Food and Beverage Operations Management


Food Beverage

Course Name: HND in Hospitality Management
Food and Beverage Operations Management (Unit5
Student Name: Emilia Panzo
Submitted to:  Margaret Amankwah
Nelson College London
Wembley Campus, London
Task1
1.1characteristics of food production and beverage service systems
Food Production Methods
Food production methods in the catering industry evolved over a period of time when there was an great quantity of labour. The design of the established kitchen, first introduced into the UK in the latter half of the nineteenth century, grew up around the division of tasks into parties (comparable tasks with numerous foods were carried out by a particular group of people). This was the progress of the parties system. The rigid demarcation between the sections meant that the staffing ratio was high in comparison with the number of meals served.
During the first half of the twentieth century there was little or no technical change in the kitchens of hotels and restaurants. Most managers and chefs had been trained in the old traditional methods which gave reasonably satisfactory results, and to them there seemed little reason to change. It is only during the last forty years that changes in the old traditional methods have evolved. These changes were slow to appear and started in the manufacturing industry rather than in the kitchens of hotels and restaurants. Technical research was done by the major firms of food suppliers and their products slowly became accepted by the catering industry, as skilled catering staff began to be in short supply. This was further optimistic by the rising costs of space that was necessary for a traditional kitchen. Traditional kitchen tasks were beginning to disappear at increasing speed. In 1966 the first cook-freeze operation in the UK began, and from this derivatives have evolved from both cook-freeze and cook-chill methods. The following represents a study of the main food and beverage production methods currently in operation.
Staff movement from work station to station is shorter i.e. training to service counter Communication link-up is vital in terms of departmental communication Food flow is more systematic without obstacle. Stewarding department is accessible to kitchen so that equipment and service wares are readily available. Easy access to raw food materials from the storage areas. The food and beverage control unit is within distance for feedback on supply. Conventional Production with Convenience Foods Convenience foods may be introduced into a traditional production kitchen. Conventional production using convenience foods may range from a partial to a virtually complete reliance on the use of the wide variety of convenience foods now available. However, the best use of such convenience foods can only be by means of a planned catering system. It is basic to the systems approach that the operation be considered as a whole, taking into account the special effects that a change in one part of the system might have on another part. Therefore, if convenience foods are to be introduced into a traditional kitchen previously using all fresh produce the effects upon labour, equipment, space, and more important, the client, should all be considered.
Advantages of Using Convenience Food:
Reduced costs. Availability of varieties. goods are standardised and consistent in quality. May have less purchasing problems. Stock control can be made easier with less wastages Preparation and cooking times can be reduced. No need for special cooking equipment. Prove to be useful ion time of emergency. supervision can concentrate on promoting sales
Disadvantages of Using Convenience Foods:
Caterers has little or no say in the way the products are processed. Menu planning options is limited. Processed foods may be lower in nutrients. Once opened, left over cannot be kept. Artistic talents of staff will be wasted
Centralised Production Methods
Centralised production methods involve the separation of the production and service components of the food flow system either by place or time or both. Food that is centrally produced is either then distributed to the point of service in batches or is pre-portioned; it may be transported in a ready-to-serve state, for example hot, or it may need some form of regeneration in a satellite or end-kitchen, for example chilled or frozen food. This form of food production became popular in the 1970s and 1980s mainly due to the demand in the welfare sector for this type of centralised production and its associated savings.
However, because of the changing nature of the hospital catering service in particular, CPUs are no longer in such demand and a number have recently been closed due to their high operating costs.
The advantages of centralised production include:
The separation of the production and service activities allows the unit to work at a consistent level of efficiency rather than ‘peaks’ and ‘troughs’ often found in a traditional kitchen. By concentrating the skilled production staff at the CPU, a higher standard of preparation and presentation should be possible as satellite kitchens do not require such skilled staff. Bulk purchasing reduces the raw material costs and helps reduce the overall cost per meal. The introduction of a storage stage’ between production and service allows the production unit to work to maximum efficiency and with a better utilisation of staff and equipment. Better working conditions and more social hours are generally available for the production teams. Energy consumption can be reduced by careful scheduling and by a continuous run of single products.
