INTRODUCTION TO FOOD & BEVERAGE MANAGEMENT

Contributed by Mike Coyle

THE FOOD & BEVERAGE FUNCTION encompasses all aspects of the industry
concerned with the supply and service of food and drink, alcoholic or not. It includes not
only the revenue producing areas of the restaurants and bars, lounge and room service,
hut also the support services like wash-up, still room, kitchens, cellars and stores. All in a
wide range of sectors in both market and cost oriented operations. In the hotel sector,
food and beverage revenues account for about 40% of total sales.

Clearly, a major contributor to sales and profitability. Food & Beverage must be regarded
as the most complex of the catering functions.

RESPONSIBILITIES OF THE FOOD & BEVERAGE MANAGER

The provision of food & beverage facilities catering for a clearly defined market.
The 'System' of provision, i.e. purchasing (including receiving and issue), storage,
preparation, service, of food and drink.
Total customer satisfaction,
The formulation, establishment and maintenance of an efficient control system, with the
purpose of:
Monitoring costs and prices maintaining quality and competitive rates and keeping within
budget requirements.
Providing management information to allow planning, budgeting, etc.
Reconciling act ital and expected performance and taking measures to establish causes
and rectify discrepancies.
The training, motivating and controlling of all Food & Beverage staff.
Co-ordination with other sections of the operation.

Click here for diagram of Role and Relationships in Food & Beverage Management

CONSTRAINTS ON FOOD BEVERAGE MANAGEMENT

A number of characteristics or 'constraints' provide the framework For Food and

Beverage operations contributing to the complexity of the job. They can be divided into
INTERNAL and EXTERNAL factors:

EXTERNAL FACTORS:
Political - Legislation, taxation, licensing law, local regulations, planning law, etc.
Economic - Rising costs, instability, changes in disposable income, credit facilities,
interest rates on capital expenditure, etc -
Ecological - Recycling, Conservation, Energy reduction,
Environmental - Built environment, workplace planning, lighting, heating, design, etc.
Social, Demographics, population distribution, socio-economic groupings, ethnic
influence, fads and fashions, etc.
Technical - Technological innovation interrupting the system, influence of ICT, new
product development, etc.

INTERNAL FACTORS:
Commodities -Transferability, perishability, loss/wastage potential, pilferage, etc.
Staff - shortages and surpluses, lack of expertise/skill, transient, use of casual and part-
time, often poor supervision, etc.
Control - Cash transactions, fluctuation in costs, transferability, thieve-ability, generally
high frequency: of low spend transactions, etc.

The function of Food and Beverage managers is to 'manage' the constraints and not just to
'react' to them, isolating and dealing with causes and not just dealing with symptoms.

DEVELOPING CATERING POLICY

Policies are the clearly defined guidelines for the operation of a catering enterprise. They
cover such matters as the market aimed at; how it is to be catered for, levels of
profitability or subsidy and statements regarding personnel policy.

Policies should be defined prior to commencement of the business and redefined in the
event of major changes in the circumstances of the Four basic polices need to be
considered:

FINANCIAL POLICY: Determines the level of profitability, cost limits, contribution to

total profit by each revenue generating area. This involves the setting of targets figures
for each operating unit and the business as a whole. For example, the 'financial polices
for an industrial contract caterer would set the targets for the operation overall, the level
of subsidy, the management fee and cost limits per employee or meal.

MARKETING POLICY identifies the broad market and 'publics' the operation is ended
to serve, present and future customer requirements, the 'Corporate National Identity',
customer profiles, market share, sales volume and profitability expectations, average
spend, product range, customer satisfaction measures, pricing, etc.

THE CATERING POLICY: is normally evolved from financial and marketing policies. It
will includes operational characteristics like: type of customer, type of menu, beverage
provision, standards of quality, yield and cost, the 'system methods of purchasing and
purchasing specification, type, level and style of service, comfort and interior design,
hours of operation, Hygiene and Health & Safety procedures, control procedures.

PERSONNEL POLICY: Provides guidelines on the recruitment, selection, training,

induction, organization, supervision, progression and succession, retirement. As well as
standard policy on legal requirements, contracts, conditions of work, wage structure,
procedures for grievance and discipline, etc, all of which affect the operation of the F&F
function.
In a large number of companies, 'Company Policy' is published in the form of a company
Handbook' or Operating Standards Manual. These provide the operational manager with
a bible with which he can interpret the operation and make decisions in line with
company thinking. It also provides guidance with out the need to consult more senior
grades. Policy documents also provide invaluable help and information for the training of
all grades of staff.