Delivery in day(s): 5
The food and beverage industry is emerging in a big way. The major challenge in the food and beverage industry operations today is the continuous need to improve the quality of the food, beverage or for that matter even the service that is being offered. Through a better understanding of the customer need, availability of well educated and trained individuals, professionalism in increasing with each passing day in this industry. The main point of differentiation has now become the quality of service being offered. At the same time an excellent ambience, clean surroundings and a welcoming staff cannot just make up for the issues, if any, in the product. Quality should be a concern in the production process as well with proper adherence to all the manufacturing protocols like fixed recopies, SOPs, standard equipments etc. (Rama, R. 1996).
The given food and beverages operation management assignment basically covers all the aspects right from planning, implementation to evaluation of an event in hospitality. This includes the study of the practical aspects related to the production and services of food and beverage. It also covers the process of planning and developing a recipe and different facets of menu design. Evaluation of financial controls including purchase, costing and selling of products and services has also been included. The analysis of the importance of financing and staffing for different outlets has also been explained. The assignment, therefore gives an insight into the basic skills that a hospitality manager needs to have in order to operate efficiently and effectively.
The basic function of the food and beverage industry basically includes serving food and beverages to the customers to satisfy their needs and Food Production is one of the major parts of the food and beverage industry. Food Production includes different methods of preparing, cooking and serving foods to the customer with the minimum possible utilization of resources, yet maintaining the quality.
Efficient food production can be achieved by following a methodical and logical approach like the equipments to be used should always be in ready to use mode, electrical equipments should be used only when in need, storing all ingredients close to the working area and following a systematic approach like items which take more time should be prepared first (Soman, Van Donk & Gaalman, 2004). The key considerations in food production and food and beverage service systems are:
The basic points of difference of the methods of production are:
The different methods of food production are:
Conventional/Cook Fresh Food Production Method:
This is the most commonly used method of food production in the kitchens. It is based on the just in time management philosophy. The basic steps involved are:
The main advantages and disadvantages of this system are:
Cook-Chill Method:Cook-Freeze method is a simple and controlled system of food preparation. This has been designed to provide more flexibility in food service. It involves the full cooking of food which is then followed by rapid chilling and storage at controlled temperatures and reheating before consumption, (Light & Walker 1990).
The main advantages and disadvantages of this system are:
Cook Freeze Method:This method includes full cooking of food, then chilling rapidly and storing in controlled room temperatures followed by reheating while consumption. The freezing methods can be by liquid nitrogen or blast freezing (Greathouse & Gregoire, 1988). The cook freeze method of cooking includes-Good in, Preparation and Cooking, Blast Freezing, Blast Thawing, Re-heating and Serving.
Sous-vide Method:Sous-vide is also known as vacuum cooking. In this method, food is prepared by submerging the ingredients in a water bath which is temperature controlled. The ingredients are often closed in a vacuum sealed bag (Rhodehamel, 1992).
The advantages and disadvantages are:
The production system to be adopted depends on a number of factors like:
The methods which are gaining popularity these days are the cook-chill method and the cook-freeze method and hence are the preferred methods.
Menu is the list of food items offered to the consumers. Menu development is the process of listing down the available option of food and it requires a lot of intelligence and knowledge. The various factors that need to be considered while planning a menu are:
In order to select a food production and food and beverage service system it is important to understand cost and staffing requirements of the systems. The same have been explained:
The suitability of the different systems to the given situation may be justified as:
Profitability maybe improved in the food and beverage industry by ensuring an efficient purchasing, devising cost control strategies and proper stock management. The main financial statements which may be used to control and manage the finances are:
Income statement: It is also known as the profit and loss statement. This gives a detailed listing of revenue and expenses over the accounting period. The basic formula for the income statement is: Revenue – Expenses + Gains - Losses = Income
Hence income statement can help to find out the income of the business
There are three main sections of the Profit and Loss statement:
Balance Sheet:The balance sheet shows the company’s assets and liabilities. The Shareholder’s equity is calculated as: The Balance sheets are prepared for shareholders or loan officers. This helps to show the financial health of the business.
Assets – Liabilities = Net worth
Cash flow:Cash flow is the comparison of cash on hand to bills due in the near future. Accounts payable is the money due to the business and accounts receivable in the money the business owes others.
Operating budgets:Operating Budget forecast expenses a business must incur to achieve targeted sales revenues. These are basically income statements prepared for a future date. Sales refer to the company’s revenue. The prime costs are food and labor expenses, many restaurants like to keep their prime costs between 60-69 percent of sales. The fixed costs or overheads are .the same no matter how many customers are served. The variable costs change depending on the number of customers served. The conversion costs include direct labor plus business overheads. Then there are some common costs which are shared costs that cannot be easily assigned. In addition to this there are certain other business management tools like production reports, menu engineering, make or buy decisions, inventory control etc.
In order to maintain the profitability of the business, it is important to understand the various elements involved in the costing of a dish or a recipe. The example of costing of a date cake has been explained in the table below:
Cost (per each unit)
(Primary Ingredients Costs) Total:
(Secondary Ingredients Costs) Total:
Utility and Preparation Costs
(Utility and Preparation Costs) Total:
The costs included are the cost of raw materials-primary and secondary and the preparation costs. This helps us in finding the selling price and profits.
It is also important to understand the profit and loss statement of an establishment. The profit and lost statement of a hospitality event has been given below:
Profit and Loss Statement
Registrations of the Attendees
Sales and Proceeds from Stuff at Conference
Total Sales Revenue [J]
Cost of Sales
Raw Material Cost
Packaging and Printing
Total Cost of Sales [K]
Gross Profit [L=J-K]
Total Sales and Marketing Expenses [M]
General and Administrative Expenses
Wages and salaries
Meals and entertainment
Total General and Administrative Expenses [O]
Total Operating Expenses [P=M+N+O]
Income from Operations [Q=L-P]
Income from Collections and Tips
Real estate taxes
Total Taxes [S]
Net Profit [T=Q+R-S]
The standard operating procedure for the product control in the food and beverage industry includes various processes like- Purchasing, Receiving, Storing, Issuing, Pre-Preparation, Preparation and Service. The purchasing process includes identifying the material to be purchased along with its quantity and specifications. The product specifications in the standard format include use of product, test procedures any other special requirements if any. The purchase process in the food and beverage industry may be illustrated as:
The steps to be kept in mind before making a purchase are:
The purchase process may be controlled by following the below steps:
Hence it is important to keep note on the various control measures as mentioned above while making any purchase process in the food or the beverage segment (Riley, 2005).
Rama, R. (1996). Empirical study on sources of innovation in international food and beverage industry. Agribusiness, 12(2), 123-134.
Soman, C. A., Van Donk, D. P., & Gaalman, G. (2004). Combined make-to-order and make-to-stock in a food production system. International Journal of Production Economics, 90(2), 223-235.
Light, N., & Walker, A. (1990). Cook-chill catering: technology and management. Springer.
Greathouse, K. R., & Gregoire, M. B. (1988). Variables related to selection of conventional, cook-chill, and cook-freeze systems. Journal of the American Dietetic
Association, 88(4), 476.
Rhodehamel, E. J. (1992). FDA's concerns with sous vide processing. Food Technology, 46.
Shneiderman, B. (1986). Designing menu selection systems. Journal of the American Society for information science, 37(2), 57-70.