Food & Beverage

Management

Prepared By: Sintayehu

Aynalem, PhD.
Email:
[email protected]
Mobile:+251-920273425
 Course Description
 This course deals with procedures,
planning, and operation of food and
beverage service; food and beverage
cycle and its control, kitchen
operations and its management.
 Managing quality in F&B operations
and planning, organizing and
executing food and beverage events.
 Course Objectives
 By the end of this course, students
should be able to be:
 Familiar with F and B working environment
 Acquainted with the concept of F and B
cycle
 Equipped with the knowhow of control in F
and B management
 Course Objectives…Con’d
 Familiar with the recent concepts of kitchen
management
 Equipped with managing quality in F and B
operations
 Equipped with the skill of planning,
organizing and executing F and B events
 Acquainted with the recent trends in F and
B management
Part One: Food and Beverage
Preparation and Service
 UNIT 2: Food and
Beverage Cycle
 Purchasing and stocking
 Food and Beverage product development and
production
 Food and beverage service

Strategies and techniques of food and beverage
service

Pre, during and post service controlling of food
and beverage

Customer handling in food and beverage service
 Unit 3: Control in Food and
Beverage
 Essentials of a control system
 Billing methods
 Necessity and functions of a control system, F&B
Control cycle and monitoring.
 Calculation of food cost
 Methods of food control, food control checklist.
 Beverage controlling- calculation of beverage cost,
methods of beverage control, control checklist.
 Operating Yardsticks
 Unit 4: Kitchen
Management
 Location of kitchen
 Atmosphere and ambience of kitchen:

cleanliness
 Storage of utilities in kitchen

 Basics of food and beverage

preparation
 Roles and responsibilities of chefs
 Part Two: Management
of Food and Beverage
 Unit 5: Managing Quality in
food & Beverage operations
 What is Quality?
 Why is Quality important?
 Approaches to Quality management
in F&B Operation
 Designing a Quality system for F&B
Unit 6: Planning, Organizing &
Executing Food & Beverage
Events
 Types of events
 Role of the Event Planner
 Relationship with vendors / Suppliers
 The Planning & Organizing Process
 Executing the event
 Checklists for planning & Organizing
Events
 Banqueting
Unit 7: Recent Trends in Food
& Beverage Management
 Main Tasks
1. In-plant study: at the end of the course,
you will suppose to take placement for
your practical experience in the three
departments (30%)
1. Food and Beverage Production
2. Food and Beverage Controlling System
3. Emerging Trends in F and B Management
2. Article review (20%)
 Introduction
What is Management?
 Management focuses on the entire organization
from both a short and a long-term perspective
 Management is the managerial process of
forming a strategic vision, setting objectives,
crafting a strategy and then implementing and
executing the strategy.
Management
 PRODUCTS & EQUIPMENTS
PEOPLE TIME &
MONEY
…. SO
HOW WILL
YOU
MANAGE?
 PLANNING ORGANIZING

EVALUATING CO-ORDINATING
The
Manage
ment
CONTROLLING Process STAFFING

DIRECTING
F&B Management Function
Components of the Travel/Tourism
Industry
Travel/Tourism
Industry

Hospitality Transportation Destination

Services Alternatives

Accommodati Food and Beverage

ons (Lodging) Services Activities Retail
* Shops**

Other
Hospitality
Operations
 Food and Beverage Sector
Hotel

Restaurants/cafes

Commercial Cafeterias

retail shops

Food and beverage

Industry Bars/lounges
Education
Self-operated
Non-commercial Industrial catering
Contract/company
operated
Transportation sector

Military services,
 1. F&B service Areas and
equipment
 A customer’s first impression on entering the
service area is of great important.
 The creation of good environmental
atmosphere by the right choice of decor,
furnishings and equipment is therefore a
major factor that contributes to the success
of the foodservice operation.
 Standard of workplace
health and safety
 There is an act “Occupational health and safety”,
designed to provide a broad framework for improving
standards of workplace health and safety to reduce
work-related injury and illness.
The Act aims to:
 Ensuring the health, safety and welfare in the working

place.
 Protect the public from the health and safety risks of

business activities
 Eliminate workplace risks through the formulation and
implementation of health, safety and welfare standards.
 Policies, standards,
procedures
 Policy, e.g., hours of operation,
work shift; Use of safety measures
 Strategies, e.g., price, marketing,
 Procedures: e.g., cleaning, serving,
storage, control, and etc.
 Clean and sanitize food
production areas
 Providing a healthy and safe food (Act 2003)
 Provide food with meaningful nutritional values
 Diseases, contaminated free food production
areas
 Well cleaned and sanitized food production
equipment's
 Remove all waste and soiled linen from the food
production areas
 Especially, in COVID-19 time, customers are
fear of being infected
 Maintaining professional
and hygienic protocol
 Professional ethics
 Work ethics
 Standard grooming
 Professional
presentation
 Neat, clean, and
pleasant clothing
 F&B Service areas…Con’d
 A careful selection of items in terms of shape, design
and colour enhances the overall decor or theme and
contributes towards a feeling of harmony.
 The choice of furniture and its layout and the linen,
tableware, small equipment and glassware will be
determined by different factors such as:

The type of clientele expected

The site or location of the establishment

The layout of the food and beverage service area

The type of service offered

The funds available
 Purchasing equipment for a
F&B service area: Points to be
considered:
 Flexibility of use  Stackability
 Type of service being  Cost and funds
offered available
 Type of customer  Availability in the
 Design future – replacements
 Colour
 Storage
 durability
 Rate of breakage, i.e.
crockery
 Ease of maintenance
 Shape
 Psychological effect on
customers

 F&B service areas…Con’d
 Front-of-house service areas are some of the
busiest of a foodservice establishment,
especially during the service periods. It is
therefore important that
 The areas are well designed for operational
purposes.
 The department heads, and all members of
staff know exactly what their duties are and
how to carry them out efficiently and
effectively.
 Back-of-house service
areas
 It is the service areas behind the scenes, include the
stillroom, hotplate (or pass) area, and the wash-up.
 They are usually between the kitchen and F&B
service, acting as the link between kitchen or food
preparation areas and the restaurant or F&B service
areas.
 They are also meeting points for staff of various
departments as they carry out their duties.
 Therefore, a well designed layout is essential to
ensure an even flow of work and be efficiently
organized, stocked with well-designed equipment
and appropriately supervised.
 Stillroom

 Store items food and

beverages required
for the service of a
meal
 Hotplate
 It is the meeting point
between the service
staff and the food
preparation staff.
 Active co-operation
and a good
relationship ensures
that the customer
receives an efficient
and quick service of
their meal.
 Wash-up
 The wash-up must be sited so that staff can
work speedily and efficiently when passing
from the food service areas to the kitchens.
 It should be the first section in the stillroom
when the waiter enters from the service
area.
 All the dirty plates are deposited, stacked
correctly and all the tableware placed in a
special wire basket or container in readiness
for washing.
 Colour and lighting
consideration
 The colour background in the
restaurant and bar can contribute a
great deal towards the price–quality
relationship in the minds of potential
customers.
 Colour, with good planned lighting
system contribute to a feeling of
cleanliness.
 Unit 2

Food and Beverage

Cycle
Food and Beverage Cycle
Purchasing

Consuming Receiving

F &B cycle
Serving Storing

Preparing Issuing
F&B cycle: Input-Process-Output Model

Mediating variables

Catering Marketing Financial

policy policy policy
 2.1 Purchasing and
Stocking
 Including search, selection, purchase,
receipt, storage and final use of a
commodity in accordance with the
catering policy of the establishment’.
 The purchasing function includes not
only purchasing, but also receiving,
storage, and issuing of all
commodities.
 Major duties of
purchasing function
 Responsibility for the management of
purchasing/procurement and keeping purchasing
records,
 Recording the receiving and correct storage of
goods.
 Ensuring continuity of supply of those items to user
or departments.
 Finding cheaper (for same quality) and more
efficient sources of supply
 Keeping up to date with all the markets being dealt
with and evaluating new products.
 Duties of purchasing dep’t
 Research into products, markets, price
trends, etc.
 Co-ordinating with production departments
to standardize commodities and therefore
reduce stock levels.
 Liaising with production, control, accounts
and marketing departments.
 Reporting to senior management usually
through establishing communication
channels.
Goals of Purchasing
 Maintain an adequate supply
 Minimize investment
 Maintain quality
 Obtain the lowest possible price
 Maintain the company’s competitive
position
The building block of competitive
position

Superior quality

Superior
Superior
customer
responsiveness Competiti innovation

ve
position

Superior
Lower costs
efficiency
 Purchasing procedures
 Inventory. Many stock out or low stock
alerts raised automatically using
sophisticated electronic point of sale
(EPOS) and sending requisition.
 Selection of the source of supply,
contracts can be agreed, for example, the
price to be paid, delivery performance
with particular reference to the time, date
and the place of delivery.
 Purchasing procedures
 Ordering process via electronic,
telephone or written order
 The acceptance of goods ordered and
the adjustment of any discrepancies in
quality or quantity of goods delivered,
checking delivery notes/invoices.
 Checking the temperature of the goods
on delivery and recording
 Purchasing procedures
 Checking the condition of packaging or
containers and rejecting those that are
not in good condition.
 Periodically checking the temperature
of the delivery vehicle and recording
 Receiving the order: The transfer of
commodities to the ordering
department or to the stores or cellar.
 Purchase Order
 An official document which is sent to the
supplier awarded the order. Copies are
retained for internal circulation. Details
include:
 Product Listing
 Product Description / Specifications
 Product Quantity Required
 Product Unit Costs (Agreed upon by the Supplier
and the establishment)
 Total Cost
 Requisition
 A Requisition as the name suggests is
a book used by F&B departments of
the hotel to order items from the Main
Store.
 The report will include details such as:

Item Description

Unit of Measurement

Units Required for the operation
The Purchase Receiving
Department

Cycle

Supplier
Provided by
Delivery Invoice
Issues Required Products

nt
Payme
Issues Requisition Purchase Requisition Purchase Order / Record

Purchase Order
Purchasing Activities and
Responsibilities

Receiving

Supplier
Issue Purchase
Requisitio Requisitio
n n
Productio Storage Purchasin Supplier
n g

Supplier

Step 1 Step 2 Step 3

A simple five-prong purchasing
strategy
 Specification
 Designing the right specification is critical:
 Means of quality control standards
 Means of cost control standards and overall
control system
 Help to avoid misunderstandings
between suppliers, buyers, users, and
other company officials.
Purchasing and Cost/Quality
Concerns

Value-Conscious Purchasers

Cost- Quality-
Conscious Conscious
Purchasers Purchasers
 How Much Should Be Purchased?