The disadvantages of centralised production include:
The high capital investment of planning and constructing a centralised production unit. except fully utilised the cost per meal can rise dramatically. Production failures or stoppages due to power failure, hygiene problems or food contamination outbreaks can quickly escalate and have much greater repercussions than a problem in an individual kitchen.
1.2
1.2 Recipes and menus
Menu and recipe development: cookery styles, types of menus, balanced menus, dietary needs, ethnic and social influences, nutritional considerations
Methods: using fresh foods, using prepared foods, using a combination of prepared and fresh foods, cook-chill, cook-freeze, cook to order, batch cooking
Factors affecting menu compilation: taste, colour, texture, temperature, appearance, foods which complement each other, food and drink which complement each other
Alcoholic beverages: sources, selection, availability, storage, legislation
1.3 cost and staffing implication for different systems
This unit introduces the learner to the practical aspects of food and beverage production and service. Due to the nature of the job, hospitality managers need to have the basic practical skills to enable them to operate effectively within a kitchen and restaurant operation. The focus of this unit is the development and application of practical activities within a food preparation and service environment. Learners will review and evaluate different food and beverage production and service systems, together with aspects of menu design, financial and staffing implications for different outlets. They will investigate the importance of financial controls, including costs and selling prices and aspects of the purchasing programme. Learners will also develop their understanding of the processes involved in planning and developing recipes, the methods that can be used, and a range of factors that affect menu compilation. The learning for the whole unit is drawn together through the planning, implementation and evaluation of a hospitality event. This unit is common to more than one Higher National qualification. Learners must ensure that their evidence relates to the sector they are studying.
Module Contents
Food and beverage systems
Production systems: eg traditional, centralised, sous vide, cook-chill, cook-freeze
Service systems: eg table service, counter service, ? la carte, table d?h?te, silver service, family service, plate service, gu?ridon service, specialist food service systems
Menu design: type of food and beverage operation, customer perceptions, choice of products, flavour and appearance of dishes, nutritional value
Financial implications: equipment costs, wages, product costs
Staffing implications: skills and de-skilling, job specifications, staff training, levels of output
Food and beverage outlets: e.g. hotels, restaurants, banqueting, in-flight, outside catering, industrial, institutional (public and private)
Financial controls
Financial statements: dish costing sheets, cost statements, operating statements, variance analysis
Cost and selling price: dishes, menus, wine lists, net and gross profit, fixed, variable, direct, indirect cost, cost elements, VAT
Purchasing process: requisition of equipment and supplies, purchase specifications, receipt, invoicing, storage of equipment and supplies
Recipes and menus
Menu and recipe development: cookery styles, types of menus, balanced menus, dietary needs, ethnic and social influences, nutritional considerations
Methods: using fresh foods, using prepared foods, using a combination of prepared and fresh foods, cook-chill, cook-freeze, cook to order, batch cooking
Factors affecting menu compilation: taste, colour, texture, temperature, appearance, foods which complement each other, food and drink which complement each other
Alcoholic beverages: sources, selection, availability, storage, legislation
Hospitality event
Customer requirements: type of menu, style of service, timescale, type of customer
Cost control: labour materials, overhead costs, achieving target profits, budget restrictions
Quality standards: setting and maintaining standards, food and beverage preparation, cooking and presentation, food and beverage service skills
Health, safety and security of the working environment: procedures, setting and maintaining hygiene practices
Evaluation: planning, management objectives, customer satisfaction, cost effectiveness
1.4 Cost and different Suitability implication for systems
Different types of catering of restaurant establishments. Relationship of catering industry with other industries. Staff organization in diffestauerent types of rants, duties & responsibilities staff. Classification of restaurants. Types of restaurants, status of a waiter, attributes of a waiter. Unit – II Classification of operating equipment’s used in restaurants & their uses. Ancillary departments, still room, pantry, hot plates. Restaurant service Muse en scene, Muse en place. Table lying- Points to remember when laying a table. Uses of a dummy waiter Unit – III Menu- Meaning, types, food & their usual accompaniments, French classical menu. Types of service- Different styles, factors influencing styles of service- advantages & disadvantages. Unit – IV Breakfast- Types, cover lying, terms used. Classification of beverages- Preparation of non-alcoholic beverages, examples of non alcoholic beverages. Unit – V Order taking procedures in restaurants. Room service- types, order taking procedures for room service-telephone, door hangers. Cover laying for foods- Hors d’oeuvre, fish, main course, sweet, cheese, and savoury. Examples types. Ice cream...
