FOR LINKED-IN

FOOD & BEVERAGE BUSINESSES

The future of the Indian hospitality industry is surely upbeat. Host of

international hotel brands, each with multiple sub-brands; have settled in

India to do business. There is hardly a global hotel chain which is not eager to

gain an entry into India.

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In a similar fashion, the food & beverage industry is growing in

geometric progressions each year. New chains of food & beverage businesses

are being formed regularly. The restaurant industry is witnessing number of

mergers and acquisitions. The industry is already estimated to be worth $ 85

Billion and is growing at a rapid pace each year.

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Thousands of food & beverage businesses close down within the very first year of operation. Most of these

businesses have good concepts, involve large capital expenditure, and are started

with the right passion and intentions.

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ON THE FLIP SIDE

These food & beverage businesses fail due to operational inefficiencies, cost-over runs,

changing customer choices, fatigue in the restaurant-design template and MORE OFTEN THAN NOT, due to insufficient knowledge of

ECONOMICS OF FOOD PRODUCTION.

CULINARY ECONOMICS, a book that I have written covers the issue eminently.

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What does the book “Culinary Economics” advocate?

The main theme of the book is cost-effectiveness of culinary operations. The 325

page book is packed with information and tips to Chefs and operators to ensure profitability

and success of a culinary business. The book identifies the economic pitfalls of a culinary

business and details robust preventive as well as corrective measures.

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1. THE IMPORTANCE OF FORMULATING A CONCEPT

To start with, “Culinary Economics” advocates a culinary business to formulate a strong concept as its

foundation. Concept led and concept directed - quality food pre-production and

production processes must remain as the core activity of a culinary business.

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2. BACKWARD INTEGRATION OF FOOD PRODUCTION

Managements must create objectivity-centric backward integration of food production with robust standards of

purchase and supplier management as well as those of the receipt of raw food

products and ingredients, their storage and issuing. Food production and quantities of

food production must be planned.

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3. FORWARD INTEGRATION OF FOOD PRODUCTION

Formulations of all benchmarks must be in line with the dictates of the concept. The food pre-production and production processes must be forward integrated

with service-guarantees led food service benchmarks. Food production quality must

be in line with the concept of the business and the marketing promises.

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4. STRUCTURING AND MAINTAINING BENCHMARKS

“Culinary Economics” advises operators and Chefs to ensure the highest

possible concept-directed benchmarks of tangible and intangible food and

beverage products and services to a customer for a positive and memorable

dining experience as well as repeat patronage.

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5. CONTROLS AND ENGINEERING

“Culinary Economics” advises cost-efficiencies and non-negotiable controls at each of the functional and operational areas of a culinary business. The book refers to

Chefs and operators as “Culinary Engineers” and provides handy and step-by-step methodology for positive engineering

of food and beverage menu items.

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6. IMPORTANCE OF CULINARY ANALYTICS AND AUDITS

Culinary analytics are important to study regularly to decide the immediate and future course of action, course correction wherever

required, and the repositioning of the business itself-if required. Structured and regular reviews of benchmarks must be

ingrained into the functioning of a culinary business. Audits and audit trails must be

viewed as highly supportive of future actions.

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7. OBJECTIVITY IN FOOD PRODUCTION

Food production processes are thought of as highly subjective. “Culinary Economics” identifies with the divide and balance

between subjectivity and objectivity in a food-led business and directs operators and Chefs to introduce as high objectivity into

the system, as is possible. The book provides sequential information to achieve

the same.

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8. KNOWLEDGE EXHIBITS – TRIBUTES TO “CULINARY ECONOMICS”

“Culinary Economics” presents more than 40 exhibits. However, the true “tributes” to the book are two exhibits-on A1 size of paper. The first exhibit is the “CONTROL CHART”

which identifies the Control Points of a culinary business and actions to be taken at

each Control Point. The second exhibit details the “Cycle of Strength – Cost Effective

Culinary Operations”.

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This book would prove invaluable for hospitality professionals - corporates, venture

capitalists, entrepreneurs, chefs, food & beverage managers, students, trainers,

consultants, operations and finance auditors, food & beverage controllers and many more

professionals.

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THE COVER OF THE BOOK 15