Chapter 8: Food and Beverage

Similarities: Hotel & Restaurant Foodservices

Planning issues
Plan by focus on menu Menu focus on guests wants, needs & preferences Menu impacts operational factors - layout / equipment - labor for production, service & clean-up - F&B products for purchase

Financial concerns
All foodservice operations must assess financial status - Operating budget - income statement / balance sheet / cash flow statement

Emphasis on consumers
Marketing concerns

Cost control procedures

Necessity for standard operating procedures - Purchasing / receiving / storing / issuing / pre-preparation / preparation / serving / service
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Repeat business important to financial success

Hotel Operations Management, 1/e Hayes/Ninemeier

Standard Operating Procedures: Cycle of F&B Product Control Step 1: Purchasing Step 2: Receiving Step 3: Storing Step 4: Issuing Step 5: Pre-Preparation Step 6: Preparation Step 7: Serving

Step 8: Service
Hotel Operations Management, 1/e Hayes/Ninemeier 2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Cycle of F&B Product Control (continued)

Step 1: Purchasing Step 2: Receiving Step 3: Storing Step 4: Issuing
Hotel Operations Management, 1/e Hayes/Ninemeier

Develop purchase specification Supplier selection Purchasing correct quantities No collusion between property and supplier Evaluation of purchasing process Development of receiving procedures Completion of necessary receiving reports (e.g., addressing financial and security concerns) Effective use of perpetual & physical inventory systems Control of product quality Securing products from theft Location of products within storage areas Product rotation concerns Matching issues (issue & usage) Purchasing as inventory is depleted
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Cycle of F&B Product Control (continued)

Step 5: Pre-Preparation Step 6: Preparation
Mise-en-place Minimizing food waste / maximizing nutrient retention Use of standardized recipes Use of portion control Requirements for food and employee safety Timing of incoming F&B orders Portion control Revenue management concerns Revenue control concerns Serving alcoholic beverage responsibly Sanitation and cleanliness F&B server productivity
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Step 7: Serving
Step 8: Service
Hotel Operations Management, 1/e Hayes/Ninemeier

Personnel Requirement Similarities: Hotel & Restaurant Foodservices

Practice of empowerment
Transferring some decision-making responsibility and power to front-line employees Enhancing service to guests and increasing profits for the organization

To meet unanticipated guest needs effectively

Staff must be trained in standardized procedures.

Managers must provide clear direction to employees.

Managers must provide necessary resources.
Hotel Operations Management, 1/e Hayes/Ninemeier 2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Profitability Differences: Hotel & Restaurant Foodservices

Profitability = Revenue - Expenses Profit amounts generated by restaurant F & B is relatively easy to calculate. The process of allocating revenues and expenses applicable to F & B services in a hotel is more difficult. Costs of F & B sales is generally higher in a restaurant than in hotel. Hotels bottom line profit from F & B sales is likely to be lower than a restaurants. Payroll costs (or fixed labor costs) are higher than in a restaurant.
Hotel Operations Management, 1/e Hayes/Ninemeier 2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Marketing-related Differences: Hotel & Restaurant Foodservices

Location within the community
Restaurants: locations easily accessible to potential guests Hotels: locations most accessible to guests desiring lodging accommodations Restaurants: locations easily accessible to potential guests Hotels: locations most accessible to guests desiring lodging accommodations For hotels, F& B service is viewed as an amenity or secondary (sale of guestrooms is primary objective)
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Location within a hotel

Menu

Hotel Operations Management, 1/e Hayes/Ninemeier

Room Service Operations: Profitability Concerns

Relatively few properties generate profits from room service

Why lose money?

Very high labor costs High expenses incurred for capital costs - delivery carts / warming devices Service to guests - some guests select hotels based on room service availability Impacts hotel rating High expenses incurred for capital costs - Delivery carts / warming devices Offer hospitality suite business Provide hosted events

Why offered?

How to offset losses?