2.1FINANCIAL STATEMENTS IN FOOD AND BEVERAGE OPERATION
Financial statements: dish costing sheets; cost statements; operating statements; variance
analysis; sales records
Costs and pricing: dishes; menus; beverage lists; sales mix; net and gross profit; fixed,
variable, direct, indirect cost; cost elements; VAT; discounting
Purchasing process: requisition of equipment and supplies; purchasing options; purchase
specifications; receipt; invoicing; storage of equipment and supplies
2.2 COST AND PRICING PROCESSES
The food cost percentage is simply the cost of food sold divided by the sales. It is important to differentiate between the cost of food which was actually sold and costs of food which was not actually sold. Food not sold could be things such as staff meals, wastage, food such as cherries and lemons sent to the bar for use in making drinks, etc. There should be vouchers or requisitions from other departments to account for such food items. Staff meals should be carefully recorded. Any waste should be noted and a separate cost line for it should be created in the expense part of the financial statement. Once this is done we can then account for any items which were not directly sold to the guests. When we know the true amount for the cost of the food sold (the actual cost) we can then compare this against what the cost should have been (the standard cost).
At this point it is possible to determine the effectiveness and efficiency of the kitchen operation.
Calculating The Actual Food Cost
Opening Inventory (the closing inventory from the previous period) 
PLUS 
Purchases (the invoice amounts from each of the Daily Purchases Register files)
MINUS
Closing inventory (the goods counted after the close of business of the last day of the period)
MINUS 
– any adjustments
– cost of staff meals
– waste report costs
– food transferred to the bar (or other departments goods leaving them is accounted for on a requisition and that requisition becomes an invoice for the kitchen or department receiving them. This is common in a hotel with central stores which sends out goods to various units within the hotel. In such an operation each department would have to account for their food costs independently and the requisitions would be their purchases. Sometimes, however, goods go directly to the kitchen rather than to the central stores. Examples of this might be bread and milk where the bakery and dairy place the fresh goods directly in the kitchen instead of the central storeroom. Any such goods need to be carefully accounted for and included in the food cost total. As we will see in the controls section later, it is important to be especially careful when accounting for these goods as it is possible for theft to)
– any goods returned to suppliers for credit
– any other goods transferred out (to other units for example)
PLUS
goods transferred in from other departments (wine for cooking from the bar)
any other goods transferred in
= TOTAL COST OF FOOD SOLD
Some operations have controlled storerooms where any occur here.
2.1 Financial statement in food and beverage operation
Product oriented companies create a production budget which estimates the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labour and material.
Cash Flow/Cash budget:
The cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing.
Marketing budget:
The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.
Project budget:
The project budget is a prediction of the costs associated with a particular company project. These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each.
Revenue budget:
The Revenue Budget consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies.
Expenditure budget:
A budget type which include of spending data items.
(Arthur & Sheffrin, 2003)
2.2 cost and pricing process
A cost sheet is a statement of cost incurred, or to be incurred, for producing a given volume of output or for rendering services, as the case may be. Preparation of a cost sheet helps cost control and pricing decisions. (Banerjee, 2006)
Cost sheet for Hospitality
The standardised recipe cost sheet is a record of the ingredient cost required to produce an item sold by your operation. This standardised cost sheet can be created using any basic spreadsheet software. (Dopson, 2010)
Advantages of cost sheet in hospitality
New employees can be better trained.
Helpful to maintain food laws.
Helpful to explain about any food item to the guest.
