LO1 Understand the operational and economic characteristics of hospitality operations 1.1 analyses the nature of the product and service area 1.2 Evaluate the different influences affecting patterns of demand within hospitality operations. 1.3 Compare customer profiles and their differing expectations and requirements in respect of hospitality provision 1.4 Analyze factors affecting average spending power in hospitality business LO2 understand product development within a hospitality environment 2.1 evaluate the key stages in product and service development applied within a hospitality operations 2.2 analyses the features which contribute towards the customers perception of products and services 2.3 assess the opportunities and constraints affecting product and service development within a hospitality environment 2.4 evaluate different merchandising opportunities for hospitality products and services LO3 understand pricing and profitability concepts within hospitality operations 3.1 evaluate different methods of pricing taking into account additional pricing considerations 3.2 assess the factors in hospitality operations which affect revenue generation and profitability LO4 be able to use appraisal techniques to analyse and improve operational performance and make proposals for action 4.1 apply different performances measures and appraisal techniques to individual aspects of hospitality operations the product and the whole operations 4.2 determine the effectiveness of different quantitative and qualitative appraisal techniques and their application to hospitality operations 4.3 apply approaches to business analysis evaluation and planning appropriate to hospitality operation, making proposals for actions.
Introduction I read out whole case study and I found a chevalier is hospitality establishment which is situated on beach and because of many problems their sales going down. I found that there is no management, services are not that much good, bad condition of restaurant, no signage, lack of staff training,no experienced persons in establishment and proper cleaning. Customers become less day by day because they are not satisfied with services and atmosphere. Chevaliers get easily make money from restaurant but they don’t have proper planning and experienced persons to run business in good way or making more profits. Their restaurant situated on the beach and it is really very good location for business because customers attract from natural things. People love to see views and enjoying food while watching sea views. Chevaliers situated on beach with three storied restaurant. In this restaurant they have beach level kiosk, la carte restaurant and it can cover up to 100 covers and they also doing outdoor catering facility with 200 covers. In this establishment most of the people come from middle class families. Different types of customers come here to enjoy food like parents with children’s, walkers, joggers and couples. From the last one year chevaliers business in loss because of less customers. The success of any hospitality business depends mainly on its development plans. Business development includes a wide range of activities that create new or changed offerings, organizations process. It enhances sales, improves customer satisfaction, augments quality, diminishes costs and achieves numerous benefits for organizations to be successful and here I implement different strategies to improve business. There are numbers of things to run business and make more profits like pricing of f and b, accounting and maintenance etc.
Lo1 understand the operational and economic characteristics of hospitality operations. Nature of the product and services areas Buffet service A Buffet Service is a self-service serving style where the guests serve themselves. This style is a great method for feeding large numbers of people with minimal help. The dinner buffet is the most practical and congenial way in which to care for your guests. There can be many variations of the Buffet Service. It can be either country casual or semi-formal. It provides a more relaxed method of dining and a more varied menu than a full service meal. The entertaining buffet presentation of food can be placed on one or more tables close but away from the tables where the guests will be seated during dinner. The guests will go to the buffet tables and serve themselves from avariety of menu items. There are hot buffets and cold buffets. Cold buffets are typically salads and sandwiches. Also the backyard barbeque can be a Buffet Service. An entertaining dessert bar can be used for an afternoon gathering of friends. The Buffet Service can have a staff where the guests bring their own plate along the buffet line and are given a portion from a server at one or more stations. An advantage of buffets is that guests have the ability to review food before selecting it and taking only the quantity needed. Since a buffet involves people serving them it is less elegant than Table Service. Buffet Service is used anytime there are large gatherings even at many formal wedding receptions. Buffet means to feed large number of people at one time. In chevaliers we provide a buffet service for customers. There are different types of buffet services in this world. Chinese buffet, Indian buffet, Italian buffet etc. but here I decided to implemented French, continental buffet for customers because of English, kiwi peoples. In New Zealand most of the people love to eat continental food so the French buffet is best option. In buffet system we provide many dishes with one cost and guest enjoy food with bulk quantity. Customers have to serve themselves from different stations like a salad bar, hot items, desert station and all entrée, mains. Here we provide out door dinning, friendly environment, private parties etc. according to customer needs.
(http://restaurants.about.co) Best location for buffet and setup
Buffet setting requires planning with regard to layout and easy access for every guest. Buffet best location is near kitchen. So that if dishes empty needs refilling it won’t take time as chevaliers kitchen is near to main hall. Moreover it will be easier for guests as well as they don’t have to wait long for food and it will effect on chevaliers sale as if customers happy then they will come back again. Traffic flow and a food are essential to the success of a buffet line. The Right Way to Set Up a Buffet Table
* Stack plates at the head of the table and silverware and napkins at the end. * All the food should be accessible from both sides even for small groups and all lids and covers should be completely removed once servingstarts. * Beverages should be served on a separate table that's far enough away from the main buffet so as not to cause traffic congestion. * Dessert should also be served separately on its own table and should not be put out until after the main course. * Provide tongs and ladles instead of forks and spoons for serving whenever possible. * Refill often to maintain freshness and flavor
Benefits for chevaliers by Buffets service The most obvious benefit of a restaurant buffet is that chevaliers feed a large quantity of people with minimal amount of staff. This is great for payroll. It also allows rotating the food in the restaurant kitchen faster. It is beneficial for the establishment. Buffet as special promotions can draw in customers on a budget who may not routinely dine out at restaurant. And also it offers a great way to cut food costs and increase profit margin. It helps to generate more income. Layout of the kitchen
The main consideration is designing a kitchen is that the layout should allow easy cleaning and continuous workflow from receiving raw material through preparation and cooking to final presentation. Equipment’s should be movable or placed on clean area. In the kitchen serving food and there must be a division of preparation areas For example
Vegetables storage and preparation should be near to delivery as vegetables have soil on them which carries c perfringens spores and if the vegetables are carried through the kitchen dust from the vegetables may settle on cooked food. Section of raw meat preparation should be separated from cooked food preparation to avoid cross contamination because raw meat is frequently contaminated with salmonella. Ventilation
Adequate ventilation in a kitchen is very important for two reasons firstly to keep the temperature and humidity down and second one is to remove cooking smells steams. Kitchen floor It should be made hard wearing, mats, easily cleaned material which will not absorb moisture and will not affected by food such as grease etc. Décor interior design in restaurantDécor play very important role in restaurant sales and popularity. Décor should be according to location and set particular theme on décor like flowering, sports etc. in décor so many things included like ceiling, flooring, furnishing and the interior should be air conditioner or heating facility according to seasons. As we are already observing that with our present décor of chevaliers we enable to attract customers so that’s why we need to change our décor such as lighting, as light should be changed according to the time of day. Also same as with sound/ music volume during day time it should be low volume as customers need low volume they want calm music at that time in lunch time customers want loud music. And in dinner they are for fine dining so they want romantic music collections. Also we will put flowers on each table a complied with candles. And also we put outdoor tables for those who want to enjoy their food with sea. Bar setup in restaurant
Bar should be located in one area, the food buffet and the dinning in another area. It will help or work eases congestion and reduces potential food and drink disasters. A bar placed at the back of a restaurant more intimate away from the hustle and bustle of the front of the house. Stock Restaurant Bar with the Right Equipment
Bars need their own reach in coolers, ice bins, hygiene supplies, paper towel dispenser, liquor wells, glass racks, wine racks and dry storage. Coolers should be big enough to hold bottled beer, white and blush wines as well as backups of juice, milk and other beverages used to mix drinks. A restaurant bar also needs a beer tower and a place to keep kegs cold. You may have to run beer lines from the walk in cooler if your bar doesn’t have enough space for kegs. Bar floors should be covered with rubber floor mats for employee comfort and safety. Bar should be handled by bartender. it should be compulsory bar person available all the time during restaurant hours. Bar Set Mood with Lighting
