After Reading and Studying This Chapter, You Should Be Able to:

HAMG 1308 Food and Beverage Operations

Describe the duties and responsibilities of a food and beverage director and other key department heads Describe a typical food and beverage directors day State the functions and responsibilities of the food and beverage departments Perform computations using key food and beverage operating ratios

Virginia Stipp Lawrence, MHM

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Food and Beverage Division

Kitchen Catering Banquet Restaurants Room Service Minibars Lounges Bars Stewarding

Skills for Food and Beverage Directors

Leadership Training Motivation Budgeting Cost control And much more
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Kitchen Organization
Executive Chef
Responsible for guest satisfaction Ensures food quality and consistency

Kitchen Organization
Chef Tournant
Rotates through kitchen Relieves the chef station

Sous Chef
Second in command Day to day operations

Station chef
Responsible for different areas within the kitchen Examples
Pasty Chef, Fish Chef, and Banquet Chef Roast, grill and pantry

Food Costs
Typical food cost ratio is 28-32% Food Cost Ratio =
Food Cost Food Sales

Contribution Margin
Dollar differential between the cost and the sales price of a menu item Example Pasta Dish sells for Pasta Dish costs Contribution Margin $8.75 3.75 $5.00

Hotel Restaurants
Number and type depend on type/service of hotel Typically run by Restaurant Manager Must promote restaurant to hotel guests

Figure 6-1

Food and Beverage Division Organizational Chart for a Large Hotel

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Bars
Place to relax and socialize for both business and pleasure Profit percentage for beverage is higher than food profit center Efficiency based on pour/cost percentage
16-24% pour/cost percentage

Beverage Cycle
Ordering Receiving Storing Issuing Bar Stocking Serving Guest Billing

Unlike food, beverages can be held over if not sold

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Bar Management
Bars are run by sommeliers, whose duties along with wine stewards include
Supervising the ordering and storage of wines Preparing of wine list Overseeing of staff Scheduling

Bar Management
Maintaining cost control Assisting in wine selection Properly serving wine Knowledge of other beverages

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Bar Controls
Automatic dispensing system Intoxication of customer Pilferage by employees Overcharging/undercharging customers

Types of Hotel Bars

Lobby bar Restaurant bar Service bar Catering and Banquet bar Pool bar Minibar Night clubs Sports bar
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Stewarding Department
Responsibilities of Chief Steward:
Cleanliness of back of house Cleanliness of glassware, china and cutlery Inventory of chemical stock Maintenance of dishwashing machines Pest control

Catering Department
Catering
Includes a variety of occasions when people may eat at varying times

Banquets
Refers to groups of people who eat together at one time and in one place Terms are used interchangeably
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Figure 6-3

Organization of the Catering Department

Dotted Line Responsibilities

Catering Director must work with
Director of Sales Food and Beverage Director Executive Chef Catering Services Manager

Responsible for selling and servicing all catering, banquets, meetings and exhibitions

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Catering Department
Hotels Director of Sales General Manager Corporate Office Sales Department Convention & Visitors Bureau Competition Rollovers Cold calls
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Styles of Meetings
Theater Style XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXX
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Styles of Meetings
Classroom Style

Styles of Meetings
Dinner Style

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Catering Event Order (CEO)

Also called Banquet Event Order (BEO) Contains all information pertinent to the event that has been planned Guaranteed number

Room Service/In-Room Dining

Typically found in larger city hotels, especially airport hotels Level of service and menu vary Challenges
Delivery of orders on time Making it a profitable department Avoiding complaints Forecasting
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Trends
Use of branded restaurants Hotels opting not to offer F&B facilities More casual atmosphere Standardized menus Sports-themed bars Use of technology in guest services and overall operations
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Chapter 8 Restaurant Operations

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After Reading and Studying This Chapter, You Should Be Able to:
Apply the forecasting technique used in the chapter to measure expected volume of business Name and describe the various types of services Explain the important aspects of food production Describe the key points in purchasing, receiving, storing and issuing
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After Reading and Studying This Chapter, You Should Be Able to:
Explain the difference between controllable expenses and fixed costs Explain the components of an income statement and operating ratios Describe the important aspects of a control system for a restaurant operation Outline the functional areas and tasks of a foodservice/restaurant manager
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Front of the House

Curbside Appeal Organizational chart
Dining Room Manager Hostess Servers Bussers

Restaurant Forecasting
Budget projections Guest counts or covers
Meal periods Day of week Special holidays

Average guest check

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Food and Beverage Occupancy Statistics

Occupancy Statistics
Cover = A guest Number of Turns = Number of Covers Number of Seats

Average Restaurant Check

Average check =
Food and Beverage Sales Number of Covers

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Service
Guests want less formal, yet professional Training is necessary Servers are salespeople Suggestive selling

Types of Restaurant Service

French Service Russian Service
American Service

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Balancing the FOH with the BOH

Purchasing Receiving Storing and issuing Food production Stewarding Budgeting Accounting and control
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Food Production
Based on expected volume of business Prep work done prior to service times Kitchen layout
Cooking line

Teamwork
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Kitchen/Food Production
Staffing and scheduling Training and development Management involvement Employee recognition

Production Procedures
Production sheets
Count the product on hand (par levels) Determine production level Determine actual sales

Key to consistency and quality of food

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Purchasing
Use of standards (product specs) System of control for theft and loss Par stock and reorder points Who will do the purchasing? Who will handle receiving and storage?
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Receiving, Storing and Issuing

Time and date delivery is to be made Point of control Authorized requisitions FIFO

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Food Cost Percentage

Opening inventory Purchases are added to opening inventory Subtract returns, spoilage and complimentary meals Subtract closing inventory Final number = Cost of goods sold
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Food Cost Percentage

Food Cost Percentage (cont.)

Food Cost / Food Sales X 100 =

Food Cost %

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Typical Cost Percentages

Cost Percentages
Labor costs Food costs Beverage costs 20 to 24% 28 to 32% 18 to 24%

Lease and Controllable Expenses

Expenses
Lease cost should be 5 to 8% of sales Typically also pay for insurance, utilities and commercial fees Controllable expenses are also variable expenses

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Controls
Loss of $20 billion a year due to theft and cash mishandling One out of every 3 employees will steal 35% of restaurants fail due to theft 75% of missing inventory is from theft 73% of all job applications are falsified Use of POS can solve some problems
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Trends
More flavorful food Increased takeout meals and home meal replacement Food safety and sanitation Guests becoming more sophisticated

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Trends
More food court restaurants Steakhouses are again popular Segments are splitting into tiers QSRs in convenience stores Difficulty in finding good employees

Next Week
IWFA Event

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