The basic formula:

Quantity Needed – Quantity on Hand = Quantity to Purchase

Purchase Quantities Must Also Consider:

 Safety levels
 Minimum delivery requirements
 Quantity purchase discounts
 Length of delivery period
 Receiving of food and beverage
purchased

 Checks the delivery item for right quality and

quantity/weighed or counted, and with the
specification stated.
 The prices where stated are correct.
 An accurate record is made on the delivery
note, recording details of the delivery, including
temperature and condition of packaging.
 Signed on the related receipts/document.
 Goods should be decanted into clean storage
containers where appropriate
Daily Receiving Report
(DRR):


List of all the items received in a F&B
operation on a particular day. The report
will have the following details:
 Item Description
 Unit Measurement
 Item Quantity
 Unit Price
 Total Valuation
 Delivery Invoice:
 It is an itemized bill which is
received along with the material by
the receiving department.

This is then compared with the Purchase
Order to ensure that all items ordered
have been delivered.

A physical check of the Delivery Invoice
against the products is also done.
 Storing and issuing of F&B
items
 Ensuring an adequate supply of F&B for
the immediate needs of the
establishment are available at all times.
 Storing items comes under food safety
regulations and forms.
 The basic goal of storage management
is to prevent loss of merchandise due
to: (1) theft, (2) fraud and (3) spoilage’
 The Storing Process
Three basic types of storage:
 Dry storage (50o F – 70o F; 10o C – 21.1o C ):
for grocery items such as canned goods, cereal
products such as flour and alcoholic beverage
products such as liquor.
 Refrigerated storage (less than 41o F ; 5o
C ): for items such as fresh meat, produce and
dairy products.
 Frozen storage (less than 0o F; -17.8o C ):
for items such as frozen meats, seafood, French
fries and other vegetables purchased frozen.
 Storage of Beverage Items
 Storage of spirits and red wine:
55°F–60°F (13°C–16°C
 storage of white and sparkling
wines: 50°F (10°C)
 for the storage of bottle beers and
soft drinks: 55°F -(13°C)
 Quality Concerns
During Storage
 Products can deteriorate under optimal
storage conditions if storage times are
excessive

 It is important to maintain the proper

storage environment including
temperature

 Cleanliness is important

 Shelving units should keep products off

the floor and away from walls
Inventory
Inventory Categories
Perishables Non - Perishables
 Alcoholic Beverages
 All Dairy Products
 Rum, Gin, Vodka,

Milk
Whisky, Wines,

Cheese Liqueurs, Aperitifs

Sweets  Soft Drinks

Fresh Cream &
Confectionary  Spices & Condiments
 Meat / Seafood /  Dry Groceries
Poultry  Flour, Sugar, Salt

Lamb, Beef, Veal,  Proprietary Sauces
Chicken, Pork  HP Sauces, Ketchup,

Fish & Shellfish Worcestershire Sauce
 Fresh Fruits  Canned Juices
 Components of Inventory

Inventory

Directs Stores

Highly Perishable Inventory Items /

Items – Meats / Can be Stored for a
Dairy Produce longer time
 Item Flow from Receiving Area
Cycle of Directs: Receiving to Consumption

Direct Items Receiving Entered into

Area DRR

1 Component DRR Entries

of Inventory Summed
Valuation Daily

Issued To
Processed for Production
Consumption Areas
 Item Flow from Receiving Area
Cycle of Stores: Receiving to Consumption

Store Items Receiving Entered into

Area DRR

2 Component Requisitions
of Inventory Summed
Valuation Daily

Sent to
Issued to
Processed for Stores
Production Area
Consumption Segregated
By Requisitions
& Stored
 Stocktaking of food and
beverages
 Inventory control is a key
component in effective kitchen
management
 Used to plan orders
 Used to calculate food and
beverage cost
 To change menu, if needed
 Bin Cards
 Bin Cards:

For each commodity stored, a separate Bin
Card is prepared, showing the following
information:
 Description of Commodity
 Quantity of Goods Issued
 Quantity of Goods Received
 Date on which Goods are Received / Issued
 Balance Remaining
 Minimum Stock Levels or Reorder Point

These are fixed to a Shelf, Rack or Bin against
the respective item.
Stock Cards/Stores Cards
 Stock Cards / Stores Cards:

An alternative to the Bin Card system.

Under this system, a stock card is kept
for each item showing information that
could be recorded on a bin card.

It also contains details of the re-ordering
quantity for the commodity.
 Inventories…Con’d
 In most F&B operations, inventories
are taken on a daily, weekly or
monthly basis.
 Inventories of Fast moving items are
taken on a daily or weekly basis.
 For Example:

Meat pie for a Chicken Burger on the menu
or a steak for Char Grilled Garlic Steak.

J.W. Black Label in the bar.
 Inventories…cont’d
 There are well designed Inventory
Sheets
 In some hotels, items are listed
alphabetically under group heading
such as:

Domestic Spirits

Foreign Spirits

Beers

Wines

Tobacco
 Physical Inventory Form

Item Purchase No. of Purchase Total

Unit Units Price Price
Count

Green Case 3 Birr 26.50 Birr

Beans 79.50
Rice Kg 5 Birr 60 Birr 300
Total Birr
379.5
Closing inventory for the day and beginning inventory for the next physical inventory.
 Inventories…cont’d
 The entries in the weekly issue book /
requisition book must coincide with the
stock or stores cards, bin cards kept in the
stores.
 The process of taking a physical inventory
requires two persons to undertake the job:
 One to count the unit on the shelves or the
measure in the bottle.
 The other to record the amount in the Inventory
Sheet
Inventories…cont’d
 Once the inventory is determined for
the period, the figures become the
Closing Inventory for that period.
 This is automatically the Opening
Inventory for the next period.
 Inventory for the Stores in Hotels
and F&B Operations is taken on the
last day of the month.
 Inventories…cont’d
 The final month end figures used by
the Accounting Department for the
inventory of F&B must be the actual
physical count prepared by the F&B
Controller.
 During the month daily or weekly
reports are compiled on the basis of
Daily Receiving Report (DRR), written
requisitions to the store room &
 Inventories…cont’d
 Perpetual Inventory:
 In this method, Perpetual Inventory Cards,
similar to the bin cards are used.
 These cards are not affixed to the shelf
against the product, but are kept outside
the storeroom and are maintained by
persons who do not work in the storeroom.
 Inventories…cont’d
 Perpetual Inventory: (cont’d)…
 Whenever products are received by
the stores or issues are made from
the stores, necessary entries are
made in the respective cards.
 Thus, the Perpetual Inventory cards
indicate how much of an item is in
stock at any given point in time.
 Inventories…cont’d
 Perpetual Inventory: (cont’d)…

It is possible to compare the balance on
the cards with the actual items on the
shelves to determine “Discrepancy”.

For Example:

The Perpetual Inventory Card for Shrimp
may show 15 units in hand; however, the
physical check may reveal on 13 units.
Hence, there is a discrepancy of 02 units.
 Perpetual Inventory Form
The choice of costing method
FIFO Method Vs LIFO
Item: Meat (kg)

Date No. of Purchase Units Balance

In Out
Dec6, 2022 5 5 10
Dec10, 2022 None 3 7
Dec15, 2022 35 20 22
Dec20, 2022 None 3 19
Dec 31, 2022 None 19
 Responsibilities
 Food & Beverage Controller is
responsible for the monthly F&B
physical inventory.
 He must supervise the actual
inventory process.
 Inventory must reflect the Value of
the Stock in Hand at the end of the
specified period (day, week, month).
 Scheduling Inventory
 Persons participating in the Inventory
taking must be notified in advance in
writing by the F&B Controller stating
the inventory schedule.
 The main store on the inventory day
is kept closed and there are no
issues to the respective F&B outlets.
 Organizing for Inventory
Taking
 Good organization of the storeroom by
the store – keeper is essential in taking
a fast and accurate inventory.
 It is important to keep half empty cases
clearly visible so that no counting
mistake is made, hence leading to
accurate valuation of the stock at hand.
 Pointers for Inventory
Reconciliation
 Any errors or omissions in the requisition will
result in incorrect stock consumption figures in
the book system.
 Theoretically, the value of all requisitions must
be equal to the consumption figures. In
practice; however, there is always a
discrepancy due to spoilage, breakage,
damage.
 This can be checked periodically by taking a
physical stock check.
Inventory turnover rate

Cost of Food = beginning inventory + purchase-ending inventory

Inventory rate of return = Cost of Food/Average food inventory

Inventory Turnover Rates
Assume the manager takes physical inventory of all wine, beers
and spirits and finds that:
• beverage inventory (beginning of accounting period)

= $29,500
• beverage purchases (during accounting period) =
$76,000
• beverage inventory (end of accounting period)

= $27,500
• cost of goods sold: beverages

(used during accounting period) =

$78,000
Beverage inventory turnover rate equals:
Cost of Goods Sold: Beverage
[Beginning Beverage Inventory + Ending Beverage
Inventory] ÷ 2

$78,000/
[$29,500 + $27,500] ÷ 2
 What is Menu and Types?
What Methods of Cooking do you
know ?
 Food and Beverage
Operation: Production and
Services
 Food production may be defined as that phase
of the food flow (i.e. from the purchasing of the
foods to service to the customer) mainly
concerned with the processing of raw, semi-
prepared or prepared foodstuffs, and serving
the customer.
 Beverage production may be defined as the
processing of the raw, semi-prepared or
prepared beverage product, so that it is in a
ready-to-serve state before being served to the
customer.
 Planning for food and
beverage production
 The wide variety, choice and grades of raw
materials available
 The high perishability of some raw materials
 The wide variety of semi-prepared and prepared
products available
 The perishability of the end product
 The fast turnover of some foods, for example
items delivered Fresh in the morning may be
prepared and served to the customer at
lunchtime, and the revenue banked by the
afternoon.
 Planning for food and
beverage production
 The product is rarely taken to the customer,
the customer has to go to the product to
purchase it, and consume it, usually on the
premises.
 The product cannot be stored for any length of
time
 A wide variety of customers may be catered
for within the same establishment.
 There may be a variety of production and
service methods in operation in any one outlet
 The Menu
 A list of items served at a meal primarily a
selling aid.
 The design of the menu should be appealing
and interesting to the customer so it
encourages them to view its contents.
 Clear information that is easily found and
followed will make the customer feel more
at home and will assist in selling the menu.
Menu Planning
 Type of meal
 Type of establishment(hotel, hostel,
hospital,etc.)
 Type of clientele
 Season of the year and seasonal
availability
 Occasion
 Capabilities of kitchen personnel
 Balance of menus
 Menu Designing
 Size and shape
 Artwork/colour
 Ease of handling
 Logical flow of information
 Providing a clear and accurate description of
the dishes
 Clear indication of pricing
 Stating whether a service charge is included
or not

