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FOOD AND BEVERAGE MANAGEMENTInteractions, Ratios and Contract Services
1
Operational InteractionsF & B division and other units are mutually
dependent.There should be direct interaction between:
Front desk and F & B - specific guest requestsSales department and banquet unit – banquet and
conventions bookingsF & B and Front Office – announce new menu or
special activityGuest relations unit and F & B – feedback on
utilization rate of F & B outlets
Operational InteractionsF & B manager must know who the
customers are, what they like and how many customers to expect with the input from other departments and units.
Every hotel employee should be trained to refer / recommend F & B services to guests.
Operating Ratios - importantFood and Beverage Sales per Available Room
total food and beverage sales = $? per room no. of rooms available
Food and Beverage Occupancynumber of covers = ? turnsnumber of seats
Sales per Available Seattotal food and beverage sales = $ per seat no. of seats available
Average Checktotal food and beverage sales = $AC no. of covers
Ratio of Beverage Sales to Food SalesBeverage sales x 100% = ? % Food Sales
Food Cost PercentageCost of food x 100% = ? %Food sales
Labor Cost PercentageF&B Labor Cost x 100% = ? % F&B sales
Director of Food and BeverageObjectives:
Meet and exceed guests’ needs and expectations by ensuring proper service standards, providing quality food and beverages, managing all aspects of operations.
Provide all guests with the highest quality F&B experience by working as a team with all F&B outlets, ensuring prompt, polite and professional services, resulting in increasing employee morale, decreasing turnover rates and lowering service times.
Director of Food and BeverageObjectives:
Seek profitability in the F&B department by decreasing all costs, maximizing sales in all outlets, achieving budget and profit guidelines, meeting and / or exceeding long / short range goals.
Director of Food and BeverageSpecific Operations Functions:
Provide the highest quality in food, beverage and service in all outlets.
At least one daily walk through of all F&B areasMaintain existing programs and develop new programsDaily talks with all staffs and managersMaintain high quality image through effective
housekeeping and sanitationMaintain physical security for all outlets and inventoriesKnow local competition and industry trendsChange menus based on seasonality
and product availability
Director of Food and BeverageSpecific Management Functions:
Directs and coordinates all activities of personnel and departmental responsibilities
Daily contacts with staff and performance reviewsMarketing of each F&B outletAchieve budgeted sales and maximum profitabilityMaintain fair wage and salary administration
Strategic Alliance betweenHotels and Restaurants
Four key questionsWhat are the hotel customers’ F&B needs and
expectations?Which F&B concept best aligns with the positioning
of the hotel?Would converting the restaurant to a brand name
restaurant improve the hotel’s bottom line?Would turning to a brand name F&B operation give
the hotel a competitive advantage?
Strategic Alliance betweenHotels and Restaurants
Reasons for alliance between brand name hotel and restaurants:Create financial benefits Provide guests with greater valueImprove the hotel’s overall imageStrengthen the hotel’s competitive advantageCreate operational advantage
Strategic Alliance betweenHotels and Restaurants
Types of restaurants:Quick Service
KFCLotteriaPho 24
Casual / FamilyAl FrescoPizza HutNgon
Upscale◦ Yeebo◦ Au Lac Do Brazil◦ Li Bai @ Sheraton
Theme◦ Hard Rock Café
Restaurant FranchiseAdvantages
Helps to reposition hotelMay increase revenues, occupancy, profitsFranchiser is continually assessing and improving
menuFranchiser is knowledgeable about restaurant business
DisadvantagesFranchise feeHigh initial investmentRequires a certain volume to warrant using a franchise
brand
Restaurant FranchiseFactors to consider1.Desired hotel position and customer perception
you want to create for your hotel.2.Assess the revenue and costs, profitability of
having a franchised brand restaurant3.Select a restaurant company that has the same
corporate culture and shares the same operational goals
4.Consider the menu offered, restaurant décor, training support and management support from franchiser, and ability to handle room service
Contract Relationships4 types of relationships between hotel and F&B outletsInternally developed restaurant brandFranchised restaurant brandStraight leaseManagement contract
Contract RelationshipsInternally developed restaurant brandHotel develops own restaurant with little
outside help.The restaurant is a unit belonging to the hotel
controlled by F&B director. Advantages:
Hotel has total control over all the operations.No need to pay any fees to outside parties, hotel
keeps all profits
Contract RelationshipsDisadvantages:
Hotel may not have the expertise to successfully run a restaurant business
Developing the restaurant into a famous brand takes a longer process
Contract RelationshipsFranchised restaurant brandHotel buys a franchise from a famous
restaurant franchisor.Franchisee (hotel) operates the restaurant
according to the guidelines laid down by franchisor including:MenuDécorFood preparation Service processes
Contract RelationshipsAdvantages:
Franchisor has the expertise and know-how Franchisor can provide training to the
personnel in the restaurantThe franchisor’s brand is already a recognized
brand with a ready customer base.Disadvantages:
High franchise feesHotel has less control in the operations
Contract RelationshipsStraight leaseHotel rents out the space inside the hotel to
an outside restaurant company.Hotel only collects rent; it has no say in the
operations of the restaurantAdvantages:
Guaranteed revenue from rentalDisadvantages:
Little control over the operationsRestaurant may be a mismatch with the
hotel’s positioning
Contract RelationshipsManagement ContractHotel lets an outside company manage its
restaurant.Hotel pays the company a management fee Management company is responsible for
recruitment, selection and training, as well as all day-to-day operations
Personnel may or may not be under the payroll of hotel.
Contract RelationshipsAdvantages:
Management company has the expertise and know-how
Disadvantages: Management fees and possibly profit sharingHotel has little control in the operations
Hotel CateringRefers to providing food and beverage
service outside of a restaurant / bar / café setting.
May be done in a meeting room / ballroom / courtyard / garden or other locations.
The F&B division is in charge of not only food preparation but also decorations, such as table settings and lighting.
A huge revenue generator for the hotelHigh visibility and can create an image
for the hotel
Hotel Catering - PersonnelDirector of catering (reports to director of
F&B)Oversees all catering functionsWorks closely with Director of Sales and
MarketingCatering managers (reports to director of
catering)Maintain client contacts, plan menus, themes,
room set up, décor, negotiate with clients
Hotel Catering - PersonnelBanquet Manager (reports to director of
catering)Supervises maitre d’, room captains, servers,
bartenders.Acts on director of catering’s requestsSupervises table settings and décor
Scheduler (in a big catering operation) Plans the rooms, reception area and time scheduleKeeps records to avoid overbooking or
double booking
Hotel Catering - PersonnelMaitre d’
Supervises all service personnel including captains, servers & all aspects of guest service
CaptainManages a section or a specific roomSupervises the servers in the section or room
ServerServes either food or beverage
BartenderServes alcoholic drinks
Hotel Catering - PersonnelSteward / Housemen
Set up the equipment, tables , chairs, glassware,
crockery and cutlery Engineering department personnel
Provides necessary utilities such as air-conditioning, electrical wiring, audio visual equipment, banners