, se-mi-prepared, or prepared foodstuffs. The resulting product may be in a ready-to-serve state, for example in the conventional method (cook-serve); or it may undergo some form of preservation, for example cook-chill or cook-freeze, before being served to the customer.

Production systems:


Traditional method:

In the conventional parties method, the majority of food is purchased raw, very little falling into what we now call the ‘’convenience foods’’ category. Facilities are provided for the receipt and storage of goods, the preparation, cooking, holding and service of food.
The traditional method is used in most kitchen establishment.

Cook-Freeze method:

The term cook-freeze refers to a catering system based on the full cooking of food followed by fast freezing, with storage at a controlled low temperature of -18C or below.
The method is similar to cook-chill apart from refrigeration temperatures.
Blast Freezing:
To minimise the time spent in danger zone, a specially designed Blast Chilling or Freezer is required-standard refrigeration equipment just is not capable of extracting heat fast enough.
Blast Chilling:
The temperature must be reduced from +70C to +3C or below within 90 minutes.
Blast Thawing:
To defrost food, the air around needs to be relatively warmer than the food itself so that heat can be transferred from air to food to melt the ice

Danger zone is between +8 C and +68C, where bacteria multiply fastest, for as little time as possible.

The bacteria split into two every 20 minutes.

Sous –vide method:

Sous-vide are more recent food processing technique developed in the late 1970s.
The sous-vide methods of food production (vacuum cooking at specific temperature 138 degrees and time).
Advantages of sous-vide method: pouches retain freshness, less risk of cross contamination during storage, less wastage of food, during re-heating juices are rained in pouch and not lost.
Disadvantages: capital investment in equipment and storage, not as fresh as traditional method, not all food suitable for sous-vide method.

Centralised distribution:

This method is frequently adopted by large chains that are looking to outsource all or part of their food production.
Advantages of this method are: CPU is specialised in food and production, high levels of hygiene during production, due to bulk production costs, prices are cheaper for buyers.
Disadvantages: pass control to another company, potential delays in delivery to operation.

Cook-Chill method:

This method is a catering system based on normal preparation and cooking of food followed by rapid chilling and storage. The Chilled food requires low capital investment and minimum staff.
Table/Plate service
Counter/Buffet service
A la carte
Table d’hôtel
Silver service
Family service
Flambé service
Specialist food service

Table/ Service:

Food is prepared, placed on individual plates and delivered to the customers. This method is used in the hotel and independent restaurants.
The opportunities of the method: presentation, quality, portion control.
The disadvantages: need high quality and highly skilled chefs, customers sometimes have to wait for food delivery.

Buffet service:

Food is prepared in advance. Large quantities of food then placed in containers and served from a table in the restaurant. Used in conference and banqueting.
The opportunities of the method: can serve large quantities of people, customers have choice, fewer staff required, service staff require less skills.
The disadvantages: queuing, food can run out, food presentation can be affected.

Family/ English service:

Food is prepared and placed in dishes. Server then transports to restaurant, it is placed in the centre of tables. Uses: Chinese and Middle Eastern Cultures.
The advantages are: less demands on kitchen, visual for customers, does not demand high skilled services staff.
Disadvantages: food temperature can change, food distribution can be inconsistent.

Silver/Russian service:

Food is prepared/ cooked, placed on hot silver containers. Uses: some fine dining, conference and banqueting.
Advantages: reduces pressure on kitchen, highly personalized service.
Disadvantages: high labour cost, old fashioned, require very highly skilled service staff.

A la carte:

Hotel or restaurant meal consisting of several differently priced dishes which are cooked usually when ordered from a menu. A guest orders separately and pays for them separately.
Advantages of this method are: food is priced individually, menu if its items rarely change.
Disadvantages: difficulty finding seasonal ingredients, it is usually more expensive.

Table d’hôtel:

Is usually a restaurant meal consisting of a fixed number of already prepared dishes, at a fixed price for a whole meal for one person
Advantages: price change are relatively simple, consumer decisions are easier.
Disadvantages: pricing inflexibility, guest may feel it costs too much.

Flambé service/Gueridon:

Food is prepared but not cooked. Server puts food on a portable trolley and transfer into front of house area. The food is prepared in front of the guests.
Advantages: visual and aromatic, highly personalised service, customer feels more involved in the process.
Disadvantages: high labour costs, not suitable with large numbers of customers.

