1.1 Describe with examples, some of the characteristics of food production and food and beverage service systems that is in use within the hospitality industry.
The food and beverage industry are a multi-billionaire industry, that has catered to many, making it a new industry that people can look forward to. There has to be a system, that the service directors are using to inherit a food service system that are to be followed by the directors all day-long.An option in food service industry is what we are bound to look for if there has to be a look-out and fixed system in food service.(Rama, 1996)
Food industry began with the canning of products. With agriculture, there was a rise in the production of food and thus began, the process of storing the excess for future use. This, gave rise to cold storage and then canning. Canned products are the best means to storage and have become the ultimate definition of food in today’s industry.
Parisian Chef Nicholas Apert developed the process of canning in 1810. Canning allows food to remain unspoiled for a longer period. Transportation of food was also possible now. Food and cuisine taste changed, and there emerged a newer concept of supermarkets.
Supermarkets gradually gave rise to cuisine. The world now experienced food originated in distant lands that were made of the same ingredients with the same taste. This revolution in turn found us looking forward to the food from a different angle. The emphasis on a larger scale production formulated the need to diversify products. Then came the discovery of chemicals, the help of which food could be preserved for longer periods of time.
Though the world got increasingly conscious of the food habits they made sure, canned food did not lose its importance. Cans were easily available and were ready in moments. Thus, canning led to the new generation of the food industry wherein one started the process of food processing.
Food processing is a method by which raw materials are turned into eatables by some who love to be in the industry.(K, ampully and Suhartanto, 2000)
The food and beverage Cycle
The cycle of food and beverage has to be
- Food and Beverage
- Cleanliness
1.2 Factors to Consider in Menu and Recipe Planning
Availability—Menu should be planned in accordance to the availability in the market. Check in the market first to find out what is available. From then on, find out what are the options against the ingredients that are off-season. The planning must be done in accordance to what is available in the market.
Food Habits of the Customers—The food habits of the Customers of the should be the main criterion in this case. One has to make sure that all the menu goes according to the tradition and beliefs of the people who will be visiting the place. The menu just cannot be devised on the basis of whatever we think we can do best.(McVety, Ware and Ware, 2001)
Time—The time required to prepare a menu is to be decided in advance. Regardless of this at the very last moment one might find them struggling with orders that cannot be delivered on time. Every customer has a meal schedule that has to be met. Proper timing ensures that orders will keep coming.
Money—There is always a certain budget to meet. Planning must be done in advance to ensure that the budget is neither over done nor is the quality of food too low. There also has to be a profit generated from the exercise, which can also be determined from this exercise.
Type of Customers—Age, occupational status, socio-economic status and nutritional needs have to be kept in mind while devising a meal or menu. The nutritional needs of the consumers have to be kept in mind in order to achieve the many desired benefits.
Environment—Food has to be prepared in accordance to the needs of the day. The cuisines of summer and winter have to be different. So have the cuisines to be special in compliance to the changing menu of the time of the year.
Occasions—Occasions need to have a special menu. The routine menu does not fit in this characterized menu of the day, but it does go well beyond to break the wall of boredom and get you something new.(McVety, Ware and Ware, 2001)
Types of Menu—the menu has variations too. Whether you specialize in only three-course dinners or a coffee break depends on your menu. If the variety of cuisines in your menu is high then too it has to be planned in that specific way well ahead of time.
Personnel and facilities—Number is what matters here most, their qualifications coming later in. The more the personnel, the better the service, the more the profits.
Time of business—The timing of your service plays a role too big to determine the role of business in your firm. The menu cannot be coffee and cookies at the time of lunch.
1.3 For the systems discussed above, compare the cost and staffing implications
Staffing and Costing are the two aspects of food and beverage industry that has to be maintained.
Cost control is the means by which the manager attempts to levy responsibilities and control the means by which the manpower can be made to work as per guidelines. The first step is to formulate guidelines and form the basic rules which are to be followed. Costing implications have to be put up so as to ensure that costs are kept in acceptable bounds and are within the control.
Staffing has also to be made in proper accordance to the budgetary limits of the event. In the case there is a shortage of staff at the last moment, it cannot be compensated if it was not planned beforehand.(Hansen and Evashwick, 1981)
Staffing and costing are the same pages of a book. One cannot do without another. This, is the point when, the manager’s efficiency drops. Only an efficient manager can ensure that all the necessities are maintained and fulfilled.
1.4 Suitability of systems for different food and beverage outlets within the hotel.
Russian System-- This is a system where the food is prepared in platters. Serving of the courses is done either from platters or from Escofer dishes. The plates are placed in front of the guest by a server. The server then returns and serves the guests by the right hand. Thus, he controls the amount of portion taken by the guest pleasing him at the same time. In a platter, the food is arranged for one table, with the waiter dishing it out to guests from the left side. Equal proportioning is what the Russian platter guarantees and hence it is used for banquet functions when there are no heaters for individual plates.
