Sam FB Op Mgt Session 4

7/29/2019 Sam FB Op Mgt Session 4

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Food and Beverage Operations Management

Dr. Sam Hazra

Session 4


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Lesson Objectives:1.3/P3 Compare the cost and staffing implications fordifferent systems

Financial implications:- equipment costs

- wages product costs

Staffing implications:- job specifications

- skills, de-skilling, up-skilling, re-skilling

- staff training


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Cost Implications: Before anyone can start calculating the costs of equipment

and labour, one need to consider what equipment isneeded to perform a food and drink operation and howmany staff are needed to operate it.

The type, amount and size of equipment used and needed,will depend on the type of menu and the technique used toperform food and beverage operation.


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Cost Implications: Various food and drink preparation process require

different types of equipment and facilities on what foodand drink is involved.

Whatever the process used there are certain basic rules thatcan be applied which not only make easier workingconditions but also help to ensure that food hygieneregulations are complied with.


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Cost Implications:Facilities used and kitchens can be divided into sections,based on the productions process:

Dry areas storage, shelves, working tops

Wet areas fish preparation, vegetable preparation,butchery, cold preparation

Hot wet areas boiling, poaching, steaming

Equipment atmospheric steamers, pressure steamers,combination ovens, bratt pans, boilers


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Atmospheric steamers, Pressure steamers, Combination ovens,

Bratt pans, Boilers


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Cost Implications:

Hot dry areas frying, roasting, grilling

Equipment

cool zone fryers, pressure fryers,bratt pans, roasting ovens, charcoal grills,cookers (ovens, halogen, microwaves)

Dirty areas refuse, pot wash areas, plate wash Equipment compactors, refuse storage units, pot

wash machines, dishwashers, glass washers


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Refuse storage units, Pot wash machines, Dishwashers,

Glass washers


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Cost, Profit and Sales: The cost of operating a catering, beverage or department is

usually analysed under three categories:

cost of food and

beverage consumedand the cost ofadditional items

MaterialCosts


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Cost, Profit and Sales:

wages and salaries paidto all employees, plus anyemployer contribution togovernment taxes,bonuses, staff meals andtravel, pension fund, etc.

LabourCosts


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all costs other than materialand labour costs, for example:rent, rates, insurance,depreciation, repairs, printingand stationery, china andglassware, capital equipment,etc.

OverheadCosts


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Cost, Profit and Sales: As most catering operations are subject to changes in the

volume of business done, it is normal practice to express

the elements of costs and net profit as a percentage of sales.

A change in the volume of sales has an effect on the coststructure and on the net profit.


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Sales (100 %)

Total Costs

(80 %)

Materials 30 %

Labour 30 %

Overheads 20 %

Net Profit 20 %


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Cost measurement:Gross Profit %

sales revenue costs of sales x 100

Sales

A measure of operational efficiency (not productivity!).

Shows the Gross Profit, i.e. the sales less the costs ofmaterials (food or beverage) as a percentage of sales.It can be used to indicate the percentage of materials.


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Cost measurement:Net Profit %

sales revenue total costs x 100Sales

Shows overall net profit percentage, i.e. the sales less the

total costs as a percentage of sales. Can be used to indicatethe percentage of costs.


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Cost measurement:Material costs %

____sales x 100______Costs of materials

Identifies the costs of materials (either food or beverage) as

a percentage of the sales revenue. Usually calculatedseparately for food and beverages and also then down toindividual or groups of menu or beverage items.


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Cost measurement:Labour costs %

___Sales x 100____Cost of labour

Identifies the cost of labour as a percentage of the sales

revenue.


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Staff: Staff have a critical influence on the success of a foodservice

operation. Most businesses that fail to provide superior customer

service do so because they have failed to recruit individuals thattheir customers would appreciate.

Staff selection process should be given appropriate considerationin terms of

requirements skills

knowledge

and experience required.


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Staff:Within a foodservice operation there are a range of roles.

