Delivery in day(s): 5
Food and Beverage Operations Management Assignment
Diploma in Hospitality Management
Unit Number and Title
Food and Beverage Operations Management
The food and beverage is one of the largest industries for any country, since it offers the job to large group. This area is quite appealing to a lot of people who are keen in hospitality sector. This includes restaurants, pubs, lounges, coffees, fast food outlets etc. The aim of food and beverage operation management assignment has been offering knowledge on the two aspects- operations as well as supervisory aspect, needed for running a food & beverage business. This business can be for locals as well as for international customers in a variety of enterprises. To support an approval of the foundations of this kind of systems & to comprehend the diverse aspects caught up in fulfilling the client requirements. This will provide with a perceptive of food & beverage & its service in several approaches of restaurant & institutions & will encompass ample information to generate a wide arrangement for precise food & beverage functions.
a. Discuss the use of financial statements in food and beverage operations (2.1)
The financial statements are the statements of the finances of any firm. These show the financial position at a given point of time or for a given period of time. These statements can be classified as balance sheet, retained earnings statement, income statement and the cash flow statements. For any food and beverages dealing the financial statements cover all the flows of finances from the raw material to the realisation of sales and even much more to it. A chef needs to assess the need of raw materials as well as products needed for the catering operations.
The dish estimate expanse is requisite for assessment of the expenditures of each and every shares of recipe. The estimated expenses also assist in deciding the menu price and sales price, inclusive of the profits expected.
One more aspect of financial statement for food and beverage segment is the functional reporting. These operational reports help in assessment of the business’s financial performances. The revenues as well as expenditures of the business for a given period of time are reflected via these statements. This operational or functional report is also known as statement of earnings, P&L statement or income statement. This statement calculates the net income by deducting the expenditures from the revenues, or expenses out of the receipts. The food and beverages business also employs variance analysis in the financial terms. This means assessment of the variances (i.e. difference between expected and actual costs incurred) For the purpose of variance analysis, there can be segregation of the raw material expenses into the material treatment difference with material cost difference.
b. Demonstrate the use of cost and pricing processes (2.2)
The cost and pricing practice is capable of being employed by the food and beverage industry in the ways defined as below:
- revolving the expenses by FIFO technique
- By acknowledging the little margin things to augment the productivity
- By means of the apposite recipes to prepare the orders
- By having the exact dippers and scrapes on the row at provision
- By recurrently examining the segments for required precision.
- Exercise of precise degrees meant for inspection of the orders
- Assessing the minute inventory prior to placement of any new order
- By assessing the charges of specific food item ahead of decision regarding the menu price.
c. Analyse the purchasing process (2.3)
By purchasing process we mean the acquisition of all the goods and services that are needed by the business for the accomplishment of the organizational goals. The key aim of the buying behaviour is:
- To reinforce the competitive arrangement of an establishment
- Suitable delivery of commodities
- To preserve the worth and excellence of goods of a business
- To preserve the suitable flow of inputs
- Suitable storage space for thecommodities
- It moreover entails the re-evaluate and improvement of product requirements
- To uphold the proper flow of productions
- To assess the propositions and promotion intended for the tenders
- To examine the received commodities
- To diminish the money requisite for inventory
Fig: Purchase cycle
The purchasing method trails the modus operandi that is as given below:
- Recognize the needs: Before starting the purchases of any materials, there has to be analysis about the overall requirement. There is material needed for the production process as well as internal needs of the business (The Food Safety Regulations, 1995).
- Specify need: The specific needs of the internal as well as external customers are necessary so that there is right product delivered to the right person in the apt amount. This would avoid the under-production or over-production.
- Deciding the sourcing options: Once the need is assessed, there is a need to find out the alternate sources of getting the raw materials, and choosing the best out of the available sources.
- Settle on prices and terms with suppliers: This is the financial as well as legal phase of the buying procedure. The market segment has to be understood w.r.t costs to be incurred on materials and final prices to be offered to the customers. This might be assessed as per the principle of demand and supply.
- Preparing the Purchase Order: This is an official manuscript which covers all the terms and conditions agreed among the seller and the buyer. This purchase order is necessary for purchasing the material and specifies all the settlement areas agreed by both the parties (The Miller Group, 2005). It includes the specification of material, date and time of delivery, cost, any legal or any other specific obligations etc. The written document can be referred to, in case any conflict arises in the future among the two parties.