 Menu Designing…Con’d
 Menus can be presented in a variety of ways
 single laminated cards
 fold out cards
 iPads
 chalk boards
 white boards
 printed signs,
 projections onto table top
Types of Menus
 TABLE  Fixed number of
courses
D’HOTE  Limited choice
within each course
 Selling price is
fixed
 Food usually
available at a set
time
Types of Menus
 A LA CARTE
 Choice generally
more extensive
 Each dish priced
separately
 There may be
longer waiting
times as some
dishes are cooked
or finished to order
Menu Composition
 An art which needs careful
selection of dishes for the different
courses so that each dish
harmonizes with the other
 The dishes produced should please
the eye and the palate
 Menus should provide nutritious
food,tempt the appetite and satisfy
guests
 Food production (cooking)
methods
 Baking: cooking in either a fan oven or
conventional oven. Often referred to as ‘dry’
cooking.
 Boiling: cooking food in a simmering liquid.
 Braising: slow cooking in minimum liquid in a
casserole dish with a lid.
 Deep frying: cooking by placing into deep fat
held at a temperature of about 175–190 °C
(350–375 °F).
 Food production (cooking)
methods
 Grilling: quick and dry method of cooking
food by radiant heat, either over heated
charcoal under electric or gas salamanders.
 Microwave: cooking or re-heating food using
high frequency power in a microwave oven
powered by electricity.
 Poaching: cooking in a minimum amount of
liquid held at simmering point.
 Roasting: cooking with convected dry heat in
the oven.
 Food production(Cooking)
 Shallow frying: cooking in the minimum amount of
heated fat or oil.
 Steaming: cooking heat is transferred from the water
vapour (steam) to the food being cooked.
 Stewing: Very slow cooking of food items in their own
juices and using the minimum amount of liquid, such
as stock, in the process.
 Water bath: technique of vacuum packing
ingredients and cooking them at low temperatures in
a water bath. This is a slow and gentle process where
moisture is not expelled and flavor is retained.
 Dishes

 Egg
dishes
Dishes…Con’d
 Pasta and Rice dishes
Dishes…Con’d
 Fish dishes
Dishes…Con’d
 Grilled steak
Dishes…Con’d
 Roasted Checked
Dishes…Con’d
 Potato, vegetables, and salads
Beverage
Production(Making)
 Tea and Coffee
Con’d…
 Chocolate
Con’d…
 Cocktail and Mixed drinks
 Serving Wine
 Presenting the bottle  Removing the foil
 Serving White Wine…
Con’d
 Removing the cork  Pouring the wine
 Food & Beverage Service
Methods
 TABLE SERVICE  Customer is
seated
 Ordering/selection
from menu
 Service by staff to
customer
 Dining at laid
cover
Methods of services…
Con’d
 ASSISTED  Customer is
SERVICE usually seated
 Ordering/selection
from menu, buffet,
etc.
 Service by both
staff and customer
 Dining usually at
laid cover
Methods of services…
Con’d
 SELF SERVICE  Customers enters
 Customer selects
own tray
 Customer carries
his food
 Dining in dining
area or take-away
Methods of services…
Con’d
 SPECIALISED OR  Ordering/selection
IN SITU SERVICE from menu or
predetermined
 Food brought to
the customer
 Dining/
consumption
takes place where
served
Order of services
 Assist customers with  Menus being
their seats and place
their napkin over their presented
laps
Order of services…Con’d
 Plated first course  Wine and water glasses
being served from will be topped up as
necessary.
the right.
Order of services…Con’d
The plated main course(s)
Plate main course


are served from the right-
hand side of the customer, cleared
cold before hot, and
accompaniments offered
Order of services…Con’d
 Side plate being  The table is then
cleared crumbed down
Order of services…Con’d
 Sweet cutlery  Plated sweet
being put into course being
position served from the
right
Order of services…Con’d
 Service of coffee
Standards Using in
Food Production
Standard Recipe
 Definition:
A Standard Recipe is a
formula for producing a
Food or Beverage Item.
Information given by the
Standard Recipe
 Summary of Ingredients Used
 Required Quantity of Ingredients
 Preparation Procedures
 Portion Size and Portioning
Equipment
 Garnish and Miscellaneous
Information
 Standard Recipes
and Consistency
 Consistency benefits the guest; each
time an item is ordered, it will taste,
look and smell the same, and the
portion size will be the same.
 Consistency benefits the restaurant.
Item selling prices should be based
on cost of ingredients. Costs will be
consistent, and it will be easier for
the restaurant to meet financial
goals.
Standard Recipes Connect Guest and Property
Concerns

Standard Recipes

Consistency

Guests Restaurant

Product Portion Size Product Costs

Quality

Menu Item Selling Price

Guest Restaurant Profitability

Value

Success

Great Dining Profitable

Experience Operation
 Standard Recipes Indicate
 Some restaurants have standard
recipes but do not use them
 Necessary ingredients including the
quantity (weight or volume) that helps
with purchasing
 Necessary small utensils
 Large equipment such as a slicer,
range or oven with requirements
(baking times and temperature, for
example)
Con’d…
 Procedures for pre-preparation,
preparation, cooking, holding and
portioning
 Yield (number of portions and portion
size)
 Tools specified by standard recipes must
be available, e.g., Dram shop liability
concerns become important when using
standard recipes for alcoholic beverages
Steps in Recipe Development: Current
Menu Item
Step 1: Observe Preparation Process

Step 2: Consider Preparation Details

Step 3: Write Recipe Draft

Step 4: Review/Revise Recipe Draft

Step 5: Use Recipe for Preparation

Step 6: Evaluate Recipe

Step 7: Consider Further Revisions (If Necessary)

Step 8: Implement (Consistently Use) the Recipe

Sample Standard Recipe: Chicken (Turkey)
Tetrazzini
 UTENSILS NEEDED: Stock pot, cutting YIELD: 96 portions
board, French knife, wire whip, mixing bowl, OVEN TEMP: 350oF (176.6oC)
gallon/quart/cup measures, measuring spoons, BAKING TIME: 30 minutes
plastic gloves, clean foodservice cloths, PORTION SIZE: 1/24 pan
4 – 12”x 20”x 2” steam table pans PORTION TOOL: Spatula/Spoon

Ingredients Quantity/Volume Procedure

Spaghetti 6 lb. 1. Cook spaghetti in salted water.

Margarine 2 lb. Rinse and drain. Do not
Celery, cut fine 2 qt. overcook.
Onions, cut fine 2 qt. 2. Cook onions and celery in
Flour, pastry 1 lb. 4 oz. margarine until transparent.
Salt ¼c 3. Make roux by adding flour, salt and
Pepper, black 1 tsp pepper to above.
Chicken (turkey) stock 2 gal. 2 c Cook 5 minutes.
Chicken (turkey) cooked & 12 lb. 8 oz 4. Add chicken (turkey) stock and
cubed . cook until thick, stirring as
Mushrooms, fresh/chopped 2c necessary.
Green Pepper, chopped 3c 5. Add cubed chicken (or turkey) and
Total Weight 48 lb. mushrooms; mix.
Topping 2 qt. 6. Add spaghetti; mix well.
Bread Crumbs, fine 2 qt. 7. Add green peppers just before
Sharp Cheddar Cheese, panning.
grated 8. Scale 12 lb. into each of 4 (12" x
20" x 2") pans.
9. Mix topping. Top pan with 1 qt.
topping.
10. Bake at 350oF (176.6 oC) for 30
 Sample Beverage Recipe
Recipe Name: Bloody Mary Recipe #:
173______

Ingredient Amount Caution: Use proper jigger and

Vodka 1¼ oz.
measure carefully.

Tomato Juice 3 ½ oz. Glassware: 10 oz. footed

highball
Lemon Juice ½ oz. glass.
Tabasco Sauce 1 drop
Worcestershire Sauce 2 dashes
Celery Salt ----

Combine all ingredients in a shaker cup and shake well. Pour over ice
in a 10 oz. footed
highball glass. Shake celery salt over the top of the mixture. Garnish
with a
stalk of chilled celery and a lemon wedge.
 Standard Recipe Evaluation Form
Standard Recipe Name: Recipe Category:
luation Date(s): Recipe No.:

Instructions: Check the box that best represents your analysis of each factor.

Your Analysis
Evaluation Factor Poor Excellent Comments

Portion Size     
Color     
Texture     
Taste     
Aroma     
General Appearance     
Ingredients     
Compatibility     
Garnish     
Other:     
Other:     
Should we use this recipe?  Yes  No
Comments:

Name of Evaluator:
 Adjusting the Number of
Portions
The original recipe yields 40 portions (3 ounces each); the restaurant manager
desires 70 portions (3 ounces each).

Step 1: Calculate adjustment factor: Number of Desired Portions

Number of Original Portions

= 70
40

= 1.75

Step 2: Multiply the quantity of ingredients in the original recipe by the

adjustment factor.

Example: ½ pound (8 ounces) of flour is specified in the original

recipe.

8 ouncesx 1.75 = 14 ounces

(original recipe) (adjustment) (new
recipe)
 Adjusting the Portion Size
The original recipe yields 70 portions (1/4 cup each); the restaurant manager desires 70
portions ( 3/4 cup each).

Step 1: Calculate adjustment factor: Desired Portions (x) Portion Size

Original Portions (x) Portion Size

= 70 (x) 3/4 cup

70 (x) 1/4 cup

= 52.50 cups
17.50 cups

= 3.0
Step 2: Multiply the quantity of ingredients in the original recipe by the adjustment factor.

Example: 1/2 pound (8 ounces) of flour is specified in the original recipe.