Helpful for accurate purchasing in order to gain profits out of business.
2.3 Analyse purchasing process
Purchasing
Purchasing can be defined as a function concerned with the search, selection, purchase, receipt, storage and final use of a commodity in accordance with the catering policy of the establishment.
3.1food and beverage menus for hospitality event
Planning: type of menu; style of service; timescale; customer requirements Cost control: staffing; materials; overheads; achieving target profits; budget restrictions Quality standards: production and service planning; food and beverage preparation; cooking and presentation; food and beverage service levels; setting and maintaining standards Health, safety and security of the working environment: procedures; monitoring; setting and maintaining hygiene practices Evaluation factors: planning; organisation; management objectives; implementation; quality; customer satisfaction; cost effectiveness.
3.2
1.2 Recipes and menus
Menu and recipe development: cookery styles, types of menus, balanced menus, dietary needs, ethnic and social influences, nutritional considerations
Methods: using fresh foods, using prepared foods, using a combination of prepared and fresh foods, cook-chill, cook-freeze, cook to order, batch cooking
Factors affecting menu compilation: taste, colour, texture, temperature, appearance, foods which complement each other, food and drink which complement each other
Alcoholic beverages: sources, selection, availability, storage, legislation
1.3 cost and staffing implication for different systems
This unit introduces the learner to the practical aspects of food and beverage production and service. Due to the nature of the job, hospitality managers need to have the basic practical skills to enable them to operate effectively within a kitchen and restaurant operation. The focus of this unit is the development and application of practical activities within a food preparation and service environment. Learners will review and evaluate different food and beverage production and service systems, together with aspects of menu design, financial and staffing implications for different outlets. They will investigate the importance of financial controls, including costs and selling prices and aspects of the purchasing programme. Learners will also develop their understanding of the processes involved in planning and developing recipes, the methods that can be used, and a range of factors that affect menu compilation. The learning for the whole unit is drawn together through the planning, implementation and evaluation of a hospitality event. This unit is common to more than one Higher National qualification. Learners must ensure that their evidence relates to the sector they are studying.
Module Contents
Food and beverage systems
Production systems: eg traditional, centralised, sous vide, cook-chill, cook-freeze
Service systems: eg table service, counter service, ? la carte, table d?h?te, silver service, family service, plate service, gu?ridon service, specialist food service systems
Menu design: type of food and beverage operation, customer perceptions, choice of products, flavour and appearance of dishes, nutritional value
Financial implications: equipment costs, wages, product costs
Staffing implications: skills and de-skilling, job specifications, staff training, levels of output
Food and beverage outlets: e.g. hotels, restaurants, banqueting, in-flight, outside catering, industrial, institutional (public and private)
Financial controls
Financial statements: dish costing sheets, cost statements, operating statements, variance analysis
Cost and selling price: dishes, menus, wine lists, net and gross profit, fixed, variable, direct, indirect cost, cost elements, VAT
Purchasing process: requisition of equipment and supplies, purchase specifications, receipt, invoicing, storage of equipment and supplies
Recipes and menus
Menu and recipe development: cookery styles, types of menus, balanced menus, dietary needs, ethnic and social influences, nutritional considerations
Methods: using fresh foods, using prepared foods, using a combination of prepared and fresh foods, cook-chill, cook-freeze, cook to order, batch cooking
Factors affecting menu compilation: taste, colour, texture, temperature, appearance, foods which complement each other, food and drink which complement each other
Alcoholic beverages: sources, selection, availability, storage, legislation
Hospitality event
Customer requirements: type of menu, style of service, timescale, type of customer
Cost control: labour materials, overhead costs, achieving target profits, budget restrictions
Quality standards: setting and maintaining standards, food and beverage preparation, cooking and presentation, food and beverage service skills
Health, safety and security of the working environment: procedures, setting and maintaining hygiene practices
Evaluation: planning, management objectives, customer satisfaction, cost effectiveness
1.4 Cost and different Suitability implication for systems
Different types of catering of restaurant establishments. Relationship of catering industry with other industries. Staff organization in diffestauerent types of rants, duties & responsibilities staff. Classification of restaurants. Types of restaurants, status of a waiter, attributes of a waiter. Unit – II Classification of operating equipment’s used in restaurants & their uses. Ancillary departments, still room, pantry, hot plates. Restaurant service Muse en scene, Muse en place. Table lying- Points to remember when laying a table. Uses of a dummy waiter Unit – III Menu- Meaning, types, food & their usual accompaniments, French classical menu. Types of service- Different styles, factors influencing styles of service- advantages & disadvantages. Unit – IV Breakfast- Types, cover lying, terms used. Classification of beverages- Preparation of non-alcoholic beverages, examples of non alcoholic beverages. Unit – V Order taking procedures in restaurants. Room service- types, order taking procedures for room service-telephone, door hangers. Cover laying for foods- Hors d’oeuvre, fish, main course, sweet, cheese, and savoury. Examples types. Ice cream...