Lighting in the bar should be subtle. Not so dark customers can’t read the menu but definitely not too bright. Recessed lighting and track lighting with dimmer switches allow controlling the light, adjusting it for the timeof day. Signage
The signage need to be replace with a new sign board in addition with contact number, name of the establishment and also in bar we need put bar signage’s required as per law. We need put signs for rest rooms and also put signs for wet floors. Cleaning in restaurant
There is only one rubbish bin so we need to buy new bins and cleaning equipment’s for cleaning purposes. If the restaurant always looks beautiful than people attract from place and come again and again. (Restaurant management and operations)
1.2. Evaluate the difference influences affecting patterns of demand within hospitality operations Patterns of demand in restaurant Happy hours for restaurant Different peoples comes on different hours like some people come for breakfast time and they will need quick service and their demands like fruit juices, cereals and cold foods. And also some people come for dinner and they will demand hot foods, more formal servie.so it is varies person to person according to their demands restaurant provide service. It is good if restaurant opens for whole week 7 days because it generates more money and popularity. Opening hours as earlier they open at 7 and close early so this thing has to be changed because there was no customer at that time but if we changed timing than it safe other expenses like electricity, staff wage etc. opening hours should be at 8 to 9 am and closing late to depend on business. Seasonality
Special promotional ideas for restaurants take advantage of on holidays and other special events that happen throughout the year. Special menus provide and take reservations for busy times, like New Year’s Eve and Mother’s Day. The influence of weather temperature on eating and drinking habits changing by seasons. Seasonality of food also will appeal to budget conscious as in season food is usually more abundant so will be lower in cost. Restaurant provides low cost food and with discounts. In summers the sale is more as people would like to spend time on beach on other hand in winters as itscold people would like stay away from beach so we have make a different menu for winters to customers and as it’s not good business in winters to cut cost we could just make our menus limited. For winters we could also arrange outside heating and inside heating for customer comfort. To achieve our target we could also provide special offers to attract customers during off season. (Seasonal Factors Affecting the Restaurant Industry)
Social eating patterns The family meal was the focus point at the end of the day where family members have been away from home during the day they came together for meal times to discuss the day’s activities and to make plans for the next day. While time and convenience have had an effect on the social aspect of food it’s true to say that food still brings people together. Peoples meet up on particular occasions, wedding parties, ceremony and on festivals. People enjoy parties as well as food. (Food habits and social change, 2008)
Food and fashion trends The hospitality industry is changing rapidly because customers are changing and technology is changing and markets are changing. Like fashion, restaurant operations have trends and fashions that retreat and flow with time recall the roller-skating waitresses at drive in diners during the 1950s. Listed below are some popular restaurant trends that aren’t likely to disappear for a while yet. There numbers of trends in restaurant for customers and to promote their restaurant. To attract customers some of the main trends are following: 1) Offering discounts and coupons
Offering discounts and coupons to regular customers or during occasions like festivals, new year etc. Now day’s people love to bargain and it is good if restaurant give discounts and coupons to customers. Restaurants provide different types of foods according to customer needs and also provide options in menus like food plus drink free it will make more money and popularity in particular regions. 2) Public health concerns
Now days people are very concern about their health’s and restaurants are being pressured to create healthier meals with smaller portions. Restaurantneed to care about customers and provide nutritious food with cleanliness. Different people have different health problems so according their demands or needs restaurant provide food. Restaurants also provide children’s menu with healthier food. In kids menu they provide salads and fruits with unique presentation so kids easily attract from food. For example: Americans are overweight and plagued by chronic disease such as diabetes. In response to public demand restaurants provide smaller portions sizes and healthier food options on their regular menu.
3) Social media for restaurant There are numbers of social sites for example face book and twitter for restaurant market and food introduction with their benefits. It is for marketing and advertising to grow up restaurant business. Many people interested in internet so they always check where to eat? Which is best place to eat? In internet people can find restaurant names and contact details also menu available on restaurant website. Customers orders online or on phone call and will get home deliveries from restaurant. Facebook and twitter is a medium to promote specials and events and it will really work. Regional and ethnic influence
In this world there are so different countries and peoples and they have their traditions regarding food. Different people have different needs for example people from India always prefer Indian food, Chinese people prefer Chinese food. Pricing and economic factors pricing will be set according to time of year Market conditions, climate and changes in government legislation all have an effect on food costs. The choices made in sourcing food, preparing or buying readymade food will always influenced by price. Food needs to be within a personal budget. And it changes by the season will be changed. Elasticity of demand
Elasticity of demand is the sensitivity of the sales volume to changes in price. Demand fluctuates in response to factors such as a change in pricing, food quality or the environment for example refurbishment. (http://www.ehow.com) 1.3 Compare customer profiles and their differing expectations and requirements in respect of hospitality provision. Achieving high levels of satisfaction at a restaurant through good customer service, quality food and making diners feel valued is important because satisfied customers are more likely to return. On average a satisfied customer will tell two to three people about good food and service whereas an unhappy one will tell five to ten peoples how dissatisfied he was. Customer satisfaction or expectation surveys are an important tool that will aid you in reaching your high customer satisfaction goals. There are numbers of restaurants according to different customers like family restaurant, couples restaurants like valentines. (Customer expectation and delight)
Family restaurants Family Restaurant is that designed to accommodate all ages, large groups, loud parties and whose menu reflects family style dining, child portions and perhaps even reasonable prices. According to the needs of family the family restaurant designed. For example: elder people in family demand less spicy food, lower noise level and formal service Valentine restaurants
Valentine restaurant is designed for young peoples who demand romantic places and silence and the whole restaurant decorated with dim lights and light music. Customer profiles in restaurant Customer profiles also help you develop targeted marketing plans and help you ensure your products and services meet the needs of your intended audience. There are two basic types of customer profiles Demographic profiles
Demographics profiles are based on characteristics like age, gender, income levels, marital status, place of residence, etc. In marketing terms demographic profiles tend to break down customers into age, social class, and gender. For example: younger buyers may make buying decisions based on how they feel the purchase will cause them to be perceived and older buyers may focus on quality or safety. Wealthy customers may be willing to pay a best for service or for a perceived value while lower income customers may be more likely to focus on price. Its all depend on person status if there is a rich person buy something than surely he will pay more without thinkinganything but other lower class person first see the price and then decide. Behavior profiles
Behavior profiles focus on actions and focus on types of items were purchased how frequently items are purchased and the average transaction value or which items were purchased in conjunction with other items. (Customer profiles)
Types of customers 1) Loyal Customers Naturally we need to be communicating with those customers who on a regular basis by telephone, mail, email etc. These people are the ones who can and should influence our buying and merchandising decisions. Nothing will make a Loyal Customer feel better than soliciting their input and showing them how much you value it. In my mind you can never do enough for them. Customer recommends to others and as a result business growth inclined. 2) Discount Customers
This category helps ensure inventory is turning over and as a result it is a key contributor to cash flow. This same group however can often wind up costing restaurant money because they are more inclined to return product. 3) Impulse Customers
Clearly this is the segment of our clientele that we all like to serve. There is nothing more exciting than assisting an Impulse shopper and having them respond favorably to our recommendations. We want to target our displays towards this group because they will provide us with a significant amount of customer insight and knowledge. 4) Need-Based Customers