8 ounces x 3.0 = 24 ounces (11/2 lb)

(original amount) (adjustment factor) (new recipe)
Adjusting the Number of Portions and Portion Sizes
The original recipe yields 50 portions (1/4 cup each); the restaurant
manager desires 75 portions (3/4 cup each).

Step 1: Calculate adjustment factor: Desired Portions (x) Portion Size

Original Portions (x) Portion Size

= 70 (x) 3/4 cup

50 (x) 1/4 cup

= 52.50 cups
12.50 cups

= 4.2 (rounded)

Step 2: Multiply the quantity of ingredients in the original recipe by the

adjustment factor.

Example: 1/2 pound (8 ounces) of flour is specified in the

original recipe.

8 ounces x 4.2 = 34 ounces (rounded; 2

lb, 2 oz.)
(original amount) (adjustment factor) (new recipe)
 Conversion Table
1 Tablespoon = 3 teaspoons
16 Tablespoons = 1 cup
2 cups = 1 pint
2 pints = 1 quart
4 quarts = 1 gallon
16 ounces (oz) = 1 pound
(lb or #)
 Unit 3: Control in Food and
Beverage
 Essentials of a control system
 Billing methods
 Necessity and functions of a control system, F&B
Control cycle and monitoring.
 Calculation of food cost
 Methods of food control, food control checklist.
 Beverage controlling- calculation of beverage cost,
methods of beverage control, control checklist.
 Operating Yardsticks
What is the implication of
Control system in F and B
sector?
 Food and Beverage
Controlling system
 Food and beverage control is a guidance
and regulation of the costs and revenue
of food and beverage sector.
 The cost of food and beverage can range
from 25%-50%
 Food and beverage can be the highest
sources of revenue next to Room Sales.
 Con’d
 The control system should be
support with computerized system.
 Control system identifies the
problem and trends in the business
 It provides input for management
to make decision.
What are the objectives of
Food and Beverage Control
System?
 Objectives of Food and
Beverage Control System
 Analysis of income and expenditure
 The revenue analysis includes
 Selling outlet,

 Volume of food and beverage sales,

 The sales mix (proportion of each sales

to the total Sales)

 The average spending power (ASP) of

customers at various times of the day,

and
 The number of customers served.
 Con’d…
 The analysis of costs includes

Departmental food and beverage costs,

Portion costs and

Labour costs.
 The performance of the F and B sector
can then be expressed in terms of the
gross profit (i.e. sales minus cost)
 Profit margin = profit/sales price
 Con’d…
 Establishment and maintenance of standards
 The basis for the operation of any food and

beverage outlet
 e.g., standard recipe, standard portion size

 Pricing
 An important objective of food and beverage

control is to provide a sound basis for menu pricing

 Prevention of waste
 Poor preparation
 Over-production,

Failure to use standard recipes, etc.
 Con’d
 Prevention of fraud :
 Typical areas of fraud by customers:

walking out without paying;

unjustifiably claiming that they will not pay for the
food and beverage they consumed;

Making payments by stolen cheques or credit
cards.
 Typical areas of fraud by staff:

overcharging or undercharging for items served
and

Stealing of food, drink or cash.
 Con’d…
 Management information
 A system of control provides an accurate
up-to-date information for the preparation
of periodical reports for management
 e.g., Budget standards, daily cost report,
financial report, and input for informed
decision.
 Why the system of Food and
Beverage controlling is a difficult
task?
 Special problems in
controlling system
 Food and beverage control tends to be
more difficult than the control of
materials in many other industries due
to the following reasons:
 Perishability of the product
 Business volume unpredictability
 Menu mix (balanced) unpredictability
 Food and beverage operation short cycle
 Departmentalization
 The Fundamentals of
Control
 Effective control systems and
procedures consist of three broad
phases:
1) Planning,

2) Operational and

3) Management/post-operational phase
 Planning Phases

Financial Catering Marketing

Policy Policy Policy

Food and
Beverage Policy
Operational Phase
 Purchasing
 Product testing
 Yield testing
 Purchase specifications
 Method of buying
 Clerical procedures
Con’d…
 Receiving
 Quantity inspection
 Quality inspection
 Clerical procedures
Con’d…
 Storing and issuing
 Stock records
 Pricing of items
 Stocktaking
 Clerical procedures
Con’d…
 Preparing: most critical stage.
 Volume forecasting
 Pre-costing: standard recipe and
portion size.
 Clerical procedures
 Con’d…
 Selling : most important stage

A checking system: controlling the sales
using a standard type of waiter ’s check
system
 The control of cash: vitally important to
control the receipt, and payment of cash.
 Clerical procedures: checking system, meal
and sales analysis, cashier ’s paying-in
book,
The Post-operational
Phase

 Food and beverage cost reporting

 Assessment
 Correction
Financial
Financial Catering
Catering Marketing
Catering
Policy
Policy Policy
Policy Policy
Policy

Food
Food and
and
Beverage
Beverage Policy
Policy

Purchasing

Receiving
Receiving

Storing and
Storing
issuing
issuing

Preparing
Preparing

Selling
Selling

Post operational management control

 Group Discussion

Discuss the types of Costs in

Food and Beverage Operation
Computing Cost of Sales,
Inventory Valuation,
Objectives of Taking
Inventory
 Cost of Sales
 Defining the Cost of Sales or
Cost of Food Consumed

 It is defined as the Cost of F&B

incurred to produce all Food and
Beverage sold during an
accounting period.
 Cost of Food Consumed
 Cost of Sales: The Basic Calculations

 The Basic Cost of Sales for F&B is computed as

follows:

 Cost of Sales = Beginning Inventory

+ Purchases
– Closing Inventory
Cost of Food / Beverage
Consumed
 Cost of Sales: The Basic Calculations
Example of computing 1) Cost of Food
Sales:
Food Beverage
Beginning Inventory = $ 124500$36800
Purchases = $ 85000 $29500
Closing Inventory = $ 112250 $27500
Cost Of Sales = $ 97250 $ 38800
 F&B Cost %
 Cost of Sales: The Basic
Calculations
 Example of Computing 2) F&B Cost %
Cost of Sales
 Food / Beverage Cost % =
Total
Revenue
Food Cost %
 Cost of Sales: The Basic Calculations
 Example of Computing 2) F&B Cost%

 Food Cost % = Cost of Food Sales x 100

Food Revenue
= $ 97250 x 100
$ 284500
= 34.18%
Cost of Food Consumed
 Cost of Sales: The Basic Calculations
 Example of Computing 2) F&B Cost %

 Beverage Cost % = Cost of Beverage x 100

Beverage Revenue
= $ 38800 x 100
$ 154500
= $ 25.11 %
 Cost of F&B Consumed
Required Cost Of Sales: Cost of Sales:
Information Food Beverage
 Sources Of
Information for Basic
Cost of Sales
Beginning Physical Inventory Physical
Inventory Forms (Last Inventory Forms
Month) (Last Month)

+ Purchases Daily Receiving Daily Receiving

Report (DRR) Report (DRR)

- Closing Physical Physical

Inventory Inventory Forms Inventory
(End of Current Forms (End of
Month) Current Month)
Cost of F&B Consumed
 Sources of Information for Basic Cost of
Sales:
 For Purchases

a) The Value of F&B Purchases for the

month can be obtained from the sum of
the Daily Receiving Reports (DRR)
for the corresponding period.
b) Delivery Invoices may be attached to
these documents.
c) If all DRRs are completed correctly
they will separate all Food and
Beverage Purchases.
 Cost of F&B Consumed
 Sources of Information for
Basic Cost of Sales:
 For Purchases

If the DRRs are not used by a Food &
Beverage Operation the Value of the Total
Purchases over a certain period would be
represented by the Sum of the Delivery
Invoices during that period.
 Cost of F&B Consumed
 Sources of Information for
Basic Cost of Sales:

 For Closing Inventory


The Values of Ending Inventories /
Closing Inventories can be directly
taken from a Physical Inventory form.
 Cost of F&B Consumed
 Sources of Information for Basic
Cost of Sales:

 For Closing Inventory – Computation of

Value

Since Closing Inventory is essential in the
computation of Cost of Sale or Consumption, it’s
computation must be consistent and accurate.


There are essentially 4 methods of Inventory
Valuation.
 Cost of F&B Consumed
 FIFO Method
 Basic Definition:


FIFO stands for First In First Out.

 Approach to Inventory Valuation:


The FIFO approach assigns the first or least recent
Product Costs to ISSUES – in other words, it values
issues in the order in which the costs were
incurred.
 Cost of F&B Consumed
 FIFO Method

Approach to Inventory Valuation:


That is, since the least recent product costs
were applied to the Products that were issued,
the most recent Product Costs are applied to
the Products left in the Inventory.

Your inventory valuation is as per the current
market rates.

This method of issue is most commonly
followed for Perishable items in F&B.
 Cost of F&B Consumed
A A
$2.0 $2.0

B B
$2.2 $2.2
Receiving STORES Issuing
C
$2.4 C
$2.4
D
D
$2.6
$2.6
 Cost of Food Consumed
 Numerical Example on FIFO:

 At the end of August 2005, there were 28 cases of

BBQ Sauce in the stores valued at $22.00/case.
Hence, as of 1 September 2005, the Beginning
Inventory of BBQ Sauce will be 28 cases.
 During the month of September, the Stores Received
15 cases of BBQ Sauce valued at $ 23.80/case.
 At the end of the month, the Physical Inventory
Count reveals 20 cases available with the stores.

 What will be the Value of the BBQ Sauce in the

store??
 Cost of F&B Consumed
 Numerical Example on FIFO:

 Opening Stock =28 Cases

 Purchases =15 Cases +
 Total Stock =43 Cases
 Closing Stock =20 Cases -

 Total Consumption =23 Cases

 In order to compute Closing Inventory, it would have to

find the valuation of the 20 cases available in the stores.
 Cost of Food Consumed
Opening
28 Inventory
BBQ
$22.0

15 23
BBQ Receiving STORES Issuing BBQ
$23.8 $22.0

20
BBQ
 Cost of F&B Consumed
 Numerical Example on FIFO:

 As per the FIFO approach, least recent costs are

assigned to the issues, therefore:
 No. of cases with a unit value of $22.00/case= 5
 Cost of Inventory = 5 x $ 22.00/case = $ 110.00

 No. of cases with a unit value of $23.80/case=15

 Cost of Inventory = 15 x $ 23.80 = $ 357.00

 Hence, Closing Inventory Value = $110.00 + $ 357.00

= $ 467.00
 Cost of F&B Consumed
 LIFO Method
 Basic Definition:


LIFO stands for Last In First Out.

