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Chapter 10Food and Beverage
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Plan by focusing on menu
Menu impacts operational factors:
Menu driven by guests’ wants, needs, and/or preferences
– Layout/equipment – Labor for production, service, and cleanup – F&B products for purchase
Marketing concerns
Repeat business important to financial success
Planning Issues
Overview of Hotel Food and Beverage Operations: Similarities: Hotel and Restaurant Food Services
All food service operations must assess financial status
– Operating budget– Income statement / balance sheet / cash flow statement
Necessity for standard operating procedures
– Purchasing / receiving / storing / issuing / prepreparation / preparation / serving / service
Emphasis on Consumers
Financial Concerns
Cost-Control Procedures
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Step 1: Purchasing
Step 2: Receiving
Step 3: Storing
Step 4: Issuing
Step 5: Prepreparation
Step 6: Preparation
Step 7: Serving
Step 8: Service
Overview of Hotel Food and Beverage Operations: Steps in Food and Beverage Product Control
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Effective use of appropriate inventory systemsControl of product quality Securing products from theft Location of products within storage areas
Step 4:
Issuing
Product rotation concernsMatching issues (issue and usage)Purchasing as inventory is depleted
Development of receiving procedures
Completion of necessary receiving reports (e.g., addressing financial and security concerns)
Develop purchase specificationSupplier selectionPurchasing correct quantitiesNo collusion between property and supplierEvaluation of purchasing process
Step 1:
Purchasing
Step 2:
Receiving
Step 3:
Storing
Overview of Hotel Food and Beverage Operations: Steps in Food and Beverage Product Control (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Step 8:
Service
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 food delivery
Portion control
Revenue management concerns
Revenue control concerns
Serving alcoholic beverage responsibly
Sanitation and cleanliness
Food and beverage server attentiveness
Step 5:
Prepreparation
Step 6:
Preparation
Step 7:
Serving
Overview of Hotel Food and Beverage Operations: Steps in Food and Beverage Product Control (cont.)
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Transferring some decision-making responsibility and power to front-line employees
Enhancing service to guests and increasing profits for the organization
Practice of Empowerment
Staff must be trained in standardized procedures.
Managers must provide clear direction to employees.
Managers must provide necessary resources.
To meet unanticipated guest needs effectively:
Overview of Hotel Food and Beverage Operations: Personnel Requirement Similarities
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Profitability = Revenue – Expenses
Hotel’s “bottom line” profit from F&B sales is likely to be lower than a restaurant’s.
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 a hotel.
Payroll costs (or fixed-labor costs) are higher than in a restaurant.
Overview of Hotel Food and Beverage Operations: Profitability Differences
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Restaurants: Locations easily accessible to potential guestsHotels: 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, food and beverage service is viewed as an amenity or secondary objective (sale of guest rooms is primary objective)
Location within the Community
Location within a Hotel
Menu
Overview of Hotel Food and Beverage Operations: Marketing-Related Differences
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Room Service Operations: Profitability Concerns
Why does it lose money?
Relatively few properties generate profits from room service
Very high labor costsHigh expenses incurred for capital costs – Delivery carts/warming devices
Why offered?
How to offset
losses?
High expenses incurred for capital costs - Delivery carts / warming devicesOffer hospitality suite business
Provide hosted events
Service to guests
Impacts hotel rating
– Some guests select hotels based on room service availability
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Room Service Operations: Menu Planning Factors
Quality Concerns
Cross-Selling
Menu Language
Advertising availability of other hotel services– Dinner menu providing information about Sunday brunch
Less likely to oversee room service food quality
Must offer products that maintain quality during holding and transportation to guest room(e.g., problems with omelets and french fries)
Language barriers for international guests
– Use of pictures and multilingual menu descriptions
Clearly state ordering requirements– Minimum order charges/mandatory tipping policies
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
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.
Communication
Guest placing order / order taker / room service production-service staff / room service staff Abbreviations should be clearly understood by order taker and food production staff
TechnologyImproving the accuracy of room service orders– Electronic cash register (ECR) / point-of-sale terminal / remote printer
Upselling Technique
Opportunities for upselling are overlooked.
Upselling increases guest check average.
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Training Issues for Room Service Attendants
Room Service Operations: Within Guest Room Service
Presenting the guest check and securing payment
Opening wine bottles (if applicable)
Providing an attitude of genuine hospitality
Explaining procedures for retrieval of room service items
Asking guests where room service meal should be set up
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Well-planned banquets can be profitable!
Banquet Operations: Profit Opportunities
Banquet menu has higher contribution margin.– Banquets frequently celebrate special events.
Forecasting and 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 community’s banquet business
Increasing property’s profitability
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Factors/concerns for planning banquet menus:
Banquet Operations: Menu Planning
Guest preferences
Ability to consistently produce items of the desired quality
Availability of ingredients required to produce the menu
Production/service staff with appropriate skills
Equipment, layout, and facility design issues
Nutritional issues
Sanitation concerns
Peak volume production and operating concerns
Ability to generate required profit levels
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Butler ServiceAppetizers and prepoured champagne can be served by service staff at a reception while guests stand.
Banquet Operations: Service Styles
Buffet ServiceQuantities of food are prearranged on a self-service line; guests pass along the line and help themselves.
Family Style (English Style)
Platters and bowls of food are filled in the kitchen and brought to guests’ tables.
French ServiceMeals are prepared or finished at tableside by service staff (e.g., tossing Caesar salad/flambéing entrée)
Platter ServiceProduction staff plate food in the kitchen; service staff bring it to the table and place individual portions on guests’ plates.
Plated Service (American Service)
Production staff preportion food on plates in kitchen; service staff serve to guests.
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Individual Drink Price Collecting cash or a ticket when each drink is sold
Banquet Operations: Beverage Functions
Bottle ChargeCharging on a by-bottle basis for each bottle consumed and/or opened
Per-Person Charge
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 per hour times number of guests
Various Ways to Charge for Beverages
Hourly Charge
Specific Per-Event Charge
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Size Timing
Two Critical
Concerns
Banquet Operations: Banquet Room Set-Up
Determined by:
Number of expected guests
Local fire safety codes/ ordinances
Types and sizes of tables, chairs, and other equipment
Number of seats per table
Required space for aisles, dance floors, band stands, other entertainment, and head tables.
Reception/buffet tables
Becomes critical when:
The same room to be used same day for different functions
Large evening event precedes following day’s large breakfast event in same room
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Last date that banquet space will be held without signed contract
Banquet Operations: Banquet Contracts and Billing Policies
Topics in banquet contract:
Time that a guarantee of attendance must be received
Cancellation policies
Guarantee reduction policy
Billing: Amount and schedule for guest payment
Information about service of alcoholic beverages
Other information applicable to a specific event
Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall
Upper Saddle River, NJ 07458
Responsible service and consumption of alcoholic beverage is an integral part of the responsibility of all F&B managers in all types of operations.
Alcoholic Beverage Service in Hotels
Train all staff in the hotel (including non-F&B positions, e.g., front desk, housekeeping, maintenance, and/or security staff) to recognize and respond to visible signs of guests’ (and nonguests’) intoxication.
Develop and implement ongoing training for responsible service of alcoholic beverages.
Good training protects guests, the public, and the hotel from tragedies and lawsuits.