People in this category are driven by a specific need. When they enter the store and they will look to see if they can have that need filled quickly. If not they will leave right away. They buy for a variety of reasons such as a specific occasion and a specific need or an absolute price point. As difficult as it can be to satisfy these kind of peoples and they can also become Loyal Customers if they are well taken care of. Salespeople may notfind them to be a lot of fun to serve but in the end they can often represent your greatest source of long-term growth. 5) Wandering Customers
For many stores and restaurants this is the largest segment in terms of traffic while at the same time they make up the smallest percentage of sales. mostly kind of people attract from the location of the restaurant. Keep in mind however that although they may not represent a large percentage of immediate sales and they are a real voice for restaurant business in the community. Many Wanderers shop merely for the interaction and experience it provides them. Shopping is no different to them than it is for another person to go to the gym on a regular basis. Since they are merely looking for interaction and they are also very likely to communicate to others the experience they had in the store. Therefore although Wandering Customers cannot be ignored, the time spent with them needs to be minimized. Pricing consideration expectations
Prices play main role in business because in restaurant different types of customers come some are from rich families and some from medium class. For example: rich customer spends lots of money on food but the middle class customer thinks what to eat and they look on price? And Always find reasonable prices so the thing is this if restaurant design their menu according to the customer spending power than it will good for both business and customer. Prices should implement according to the target market than business grow up. Customer need the food prices are reasonable according to their spending power different options provided to customers in food so customer will be happy and satisfied. 1.4 factors affecting average spending power in hospitality business. Types of hospitality outlets, menu range, pricing consideration Firstly the type of menu offered by an establishment and the variety of menu choice should also enhance the total meal experience. For a lower level market first price of food. If the customer is paying $50 for three course meal the range of menu items that can be made available within the cost limits of such an operation is obviously more limited than in operations where the customer’s average spending power is higher. Secondly, the amount of time taken to consume meals at this level of the market may vary between half an hour to one hour but will rarely exceedthis.
The menu choice offered by a restaurant is therefore dependent on a number of interrelated factors like * Price the customer is willing to pay * The amount of time available for the meal experience * The level of the market in which restaurant situated * The production and service facilities * Skills and staff Expectations and requirements A single customer or group of customers arriving at a restaurant for a meal bring with them a series of expectations regarding that restaurant and the type of service they will receive and the price they will pay, the expected good atmosphere and mood of the restaurant etc. The customer expectation may be varied and numerous, ranging from the restaurant which the customer frequents because they want to be seen there and participate in its social atmosphere, to the small quiet restaurant where the customer may go because of its intimate and personal nature. If customers sense disharmony, however between their expectation of the restaurant and the actual product they find for example, it is too intimate for the occasion and they may not enter the restaurant but choose another. If disharmony is not realized until customers are seated at the table and it is unlikely that they will leave but will have a hurried and uncomfortable meal. Level of service
The higher the cost of the meal to the customer and the more service the customer expects to receive. The cost of the meal to customers increases so will the amount of service they receive. It is necessary for a restaurant to identify the level of service. if a restaurant has a very formal type of food and beverage service usually associated with high class operations, the other aspects of the restaurant service should be equally formal the speed, efficiency and dress of staff, the degree of personalization and courtesy the customers receives, and so on. It is important for a restaurant operation to consider not only the service of the food and beverage for which the staffs are usually adequately trained, but also to remember the indirect service aspect of the operation which are all part of the customer’s meal experience. The meal experience Eat and drink experience The meal experience may be defined as a series of events both tangible and intangible that a customer experiences when eating out. Tangible- which can be feeling 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 and 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. The series of events and experiences customers undergo when eating out may be divided into those tangible aspects of the product that is the food and drink and those intangible aspects such as service, atmosphere, mood, etc. So it is necessary for the tangible and intangible components of the restaurant to combine together and to be seen by the customer as one total product The menu is the center piece of any restaurant establishment.it is not a food list items for sale but the reason behind the establishment exist Management issues
Staffing 1) Floor management in staffing It includes floor managing staff and they provides service to guests or customers in restaurant. Staff allocates on different jobs from opening hours to closing hours. Manager is responsible for their staff and all safety and health regulations. Manger motivates all other staff in front office and take care all areas. Manager also provides training for their staff to make more profit from their serving skills. 2) Kitchen Management
In kitchen management, kitchen staff working in the kitchen only. There are different roles in kitchen management like chef, head chef, dishwasher and kitchen hand. Kitchen is the place food prepared and served food to customers. Managing the kitchen staff helps to control food quality. Kitchen is place where staff gets tired because it never stops in trading hours. Kitchen management is responsible for food cost, budgeting and profits Organization (administration) in restaurant All stock controlling, budgeting, labor cost, balancing cost, scheduling rotations, profits according to seasonality, surveys and hiring staff with maintaince of the kitchen equipment’s. Marketing
Management will decide about market strategies. Marketing is a source to attract customers and satisfied current customers. With the target market expanding new products and services. There are numbers of way to promote restaurant like media, comment cards, emails and social sites. Marketing plans will be designed for to increase customer visit, increase average checks and send profits sky high from insides to outsides the restaurant, the marketing plan is the road map to achieves specific sales objectives.it includes tv, radio billboards or localized neighborhood program. In chevaliers we will implement setup frequency dinning programs and data base programs that instantly tell who is customer in restaurant, their birthdays, and anniversaries and where they live Finance
Money plays very important role in any business. And it is also important to know how to manage finance. Management always ready to manage all situations like when season off the restaurant sales automatically down and management knows how to handle that particular situation. Managing day by day expenses in restaurant business and POS system helps to manage all sales and inventory. Control systems
A big emphasis is being placed on extensive research into the quality and integrity of restaurant products. Restaurant management will constantly tested for high standards of freshness and purity. Food costs and inventory control will be handled by computer system and checked daily by management. Service standards
There are different types of services provided in restaurants like buffet service, silver service, table service and tray service. As the service level increases the labour costs increases because of the increased skill level and the quantity and quality of equipment increases. A higher standard of customer service requires a higher standard of décor, food quality,equipment and staff. More facilities cost more. The delivery of a consistently high standard of service requires a higher proportion of product, staff and equipment. Quality systems
The quality of service is another factor that contributes to restaurant customer satisfaction. This is a particularly important factor to full-service restaurants because they are typically more expensive and slower than quick-service restaurants. Many factors go into the overall quality of service at a restaurant such as how positively customers feel about each member of the restaurant staff they interact with. Some customers may be more concerned with the social interactions with the wait staff, while other customers are more focused on how quickly dishes are removed and glasses are refilled. The relative importance of these different factors often depends on the style of restaurant and the outlook of a particular customer. Team working
All members of a team must feel empowered to work towards quality. This means if a waitress does not feel that a meal is up to standard that she has the right to refuse to take the dish to the customer. Staff should be encouraged to share their ideas about how to improve the quality of the organization often as they are the ones dealing directly with the customers they have more useful ideas than management. Training
Management will train employees in food service sanitation. Each employee shall be trained in food service sanitation quarterly.