 Approach to Inventory Valuation:

 The LIFO approach assigns the last or the most

recent Product Costs to issues. Consequently, the
most recent Product Costs were applied to the
Products that were issued, hence the least recent
Product Costs are applied to Products in the
Inventory.
 Cost of F&B Consumed
A D
$2.0 $2.6

B C
$2.2 $2.4

Receiving STORES Issuing

C B
$2.4 $2.2

D A
$2.6 $2.0
 Cost of F&B Consumed
 Numerical Example on LIFO:

Using the same figures as in the previous example,
the Value of Closing Inventory by the LIFO Method:


Opening Stock =28 Cases

Purchases =15 Cases +

Total Stock =43 Cases

Closing Stock =20 Cases -


Total Consumption =23 Cases


In order to compute Closing Inventory, it would
have to find the valuation of the 20 cases available
in the stores.
 Cost of F&B Consumed
Opening
28 Inventory

BBQ
$22.0
15
BBQ
15 $23.80
BBQ Receiving STORES Issuing +
$23.8 8
20 BBQ
BBQ $22.0
Balance
Cost of F&B Consumed
 Numerical Example on LIFO:
 As per the LIFO approach, the most recent
costs are assigned to the issues.
 No. of cases with unit value $23.80/case = 0
 No. of cases with unit value $22.00/case = 28 -
8
= 20
 Hence Cost of Inventory = 20 x $ 22.00
= $ 440.00
 Hence, Closing Inventory Value = $ 440.00
 Cost of F&B Consumed
 Actual Cost Method


The Value of the Inventory is the Total
Value represented by summing the
Individual Unit Costs.


If the Actual Cost Method were used, then
each case of BBQ Sauce would be dated and
marked with it’s Actual Purchase Price and
Receiving Date, before it is entered into
storage.
Cost of F&B Consumed
 Actual Cost Method

 In such a case, the Closing Inventory

Value would be determined by
physically counting the number of
cases of BBQ Sauce at each
Purchase Price.
 Cost of F&B Consumed
A D
$2.0 $2.6

A
B $2.0
$2.2
Receiving STORES Issuing C
C $2.4
$2.4
B
D $2.2
$2.6
 Cost of F&B Consumed
 Numerical Example of Actual Cost Method:


Let us assume that, according to an actual
count made at the end of the month, there are:


14 Cases of BBQ @ $ 22.00 /case

09 Cases of BBQ @ $ 23.80 /case


Hence Value of Closing Inventory:

= (14 x $ 22.00) + (09 x $23.80) = $ 522.2
 Cost of F&B Consumed
Opening
28 Inventory
BBQ
$22.0

14
BBQ
15 $22.00
STORES
BBQ Receiving Issuing +
$23.8 9
20 BBQ
BBQ $23.80
Balance
Cost of F&B Consumed
 Weighted Average Method

 This method determines the Value of

Inventory by multiplying the number
of cases remaining in the inventory at
the end of the month by the Average
Price paid per case paid during
the month.
 Cost of F&B Consumed
 Numerical Example of Weighted Average Method

 Beginning Inventory = 28 Cases

 Purchases = 15 Cases
 Total Stock = 43 Cases

 Therefore,

 Beginning Inventory Value = 28 x $ 22.00/case = $616.00

 Purchase Value = 15 x $ 23.80/case = $357.00
 Total Stock Value = $973.00
 Average Price/Case = $973.00 / 43 = $ 22.63

 Hence, Value of Closing Inventory = 20 Cases x $ 22.63

= $452.56
Income Statement
 Generally the Income Statement
will express Cost of Sales as Total
Dollars.

 The Cost of Sales is also

represented as a % of the Total
Revenue or Sales.
 Sample Income Statement
SALE Amount %
Food 1030000 80
Beverage 257500 20
Total Sales 1287500 100
COST of SALE
Food 360500 35
Beverage 68240 27
Total Cost of Sale 428740 33
GROSS PROFIT
Food 669500 65
Beverage 189260 73
Total Gross Profit 858760 67
OPERATING EXPENSES
Salaries and Wages 386250 30.00
Employee Benefits 51500 4.00
Music and Entertainment 1300 0.10
Marketing 25750 2.00
Utility Services 38600 3.00
Repairs and Maintenance 25800 2.00
Rent 90200 7.01
Administrative and General 39000 3.03
Other Operating Expenses 77250 6.00
Total Operating Expemses 735650 57.14
Operating Income 123110 9.56
Interest 6500 0.50
Income Before I.T. 116610 9.06
 Income Statement
 Inference from the Sample Income
Statement:
a) 35% of the Food Revenue was used to
Purchase Food Products necessary to
Generate Food Revenue.
b) 27% of the Beverage Revenue was
used to Purchase Beverage Products
necessary to Generate Beverage
Revenue.
Sales Control
System
 1. The Manual System
 Sales Check:
 One of the simplest steps to take
when attempting to establish a Sales
Control procedure is to require that
each item ordered is on a waiter’s
K.O.T. or B.O.T.
 Based on the above, the Sales Check
is made by the Cashier.
 Con’d…
 Using this system ensures:
 Reminding the waiting staff of the
order they have taken
 To give a record of sales so that
Portion Sales and Sales History can be
complied.
 To assist the cashier in preparation of
a Sales Check / Bill.
 To show the customer a detailed list
of charges made.
 Con’d…
 An additional aid is to use
numbered K.O.T., B.O.T.
 All cancelled K.O.T.s, B.O.T.s must be
recorded.
 It is common to find triplicates of
K.O.Ts, B.O.Ts used.
 This aids in enforcing control
measures in F&B operations.
 Con’d…
 Reasons for multiple copies of K.O.Ts,
B.O.Ts:
 They provide the kitchen or the bar with
a written record of what has been
ordered and issued.
 They authorize the kitchen or the bar to
issue the Food & Beverage.
 They provide the opportunity to compare
the top copy of the check with the K.O.T /
B.O.T. or second copy of the check.
Bill Control System: Triplicate
Checking System

F&B
Department
 Con’d…
 The Cashier’s Role:
 To issue K.O.T. pads to the waiting staff
prior to a meal period.
 To record the number of K.O.Ts issued in
each pad and obtain the signature of
the waiting staff.
 On completion of the waiter’s shift, the
Pads are received back by the Cashier.
The unused K.O.T.s are recorded.
 Con’d…
 The Cashier’s Role: (cont’d)…

To check pricing of all items in K.O.T.
during preparation of the bill.

To add all other mandatory charges –
Example:

V.A.T.

Service Charges

To check all sub – totals and totals.

To receive payment for the bill – By Cash,
Card, Debit to Room No. (In-House Guests)
 Con’d…
 Disadvantages of the Manual
System:

Poor Handwriting by waiting staff.

Incorrect order given to the kitchen or
dispense bar.

Wrong food being offered to the customer.

Incorrect prices being charged to the
customer.

Poorly presented bill for the customer.
 Con’d…
 Disadvantages of the Manual
System: (cont’d)…
 The communication between the departments
such as the restaurant, dispense bar, kitchen
and cashiers has to be done physically by the
waiting staff going to various departments.
 This is not only time consuming but inefficient.
 Manual system does not provide any useful
management reports for enforcing control.
Most reports take between 24 – 48 hours.
2. Automated System
 PoS System:
 It is Point of Sale.
 It is similar to a Billing Machine in a
supermarket.
 It is capable of generating reports such as:

Item wise sale

Category wise sale

Total Sale for any chosen operating period

Sale Valuations

Payment Modes – Cash & Credit Card
 Con’d…
 Advantages:

Print customer checks through a pre –
set price or by price look – up.

Provides a Sales Analysis by type of
product or as per a specified time frame.

Analysis of Sales by method of payment.

Complete automatic tax calculations &
other charges.

Helps in Inventory Controls by
identifying variances.
 Con’d…
 Advantages: (cont’d)…
 Provides waiter check – in and check –
out facilities.
 Eliminating the need for the cashier.
Each waiter makes his /her checks.
 Several K.O.T. and B.O.T printers
attached to the system. The order for
each item fed into the system is
automatically generated in the kitchen
or the dispense bar.
Con’d…
 The objectives of having remote
printers are:
 To provide an instant printed order to
the kitchen or bar as applicable.
 Speeds up the process of giving the
order to the kitchen / bar.
 Increases the efficiency of the waiting
staff.
 Increases guest contact time.
Another form of P.O.S. with a stylus as an Input Device
 Billing Methods
 Guests are charged for the food and
beverages served to them and the bills are
made referring to the food order.
 Therefore, before presenting the bill to the
guests, it ensure that
 All the dishes served to guests are billed
 The total is correct without any overwriting
 Date and number of covers are properly
entered
 Con’d…
 There are seven basic billing methods used
in food service operations but depends on
the style and volume of business.
 Bill as a Check: In duplicate checking
system, the duplicate copy of food order is
made as a bill by entering value of food
ordered and is presented to the guest. The
guest may pay directly to cashier or pay
the waiter
 Con’d…
 Bill as a Check is common in a
smaller hotel, popular restaurant,
department store catering, and
cafes.
 Separate Bill: This bill is made
referring to the second copy of KOT
at the end of service by the billing
staff
Con’d…
 Bill with the Order: This is the
food order and customer's bill
combined on one sheet and would
be presented to guests.
 On receiving payment, the order is
dispensed and a printed receipt is
given
 Con’d…
 Prepaid: This occurs when the money is
received for a specific occasion or an event and
allows the organizer to determine the exact
number of guests prior to the day of function.
 For example, restaurants organizing New Year’
s Eve programmes may sell admission tickets
beforehand at a set rate close the sale of
tickets before two days.
 Admission in such cases is based on the ticket
or the card .
 Con’d…
 Voucher: in such cases, a guest has been issued
credit by a third party, his/her employer or any
firm, in‘ the form of a voucher.
 This voucher can be exchanged for food and non-
alcoholic drinks to the maximum value indicated in
the voucher.
 If the cost of dishes consumed is less than the
voucher value. 'no cash ‘ will be returned to the
guest to make up the difference.
 If the cost exceeds the voucher value, then the
guest must pay the excess amount.
 Con’d…
 No Charge: in this method, the
customer is requested to sign the bill
for services received and the bill is
sent to the firm or company
sponsoring the hospitality. The
customer may be insisted to show the
official authorization from the
sponsoring company
Con’d…
 Deferred Account: this method
of billing is used often in function
or event catering.
 In this method, bill for the services
offered is sent to the company or
firm after the event. This will be
paid by the organizing person.
 Payment Methods
 Cash payments
 Credit card payment method
 Most common billing methods with the limit of credit
card floor limit.
 Personal cheques payments methods
 Similar procedures, like credit card but high
probability of fraud so it needs authentication.
 Direct Billing Method
 Common for VIP guests. Guest need to sign the guest
folio and fill application form along with authorized
credit cards or directly pay from their bank account.
 Con’d…
 Travel cheque
 The cheque is issued by a bank to the
travelers in exchange of cash.
 The bank which issued the cheque takes
the signature of the travelers in the
cheque undersigned.
 During payment, the cashier checks the
signature tallies with the passport details.
 Con’d…
 Travel Agent Voucher

The special document which is in printed form
and is issued by travel agencies (or airlines), if
there is agreement between the travel
agencies and the hotels.