- Delivery of Purchase Order: After finalisation of the purchase order, there is a need for delivery. This delivery can be via any mode- mail, fax, courier, etc. This method to deliver is as per the nature of the material. This material might be fragile or non-fragile. However, this method to delivery needs to be declared and pre-approved in the purchase order.
- To accelerate the processing: Any act that makes sure that the material is supplied at the required time and is as per the order (Matarese and Hamilton, 1998). It is a check for the unsettled, behind schedules or proceedings acts.
- To accept and anticipate the buying: This step can either approve or disapprove any item, as per the order. In case the material is accepted, it’s the liability of the buyer to pay for the prices of materials to the supplier.
- Invoice creation and receiving payments: The above mentioned liability can be cleared by the supplier giving out invoice for the payment. This payment is made after careful assessment and calculation of the invoice.
- Maintenance of records: The records need to be maintained for the future reference, auditing financial issues etc.
d. Compile food and beverage menus for a hospitality event (3.1)
The “term’s end” need a bash to happen, for which the students of this course are gearing up. The necessary arrangements have been done and also I have got an agreement with the local-community pub, as a venue for that party. The list of invitees will include every classmate, with their spouses and offspring.
So, this means as there are 60 guests, ~48 will be grownups and 12 are kids. There are 15 vegetarians and 4 people who are diabetic. So, the food and beverages need to suit every person’s need. There have to be exciting ways to keep the kids also involved. So, there need to be snacks and shakes that make the kids happy. The sweets/ desserts are must to please all in the party. There has been a budget allotted to the food and beverages segment, of £850. The committee formed to organise the event, also has a job to contact everyone- visitors, the event organisers, decorators etc. However, food is the main apart of any event, so the menu arrangement is necessary for an event to be a success. The whole of the crowd will be upset in case food is not good. The quality of operations will be reflected by the food arrangement. The food, or menu chosen is the foundation stone for the concept, and layout pf the party. There are 3 categories in which we can divide the menu i.e.:
- Appetizers/ snacks/ start-ups
- Main course
- Sweet dish / desserts
And in case of beverages it can be soups adjoining the appetizers i.e. before main course, juices/ cocktails/soft drinks/hard drinks just along with or after the main course, hot coffee/tea after the food. The food and beverage planning can be self-operated or outsourced. The outsourcing means franchising, contract managing, etc. The chief menu contemplations for the experience are:
- The visitors, guests
- Latest inclinations
- Foodstuff prerequisites
- Functioning and industry concerns
- Menu arrangement laws
- Flexibility (WHO, 1999)
- Dietary stability
- Ingredient equilibriumAttaining the essential license for supplying the liquor
The most appropriate menu can be planned, only after conversation with the event’s host. This will assist in better planning and meeting the needs of the customers. The menu planning should be such that there in shortage of food for the guests. As per General Food Regulations (2004), a huge amount of efforts is needed to get a wide-range of Menu, as per the need of customers. The menu is as below, based on the different age groups of the guests, as some are diabetic, vegetarians and non-vegetarians.
Menu sample for the given event:
e. Justify the selection and suitability of recipes for menus (3.2)
The above stated menu has taken care of all the visitors and their choices, so the recipes and choice of menu is justified. The main part of the food is ingredients as well as the way the food is served. The recipe of the food can be taken as:
- Standard food
- recipeaccessibility of necessary components
- Seasonal components
- Price of ingredients
- Storage aspects
Not only the taste, but hygiene is also important for the recipe. This would be necessary for the customers who suffer from diabetes or need a low-fat food or need vegetarian /non-vegetarian food. The guest who are pure-vegetarians need to be assured that there is nothing that is not as per the eating norms of the guests (Bowdin, McDonnell, Allen and O’Toole, 2010). While planning of menu, these things need to be kept in mind along with the Hazard Analysis and Critical Control Points (HACCP). This would assist the avoidance of food as of substantial, chemical or organic risks in the food making practice. The choice of menu is right as all the factors have been well considered.
a. Plan a food and beverage service for a hospitality event within an agreed budget (4.1)
Technique and approaches of food and beverage provisions:
These techniques and approaches would involve the following:
- Table service- The services at a table include the particular areas which are reserved for the guests. The table needs to be clean and beautifully decorated with the menu placed on top of it. In this kind of service, the food and beverages are served as per the request of the guests. The waiters and waitresses take the order and serve the same on the tables.
- Assisted Services – This is where the visitors have to help themselves in serving food, and get help from waiters and waitresses. For example: the buffet in the restaurants where all the food is laid on table and guests just choose their food and bring that to their tables. Any additional breads or drinks needed might be served by the waiters.