Specialist food service:

A food service specialist may prepare a variety of meals.
Most employers require their food service specialist to have at least a high school diploma. Knowledge of specialist food service should include: basic food handling, nutrition, sanitation procedures.
Advantages: food is prepared to exact customer specifications, reduces the possibility of customer complaints.
Disadvantages: requires highly skilled labour
A guideline for staffing ratios for different service method
Service method
1 waiter: 10 guests
Silver service
1 waiter:20 guests
Plated service
1 waiter: 30 guests
Family service
1 waiter: 40 guests
Buffet service
1 waiter: 50+guests
Beverage Classification:
Soft drinks
Beverage production method:
The term beverage is used to describe both alcoholic and non-alcoholic and no-alcoholic drinks.
Beverage can be classified into three main categories:
Row beverage(tea , coffee or cocktail)
Semi-prepared(fruit cordials, some cocktail)d
Fully prepared(juices, spirits, wines)
Beverage service may be defined as that phase of the beverage flow wholly concerned with presentation of the beverage to the customer after the completion of beverage production.
The method of beverage service employed by a catering establishment should be complementary to the food service method.
Beverage service methods:
Self-service(the customer is required to collect their own drinks)
The cafeteria(the beverage are included in the main counter line)
Bar or counter service(this method is most commonly found in public house, hotel, restaurants)
Room service(most commonly in hotel)
The buffet(is usually waiter service, sometimes they may be on display on the buffet table)
Take-away(food and drink has been prepared it is packed and served)
Waiter service


Factors affecting recipes and menus for specific systems are:
Size of operation
Objectives of the operation
Quality of the operation
Nature of the menu
Quality of customers
Budget of the customers
Customer needs
Availability of resources
The others factors affecting menu and recipes for specific system are: size of the kitchen, customers satisfaction, price of items listed, management decisions- costs, availability of items, type of service, customers value, and demographic characteristics, food habits and preferences, flavour and appearance of dishes, nutritional value.
Menu can be an excellent selling tool to supplement the suggestive selling of staff.
Customer perceptions: keeping your customers happy can be harder than you think.
Happy customers result in: (repeat sales, positive company image, and high quality customer’s referrals);
Space and equipment in the kitchen will influence the composition of the menu;
Each establishment has a target food cost to be achieved, the cost, preparation and production of the food items, have to fit the target. Business stands for profit; it is difficult for menu designer to make a customer and business friendly menu, to cover all costs.
Availability of ingredients in seasonality and suppliers need be taken into consideration.
Colour balance is important; customers should be able to ‘eat with their eyes’.
Ethnicity and nutritional value: Nutritional balance is important to ensure that the dishes are produced as nutritiously as possible (protein, carbohydrates, and vitamins). Menu is made for customer satisfaction, but if the items do not suit customer’s ethnicity and nutritional value then it is a big difficulty.
As we have only 60 guests, a medium kitchen is enough, the ingredients we use in our menu are easy to find, and two or three waitress will be enough.
Buffet/Counter service has the next advantages: can be serve a large number of people, customer have choice, customers are part of the process, fewer staff required, service staff require less skills, fewer complaints due to their decision-making;
Disadvantages: queuing, food presentation can be affected; food can run out, food quality affected due to temperature and mixing service cutlery.
Plate service has the next advantages: presentation, placed on individual plates, quality, portion control;
Disadvantages of Plate service are: need high quality and highly skilled chefs; customers sometimes have to wait for food delivery.

1.3. Compare the cost and staffing implications for different systems.

Staffs have a critical influence on the success of a foodservice operation. Staff selection process is given appropriate consideration in terms of: requirements, skills, knowledge and experience required.
A smooth running of a food and beverage operations depends on the following qualities of staff:
Efficiency means the skill of delivering a service to the customers conveniently.
Behaviour is how staffing behaving or communicate with customer, polite behaviour is a great quality for staff.
Attitude is something which holds the values of person and the operation. The attitude of staff symbolises management attitude.
A very good communication skill of staffs can enhance the sale of the operation, recommendation of items from serving staff can help the same to improve the sales and to raise the satisfaction level of customers.
Staffing is a major resource, and maximising the potential of this of this resource requires the management of staffing to be considered. Staff willingness to learn is also very important. With more and more individuals entering the industry with improved educational qualifications it is easy to see that those individuals require higher maintenance.
Labour and skills involved: skills, de-skilling, re-skilling, up-skilling.
In order for the catering cycle to be carried out efficiently, it is essential that all managers and members of staff fully understand their: responsibilities, skills required, have been trained to carry their duties.
Staff training: make the operation more profitable by reducing the amount of equipment and material required to produce or sell in a given unit:
To minimise discharges because of inadequate skills
To encourage willingness, loyalty and interesting in the company activities
Advantage of well produces training programmes include:
Standards of performance required being identified
Improved ability of staff
More staff efficiency
Clearer responsibilities