The hotel sends the bill of the guest to the
travel agencies who issued the voucher for
payment.
Adjustments to Cost of
Sales
 Requirement for adjustments
 Food Transfer
 Beverage Transfer
 Transfer Memos
 Employee Meals
 Complimentary F&B/allowance for
management
 Adjustments to Cost of Sales
 Adjustments to Basic Cost of
Sales:
 Computation of the Cost of Sales with reasonable
accuracy, helps to tell us how much we have spent on
Food & Beverage (Cost Incurred) in order to generate
the Revenue.

 Why are adjustments required?

 In order to make the Cost of Sales more meaningful,

as the Unadjusted Cost of Sales also includes Costs
not directly related to generating Revenue.
 Example: Employee Meals (Free / Subsidized)
Adjustments to Cost of Sales
Cost of Sales: Food Cost of Sales: Beverage
Value of Beginning Inventory xx Value of Beginning
+ Purchases Inventory
- Value of Closing Inventory +Purchases
-Value of Closing
Inventory

Unadjusted Cost of Food xxx Unadjusted Cost of Food xxx

Sales Sales
-- Transfers from Kitchen Beverage -- Transfers from Bar Food
Food Beverage
+ Transfer to Kitchen + Transfer to Bar
-- Cost of Employee Meals Labor -- Complimentary Drinks Promos.
-- Complimentary Meals
Promos.

Net Cost of Food Sales Net Cost of Beverage

Sales
 Adjustments to Cost of Sales
 Food Transfers:

 These are Transfers from the Kitchen to

the bar and will result in the decrease of
Food Costs.


Example: Pineapples being transferred to the Bar
to be used as a Garnish for Pina Colada. Since,
the Pineapple aids in the generation of Beverage
Revenue, it is charged to Beverage Cost.
 Adjustments to Cost of Sales
 Beverage Transfers:

 These are transfers from the Bar to the

Kitchen. These help in reducing the Cost
of Sales of Beverage.


Example: Transfer of a Bottle of Wine from the
Bar to the Kitchen in order to prepare a sauce.
The Wine aids generate Food Revenue and
hence must be charged to Cost of Food.
 Adjustments to Cost of Sales
 Transfer Memos:

 When adjustments are made for Cost of

Transfers (Food or Beverage), a Food /
Beverage Transfer Memo is used as
the Source Document.

 A Memo is completed each time

products are transferred between the
Food and Beverage Departments.
 Adjustments to Cost of Sales
 Transfer Memos: (cont’d…)

 Transfer Memos can be held till the end of the

Accounting Period, when all Transfers are added
and the Adjustments made in the Cost of
Sales.

 Effect:
 Transfers made to the Food Department will
increase the Cost of Food and decrease the Cost
of Beverage by the same amount and vice versa.
 Adjustments to Cost of Sales

 Employee Meals:

 Employee Meal Costs are usually calculated

by Multiplying a Fixed Amount
(representing the Average Food Cost per
Meal) by the No. of Employee Meals
served.

 This Cost may be deducted from the Cost of

Food Sales and charged to Labor or
Employee Benefit Cost.
 Adjustments to Cost of Sales
 Complimentary Food & Beverage:

 Complimentary Food & Drinks provided to

prospective Guests touring the operation or
for other purposes might reasonably be
considered a Marketing Cost.

 In the above case, the Cost of F&B Sales can

be reduced and the amount deducted can be
Debited to Marketing Account.
 Beverage Controlling
system
 Inventory behind the bar is also
included for greater accuracy.
 Bartenders tend to take a daily
inventory of their products before and
after their hours of operation to ensure
that there are no shortages.
Con’d…
 Daily Beverage Costs are
calculated by the Manager. A
comparative study of the figures
gives him a lot of information.
 Calculating Daily Beverage Costs
in outlets helps the managers spot
theft of revenue.
 Con’d…
 Step 1: The Bartender takes his Opening
Inventory. This is a Physical Count of Bar
Stock. This must tally with the Closing
Inventory of the previous Bartender.
 Step 2: The Bartender then adds on any Issues
from the Stores during his Shift in order to meet his
Par Stock requirements.
 Step 3: The Total of Step 1 and Step 2 give the
Bartender his Total Bar Stock for his shift.
 Step 4: During the Shift, the Bartender may cater
to several requests for Beverages – Spirits / Wines /
Beers / Liqueurs etc. This constitutes to his Sales.
 Con’d…
 Step 5: Total Item wise sale can be
determined by taking a Item Sale Report
from the POS System or can be
determined manually by recording each
B.O.T. (Beverage Order Ticket).
 Step 6: At the end of the Shift, the Bartender,
computes the Ideal Consumption (Opening
Stock – Sales) for his Shift.
 Step 7: This Sale is then multiplied by the Unit
Product Costs to obtain a Total Ideal Shift Cost.
 Con’d…
 Step 8:The Bartender also take a Physical
Inventory of his Stock and then computes the
Actual Consumption (Opening Inventory – Closing
Inventory).
 Since, Sale is defined as Opening Inventory –
Closing inventory, Computing Actual Sale and when
multiplied by Unit Product Costs, it gives Actual
Cost of Beverage Sale.
 Ideally, both must tally but they generally do not
because there are always Spillages / Accidents /
Orders Returned leading to Wastage etc.
Opening Stock Actual Closing Inventory

Requisitions Ac
tu
al
Co
ns
um
pt Actual Beverage
io Costs
n

Total Stock
Un
it
P
C o ro d
st uct

Sales Ideal Cost of Sale

Unit Product Costs
Standard Beverage Costs

Ideal Closing Inventory

 Con’d…
 Therefore, controlling system can
prevent the theft of revenue or find out
if the bartender is efficient or not based
on:
 a Shift Sale Report through the POS or can
also review the BOTs.
 Con’d…
 If the variance (Negative) is high:

The bartender is not trained enough. He is
either wasting expensive liquor in
spillages or in wrong orders.

Bartender has served free drinks to his
customers for higher tips.

Bartender has served the drink but not
made a bill for it. He has pocketed the
money.
 Con’d…
 Marking Beverage Bottles:
 It identifies a bottle before it is issued.
 The marking generally contains:

Hotel Logo or mark (Hard to duplicate
and remove)

Date the bottle was issued

Price of the bottle
 Con’d...
 Bottle marking makes it easier to identify
bottles of the operation and hence discourage
bar staff from getting their own liquor or
stealing from the operation; selling the liquor
in the bar and pocketing the money.
 Having the price on it makes it easier to fill
out requisition forms.
 The date help the bartender / storekeeper to
know the turnaround time for each category
of product in the bar.
 Con’d…
 Establishment of a Par Stock
 A Bar Par is established. This is the
number of bottles of each type of
product that is always kept behind in
the bar storage area.
 Bar Pars are established on the basis
of number of bottles that the
operation would require to service a
busy period.
 Con’d…
 At the end of each shift the bartender places
the emptied bottles during the shift on the bar.
 The bartender completes the Beverage
Requisition Form recording the name of each
type of liquor or wine; number of bottles, size,
unit cost (If required by the operation).
 Information for the cost comes from “Bottle
Marking”.
 The Beverage Manager then checks the number
and type of empty bottles and signs on the
requisition form.
 Con’d…
 The bartender then takes these to the
Stores. The storekeeper compares
 The data on the bottles with that on the
requisition.
 Bottle for Bottle, replaces all empties with
full ones.
 Initials issued on the requisition form.
 Empty bottles are then broken or
disposed as per the legislation of the
state.
YARDSTICKS USED
IN CONTROLLING
Con’d…
 The yardsticks for judging a F&B
operation:
 Food & Beverage Sales
 Departmental Profit
 Costs

Cost of F&B Sold

Cost of Labor

Cost of Overheads
Con’d…
 The yardsticks for judging a F&B
operation (cont’d)…
 Food Sale %
 Beverage Sale %
 Average per Cover
 Con’d…
 How we judge whether the operation
is running as it should?
 A few vital data worked out on the basis
of the actual achieved figures can help
the management judge whether it has
its pulse on the operation or not.
 The data is compared against the
budgeted figures, industry averages and
/ or past performances.
Yardsticks
 If unfavorable variances or trends are
identified, then corrective action is
taken.
 Some of the yardsticks are as follows:
 Total Food & Beverage Sales:

The total F&B Sales should be recorded,
checked and measured against the budgeted
sales figures for that particular period.
 Yardsticks (cont’d)…
 Departmental Profit:
 Departmental Profit is calculated by
deducting departmental expenses from
departmental sales.
 Expenses are:

Cost of F&B Sold

Cost of Labor

Cost of Overheads
 Profit is generally expressed as a % of
departmental sales.
 Yardsticks (cont’d)…
 Ratio of F&B Sales to Total Sales:
 It is important for Food & Beverage Sales to be
separated from each other and each being
expressed as a % of the total sales.
 Trends, if any, are identified and corrective
action may be taken.
 For Example:

If the Beverage Sales % is poor as compared to
Budgeted Figures or Past Year’s Figures, then
strategies must be formulated to promote Sales of
Beverages along with the food.
 Yardsticks (cont’d)…
 Average Per Cover or Average Spending Power
(ASP)

A.P.C. = Total F&B Revenue
Total No. of Covers

This ratio tells you, how much each customer is
spending in your restaurant.