- Self –Service – There is no one to bring food to the table, herein the guests have to go to the area where food is served, and get it to their tables. Even water is not served on the table, and there is a water dispenser, or water bottles placed outside with the food. This is totally self-help (Statutory Instrument No. 1763, 1995).
- Single point service– Herein, the guests order the foodstuff at a particular point at counter.
- Dedicated services – Under this process the visitors are served at the place that is not intended in favour of utilizing the foodstuff. Such as the guests desire to boast about the foodstuff at their relaxation vicinity (Brummit and Norner, 2001).
b. Implement the planned service maintaining standards of quality and health, safety and security (4.2)
There are the HACCP principles and benchmarks that influence the quality, safety, health care and hygiene of the food. The strategy to plan the menu is affected by these standards.
Menu Planning Strategy includes:
- Validation and overview of the functioning effectiveness
- Restructuring the buying, storage and manufacture of the ingredients needed for the food-menu design
- By means of the high eminence of the groceries and good components would diminish the raw materials’ cost.
- Knowing the demands of the people and their personal preferences.
- Analysing the need and want of the invited guests
- Utilizing similar ingredients in various different recipes (National Health and Medical Research Council, 2013)
- The pricing methods such as assessment of the price of components, menu, and the assessment of final prices. For instance, if the food expenditure is 50% then the cost multiplier can be calculated as 1/50% i.e. 2. So this will lead to managing well-the cost effectively.
As per these guidelines, HACCP is the chief criteria that have to be kept in mind while deciding a menu. It is a method to make sure that the food does not get harm from any dust, chemical or any other unwanted hazards during cooking and preparation. So the analysis would involve:
- Analysing the risks or dangers to the food
- Recognize the important aspects where food quality can be controlled the
- Laying down the benchmarks for the food quality
- Assessment as per the benchmarks
- Taking corrective measuresc.
c. Evaluate factors to determine the success of the service, making recommendations for improvement (4.3)
- Customer Service:The customer service is very important for the hospitality sector (Potter et al. 1995). The success of food and services is dependent on the way these are served and offered to the guest. This needs proper training for the staff. They have to be groomed, well dressed as well as quick in resolving issues related to the event management. The quality services need to make sure that the guests are attracted and turn into repeated clients for the food and beverage provider.
- Advertising:It is also the key for promoting the business and attracting more and more customers. Like, many restaurants target the clients by offering discounts on food.
- Cost Control: Cost management is also very important for this sector. The costs vary as per the seasonal and non-seasonal vegetables and other ingredients. Different rates can be charged from loyal and other clients.
- Product Differentiation:The unique and overwhelming experience of the guests may depend on the behaviour of the staff and the preparation of food and beverages. The differentiation can be based on the prices offered as well as the level of services offered to the guests.
Food and beverage service is the "food course" (as of the buying of the provisions to service to the client) chiefly related to the deliverance and arrangement of the foodstuff to purchaser, subsequent to finishing point of the food assembly. From time to time, it engrosses transportation in case there is a division of assembly and service conveniences.
Bowdin, G., McDonnell, I., Allen, J., O’Toole, W. (2010) Events Management 3rd edition. Oxford: Butterworth-Heinemann
Brummit P and Norner B. (2001) Practical Considerations in Enteral Nutrition. Evansville, IN: Mead Johnson & Company.
General Food Regulations (2004) Available at http://www.legislation.gov.uk/uksi/2004/3279/pdfs/uksi_20043279_en.pdf [Last accessed 27/11/2014]
Matarese L and Hamilton C. (1998) Nutrition Support Indications and Efficacy. In: Skipper, A ed. Dietician’s Handbook of Enteral and Parenteral Nutrition. Gaithersburg, MD: Aspen Publishers, Inc.
National Health and Medical Research Council (2013) Australian Dietary Guidelines, Commonwealth of Australia.
Potter, J., Klipstein, K., Reilly, J. J., and Roberts, M. (1995) The Nutritional Status and Clinical Course of Acute Admissions to a Geriatric Unit. Age and Ageing 24, 131-136.
Statutory Instrument No. 1763 (1995), The Food Safety (General Food Hygiene) Regulation. TSO; London. Available at http://webarchive.nationalarchives.gov.uk/20100817075455/http:/www.food.gov.u
/foodindustry/guidan cenotes/ [Last accessed 27/11/2014]