Guerdon System- This, is where the food is cooked just by the side of the table of the customer. This, is usually done in a small table or a trolley.
Seen service is where preparation of food was done on the same table. It markets the food and the establishment equally well.
In today’s date, one finds a rapid increase in the demand for food that is made in front of the eyes of the customer. Be it a hamburger or a more flamboyant chicken dish anything that is cooked in front of the eyes of the customer has a greater effect. The guest here can also be encompassed with certain comments while the food preparation is in the process. This ensures that the effect in the minds of the consumer lasts long. This is a very specialized form of cooking and preparation of the meal. It comes only with years of practice and expertise. Formal or fine dining rooms are the best place to practice this cooking systems.(Bojanic, 1996)
2.1 Taking in to account, the various needs for financial statements, discuss the use of financial statements in food and beverage operations
Financial statements reflect the actual performance of an organization. As a consequence, the financial statements should always depict the true and fair view of the organization. Financial statements of a company showcase all financial activities of the entity demonstrating its strength and performance over a recent period and where it stands as on a given date. Companies have a statutory obligation to prepare their financial statements for the purpose of taxation so as to give a fair and true view of their financial affairs and in case of publically held and traded companies, the same need to be published for the consumption of its shareholders. (Whiteley, 2004)
The key financial statements are:
- A profit and loss statement for the last accounting period which gives details of the gross and net profits for the business
- A Balance Sheet as on the date of closing the accounting period, the listing the assets and liabilities held by the company as well as the shareholders’ funds
- A statement of retained earnings or change in owners’ equity
- A statement of changes in Financial position comprising of the Fund Flow statement and the Cash Flow statements
- The above are accompanied by the Director’s report and the auditor’s report, duly certified.
2.2 For the above hotel, how would you demonstrate the use of cost and pricing processes
The various types of cost incurred by the hotel are as follows:
Direct Cost: Salaries, linens, crockery, food and drinks, retail expenses, occupancy cost.
Indirect Cost: Room cleaning supplies, fire insurance, supplies used in spa and gym.
Fixed Costs: Salaries paid to employees, Salaries to bus drivers and attendants, Maintenance cost, Salaries to restaurant staff, cost of operating spas. (Hundal, 1997)
Variable Costs: Food, Drinks, Cost of Operating Busses (Fuel)
Based on the above the organization has to pay more focus on variable costs as variable costs constitute a major part of the costs. One of the key factors for the success of Hotel industry is formulating a proper pricing strategy. In order to ensure that the customers purchase your product it is important to set a price which is consistent, accurate and competitive.
The following are the Pricing Strategies that can be followed by Icon and Upper House:
- Rack Rates:
All travel and tourism industry must have a Rack rate. It is the full rate without any discount printed on the brochures for the season ahead. This rate is more likely to change all the time without any discount
- Seasonal Pricing:
The standard way of pricing is to mix the price throughout the year to cover low and high for different level of demands due to the time in a year.
- Last Minute Pricing:
The last minute pricing is discounting daily prices according to the bookings made for accommodation of suppliers to fill those last minute gaps in inventory available.
- Discounting:
2.3 As the food and beverage manager, how would you implement an effective purchasing process of the above hotel
An organization has to keep a record of the stock like that can affect the profitability of the business. The carrying cost and the ordering cost has to be taken into account. In order to keep a tab on the cash flow and inventory the organization will have to assess the following:
- Economic Order Quantity: The organization has to keep a tab of the EOQ. EOQ is the quantity where the cost is the lowest. This, comprises of the ordering and the carrying cost. For this, the organization has to estimate the annual demand of the product and order accordingly. (Grubbstr\"om and Erdem, 1999)
- Ratios: The business needs to have a clear understanding of the ratios. For example, how, many times have the stock been cleared and restocked. The business needs to have a clear understanding of this. The other important ratios are sales to stock ratio, sales per square foot etc.
Apart from the suggestion made above the organization can also have a Just in Time purchasing system and can have good retail software. This, would allow the organization to save on the carrying and other related costs and keep the cash flow intact.
Menu In a wedding
Appetizer
Mini Jumbo lump crab cake
Salad
Gainey Green salad with Raunch Dressing
Hot sourdough rolls with butter.
HorsDOeuvres
Tempura Prawn with Balsamic Vinegar
Puff Pastries
Chicken Satay
Entrees
Wild Arctic Char with crispy skin
Preserved Lemon Viniagrette over Butter Braised Cabbages.