For a consistent number of covers, increasing the
A.P.C. will increase the Revenue of your F&B
operation.

In KOT, Cover is the number of people at a dinning
table
End of session
 Unit 4: Kitchen
Management
 Location of kitchen
 Atmosphere and ambience of kitchen:

cleanliness
 Storage of utilities in kitchen

 Basics of food and beverage

preparation
 Roles and responsibilities of chefs

 Best practices in kitchen management

Introduction
 Kitchen is the
backbone of all
successful restaurants
 Ill planned kitchen can
prove to be a disaster
for your restaurant
operations
 Introduction
 A kitchen is a place for the storage and
preparation of food for consumption.
 The purpose of a kitchen is to produce
the right quality of food of the highest
standard:
 With the required number of people,
 On time
 By the most effective use of staff,
 Equipment and materials.
Kitchen Flow Chart
Kitchen Organization: Upscale
Restaurant
 Executive Chef’s Roles
and Responsibilities
 An executive chef is the commander of the
kitchen and responsible for overall
management of kitchen and staff, and
supervising,.
 Of course, in charge of creating new recipes
and menu planning and good in controlling of
cost.
 Provides training and manage kitchen
personnel and supervise/coordinate all related
culinary/cooking activities.
 Responsibilities of Sous
Chef
 In charge of production and works as the
assistant to the executive chef or chef de
cuisine.
 Because the executive chef's
responsibilities may require a great deal of
time in the office, the sous chef takes
command of the actual production and the
minute-by-minute supervision of the staff.
The Station Chefs, or
Chefs de Partie,

 Are in charge of particular areas of

production. The following are the
most important station chefs.
The Sauce Chef, or
Saucier
 Prepares sauces, stews, and hot
hors d'oeuvres, and sautes foods
to order. This is usually the highest
position of all the stations.
 The Fish Cook, or
Poissonier

 Prepares fish dishes. In some

kitchens, this station is handled by
the saucier
The Vegetable Cook, or
Entremetier

 Prepares vegetables, soups,

starches, and eggs. Large kitchens
may divide these duties among the
vegetable cook, the fry cook, and
the soup cook.
 The Roast Cook, or
Rôtisseur

 Prepares roasted and braised

meats and their gravies and broils
meats and other items to order.
The broiler cook may also prepare
deep-fried meats and fish
 The Pantry Chef, or
Garde Manger

 Responsible for cold foods,

including salads and dressings,
and buffet items.
 Location of professional
kitchen
 The professional kitchens should be
well designed by considering the
following factors:
 Restaurant menu and service types
 Heating, ventilation, and air conditioning
 Employee workflow
 Storage, food production, cleaning, and service
space
 Equipment
 Drainage and plumbing
 Communication among employees
 Safety of employees and property
 Location of Kitchen
 The location of the kitchen is of prime
significance, and it should be located
sufficiently remote from the principal
area of the organization so as not to
pollute the nearby area with an
undesired odors and noise of culinary
operations.
 It should be located near to store and
restaurants or dining area of the outlet.
 Some design
 Island Layout: The cooking is at the
center
 Con’d…
 Zonal Layout: The total kitchen space is
divided into different zones for various activities.

Space for employee

workflows
 Con’d…
 Assembly Line Layout: This layout
provides very high efficiency, and excellent
communication and workflow

Assembly line
Types of Kitchen
 The main kitchen

“It is located in the central part of

the hotel where sequence of food
receiving, storing, preparing,
cooking, serving and clearing
areas are properly defined and
managed accordingly”
 Con’d…
 A la Carte Kitchen

“This kitchen is a section of the main kitchen where

the order is prepared for an à la carte menu”.
 Con’d…
 Banquet Kitchen

“This kitchen is also a section of the main

kitchen where the order is prepared in bulk
for buffet services, for wedding parties, for
large gatherings, etc.”.
 Con’d…
 Satellite Kitchen

“A new concept in the world of kitchen,

satellites kitchen is constructed with
the purpose to cater in the particular
area of the organization, where the
main kitchen cannot cater due to its
installation of being immobile in nature”
 Con’d…
 Live Kitchen
 a kitchen in which food is prepared and
cooked in full view of the customers or
diners, in order to create an appeal and
to attract customers by means of the
sizzle and aroma of the food delicacies.
 Con’d…
 A well planned kitchen should:

Provide adequate storage for raw
materials.

Provide adequate space for food being prepared.

Provide adequate space food awaiting service.

Provide adequate storage for equipment,
utensils, crockery and cutlery.

Be efficient and effective in terms of movement
of staff, equipment, materials and waste
management system in place

Provide an area for checking in stock.
 Storage
 The amount of storage space and the type of storage
will depend on:

The size of the kitchen.

Menu.

The volume of business.

Delivery frequency.

The length of storage.

The type of storage (frozen, refrigerated or dry).

Storage of meats, poultry and fish should be
taken into consideration when designing the
kitchen and kept separate from dry foods,
vegetables, fruit and pastry.
 Con’d…
 The purchasing department procures commodities for the
kitchen department and the store department stores it and then
issues it to the kitchen department.
 Chefs prepare the standard purchase specification and hand it to
the store department
 Chefs inform the stores about any of the special ingredients to
be procured on an immediate basis, and the store staffs help the
kitchen by doing so.
 Chefs inform the stores about the quality of ingredients received.
 It is the responsibility of the store department to maintain the
‘par stock’ for most frequently used items in the kitchen so that
the items are available on proper time.
 Personal Hygiene
 Have a shower at least once a day.
 Always change the clothes you wear every day.
 Never wear jewellery or timepieces during the
working hours.
 Have short trimmed hair. Women chefs are to
cover their hair with nets
 Shave even if there is a slight growth of facial hair
 Keep your fingernails short and clean
 Wear shoes that cover the whole foot not thongs
or sandals to prevent accidents in the kitchen
 Con’d…
 Wear clean, neat clothing
 Always use clean utensils
 Do not smoke near or around food preparation
area.
 Always wear clean and sanitized protective
clothing
 Wash your hands in between jobs
 See a doctor at least once a month to ensure
you are disease free.
 Con’d…
 Tasting food whilst cooking
 Use disposable spoons for tasting food.
 Food should never be tasted using fingers,
as it just like spitting into the food
 Food handlers should never chew gums,
eat sweets, or tough their mouth and nose
while cooking.
 Kitchen Equipment
 Burners
 Used for cooking, boiling, and steaming. They
often operate on Liquid Petroleum Gas (LPG).
 Con’d…
 Cooking Ranges
 Cooking range is the most versatile equipment
operating on either LPG or electricity.
 Used for cooking, frying, boiling, grilling,
and baking.
 Con’d…
 Ovens: used for cooking, baking,
roasting, and browning. They operate
either on LPG or electricity.
 Con’d…
 Griddles
 They are mainly used for preparing
breakfast items such as omelets, scrambled
eggs, patties, sandwiches, burgers, and
pancakes.
 Con’d…
 Pan used to shallow frying, boiling, and stir frying
 Pots: The pots are used for cooking and preparing
stocks
 Con’d…
 Spoons: Various spoons used during
cooking are skimmer, turner, masher,
ladle, fork-spoon, and utility spoon.
 Con’d…
 Kettles: the kettles are used for
cooking, warming, and storing food
Con’d…
 Vegetable Cutters/Choppers
 Con’d…
 Mixers used for mixing and blending.
 Con’d…
 Cookers and Steamers: used for
cooking rice, lentils, and vegetables
 Con’d…
 Fryer: Some food items are prepared by
immersing them in heated oil in a fryer
 Con’d…
 Juicer: extract juices and pulps from
fruits and vegetables
 Con’d’….
 Dish Washer
 Con’d…
 Glass Washer
 Con’d…
 Dish Warmer
 Con’d…
 Nut cracker: shelling watermelon and
pumpkin seeds, and peeling peanuts,
cashew nuts and almonds.
 Con’d…
 Shredders: a shredder cuts the fruits and
vegetables into string-like fine pieces, which
are useful in salads and vegetarian cookery.
 Con’d…
 Kitchen
Knives
Con’d…
Cont’d…
 Unit 5: Managing Quality in
food & Beverage operations
 What is Quality?
 Why is Quality important?
 Approaches to Quality management
in F&B Operation
 Designing a Quality system for F&B
 Introduction
 There are increasingly knowledgeable
and sophisticated customer with
broader tastes and experiences than
ever before.
 They demand quality of experiences in
exchange of their “Money spend”
 But are increasingly difficult to satisfy
their needs.
Con’d…

 Therefore, the F and B sectors need

to satisfy the customer needs and
requirements as a long-term
strategy.
 What is Quality?

“The totality of characteristics of

Food and Beverage sectors that bear
on its ability to satisfy stated and
implied needs”
ISO-8402 Definition
Con’d…

“Quality is the conformance to

specification/requirements”
 Con’d…
 If the restaurant meets or exceeds
customer expectations then the
customer will feel satisfied and will feel
that they have received ‘ quality ’
services.
 But their expectations do not meet,
then there is a gap between customer
expectations and the restaurant’s
performance.
Product/service Matrix
 Cont’d…
 It is implicit in this definition that
quality can exist at any level of
service, from fast food to fine
dining, as long as expectations of
that level of service are met.
 Cont’d…
 Quality in food and beverage
operations means reliably providing the
food, service and environment that
meets customers ’ expectations and
where possible finding ways of adding
value to exceed expectations and result
in delight.
 Is Quality Important?
 Food and Beverage industry much worried
about their quality of products/services
delivered to customers.