Lo2 understand product development within a hospitality environment 2.1 evaluate the key stages in product and service development applied within hospitality operations Special pricing Market segmentation( identify demand of the market) Market segmentation is one of the steps that go into defining and targeting particular markets. It is the process of dividing a market into a distinct group of buyers that require different products or marketing mixes it targets specialty markets that will promote products and services more effectively than a business aiming average customer. It is easiest way ofmarketing in groups and it helps to get knowledge about customers needs and wants. Market is segmented in different groups of consumers. For example:
* Behavior bases like product knowledge, usage, responses and attitudes of customers * Demographic basis like age, occupation, age and family size * Psychographic bases like lifestyles, values and personality * Geographic bases like states, regions and countries
Market segmentation is important for business and for development. We do because we want to know about customer thinking about food and beverages. According to customers’ needs and wants restaurant establishment developed. Design the product
Menu plays very important in restaurant business and establishment designs their menu can increase sales, turnover and ensure the menu remains balanced in terms of sales mix and popularity. The menu can designed in such ways to seduce and convince the diners to choose a specific menu item by the wording and how the dish described. Fine dinning restaurant provide menu with less wording, naming exotic ingredients. Restaurant should clear explanation about customer perceptions and according to family restaurant environment should be attractive for kids and keep in mind the value of money.
Theme of the restaurant Theme for restaurant is very popular and it effect on restaurant sales and development. There are numbers of themes for restaurant like flower decorations, sports, heritage and colorful themes. It increases the sale of restaurant. Theme describes the restaurant and customers attract from theme. A restaurant theme is a blend of food, atmosphere and service. Restaurant theme decides according to location and local competition. Theme will decide according to customers. Need to survey of that place where your restaurant situated and then decide restaurant theme. For example: if your customers are families with younger children you don’t need to be open until midnight or have a full service sports bar. Advertising
Restaurant advertising comes in many forms. Radio spots newspaper ads, TVcommercials even coupons are all ways to advertise a restaurant. We can hire a PR agency to help you get your message out or you can do it yourself. Advertising is not a one-size-fits-all deal. Advertising plans vary from year to year, season to season. Like we have a busy summer season and less business in the winter and we will need two decisively different advertising plans. While advertising we can show discounts/coupons and special offers for customers so it can develop brand image in the eyes of customers. Customers will definitely think about restaurant and definitely plan to go that particular restaurant. Websites is another option where we put new offers and menus for customers. Customers will directly order from internet. It helps to generate income from customers. Food and beverage planning
* The wide variety and choices in f and b * The process has to comply with the HACCP policy * The fast turnover of some food like items delivered fresh in the morning may be prepared and served to the customer at lunchtime and the revenue saved by afternoon. * The product cannot be stored for any length of time
* Different types of customers handled in same establishment
Food control points There are some common features are found in food production processes in all food and beverage operations. Product goes through the production process. It first enters in the establishment with raw material or preserved product and then stored in store area. Processing of this product must then take place preparation of food and cooking food. After the product ready it will presented in plates and serve to customers. Food control process
Employer’s satisfaction Employees of organization play very important role in hospitality industry. Restaurant development depends on employee’s satisfaction. There are numbers of things take part in employee’s satisfaction that is job security, providing pay at time, opportunities to use skills and abilities, feeling safe in the working environments and also with good communication. Moreover the employee’s relationship with their co- workers or supervisor and management recognition of employee job performance. If the employee not satisfied with their job then how can he/ she work properly so it is very important that an employee satisfied from their job.
Risk management While working in restaurant there are numbers of risk involved but restaurant owner and manager face that risks. In restaurant should be provide a safe working environment as well as prepare for the unforeseeable accidents, damages or any disaster that might impact restaurant building. Restaurant need trained their staff to handle this kind of situation. Safety procedures implement into daily procedures. Restaurant aware and insuring about lawsuits or any kind of damage to business. Protecting restaurant from fire
Protecting restaurant from crime Protecting staff and customers from accidents Understanding legislation that effects on business like food hygiene, employers, liability, health and safety in restaurants are all relevant when anyone running business There are some acts that implement when something happen like this The fire act
Every building have fire service act, fire evacuation procedure should be in place. Fire equipment’s must be in place and serviced regularly. The food hygiene act 1974 It is for health of each customer and it implies on restaurant. Every restaurant should be neat and clean. Storage area should be clean. Foodhygiene regulation 1974 act says that regulations are safe storage and also there should be safe preparation.
2.2 analyses the features which contribute towards the customers perception of products and services Whenever a guest enters a restaurant or hotel or a food and beverage section of any place, he/she expects something more than just what is served. The expected things include quality, timeliness as well as cost effectiveness however what if you can give the guest more than what he/she has expected Food hygiene in restaurant
Good food hygiene in restaurant is of vital importance for the pleasure of customers and the continued success of restaurant business. Customer also expects where they eat the place should be neat and clean and kitchen should be clean while preparing food so there is no harm to health. Why food hygiene is important?