2.1FINANCIAL STATEMENTS IN FOOD AND BEVERAGE OPERATION
Financial statements: dish costing sheets; cost statements; operating statements; variance
analysis; sales records
Costs and pricing: dishes; menus; beverage lists; sales mix; net and gross profit; fixed,
variable, direct, indirect cost; cost elements; VAT; discounting
Purchasing process: requisition of equipment and supplies; purchasing options; purchase
specifications; receipt; invoicing; storage of equipment and supplies
2.2 COST AND PRICING PROCESSES
The food cost percentage is simply the cost of food sold divided by the sales. It is important to differentiate between the cost of food which was actually sold and costs of food which was not actually sold. Food not sold could be things such as staff meals, wastage, food such as cherries and lemons sent to the bar for use in making drinks, etc. There should be vouchers or requisitions from other departments to account for such food items. Staff meals should be carefully recorded. Any waste should be noted and a separate cost line for it should be created in the expense part of the financial statement. Once this is done we can then account for any items which were not directly sold to the guests. When we know the true amount for the cost of the food sold (the actual cost) we can then compare this against what the cost should have been (the standard cost).
At this point it is possible to determine the effectiveness and efficiency of the kitchen operation.
Calculating The Actual Food Cost
Opening Inventory (the closing inventory from the previous period) 
PLUS 
Purchases (the invoice amounts from each of the Daily Purchases Register files)
MINUS
Closing inventory (the goods counted after the close of business of the last day of the period)
MINUS 
– any adjustments
– cost of staff meals
– waste report costs
– food transferred to the bar (or other departments goods leaving them is accounted for on a requisition and that requisition becomes an invoice for the kitchen or department receiving them. This is common in a hotel with central stores which sends out goods to various units within the hotel. In such an operation each department would have to account for their food costs independently and the requisitions would be their purchases. Sometimes, however, goods go directly to the kitchen rather than to the central stores. Examples of this might be bread and milk where the bakery and dairy place the fresh goods directly in the kitchen instead of the central storeroom. Any such goods need to be carefully accounted for and included in the food cost total. As we will see in the controls section later, it is important to be especially careful when accounting for these goods as it is possible for theft to)
– any goods returned to suppliers for credit
– any other goods transferred out (to other units for example)
PLUS
goods transferred in from other departments (wine for cooking from the bar)
any other goods transferred in
= TOTAL COST OF FOOD SOLD
Some operations have controlled storerooms where any occur here.
2.1 Financial statement in food and beverage operation
Product oriented companies create a production budget which estimates the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labour and material.
Cash Flow/Cash budget:
The cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing.
Marketing budget:
The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.
Project budget:
The project budget is a prediction of the costs associated with a particular company project. These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each.
Revenue budget:
The Revenue Budget consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies.
Expenditure budget:
A budget type which include of spending data items.
(Arthur & Sheffrin, 2003)
2.2 cost and pricing process
A cost sheet is a statement of cost incurred, or to be incurred, for producing a given volume of output or for rendering services, as the case may be. Preparation of a cost sheet helps cost control and pricing decisions. (Banerjee, 2006)
Cost sheet for Hospitality
The standardised recipe cost sheet is a record of the ingredient cost required to produce an item sold by your operation. This standardised cost sheet can be created using any basic spreadsheet software. (Dopson, 2010)
Advantages of cost sheet in hospitality
New employees can be better trained.