1.4. Justify the suitability of systems for particular food and beverage outlets.

I choose to justify suitability of counter/buffet service. The buffet is a method of food service that is a modification of true self-service. The food is attractively displayed, on one or a series of tables and presentation is an all-important factor. Buffet is a combination of hot and cold foods. This service system is suitable for conference, banqueting, events, restaurants, hotels, for featuring special weeks, for special sales, promotions.
The customers pay a fixed price for the buffet and for this price is able to return as many times to the buffet table, as they would like. Buffet service also enables a facility to feed a large numbers of people in a given time with less staff requirements.
Advantages for buffet service are: customers have choice, customers are part of the process, and service staffs require less skill. Compared with other types of food service, the buffet method has a higher food cost, and labour cost in the kitchen. Disadvantages of this service system are: queuing, food presentation can be affected.
Plate service is used in hotels and independent restaurants, food is prepared and placed on individual plates and delivered to the customers. The advantages of this method are: a good presentation of food, a high quality of food and keeping portion control. Like all service method the plate service has and some challenges such as: highly skilled chefs, the customers sometimes need to wait for food delivery.

LO2, Understand the financial controls used in food and beverage operations

2.1 Discuss the use of financial statements in food and beverage operations.

Some of the most important financial statements in the food and beverage provision include:
Dish costing sheet
Cost statements
Operating statements
Variance analysis
Sales records
Dish costing (ingredients are the foods that go into dishes; chefs use a dish costing sheet to help calculate the cost of each portion. This is used to calculate the selling price or menu.
Cost statement is a breakdown of all costs incurred, which is comprised of direct and indirect expenses.
Sales records are the information you have on your customers, including but limited to: (contact information, what they purchase, and how they pay).
Company’s sales records are quite likely most valuable marketing information source.
Variance analysis: is the difference between a budget, planned or standards amount and the actual amount of dishes/beverages sold.
Variance analysis helps management to understand the present costs and then to control future costs.
There are four costs a food service manager must concern with:
Food cost (are the cost associated with actually producing the menu items)
Beverage costs (include the costs of ingredients to produce these drinks)
Labour costs (include the cost of all employees necessary to run the business)
Overhead costs (utilities, rent, and linen).
Financial statements:
Financial accounts are the records of the financial dealings of the business
The main role of financial accounting is to: - record financial transactions
help the managers to manage the business
Financial statements provide stakeholders with legal/vital information: shareholders, suppliers, banks and lenders, Inland Revenue.
A financial statement is a formal record of the financial activities of a business; they include four basic financial statements:
Balance sheet
Statement of cash flows
Income statement
Statement of retained earnings
Advantages of financial statements:
Goals financial statements are supposed to accomplish
Financial statements provide a reliable indication of(operating results, financial position)
Provide information by authoritative requirements and regulatory groups
Management knows the most about the business

2.2 Demonstrate the use of cost and pricing progress.

Cost and pricing are:
Dishes, menu and beverage lists
Sales mix
Net and gross profit
Fixed, variable, direct, indirect cost
Cost elements
Price: is the amount of money required to purchase the product or service.
Cost: is the total spent for goods or services including money, time and labour.
VAT: is an indirect tax which is imposed on goods and services at each stage of production, starting from raw materials to final product. The current VAT rate stands at 20%.
Direct costs: usually is the cost of the materials which enter into and from part of the product.
Indirect costs: is the cost of material which do not form the part of product but which help the production (oil needs to cook).
Fixed costs: remain constant over a set period of time event though the level of business fluctuates (rent, rates)
Variable costs: are proportional to the level of business and might include meal ingredient costs and beverage cost.
Profit: is the difference between the incomes of the business all its costs/expenses. It is normally measured over a period of time.
Discount: is either an amount of money or a percentage taken off the market price.
Gross profit: is the difference between sales incomes and the direct costs of making those products.
Net profit: represents gross profit less all expenses associated with the normal running of the business. Net profit show how well the business performs under its normal trading circumstances.
The approach to menu pricing must follow from the outline of the basic policies and from the determined department profit targets.
Foods cost refers to the menu price of a certain dish in comparison to the cost of the food used to prepare that same dish. Generally, food cost should be around 30-35%.
It seems like the customers is charging a lot more than necessary, but we need understand that customers don’t pay only for food, they paying for preparing food, serve food and cleaning up after the food.
Pricing menu and dishes:
It is important to remember that the price in itself can be a valuable selling tool and a great aid in achieving the desired sales volume. The method of pricing chosen should take into account the departmental profit required and the different profit margins of the menu.
The formula for costing is:
Cost of your product/0.35= menu price
The method used to price the beverage is similar to the formula pricing food.
Discount is an amount of money or a percentage taken off the marked price
Selling price= marked price- discount