Every day people get ill from the food they eat. Micro-organisms including bacteria, viruses and moulds found in food can cause food poisoning, leading to a whole host of unpleasant symptoms, such as stomach pains, diarrhoea and vomiting. It is for customer’s good health if there is no food hygiene customer unhappy and they will blame on restaurant so hygiene is very important. Restaurant cleanliness attracts customers and it helps to increase more customers. Type of greeting and welcoming
Greeting and welcoming is the first impression so when customer enters in the restaurant host responsibility to handle customers with smile, eye contact and welcoming. Politely speak with customer and offer something water first than provide menu or tell them today’s special menu or menu of the day with special offers etc. Physical appearance matters
Guests expect to be served by a good looking and well-dressed staff. Staff cannot be untidy will their face, hair or clothes. The guests should not feel that the restaurant management is too harsh on the staff in terms of salaries or duty such that they cannot afford a proper uniform. This creates a wrong impression. Serve the food in warm, well washed dishes/containersand all plates, bowls used should be well washed and cleaned. Increase knowledge about the product: The guests could have a query about the food and beverage they are consuming or are about to order. The service staff should be well equipped with the knowledge of the product so as to help the guests make a decision. Speed of service and their types
Speed of service according customers like young people want very formal service and old people like quick service and on time. Service is very important part of any restaurant. Restaurant depends on the best service. If the service does not meet the customers’ expectations and customer felt the service very good then they defiantly come back to restaurant. Customer service covers many different parts of restaurants day to day operations and going far beyond the front of the staff. In chevaliers there is no proper service provide to customers so they will not come again because of poor service. Ambience (good environment)
* Good Environment * Clean * Organized * Safe * Low pressure * Energy level appropriate to clientele * Decoration Brand loyalty Brand loyalty known as reputation of the restaurant and it is very important that restaurant have good reputation in market. Brand loyalty is depending on their service and good quality of food. Customers want to feel important
They know that restaurant have lots of other customers and clients but they just love it when staff makes them feel special. Flexibility Customers hate to hear the word No or it cannot be done. Its not always possible to say yes to a customer or do exactly what they want however it is important to be as flexible as you can. Staff needs to motivate and convince customer to take another meal or service. If someone to know their name (names of customers) A customer name is one of the sweetest sounds they will ever hear. If you use a customer’s name when you talk to them it indicates that you recognize them as an individual. Don't use it too often as it can become irritating, but definitely at the start and the end of a conversation. 2.3 assess the opportunities and constraints affecting product and service development within a hospitality environment Food and nutrition
Dietary requirements Proteins are required throughout life to create, maintain and renew human body. The amount of proteins required changes with age, during growth periods and depending on health of human body. Now days people are very health conscious so according to their needs restaurant provide food of their choices For example: restaurants provides special kids menu age 2 to 12 and these are foods that kids tend to like and which meet kids dietary requirements like fruits. For Strict vegetarian Restaurants do not mix any animal products like beef, chicken, fish, eggs and they provide pure vegetarian food to customers. They provide different kinds of salads, other vege dishes. Regulations acts in implement on restaurant and employer liability towards the customers are as follows (class work) Health and safety act
There are laws and systems that have been established to help ensure that the food served in restaurants is safe. Bacteria grow very easily if given the chance. The local Health Department will send out inspectors to make sure that the chefs and servers are following the proper guidelines. Inspectors will issue fines for minor violations and can shut you down for major violations. This act states that the relation of guest and staff protected from health issues. During work the environment should be neat and clean. People should work in clean environment and make food in clean place. In restaurant they can use clean and right equipment’s and cutlery.
Employment act 1992 The health and safety in employment act 1992 states that to prevent harm tothe all the employee who all are working in the premises and for other person who is in the neighborhood of work should also be protected moreover the customer who all come to dine in the premises should also be taken care off. Restaurant staff never provided food which can harmful for guest and they should prevent them from food. They need to check expiry dates and food storage in right temperature and there should be system which followed by business from food deliveries in the restaurant on time. It also include proper receiving, storage, preparation, cooking and serving food. Staff training should be compulsory because of their knowledge. Restaurant should prevent customers from hazards. The privacy act According to the Privacy act states that individual privacy therefore is personal details of the guest should not to be disclosed to any one at any point of time. Customer privacy act implies in restaurant operations. No one can disclose any information about customers. Human rights act According to the Human rights act 1993 says that nobody can discriminate any one on the basis of Race, color, ethnic origin, disability, gender, marital status, age, religion, political opinion, employment status, sexual orientation. Trading act Shop trading repeal act 1990 defines about the hours of opening the business which also help the customer to be aware about their purchasing time. 2.4 evaluate different merchandising opportunities for hospitality products and services A combination of local media and local store marketing programs will be utilized at each location. Local store marketing is most effective, followed by radio, then print. As soon as a concentration of stores is established in a market then broader media will be explored. Advertising is best form to promote restaurant. By providing an entertaining environment with unbeatable quality at an unbelievable price in a clean and friendly restaurant than it automatically increases sales. There are some methods of advertising such as TV, radio commercials and newspaper ads can be very expensive. If any person ready to open a new restaurant or promote existing restaurant and they don’t have a very big advertising budget than there are still several ways to promote restaurant even on a low budget. Restaurant Website
One of the most powerful tools a restaurant their own websites. More and more people are turning to the World Wide Web for information rather than the yellow pages. Maintaining a website is crucial for any business today. It issimplest way to attract customer and get sales profit. People sell products directly to consumers and it should give the basic information of restaurant and about hours, telephone number, directions and a copy of menu. Restaurant also advertises on website customer promotions on weekly promotions such as an early bird menu or happy hour details.. One of the best ways to get business through restaurant website is linking with other businesses such as local hotels, the chamber of commerce and local tourist information sites. Menu Flyers
Creating a menu flyer or a take-out menu is another way to get the word out about restaurant without breaking the bank. Place these flyers at local hotels, chambers of commerce and to local businesses. Menu flyers placed on popular tourist destinations as well such ski mountains, parks or whatever place in the area that draws a crowd. On flyers menu we are not able to put whole menu so it is ok if we post some popular dishes and including hours and any special promotions like happy hours, direction and contact number. Newspapers
Newspaper advertisement is very cheapest way to promote restaurant because if we don’t have enough money to promote on high level, like bigger advertisements than we advertise restaurant on newspaper within less amount. Menu Inserts
Menu inserts are a great way to advertise new promotions or services to existing customer base. For example if there is a introducing a new promotion such as a wine tasting dinner on the first Friday of each month, we can place an insert advertise that is in regular menu. Theme nights
Theme nights like particular theme on the day which are not preparing in restaurant before but now restaurant decide to create French menu with flowering theme and beautiful decoration with candles. According to customer interest if someone like French food or flowering theme than they will definitely come to restaurant. Customer like fun loving nights. It increases there interest to come again and again. When to Spend More on Advertising? Restaurants should plan to increase their advertising budgets during the holiday season. In October or early November, run a newspaper ad reminding the public to book their holiday parties and order their party platters. If the place where restaurant located tourist destination then it is a good idea to place an ad in the local paper and or tourist paper prior to the busy season May for the summer months, November for the winter months. Many chambers of commerce or local tourism associations will publish a newspaper geared specifically toward tourists. It highlights all the sights and activities of an area. Advertising is key to gaining new business for your restaurant. However, you don’t have to spend a fortune to attract new business, when you think outside of the traditional advertising box. Lo3 understand pricing and profitability concepts within hospitality operations 3.1 evaluate different methods of pricing taking into account additional pricing considerations It is all about product and how much to charge for product or service. There numbers of strategies to overcome problem in manage product price or menu price. There are some Pricing strategies to set the price of product and service like cost, positioning and maximizing quantity. Correct pricing is very important in restaurant business or any other business. There are four methods to calculate the pricing. Some of the pricing methods are following: Methods of pricing