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2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Room Service Operations: Menu Planning Factors

Less likely to oversee room service food quality

Quality Concerns

Must offer products maintaining quality during holding and transportation to guest room (example: problems with omelet & French fries)

CrossSelling

Advertising availability of other hotel services - dinner menu providing info about Sunday brunch

Menu Language

Language barriers for international guests - uses of pictures and multi-lingual menu descriptions Clearly state ordering-requirements - minimum order charges / mandatory tipping policies
2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Hotel Operations Management, 1/e Hayes/Ninemeier

Room Service Operations: Operating Issues

An inaccurate room service order cannot be corrected quickly. A minor problem in room service may impact guests perceptions about the entire lodging experience. Guest placing order / order taker / room service productionservice staff / room service staff Abbreviations should be clearly understood by order taker and food production staff Improving the accuracy of room service orders - electronic cash register (ECR) / point-of-sale terminal / remote printer Opportunities for upselling are overlooked Upselling increases guest check average
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Communication

Technology

Upselling Technique

Hotel Operations Management, 1/e Hayes/Ninemeier

Room Service Operations: Within-Room Service

Training issues for room service attendants

Explaining procedures to retrieve room service items Asking guests where room service meal should be set up
Presenting guest check and securing payment Opening wine bottles (where applicable) Providing an attitude of genuine hospitality
Hotel Operations Management, 1/e Hayes/Ninemeier 2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Banquet Operations: Profit Opportunities

Well-planned banquets can be profitable!

Banquet menu has higher contribution margin. - banquets frequently celebrate special events
Forecasting & planning production, service and labor are relatively easy. - formal guarantee is made
- less likelihood of overproduction of food with subsequent waste

Beverage sales from hosted or cash bars increase profit. - capable of increasing alcoholic beverage sales
Increasing market share of the communitys banquet business
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Increasing propertys profitability

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Banquet Operations: Menu Planning

Factors / concerns for planning banquet menus

Guest preferences
Ability to deliver desired quality products Availability of ingredients required to produce the menu Production / service staff with appropriate skills Equipment / layout / facility design issues Nutrition issues Sanitation issues Peak volume production / operating concerns Ability to generate required profit levels
Hotel Operations Management, 1/e Hayes/Ninemeier 2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Banquet Operations: Service Styles

Butler service Appetizers and pre-poured champagnes can be served by service staff at a reception while guests stand. Quantities of food are pre-arranged on a self-service line; guests pass along the line and help themselves Platters and bowls of food are filled in the kitchen and brought to guests tables Meals are prepared or finished at tableside by service staff: (e.g., tossing Caesar salad / flambing entre) Production staff plate food in the kitchen; service staff bring it to the table to place individual portions on guests plates Production staff pre-portion food on plates in kitchen; service staff serve to guests
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Buffet service Family style (English style) French service

Platter service Plated service (American service)

Hotel Operations Management, 1/e Hayes/Ninemeier

Banquet Operations: Beverage Functions

Various ways to charge for beverage
Individual drink price Collecting cash or a ticket when each drink is sold Charging on a by-bottle basis for each bottle consumed / opened Charging a specific price for beverages based on attendance at the event Charging the host a specific price for each hour of beverage service Using hours of beverage service; charging number of drinks / hour X number of guests
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Bottle charge Per-person charge

Hourly charge Specific perevent charge

Hotel Operations Management, 1/e Hayes/Ninemeier

Banquet Operations: Banquet Room Set-Up

Size Determined by :
number of expected guests local fire safety codes / ordinances types and sizes of tables, chairs, other equipment number of seats per table required space for aisles, dance floors, band stands, other entertainment, head tables, etc. reception / buffet tables

Timing Becomes critical when:

the same room to be used same day for different functions

Two critical concerns

when large evening event precedes following days large breakfast event in same room

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2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458

Banquet Operations: Banquet Contracts & Billing Policies

Topics in banquet contract Last date that banquet space will be held without signed contract Time by when a guarantee of attendance must be received
Cancellation policies Guarantee reduction policy Billing: amount & schedule for guest payment Information about service of alcoholic beverages Other information applicable to specific event
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Alcoholic Beverage Service in Hotels

Good training protects guests, public and hotel from tragedies and lawsuits Responsible service & consumption of alcoholic beverage is an integral part of the responsibility of all F & B managers in all types of operations. Train for all staff in the hotel (i.e. including non-F&B positions, e.g. front desk, housekeeping, maintenance and/or security staff ) to recognize and respond to visible signs of guests (nonguests) intoxication. Develop and implement ongoing training for responsible service of alcoholic beverages.
Hotel Operations Management, 1/e Hayes/Ninemeier 2004 Pearson Education Pearson Prentice Hall Upper Saddle River, NJ 07458