Customers are more demanding of everything
they buy, as well as the way in which those
products and services are delivered.
 Interpersonal contact is still critical though
using sophisticated technology in food and
beverage operation.
 Con’d…
 In an increasingly competitive and
international marketplace, quality is
seen as providing an edge of
competitive advantage.
 Quality provides the opportunity for
food and beverage operations to find a
winning edge over their competitors.
Types of Quality Costs
The cost of quality is generally classified into
four categories

1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Internal Failure
4. Cost of External Failure
 Cost of Quality?
 Cost of quality: includes
 Prevention costs: costs related to the prevention
of poor quality in the food and beverage
operation
 Appraisal costs. costs related to controlling
evaluating, measuring, auditing, and testing in
food and beverage operations
 Failure costs (internal/external). costs related to
nonconformance of the products or services to
the needs or expectations of the customers.
Cost of quality
 Quality Management of F
and B Operation
 Quality improvement in service related industry such as F and
B is very difficult
 Intangibility
 Heterogeneity
 Simultaneity
 Perishability
 The cost structure, especially at start-up there is high fixed
cost
 The unpredictability of demand
 The short cycle of production
 The Risk
 The technology
 The presence of customers
 Approach to quality
management
Quality Inspection
Finding the defects in the process of food

and beverage operation before reaches

the customer by introducing an
inspection stage or stages.
 Con’d…
 Quality Control
 The quality control approach still
centers on inspection but recognizes
the need for a detailed specification and
that quality checks should be made
throughout the food and beverage
operation.
 Con’d…
 Quality Assurance
 It involves following and meeting standards to
assure customers that the product/services of
food and beverage will meet their needs,
expectations, and requirements.
 It involve the development of a new
operating philosophy and approach.
Quality Cycle
 Total Quality Management

“TQM is the integration of all departmental functions

and processes within a hotel in order to achieve
continuous improvement of the quality of hotel
products and services”
The goal is customer satisfaction and profit
maximization.

TQM is a system of enhancing and improving

flexibility, effective, and efficient business
performance.
 Con’d…
Guest Expectations
Staffing

Hotel Operations Guest Satisfaction

(Processes)
 Quality system in Food
and Beverage
 Global food Safety Initiatives/GFSI
 International food Standards/IFS
 Safe Quality Food/SQF
 International Organization for
Standardization/ISO
 Hazard Analysis and Critical
Control Point System(HACCP)
 EQMS

Enterprise Quality Management

System/solution
Next generation of quality management
system designed on the Salesforce.com
platform
 EQMS
 It is a perfect quality management software for food
and beverage industry to establish standardized
process and workflows for ensuring the quality.
 There are different modules
 E.g., Nonconformance management
 Training Management
 Change Management
 Document management
 Procurement management
 Cloud Management
 EQMS
 Cloud based platform
 Low maintenance cost
 Automated upgrades
 Flexibility and secure
 Low cost implementation
 Seamless integration
 Configurable workflows
 User-friendly interface
Unit 6: Planning, Organizing &
Executing Food & Beverage
Events
 Types of events
 Role of the Event Planner
 Relationship with vendors / Suppliers
 The Planning & Organizing Process
 Executing the event
 Checklists for planning & Organizing
Events
 Banqueting
 Definition
 An event can be described as a public
assembly for the purpose of celebration,
education, marketing or reunion.
 An organized occasion such as a meeting,
convention, and exhibition, or special event,
festival, dinner, etc.
 The biggest appeal of events is that they are
never the same, and that the guest has ”to be
there” in order to enjoy the experience fully.
 Con’d…
 A special event is a one-time or
infrequently occurring event outside
normal programmes or activities
 To the customer or guest, a special
event is an opportunity for leisure,
social or cultural experience outside
the normal range of choices or beyond
everyday experience.
 Event Management
 Application of the management
practice to the creation and
development of events.
 To bring all factors together to
produce a workable event
 Types of event
 CULTURAL CELEBRATIONS
 Festivals
 Carnivals
 Commemorations
 Religious events
 Con’d…
 ARTS AND ENTERTAINMENT

Concerts

Award ceremonies
 BUSINESS AND TRADE

Meetings, conventions

Consumer and trade shows

Fairs, markets, exhibition
 Con’d…
 EDUCATIONAL AND SCIENTIFIC
 Conferences
 Seminars
 Forums
 SPORT COMPETITION
 Amateur/professional
 Soccer/athletics
 Con’d…
 PRIVATE EVENTS
 Weddings
 Anniversaries
 Parties
 Festival gatherings
 Business events and tourism
 Event Organization Chart
Advisor

Chairman

Event
Manager/plann
er

Marketing
Sponsorshi Food and
Finance and Logistics
p beverage
promotion
 What are the roles of
event planner/manager
 Event manager/planner is a person
who plans and executes the event:
 Conceptualizing/devising the event idea
 Identifying the target audience
 Budgeting
 Liaising with suppliers/vendors, clients,
 Marketing and Communication
 Negotiation
 Managing logistics, booking menu
 Execution, and
 Post-event reports
 Qualities of event planner
 Strong Communication and interpersonal
skills
 Negotiating skills
 Research and development
 Creative, out-of-the-box thinking
 Ability to lead a large team
 Time management skills
 Organization skills
Event Planning Process
Con’d…
Initiation

Planning
Evaluatio
n

Organizin
g
Shut
down

Monitorin
n
g and Implementatio
controllin
g
Initiation
 Feasibility study
 Select an event
 Define objective
 Concept development
 Contextual factors: budget,
legal/regulatory, economic, social,
political, technological and
environmental factors
Creating the event
concept
 Why: defining the purpose of the event
 Who: key markets, stakeholders,
sponsors
 Where: location/venue
 When: timing/duration
 What: type/form of the event, scale,
key program
 Planning
 Work breakdown structure(WBS)
 Determine tasks in detail
 List in correct sequence
 Establish the timetable
 Development of operational and
contingency plans
 Assessment of resource needs
 Budgeting
Pre-event activities
 Proposal
 Budget
 Venue
 Program schedule
 Supplier/vendors checklists
 Sponsorship
 Food and beverage
 Risk management
 Marketing and promotion
 Establishing Budget
 Estimate the budget for the event,
including internal and external sources
for each of the potential expenses.
 Develop a balance sheet listing all
expenses of the event
 Con’d…
 Staff benefits or incentives
 Marketing expenses
 Transportation
 Venue
 Guest accommodations (if applicable)
 Food and beverage
 Entertainment and recreation
 Audiovisual equipment and production costs
 Security (CCSD School Police, etc.)
 Special needs (interpreters, etc.)
 Taxes and gratuities, service charges, etc.
 Contingency fund for unanticipated, last minute expenses.
 Risk management
Risk Management
process

Analysis and
Identify risks evaluation of the Identify options
risks

How can it Create an action

What can happen
happen? plan

Treat the risks

 Marketing strategy
Marketing
strategy

Identify Segmenting
Set
target event
objectives
market market

No. of
Participan Gross and Geograph Demograp Socio-
Exhibiters participan
ts net profit y hic economic
ts
Implementation
 Schedules
 Checklists
 People management
Control and monitoring
 Setting benchmarks/standards
 Tools
Shutdown
 Closure of the event
 Post-event
 Conduct a Post-Event Survey
 Gather all receipts, documentation, final attendance
data, donations, etc. and update budget
 Implement post-publicity plan
 Thank attendees for participating and promote your
ongoing programs
 Send thank-you letters to Sponsors, Volunteers,
Speakers/presenters, Donors Media Evaluation
 Shutdown and reporting
 Banqueting
 A banquet is a food and beverage services at a
specific time and place, to a given number of
people, to an agreed menu and price.
 Banquets are special food and beverage servicing
for social professional and state occasions

Wedding, birthday, cocktail parties, new year parties

Conference, convention, training programs,
board meetings

State banquets, diplomatic cocktails and
dinners
Con’d…
Banquet manager

Banquet sales
Banquet secretary
coordinator

Banquet Banquet
supervisor Sommelier

Waiters

Causal staff
 Banquet manager
 In charge of

meeting banquet sales targets,

developing banquet business,

customer contact,

banquet administration and

supervising all arrangements.
Barman and Sommelier
 Run the mobile bar to provide
alcoholic and non alcoholic
beverages with wine services.
 Banquet sales coordinator
 Prepares sales kits, fact sheets layouts
and proposed menus, visits potential
guests to solicit business
 Banquet Supervisor: coordinates the
resources for functions including table
layouts, staff scheduling and banquet
setup
 Waiters and casual staff: make the actual
arrangement and providing the services
Banquet secretary
 Handles all correspondence and
bookings
Unit 7: Recent Trends in Food
& Beverage Management
 Introduction
 F and B service trends are changing
day by day with a steady pace.
 Today customers are educated and
well exposed; they look for creative
things that attract them like never
before.
 Consumer trend
 Customers are know more aware of
the food and beverage services
through media
 Consumer demands and interests are
the force behind many industry trends.
 There is a growing divide between the
generations
 Con’d…
 Younger consumers are focused on
customization and cravability,
 Baby Boomers and Gen Xers are
concerned with value and service.
 How consumers perceive the
experience differs broadly between
generations.
 Con’d…
 Millennials are more likely to see an interactive,
trendy, personalized product as a “memorable
experience”
 Baby Boomers look for strong service and high
quality ingredients for a good price.
 Their perceptions of “healthy” also vary dramatically.
 E.g., Baby Boomers and Gen Xers are more likely to
perceive low calorie and low fat products as better for you
 Millennials are more likely to view products with
functional attributes or clean labels as healthier
without much concern for calorie count.
Con’d…
 Boomers (1946-1964)
 Gen X (1965-1980)
 Gen Y (Millennials) (1981-1994)
 Gen Z- newest generation
(Zillennials) (1997-2012)
 Gen Alpha (since 2012)
 Con’d…
 “Foodie” consumers, for example, are more likely
to talk about restaurants and products with
friends and family and try new cuisines that are
recommended to them
 Value-driven consumers are more interested in
finding the best deal and are more swayed by
coupons than trendy ingredients.
 Situational factors, demographics, and
segmentation play an important role and should
be considered when evaluating a target audience.
Environmental trends
 Waste Management
 Use of efficient waste minimize
technology such as grinders and
incinerators
 Invest in a vacuum drainage system
 Reuse and recycling items
 Reduce usage of papers
 Con’d…
 Reducing the consumption of energy
and water
 Using energy efficient equipment and light
bulbs.
 Recycling of grey water.
 Utilizing alternative energy sources, such
as solar power.
 Adjusting taps and toilet water tanks.
 Minimizing water leakages.
Financing the Operation
 The emerging of Real Estate
Investment Trusts (REIT)
 Asset Financing
 Buy a restaurant table
Ethics and food produce
 Ethics in Tipping
Technology
 Online Table reservation system
 Digital kitchen/digital display system
 Automated inventory management
 QR code/contactless payment
 Air purification
 Accelerating digitalization
 Contactless technology
 Online ordering system and delivery apps
 Food waste reduction
 Robotics