Dessert
Red Velvet cake with a white chocolate cheesecake filling
Beverages
Red wine, Champagne
The above menu gives the audience the audience to choose.
My menu includes appetizers that can be served to children as well, a small portion, followed by a main course, where I have incorporated lump crab cake, for those interested in eating healthier and with a reduced caloric value, another dish is chicken satay with puff pastries that address to all guests except those suffering from diabetes, and of course my last dish on the main course is tempura prawns. Than as I dessert I introduced red velvet cheese cake, healthy, less calories.
Pricing Chart
Crab cake is priced at 9 pounds per plate.
Salad is priced at 6 pounds per plate
The rolls are 1 dollar per plate
Tempura Prawn with Balsamic Vinegar is 14.31 pounds
Puff Pastries are 10.73 pounds per plate
Chicken Satay is priced at 21.46 pounds per dozen.
Wild Arctic Char with crispy skin is priced at 5.37 pounds per plate
Preserved Lemon Vinaigrette over Butter Braised Cabbages is priced at 7.17 pounds per plate
Red Velvet cake with a white chocolate cheesecake filling will cost 2.83 pounds per plate
The menu has been arranged for 400 people.
The menu presented above includes:-
- Appetizers
- Main Course
- Desert
Customers have been provided large flexibility in terms of choosing what they want and how they want it. These are the dishes available to be served and can be done at the most reasonable prices at the convenient timings.
The above menu can be an excellent organization if staffing, production, organization and staffing methods fall in place.
4.1 A food and beverage service plan for a hospitality event
The criteria of the number of ovens must always be remembered, and, owing to it the preparation should be started in advance. Adequate number of staff should be present in order to ensure the fact that nothing goes wrong. A served buffet though enables the control of portion size and the helpings.(Rainsford and Bangs, 2001)
4.2 Steps involved in implementing your recommended service plan, maintaining standards of quality and health, safety and security.
Standards of quality have to be maintained in case of production of food and beverages and of cooking. Health, safety and security come from hygiene. All canned food must be stored in a proper environment and proper temperatures. Unacceptable food must be immediately destroyed.
The health of the staff is also a prime concern. It must be ensured that there are now ounds and that they maintain proper cleaning standards before cooking. (Lundberg, 1989)
The food protection equipment should not only be clean it should also should be sanitized.
- Food baskets must be lined
- There must be sufficient number of containers
- Lids must be closed
- Containers should be clean
- Chemicals must be labeled
- All pest control elements are under control
Raw meat must be handled carefully maintaining all standard so as to ensure that all standards of hygiene are met. Defrosting is recommended in cold water.
4.3 Factors to determine the success of the service, making recommendations for improvement.
Services in this industry are based on
- Integrity
- Quality
- Trust
- Value
- Consistency
- The staff and managers must have excellent co-ordination
- Innovation must always be enforced
- Service
- Right concept
- Execution
Labor costs should always be minimized in the food and beverage industry to maintain profitability. Price is also an important factor in relation to this. If the prices are low, it does not mean that the profit is low. The prices are a direct reflection of the customers thought to the food. It reflects what they feel and like about it.
References
Bojanic, D., 1996. Consumer perceptions of price, value and satisfaction in the hotel industry: An exploratory study. Journal of Hospitality & Leisure Marketing, 4(1), pp.5--22.
Davies, B. and Downward, P., 2001. Industrial organization and competition in the UK tour operator/travel agency business, 1989-1993: an econometric investigation. Journal of Travel Research, 39(4), pp.411--425.
Grubbstr"om, R. and Erdem, A., 1999. The EOQ with backlogging derived without derivatives. International Journal of Production Economics, 59(1), pp.529--530.
Hansen, M. and Evashwick, C., 1981. Hospice: staffing and cost implications for home health agencies. Home health care services quarterly, 2(1), pp.61--81.
Hundal, M., 1997. Product costing: a comparison of conventional and activity-based costing methods. Journal of Engeering Design, 8(1), pp.91--103.
K, ampully, J. and Suhartanto, D., 2000. Customer loyalty in the hotel industry: the role of customer satisfaction and image. International journal of contemporary hospitality management, 12(6), pp.346--351.
Lundberg, D., 1989. The hotel and restaurant business. 1st ed. New York: Van Nostrand Reinhold.
McVety, P., Ware, B. and Ware, C., 2001. Fundamentals of menu planning. 1st ed. New York: Wiley.
Rainsford, P. and Bangs, D., 2001. The restaurant start-up guide. 1st ed. Chicago: Dearborn.
Rama, R., 1996. Empirical study on sources of innovation in international food and beverage industry. Agribusiness, 12(2), pp.123--134.