2.3 Analyse the purchasing process

Purchasing can be defined as ‘a function concerned with the search, selection, purchase, receipt, storage, and final use of commodity in accordance with the catering policy of the establishment’.
This suggests that the person employed to purchase foods and beverages for an establishment will be responsible for not only purchasing, but also for the receiving, storage and issuing of all commodities as well as being involved with the purpose for which items are purchased and the final use of them.
The purchasing function is an important element in the business control cycle in balancing inventory against investment. Correct purchasing maintains adequate levels of stock to meet the needs of customer service. Different categories of product require different strategies for procurement, most straightforward are branded goods and most difficult are fresh seasonal produce.
Requisition of equipment and supplies:
In food and beverage operations requisition and inventory control must be implemented.
A supplier of equipment of food stuffs can be easily selected from among those that buyer has previously purchased from. Ideally a visit should be made to any potential supplier to see the size of company, the full range and models of product, conditions of storage facilities, and to meet members of the management team. When seeking a new supplier caution must be exercised and detailed enquiries made to cover the next point (full details of the company and the range of items they are selling( equipment, foodstuffs; copies of recent price lists; details of trading terms; samples of products).
Purchase specification area a concise description in writing of (quality, size, weight, quantity).
Purchase specification can often be in a form of purchase order where the necessary information is included. A purchase record may indicate what was ordered, who ordered it and at what price. Always use a purchase specification when buying any food items.
Purchasing specification of beverages are simple than of foodstuffs. Beverages are sold and purchased by the brand name label of the product, having a consistent quality and quantity.
Receiving practices vary with different organisations but the general principles of control are:
Check delivery note
Inspect product/raw materials to determinate if they are in agreement with the purchase order and specification
Accept the product/raw materials by signing the delivery note
Store and deliver goods to the right place.
There are three main points to consider receipt of the goods: (quantity inspection, quality inspection, clerical procedures);
Invoicing should include the following:
A business identification number
Supplier name, address and contact information
Your company name and address
Delivery date of the invoice
The amount being charged
VAT amount if applicable
Getting your invoicing system and payment terms right can be key to a healthy relationship between the supplier and the business.
Storage of equipment and supplies: raw material should be stored correctly under the right condition and temperature; there are three main points to be when storing supplies of foodstuffs, beverages and equipment: (space, stocktaking, clerical procedures);
The foodstuffs storage can be split into: dry goods and items for refrigeration and freezing
The beverages storage can be split into: cellar items, separate area, bar stock items
A clean food or beverage storekeeping, run efficiently, is essential in any foodservice establishment.

LO3 Be able to devise menus for hospitality events

Compile food and beverage menus for hospitality event

The menu is central to a food and beverage operation
It is the first impression of your establishment
It communicates everything about your type of operation
It dictates your staffing, organisations, production and service methods
It drives your image, theme, quality and overall mission
Sausage, chips and fresh salad
Apple cake
Jack-potatoes with vegetables
Coffee or tea
Fruits salad
Fish, rice and fresh salad
Mineral water
Fruits salad
Battered chicken fillet with chips and salad
Orange juice
Service System: Buffet or counter service

