Chapter 10 Food and Beverage. Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ

Chapter 10Food and Beverage

Hotel Operations Management, 2nd ed. ©2007 Pearson EducationHayes/Ninemeier Pearson Prentice Hall

Upper Saddle River, NJ 07458

Plan by focusing on menu

Menu impacts operational factors:

Menu driven by guests’ wants, needs, and/or preferences

– Layout/equipment – Labor for production, service, and cleanup – F&B products for purchase

Marketing concerns

Repeat business important to financial success

Planning Issues

Overview of Hotel Food and Beverage Operations: Similarities: Hotel and Restaurant Food Services

All food service operations must assess financial status

– Operating budget– Income statement / balance sheet / cash flow statement

Necessity for standard operating procedures

– Purchasing / receiving / storing / issuing / prepreparation / preparation / serving / service

Emphasis on Consumers

Financial Concerns

Cost-Control Procedures



Step 1: Purchasing

Step 2: Receiving

Step 3: Storing

Step 4: Issuing

Step 5: Prepreparation

Step 6: Preparation

Step 7: Serving

Step 8: Service

Overview of Hotel Food and Beverage Operations: Steps in Food and Beverage Product Control



Effective use of appropriate inventory systemsControl of product quality Securing products from theft Location of products within storage areas

Step 4:

Issuing

Product rotation concernsMatching issues (issue and usage)Purchasing as inventory is depleted

Development of receiving procedures

Completion of necessary receiving reports (e.g., addressing financial and security concerns)

Develop purchase specificationSupplier selectionPurchasing correct quantitiesNo collusion between property and supplierEvaluation of purchasing process

Step 1:

Purchasing

Step 2:

Receiving

Step 3:

Storing

Overview of Hotel Food and Beverage Operations: Steps in Food and Beverage Product Control (cont.)



Step 8:

Service

Mise-en-place

Minimizing food waste/maximizing nutrient retention

Use of standardized recipes

Use of portion control

Requirements for food and employee safety

Timing of incoming food delivery

Portion control

Revenue management concerns

Revenue control concerns

Serving alcoholic beverage responsibly

Sanitation and cleanliness

Food and beverage server attentiveness

Step 5:

Prepreparation

Step 6:

Preparation

Step 7:

Serving

Overview of Hotel Food and Beverage Operations: Steps in Food and Beverage Product Control (cont.)



Transferring some decision-making responsibility and power to front-line employees

Enhancing service to guests and increasing profits for the organization

Practice of Empowerment

Staff must be trained in standardized procedures.

Managers must provide clear direction to employees.

Managers must provide necessary resources.

To meet unanticipated guest needs effectively:

Overview of Hotel Food and Beverage Operations: Personnel Requirement Similarities



Profitability = Revenue – Expenses

Hotel’s “bottom line” profit from F&B sales is likely to be lower than a restaurant’s.

Profit amounts generated by restaurant F&B is relatively easy to calculate.

The process of allocating revenues and expenses applicable to F&B services in a hotel is more difficult.

Costs of F&B sales is generally higher in a restaurant than in a hotel.

Payroll costs (or fixed-labor costs) are higher than in a restaurant.

Overview of Hotel Food and Beverage Operations: Profitability Differences



Restaurants: Locations easily accessible to potential guestsHotels: Locations most accessible to guests desiring lodging accommodations

Restaurants: Locations easily accessible to potential guests

Hotels: Locations most accessible to guests desiring lodging accommodations

For hotels, food and beverage service is viewed as an amenity or secondary objective (sale of guest rooms is primary objective)

Location within the Community

Location within a Hotel

Menu

Overview of Hotel Food and Beverage Operations: Marketing-Related Differences



Room Service Operations: Profitability Concerns

Why does it lose money?

Relatively few properties generate profits from room service

Very high labor costsHigh expenses incurred for capital costs – Delivery carts/warming devices

Why offered?

How to offset

losses?

High expenses incurred for capital costs - Delivery carts / warming devicesOffer hospitality suite business

Provide hosted events

Service to guests

Impacts hotel rating

– Some guests select hotels based on room service availability



Room Service Operations: Menu Planning Factors

Quality Concerns

Cross-Selling

Menu Language

Advertising availability of other hotel services– Dinner menu providing information about Sunday brunch

Less likely to oversee room service food quality

Must offer products that maintain quality during holding and transportation to guest room(e.g., problems with omelets and french fries)

Language barriers for international guests

– Use of pictures and multilingual menu descriptions

Clearly state ordering requirements– Minimum order charges/mandatory tipping policies



Room Service Operations: Operating Issues

An inaccurate room service order cannot be corrected quickly.