1)Cost-plus pricing Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. This method although simple has two flaws; it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price. Set the price at your production cost, including both cost of goods and fixed costs at your current volume, plus a certain profit margin. For example, widgets cost $20 in raw materials and production costs and at current sales volume or anticipated initial sales volume and fixed costs come to $30 per unit. Total cost is $50 per unit. Then decide that want to operate at a 20% markup, so add $10 (20% x $50) to the cost and come up with a price of $60 per unit. So long as you have costs calculated correctly and have accuratelypredicted your sales volume and it will always be operating at a profit. 2)Psychological pricing
Hitting price points that are significant for example pricing items at $14.99 instead of $15 customer perceive them as being better value. It is easy way to attract customers and make more money from this strategy. And also covers pricing items too low on a menu in comparison to other dishes 3)Breakeven pricing
It may define as that volume of business at which total costs are equal to sales and where neither profit nor loss is made. Total sales and total expenses are equal and there is neither loss nor profit. 4)Popular price points
There are certain prices points (specific prices) at which people become much more willing to buy a certain type of product. For example under $100 is a popular price point. Enough under $20 to be under $20 with sales tax is another popular price point, because it's one bill that people commonly carry. Meals under $5 are still a popular price point, as are entree or snack items under $1 notice how many fast-food places have a $0.99 value menu. Dropping price to a popular price point might mean a lower margin but more than enough increase in sales to offset it. 5)Fair pricing
Sometimes it simply doesn't matter what the value of the product is even if we don't have any direct competition. There is simply a limit to what consumers perceive as fair. If it's obvious that our product only cost $20 to manufacture even if it delivered $1000 in value, it is a hard time charging two or three thousand dollars for it and people would just feel like they were being squeezed. A little market testing will help to determine the maximum price consumers will perceive as fair. 6)Positioning
Poisoning means pricing about product and it is a key part of pricing. For example if anybody running discount store than he always set their prices lower than their competitors. The pricing has to be constant with the poisoning. Customers always want reasonable price and good quality of food. 7)Cost based pricing In hospitality this involves accurately calculating the food or beverage cost of per unit usually done by using a standard recipe than a percentage is added for gross profit to arrive at the selling price. It is important to ensure that the gross profit percentage added is enough to cover all fixed and variable cost as well as the desired profit margin. 8)Market oriented pricing (Qualitative)
This method looks at the relationship between price and value for money like how much people are prepared to spend and will take into account the whole meal experience from décor of restaurant, menu items, staff service and cleaning. Factors effects on pricing
Price must always be consistent with the customer’s perception of value. The higher price the greater the customer’s expectation and it is to disappoint. If the product is perceived to be too expensive the customer will find substitutes. If the product is priced too low the customer may feel it reflects inferior quality. Budget perspective a price needs to include the cost to the business as well as the profit expectations. GST cost
It is a value with added tax and it is compulsory for everyone who buys product and service from seller. For example when chef costing the menu he will include tax cost with dish cost. (pricing methods)
3.2 assess the factors in hospitality operations which effect revenue generation and profitability Pricing is one of the four elements of the marketing mix, along with product, place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives.
Portion Control One reason that chain restaurants are so successful is that they have a firmhandle on portion control. The cooks in those restaurants know exactly how much of each ingredient to put in every dish. For example, shrimp scampi may have a portion control of six shrimp per dish. Therefore, every shrimp scampi that goes out of that kitchen will have six shrimp in it no more, no less. This is portion control. In order to practice portion control in your own kitchen everything should be measured out. Chicken, beef and fish should all be weighed, while shredded cheese can be stored in portion control cups and a measuring cup can dish out mashed potatoes. Once you feel comfortable cooking about menu, then serving amounts (sort of like Rachael Ray) but in the early stages of your restaurant, err on the side of caution and measure everything out. Another way to practice portion control is to purchase proportioned items, such as steaks, burger patties, chicken breasts, and pizza dough. They may be more expensive but can save you money in labor and food waste. Sales mix
Sales mix is a combination of different sales products like beverages, food, desert and side coffees. Total of brunch sales, dinner sales is equal to total revenue. Customer service Good customer service is the life blood of any business. In a fine dining restaurant customers pay for service to enjoy food and atmosphere. A waiter or waitress serves customer food and beverages and it is up to staff that the customer back again to take service. It means if the staff provides fine and attractive service. Good customer is all about bringing customers back and about sending them away happy and happy enough to pass positive feedback about business. Staff knowledge
Staff should know about menu items on tips with their descriptions and if staffs have knowledge about menu and beverages it will be a positive point and if customer asks about product than staff should answer with confidence. It will be good impressions on customers and they would like to some more food or come back again. Customer feel good as they get what they want and customer will be enjoy service.
Selling skills Servers also known as waiters and waitresses are a key part of yourrestaurant staff. Without good service, few customers would return to any restaurant. A good server does more than just wait on customers. He or she is a salesperson. (Perhaps they should be called sellers, instead.) They should not just be taking orders and delivering food. They should be selling a product- your restaurant menu. A good server knows how to up-sell. Up-selling is simply getting a customer to spend more than he was originally intending. Factors affecting profitability in restaurant business that is: LO2 AND LO3 CLASS NOTES
Class work/notes Misleading information to customers because 1. Guest complaint increase 2. Spoil image of the restaurant 3. Loss of money 4. Restaurant get fined if they don’t obey rules 5. Effect the brand image 6. No loyalty towards organization 7. Lack of staff training like if staff not provide service to customers properly than customer get dissatisfy they will never come back to restaurant 8. Effect on brand image if there is any problem in operations 9. Hygiene if there is no proper cleaning in kitchen than it direct effect on food so as a result customer will get sick from that food and it effects on restaurant image
Employee’s duties for the protection of the consumer 1. Provide and maintain a safe workplace which uses safe equipment and areas where customer think I am safe and they come again and again if they like place. 2. Prevent risks from use of any article or substance and from exposure to physical agents and noise 3. Prevent any improper conduct or behavior likely to put the safety, health and welfare of employees at risk 4. Provide instructions and training to employees on health and safety 5. Provide protective clothing and equipment to employees 6. Appointing a capable person as the organization’s Safety Officer which helps when someone in danger 7. To take reasonable care to protect the health and safety of themselves and of other people in theworkplace 8. Not to engage in improper behavior that will endanger themselves or others 9. Not to be under the influence of drink or drugs in the workplace 10. To complaint any defects in the place of work or equipment which are not good or danger to health and safety
Lo4 Areas that are commonly appraised Deliveries on time If deliveries come on time we will not run out anything. Moreover we could store at right temperature on right place. If delivers come on time then chef has time to organize stuff. Wrong deliveries
if wrong delivers come than there are many problems that may arise like chef cannot do preparation without his products. If customer asks for particular item in the menu which we donot have due to wrong deliveries. May be instead of waiting customer would prefer go and try somewhere else. Short term deliveries
Short term deliveries are known as like takeaways. Quality of items Quality should be good if the quality not good than customer always dissatisfied from service and success or failure of a restaurant is tied to the quality of the product, service and atmosphere. Customers expect fresh food that is tastefully prepared. They want impeccable service from knowledgeable staff and they want an environment that is clean and comfortable. By reviewing a checklist of vital points daily, restaurant consistently provide a quality product that will keep customers coming back for more. Back of House
* Commercial kitchens must be clean and sanitary. Customers or guest never see the kitchen area and cleanliness but restaurant should provide quality food with hygiene. Food is rotated in each delivery to maintain freshness. * Storage temperature should be checked every day
* Prevent cross contamination by identifying cutting surfaces and utensilsfor specific items such as vegetables * Storage area must be neat and clean * Clean uniforms should be worn by kitchen staff along with hair restraints and proper footwear. All cooking and cleaning equipment should be serviced on a regular basis.
Front of House * Check plates, glassware and silver for cleanliness before serving food. * The dining should be clean and decorated * Clean all areas in dinning room dailybasis * Table should be wiped after customer leave the premises * Linen changed day by day * Hand-polishing glasses and silverware after each washing will keep them spot-free. * All plates and utensils should be spot-checked for cleanliness before serving. * Menus should be clean and wrinkle free.