Justify the selection and suitability of recipes for menus

When I compile the menu I take in consideration nutritional issues, balance diet, balance of colour, health and safety and hygiene issues. The same I take in consideration that some of my guest are vegetarians, diabetics, and children. I choose sausage, chips and fresh salad for adults, because is a dish that is made quickly, it not required special skills. For vegetarians I choose jack potatoes with vegetables, this dish respects nutritional issues and balance of colour. For diabetics I choose fish, rice and fresh salad, this dish is low in fat, contains carbohydrate and vitamins and it is good for their healthy. For children I have battered chicken fillet with chips and salad, this choice is nutritional value, because has protein and vitamins, good for their growing and healthy.
Beverages I choose for menu are suitable for all guest, everyone have a choice.
I suggest beer for adults and vegetarians, juice and mineral water for children and diabetics, and for their choice coffee or tea.
The service style I suggest is Buffet or counter service, because it needs less staff, the staff not required high skills; the guests have their choice, can be served quickly.

LO 4 Be able to provide food and beverage services for hospitality events.

Plan a food and beverage service for a hospitality event within an agreed budget.


Sausage, chips and fresh salad £5, 00
Jack-potatoes with vegetables £5, 00
Battered chicken fillet with chips and salad £4, 00
Fish, rice and fresh salad £5, 00
Beer £3, 50
Coffee or tea £1, 50
Orange juice £1, 50
Mineral water £1,00
Apple cake £2, 50
Ice-cream £2, 00
Fruits salad £2, 50

4.2 Implement the planned service maintaining standards of quality and health, safety and security. Please use the case as an example.

In any hospitality events like celebrate the ‘end of the term’ maintaining standards of quality and health, safety and security are main points. Nowadays, customers are looking for quality rather than quantity.
Quality standards means: production and service planning, food and beverage preparation, cooking and presentation, setting and maintaining standards. The success of the event depends on the quality. The quality means keeps every standards, the service provide by the staff be trained well, the food must be bought from quality supplier and to be storage properly. Temperature requirements shall be met all the time. The food must be prepared, handled, cooked using procedures that prevent cross contamination. Equipment and food must be washed cleanly to avoid any food illness.
Healthy and safety one of the most sensitive issues in any event. It is important to ensure that the premises and equipment are safe and that they are kept safe so as to prevent accidents. The staffs need to assess any hazards or risks. Staff should receive training how to prevent and how to dealing with accidents. Proper health and safety procedure action will protect guests from danger. Respecting healthy and safety procedure will increase the guest trust and satisfaction and will reduce the cost of insurance.
Security issues are another very important task for the success of the event. The guests want to stay safe while they are on event. Good security will help to enhance the satisfaction level for the staff and for the guests, all of us want to feel protect and secure. A secure environment in the event is also a marketing advantage, it will help to reduce the penalty cost and to rise the service provide.

Evaluate factors to determine the success of the service, making recommendations for improvement.

The factors that determine the success of the service are: planning and organisation of the management; customer satisfaction; quality assurance and setting standards; cost and time effectiveness;
Planning and organisation of the management: The success of the event is determined by the management organisation. Management must to select food service, style of cooking, controlling the deliveries and storing of food and beverages.
Recommendations for improvement in planning and organisation of the management are:
Communications with customers must be clearly and effectively
Maintained standards of food and service systems
Keep hygiene and safety standards in food and beverage department
Customer satisfaction is one of the most important tasks to gain to achieve the success of the service. Happy customer means repeat business, positive company image, and high quality customer referrals. It is costly and difficult to get new customers than keeps the old customers.
Recommendations for improvement customer satisfaction are:
Provide excellent customer service before, during and after event
Give personal attention
Do not neglect a single customer, transmit a positive attitude
Quality assurance and setting standard, in any hospitality event, quality service standards of food and beverage should be ensured. All health and safety procedures and staff involvement in the event contribute in the success of the event.
Recommendations for improvement in quality assurance are:
Food must be purchased from a good supplier
Service staff must be properly trained
Health and safety standards must be followed
Cost and time effectiveness are to gain the maximum profit, the event manager has to be cost and time effective. Customer always wants the best value for their money.
Recommendations for cost and time effectiveness are:
All suppliers have to be negotiated
Make a good relationship with the local business operation.


Modern day food and beverage operations are continuing to improve in the quality, and the service.
Professionalism is increasing, through better training and development. The quality of service is becoming the principal differentiating factor when customers are choosing between different establishments.
In this assignment I wrote about food and beverage production and service systems, I wrote about financial processes used in food and beverage operations. The same I was compiled a menu for 60 guests with an agreed budget keeping in mind factors affecting menu compilation and dish selection.