Helpful to maintain food laws.
Helpful to explain about any food item to the guest.
Helpful for accurate purchasing in order to gain profits out of business.
2.3 Analyse purchasing process
Purchasing
Purchasing can be defined as a function concerned with the search, selection, purchase, receipt, storage and final use of a commodity in accordance with the catering policy of the establishment.
3.1food and beverage menus for hospitality event
Planning: type of menu; style of service; timescale; customer requirements Cost control: staffing; materials; overheads; achieving target profits; budget restrictions Quality standards: production and service planning; food and beverage preparation; cooking and presentation; food and beverage service levels; setting and maintaining standards Health, safety and security of the working environment: procedures; monitoring; setting and maintaining hygiene practices Evaluation factors: planning; organisation; management objectives; implementation; quality; customer satisfaction; cost effectiveness.
3.2
4.1food and beverage service for hospitality event
Catering managers plan, organise and develop the food and beverage services of organisations and businesses, while meeting customer expectations, food and hygiene standards and financial targets.
The role varies according to the size and nature of the business. In a small establishment, the catering manager usually has a hands-on role and is involved in the day-to-day running of the operation including staff supervision and events management.
In larger organisations, however, the catering manager might have other managers and supervisors to handle the different catering functions and catering outlets.
Catering managers can work in-house for a variety of organisations, including hospitals, schools, factories, prisons, cruise lines, hotel chains, universities and visitor attractions, or can work for a contract catering company providing services to a range of clients.
References
Banerjee, B. (2006). Cost Accounting Theory And Practice (12th ed.). New Delhi: Prentice Hall of India.
Dopson, L. R. (2010). Food and Beverage Cost Control (5th ed.). Canada: John Wiley and sons, Inc.
Jinnet, L. P. (2006). Small Buisness Start-Up (6th ed.). Chicago: Kalpan Publications.
Ojugo, C. (1999). Food & Beverage Cost Control (2nd ed.). New York: Delmar.
S.P.Gupta, Ajay Sharma, Satish Ahuja. (2007). Cost Accounting (1st ed.). New Delhi: V.K. Enterprises.
Sullivan, Arthur; Steven M. Sheffrin (2003), Economics: Principles in action. Upper Saddle River, New Jersey: Pearson Prentice Hall
https://www.urmc.rochester.edu/purchasing/purchaseorder.cfm
4.1food and beverage service for hospitality event
Catering managers plan, organise and develop the food and beverage services of organisations and businesses, while meeting customer expectations, food and hygiene standards and financial targets.
The role varies according to the size and nature of the business. In a small establishment, the catering manager usually has a hands-on role and is involved in the day-to-day running of the operation including staff supervision and events management.
In larger organisations, however, the catering manager might have other managers and supervisors to handle the different catering functions and catering outlets.
Catering managers can work in-house for a variety of organisations, including hospitals, schools, factories, prisons, cruise lines, hotel chains, universities and visitor attractions, or can work for a contract catering company providing services to a range of clients.
References
Bannered, B. (2006). Cost Accounting Theory And Practice (12th ed.). New Delhi: Prentice Hall of India.
Dopson, L. R. (2010). Food and Beverage Cost Control (5th ed.). Canada: John Wiley and sons, Inc.
Jinnet, L. P. (2006). Small Business Start-Up (6th ed.). Chicago: Kalpan Publications.
Ojugo, C. (1999). Food & Beverage Cost Control (2nd ed.). New York: Delmar.
S.P.Gupta, Ajay Sharma, Satish Ahuja. (2007). Cost Accounting (1st ed.). New Delhi: V.K. Enterprises.
Sullivan, Arthur; Steven M. Sheffrin (2003), Economics: Principles in action. Upper Saddle River, New Jersey: Pearson Prentice Hall

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