* Regularly check tables and chairs for cleanliness and to ensure they are not wobbly or cracked. Also be sure that restrooms are clean and stocked before each shift. Sometime packaging broken
Sometimes while deliveries things get broken than staff has right give back that deliveries. Expiry date expired Staff should check expiry dates on products if they think there was problem in products than don’t use those products because not good for health. If anyone cooking food with expiry dates products than it is very dangerous to health. Cross contamination: raw food and cooked food deliveries not counted checked or weighed Deliveries not stored quickly bacterial growth
Storage–food preparation-food cooking-food serving-food to customer –food service-food clearance-food charging Storage the correct storage of product is very important. Storage can prevent bacteria growth, help prevent infestation, maintain product quality and prevent from poisoning. There are four regular type storage * Dry storage temperature ( 10 to 15c)
* Refrigeration or chilled storage ( temp 2 to 4c)* Frozen storage(temp -18 to 25c) * Hot storage, pie warmer Some points to consider controlling contamination, biological, physical or chemical in the above areas when storing food products. Deliveries of chilled and frozen food. To ensure chilled and frozen food is in the best possible condition when it is used and some of the points are : Use reputable suppliers whose delivery veg=hicles are clean and maintained at a correct temperature * Reject deliveries of frozen food if it has temperature -10 c * Reject deliveries of refrigerated food if it has a temperature above 10 c * Check the condition of the packaging and reject food if packaging unsatisfactory * Check signs of pest damage and mould growth
Cleaning hygiene is very important and need to expiry dates. In storage checklist we need to put staff traning, fifo system, temperature, HACCP systems etc Food preparation stage In food preparation stage unhygienic preparation is danger zone. Staff should be skilled who are preparing dishes and right equipment’s should be used while preparing food. Don’t cook with wrong equipment’s. HACCP
Menu satisfaction Ensure staff has right equipment Food texture This is concerned with the feeling of tenderness and firmness of the food in the mouth and can also be described as mouth feel. Cooking stage Different cooking methods include deep and shallow frying, boiling, steaming, poaching, braising, roasting, baking, grilling and stewing. Over cooked food like shrinkage, loss of nutrition value and loss of taste, right temperature, staff use wrong cooking methods, efficient chefs. Manager need to do checklist during food cooking is cooking methods is right, portion control, ingredients, right equipment’s used in kitchen Serving food and displaying food
Food should be prepared as close to serving as possible to prevent the risk of recontamination. If foods are prepared and reheated with special caremust be taken with the time between hot and cold time frames and preventation of contamination. Staff should aware of personal hygiene of server habits, staff should improve communication with guest they need to communicate with polite voice. Purchasing right equipment’s for right service. Service provide in sequence. * Clearing food stage
* Unprofessional work methods * Excidents caused by in hurry * Food incorrectly stored Manager need to improve all by staff training and job allocation. Lo4.1 performance appraisal measures and appraisals techniques to individual aspects of hospitality operations the product and the whole operations Performance measurement
Measures performance means to assess business outcomes means results like a restaurant business owner implement strategy on business and get outcomes from that strategy. In simple term business strategies apply on business and get positive or negative outcomes. Organisation has always measured performance in some way through the financial performance. In some cases get profits and in some cases lose. Benefit of performance measurement
It is device to help managers control process in organisation to solve situations. Reviewing the performance of an organisation is also an important step when formulating the direction of the strategic activities. It is important know that the strength and weakness of the organisation. It important for business to know customer requirements have met.
Strength and weakness where we can use data methods on business Qualitative and quantitative
1. Qualitative means in social data 2. Quantitative mea 3. 4. ns in numbers or figures For example: we do food costing, profit and loss statement, budgets all arein numbers but customer feedbacks are social data.
Quality management Quality management means in food and beverages to provide quality products witin a systematic approach. Customer want quality with reasonable prices so it is the duty of restaurant provides them quality based products. Quality is an investment in business because a business can earn more money from products with cutting of quality but that business not run so far. It is the responsibility of management to provide quality based products and because of good quality products establishment get more profits for long long time and there brand image developed in market.
LO4.3 business analysis evaluation and planning appropriate to hospitality operations, making proposals for action Appraising revenue Benchmarking Its is a tool used by management to enable a business to measure their products and services with their competitors. It is a form of competitor analysis but it also serves to raise the standard. In another words it can be compared from past like what we did in past business and what we can do for present business profits. Aim of the benchmarking is to identify the strength and weakness of a restaurant business and find faults whats wrong in business? It encourages costing control measures and analyses to improve revenue performance. Menu engineering
Menu engineering sales and revenue It helps to establish the popularity and profitability of menu items. And this assists in menu management, developing and pricing. Menu engineering highlights the good and the poor performers on a menu and provides vital information for making the next menu more interesting and appealing to the customers with the aim of increasing profitability. It is very useful tool to make profits. Sales are the result of a price paid and quantities purchase. Each item sold results in an individual contribution to the sales total as well as the individual costs generated. Each product of menu have specialty with their nutrition values, in some recipes reduces fats and calories. It is a market oriented approach to the evaluation of a menu withregard to its present and future content, pricing and design of menu. F and b managers decide to set prices of menu with margins and get profit from it. Each item will be calculated with each ingredients and then menu designed with profitability. Menu engineering is often used to determine the contribution of profit that each item on the menu is offering to customers. Menu should designed in sequence way.