A minor problem in room service may impact guests’ perceptions about the entire lodging experience.

Communication

Guest placing order / order taker / room service production-service staff / room service staff Abbreviations should be clearly understood by order taker and food production staff

TechnologyImproving the accuracy of room service orders– Electronic cash register (ECR) / point-of-sale terminal / remote printer

Upselling Technique

Opportunities for upselling are overlooked.

Upselling increases guest check average.



Training Issues for Room Service Attendants

Room Service Operations: Within Guest Room Service

Presenting the guest check and securing payment

Opening wine bottles (if applicable)

Providing an attitude of genuine hospitality

Explaining procedures for retrieval of room service items

Asking guests where room service meal should be set up



Well-planned banquets can be profitable!

Banquet Operations: Profit Opportunities

Banquet menu has higher contribution margin.– Banquets frequently celebrate special events.

Forecasting and planning production, service, and labor are relatively easy. – Formal guarantee is made– Less likelihood of overproduction of food with subsequent waste

Beverage sales from hosted or cash bars increase profit.– Capable of increasing alcoholic beverage sales

Increasing market share of the community’s banquet business

Increasing property’s profitability



Factors/concerns for planning banquet menus:

Banquet Operations: Menu Planning

Guest preferences

Ability to consistently produce items of the desired quality

Availability of ingredients required to produce the menu

Production/service staff with appropriate skills

Equipment, layout, and facility design issues

Nutritional issues

Sanitation concerns

Peak volume production and operating concerns

Ability to generate required profit levels



Butler ServiceAppetizers and prepoured champagne can be served by service staff at a reception while guests stand.

Banquet Operations: Service Styles

Buffet ServiceQuantities of food are prearranged on a self-service line; guests pass along the line and help themselves.

Family Style (English Style)

Platters and bowls of food are filled in the kitchen and brought to guests’ tables.

French ServiceMeals are prepared or finished at tableside by service staff (e.g., tossing Caesar salad/flambéing entrée)

Platter ServiceProduction staff plate food in the kitchen; service staff bring it to the table and place individual portions on guests’ plates.

Plated Service (American Service)

Production staff preportion food on plates in kitchen; service staff serve to guests.



Individual Drink Price Collecting cash or a ticket when each drink is sold

Banquet Operations: Beverage Functions

Bottle ChargeCharging on a by-bottle basis for each bottle consumed and/or opened

Per-Person Charge

Charging a specific price for beverages based on attendance at the event

Charging the host a specific price for each hour of beverage service

Using hours of beverage service; charging number of drinks per hour times number of guests

Various Ways to Charge for Beverages

Hourly Charge

Specific Per-Event Charge



Size Timing

Two Critical

Concerns

Banquet Operations: Banquet Room Set-Up

Determined by:

Number of expected guests

Local fire safety codes/ ordinances

Types and sizes of tables, chairs, and other equipment

Number of seats per table

Required space for aisles, dance floors, band stands, other entertainment, and head tables.

Reception/buffet tables

Becomes critical when:

The same room to be used same day for different functions

Large evening event precedes following day’s large breakfast event in same room



Last date that banquet space will be held without signed contract

Banquet Operations: Banquet Contracts and Billing Policies

Topics in banquet contract:

Time that a guarantee of attendance must be received

Cancellation policies

Guarantee reduction policy

Billing: Amount and schedule for guest payment

Information about service of alcoholic beverages

Other information applicable to a specific event



Responsible service and consumption of alcoholic beverage is an integral part of the responsibility of all F&B managers in all types of operations.

Alcoholic Beverage Service in Hotels

Train all staff in the hotel (including non-F&B positions, e.g., front desk, housekeeping, maintenance, and/or security staff) to recognize and respond to visible signs of guests’ (and nonguests’) intoxication.

Develop and implement ongoing training for responsible service of alcoholic beverages.

Good training protects guests, the public, and the hotel from tragedies and lawsuits.

Documents

Chapter 10 Food and Beverage. Hotel Operations Management, 2nd ed.©2007 Pearson Education Hayes/NinemeierPearson Prentice Hall Upper Saddle River, NJ