Food and beverage management 1

Food and Beverage Management

Chapter 1

Learning Objectives

• Identify the major factors affecting the growth of the restaurant industry.

• Identify the common denominators of restaurants.

• Identify the reasons that restaurants fail.

• Identify the major reasons contributing to the financial success of a restaurant.

• Identify the skills necessary to manage a restaurant.

Trends

• INDUSTRY TRENDS – Food Trends

– Table Service Trends

Food Trends

• Waistlines and Wallets

• Innovative menu items

• Ethnic foods

• Vegetarianism

• Organic items

Waistlines

Waistlines

Innovative menu items

Ethical Dining, Slow Food,Vegetarianism

Vegetarianism

Organic

Status of Foodservice Today

• Global (NRA,2009)Trends on Foodservice– Family value marketing

– Multiple Branding

– Cook/chill method

– Upscale menus

Status of Foodservice Today• Trends on Foodservice

– Home meal replacements/Meal solutions

– Display cooking

– Contract foodservice/Outsourcing

Some more Trends…

• TV Chefs: Role of Media

• East meets West • What are you cooking

with, not just How? • Healthy and Flavorful • Nibbling

Some startling facts regarding the reasons restaurants lose customers:

• Customer dies 1%• Moved away 3%• Influenced by friends 5%• Lured away by the  competition 9%• Dissatisfied with product 14%• Turned away by an attitude of indifference on the part

of a company employee 68%

Service Trends• Winning customer loyalty

• Growing focus on Service Quality

• Better F&B people today,.

• Service minded not servant minded.

Michelin Rating

• Just like Hotels, there is star ratings for restaurant.

• Done by company called Michelin

COMMON DENOMINATORS AND ITS

CLASSIFICATION

• Utility versus Pleasure

• Service and Menu Price

• Food Preparation Method

• Menu Development

Utility versus Pleasure

• Utility: Usefulness, Practical way, easiness.

• Pleasure: enjoyment, happiness and satisfaction

Utility versus Pleasure

High utility/low pleasure

Vending machinesFast-food operations CafeteriasCoffee shops Family restaurants Dinner houses Luxury Dinner houses

High pleasure/low utility

High Utility and Low Pleasure

High Pleasure and Low Utility

Types of Restaurants

Restaurants

Upscale(High-Check

Average)

CasualService(Mid-Scale)

FamilyService

Quick-Service

OH – 1.7

Service and Menu Price

• Level of Service– Counter Service, Tray

Service, Room Service, Self Service,

• Type of Menu– Fixed, Table d’hote, Ala

Carte etc.

Food Preparation Method

• Fresh versus Processed

• Depending on how much the restaurant is processing.– Ex: Making

Mayonnaise

Menu Development

• Frequency of Change

• Type of Menu• Size of Menu

Why RESTAURANTS Fail?

• Financial Loss = Failure

• Financial Loss– Fail to increase sales– Fail to cut cost– Break law/contracts– Failure to manage resources (Staff,

Materials..)

Failure to Increase Sales

– Same Concept – Restaurants have a life cycle. – Lack of Creativity

Failure to Control Costs

• Productivity

• Cost Cutting versus Cost Control– The focus often is on cutting costs when it

should be on increasing sales.

THE SUCCESS FACTORS OF RESTAURANTS

• Right Concept

• Execution

• Service

• Meeting Customer Expectations

THE SUCCESS FACTORS YOUR EVENT.

• Right Concept

• Execution

• Service

• Meeting Customer Expectations

How to create a concept?

Idea/Concept can be good, but poor execution will fail the concept.

SOPs/ Service plan to Ensuring Service Quality

Knowing what Customer is expecting, Try to exceed?

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

1. Cost control and financial management:

monitoring, controlling, and reporting the profitability indicators for the store

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

2. Supervision of shift operations:

running each shift efficiently, effectively, and in accordance

with procedures

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

3. Organizing and planning shift operations:

making preparations for each shift so that operations run smoothly and efficiently

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

4. Unit Coordination and Control: communicating and coordinating among store managers and their supervisors and others in the organization

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

5. Customer relations:

improving customers dining experiences

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

6. Motivating employee performance:

monitoring, enhancing, and controlling employee

performance

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

7. Employment and development of crew members: recruiting, selecting, developing, and retaining crew members

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

8. Communication with outside sources: communicating with management, marketing, and community resources

outside the store

MANAGEMENT SKILLS:

9 BASIC FUNCTIONAL AREAS

9. Monitoring and maintaining facility and equipment:

keeping all physical assets operational and in good repair