Gross profit Gross profit is a key measure of the operating effiency of a business and it is one of the first ratios to be checked when analyzing an operation success. * A low good profit can be causes by a number of factors: * Poor purchasing, resulting in high ingredients cost
* Poor storage, resulting in wastage * Poor security and resulting theft * Poor portion control Gross profit is normally set by management in a budget but for a food outlet industry standard is around 60% Net profit = total revenue less cost of goods sold less expenses( cost of sales + expenses) Cost
Outgoing expenses that a hospitality operation will need to budget for to ensure the prices are set correctly to maintain profits for the business. For a large establishment like hotel there are many cost which are divided up between departments. Depending on the level of revenue will depend on the allocation of costs for each department. Classification of cost
Direct cost Costs which are directly related in producing the product or service and are influenced by day by day running of the operation. They are generally considered the responsibility of a particular department or department manager. They generally change in proportion to changes in sales. In the case of hospitality operations these would include food, beverages, labor and some other expenses such as electricity, linen, stationery and gas. Indirect cost It tend to be more fixed in nature and will occur no matter what the level of business therefore they change less proportion to sales and they are generally costs that are not easily identified with any particular department and therefore cannot be charged to any particular area. For example: rent, insurance and security
Production cost like associated costs of purchasing and storage, equipment’s and machinery, purchases and maintenance. Distribution like costs associated with delivering the product or service to the customer or via other outlets to the customer for example pizza delivery. Fixed costs
It remains constant over a set period of time even through the level of business May fluctuate. Do not moves or change in response to a change in sales volume for example rent rates and insurance. Variable costs
It tends to increase and decrease at the same rate that sales increase and decrease for example food cost, beverage cost. Purpose of cost allocation In order to create accurate budget which helps with the effiecncy and profitability of restaurant business costs must be divided up into area. Costs are allocated to departments in line with revenue expectations which incorporate a mixture of historical statistics and forecasted projects Operational and economic characteristics
Pricing and profitability As every business man open business because they want to make profits, pricing play very important role. When we set the price of our products we need to care target market also we need to set the price that attracts customers. the prices set for products affect profitability and also affecting and owners. Price should always reflect value for money. Price affects the perception of the product by the customer. We need to set prices in relation to costs involved as well as market demand. if we provide according to the needs of customers and customers will happy from service than it increase the sale of restaurant . Customers automatically come to our restaurant if they like menu items and that will affordable in every class of peoples. Improve operational performances Staffing improves the performance of operations with the help of good services provided to customers. If we put right staff for right work than business goes very smoothly also if chefs making food up to standards than no one will complaint about food. It also improves the brand loyalty Product development
One of the most important decision make as a restaurant owner or foodservice operator makes is the type of food and beverage products that will be offered at establishment. Not only does your food and drink have to be delicious and interesting enough to draw in customers but it must also be cost-effective and make you money. If the menu prices are reasonable than customer attract. not only cost less restaurant should provide quality food to customers that they will come again and again in restaurant. Standard recipes
Standard recipe is easily accessible and comparable to photo and recipe. Quality taste provided with staff training and consistency. Establish cost control The quality and kinds of ingredients are established in advance as product specifications. It can help to calculate labor costs Portion control Standard portions are integral part of standard recipe and buying pre portiones units help to control cost. And also maintain standard sizes, portioning house cn lead wastage and inconsistency. Standard yield
The standard yield is a product is the useable part of the product after initial preparation or the edible part after preparation and cooking. For example: the standard yields are testing and the whole filet of beef is the number of steaks that will be available for cooking and final sale after the meat is trimmed. Any usual trimmings must be taken into account with the standard yields. Training for product development
Quality is achieved through staff. Select right people for the right jobs. Staff must have right attitudes to begin work. Empower the staff to solve customer problems as far as they can themselves and if staff knows about howto happy customers it automatically increases sales from food. Staff has some tricks to motivate customer to eat more. It is good for business. Report on chevaliers
Introduction (subject of report) I read whole case study and I found a chevalier is hospitality establishment which is located on beach and three storied restaurant. In this restaurant they have a beach level kiosk, la carte restaurant and it can cover up to 100 covers and in house function catering facility with 200 covers. Beach location is the best location for making more money because people love sea views and enjoying food while watching sea. Chevaliers got a good location but they don’t have organized management and experienced staff. Chevaliers get easily make money from restaurant but they don’t have trained staff and experienced person to run business. In this establishment most of the people come from middle class families. People are like joggers, walkers and parents with children’s. From last one year chevaliers sales going down and huge loss. There were no more customers come due to bad condition of restaurant. There are so many problems and miss management in restaurant, lack of trained staff, no experienced manager, no bar person present all the time, no décor, not fully hygiene and no proper cleaning. Customers become less day by day because they are not satisfied from service and atmosphere. The success of any hospitality business depends mainly on its development plans. Business development includes a wide range of activities that create new or changed offerings, organizations process. It enhances sales, improves customer satisfaction, augments quality, diminishes costs and achieves numerous benefits for organizations to be successful and here I implement different strategies to improve business. There are numbers of things to run business and make more profits like pricing of f and b, accounting and maintenance etc. There are numbers of problems in chevaliers needed to improve and I implemented different strategies to increase sales and some of the strategies are follows:-
Key to success 1. Sign board needs to be replaced as it don’t got contact number on it 2. Their staff is needed to replace by new experienced staff including frontand kitchen. Hiring the best people available, training, motivating and encouraging them and thereby retaining the friendliest, most efficient staff possible. 3. Kitchen equipment’s need to improve as some are of no use so that productivity improved 4. Rubbish bins need to replace by new bins as they are old and need to change their location as they are in way 5. Also the quality of products needs to be improved as with this quality customers always have complaint with their meals 6. new menu also need for the business as with the old menu customers were not attracted could explain t7.bar also need to improve as bar also have some complaints like not have enough drinks to complete order as their list is less. 7. Staff needs to train so that they could answer the customer’s questions. 8. Signs needed in the restaurant for toilets and bar
9. The primary Goal is to serve quality food at unbelievably low prices in a clean, fun environment. We must deliver on this pledge 100% of the time without exception. 10. As if we implement these changes then our sales will go up and we will make money and our customers will be happy and come back again .I know for all these we need to spend some money but in return we will get sales and customers Also we need to change our operating hours like at the present our staff Is sitting without doing nothing. we need to hire new manager who have good knowledge of his job and duty who could bring new creative ideas and who could manage staff and restaurant also who could talk to customers in a good way. We also need to change suppliers who could bring deliveries during our trading hours so that we get our deliveries on time and at correct temperature also we could store them at right place according to their storage requirement.
Restaurant needs and changing things improve restaurant sales I have total amount $30,000 and within this amount I planned to improve business of chevaliers so we spend some money on kitchen equipment’s, rubbish bins, sign boards, bar set up ,staff training, décor and promotions for chevaliers growth and profitability. For bar setup we need to apply new lightings and signs, it will cost us around 1000$ including GST. If we implement this change then customers will more attract and they will order more beverages and increase our revenue. We need to change restaurants lighting as withour present lighting customers are not happy and don’t look good. It will cost us 2500$ if we implement this change then customers will attract and also if they happy then they will back again and with our revenue go up. We need to improve our signboard as with our present customers are not able to see our contact number and also look not good. It will cost us 500$.but will bring in more customers so that they could make bookings and could know about our products. We need to change dishwasher and gas stove to improve our productivity and help in cleaning dishes in less time both of them will cost us around 5000$ Rubbish bins need to replace by new ones as it is not look good in doorways so that customers could enjoy their meal also it will cost us 500$. We need to set up marketing which will help us to get customers and also customer know about our products and services.it will cost us around 1500$. Market analysis
Chevaliers situated on the beach so we are focuses on local peoples and tourist. People that have desire for good and fascinating atmosphere and who are interested in sea views and natural attractions. If we implement all above things then definitely people influenced from restaurant location and atmosphere. Market segmentation implement on chevaliers
Market segment is a concept where we find what people like about food and what kind of service they need. Due to market segmentation we will know customer demands and desires. In chevaliers restaurant most of the people come like walkers, joggers and parents with kids. We will divide into different parts like age vise, gender vise and young people, old people and kids. According to customer needs we will set the menu and prices.
For example: we need to advertise our products so that customers come to know what we selling and we do marketing programs like weekend parties and direct mails to customers, add in newspaper . This will be by far the cheapest and most effective of our marketing programs. Sales strategies
Our sales plan is to establish and maintain position with our local customers. The strategy is to build more customers in order to increase revenue. We will focus on making all customers happy with our food, serviceand entertainment. our strategy in the chevaliers restaurant is to have an experiences staff that know about the food and beverages or liquor. We will train every employee so they will fit in chevalier’s restaurant concept which is reasonable priced food to customers.