These include staffing for:

Food production Food service Beverage service Marketing Sales promotion Merchandising Financial and physical resource management People management Supervisory management


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Staff: When selecting customer contact personnel it is crucial to

have people who are likely to be liked by the customers and

whose personal attributes include: a positive attitude

and a customer-oriented approach.

Staffing is a major resource, and maximising the potentialof this resource requires the management of staffing to beconsidered. Staff willingness to learn is also veryimportant.


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Staff: With more and more individuals entering the industry

with improved educational qualifications it is easy to see

that those individuals require higher maintenance.

In order to achieve it people need to be challenged andmotivated through opportunity.

Human resource should be the business strength: theessence of the core competence.


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Labour and Skills involved:What are skills, de-skilling, re-skilling and up-skilling?

Skills are the ability and capacity acquired through deliberate,systematic, and sustained effort to smoothly and adaptivelycarryout complex activities or job functions.

Skills involving ideas are called cognitive skills.

Skills involving manual handling are called technical skills.

Skills involving people are called interpersonal skills.

Skills could also be described as competencies.


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Labour and Skills involved: De-skilling means that due to

technological advances, work becomes

more and more automated, reducing orat times eliminating the need for skilledlabour.

This process is called de-skilling

because there is lesser need for skilledlabour and the job can be performed bysemi skilled or even unskilled labourusing the machines.


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Labour and Skills involved: Re-skilling refers to the fact that

only those workers are retained by

the companies who have someknowledge about how to use thetechnology.

In re-skilling only workers withskills that match the newpractices are retained.


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Labour and Skills involved: In some cases,

organisations decideto go for up-skilling,in which the skills ofthe currentemployees areimproved by training.

Additional skills areacquired to meet thenew skillrequirements.

SKILLS


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Labour and Skills involved: In order for the catering cycle to be carried out

efficiently, it is essential that all managers and members

of staff fully understand their:

responsibilities

skills required

have been trained to carry out their duties and know the standards of performance which are expected

of them.


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Labour and Skills involved:Head Chef

The head Chef is responsiblefor the ordering, receiving,preparing and serving of allfood to guests and staff whereit may be required, includingrestaurant, bars, coffee shopsand function rooms, in ahygienic manner.


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Labour and Skills involved: Specific responsibilities, knowledge and experience might

include:

Food preparation and storage areas includingkitchens, food and equipment stores

Food quality

Food supplies, cleaning materials

Petty cash

High hygiene standards


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Labour and Skills involved: Key targets might include knowledge and experience of:

Gross profit in percentage and cash terms

Control of labour and other costs in percentage andcash terms

Specific customer satisfaction level.


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Labour and Skills involved:Restaurant Manager

The Restaurant Manager isresponsible for thesatisfactory service of allfood and beverages toguests and staff, including

the service of specialfunction meals and buffetand cafeteria service.


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include:

Restaurant, bars, cloakrooms

Banquet and restaurant furniture and equipment

Linen, glass, cutlery and stationery

Restaurant floats, takings, petty cash and casualwages for restaurant and function waiting

High hygiene standards


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Restaurant labour costs in percentage and cashterms

Liquor sales in percentage and cash term

Revenue targets and average spend per head figures

Specific customer satisfaction levels


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Labour and Skills involved:Bar Manager

The bar manager is

responsible for the ordering,receiving, preparing andserving of all beverage itemsto guests and staff where itmay be required and the

maintenance of satisfactorystandards of safety, hygiene,service and customerrelations.


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include:

Bar, liquor and other beverage sales areas

Bar glassware, equipment and utensils

Stocks of alcoholic and other beverages, snacks supplied in

the barBar floats and takings

Enforcement of licensing, hygiene and safety regulations

Permanent and temporary bar staff


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Bar labour and other costs in percentage and cashterms

Liquor sales in percentage and cash terms

Gross profit in percentage and cash termsRevenue targets and average spend per had figures

Specific customer satisfaction level


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Staff Training:Training is the systematic development of people.

The general objectives of training are:

To increase the quality of output by improving employeeskills

To reduce accidents To increase the return to the employee in personal rewards,

i.e. increase pay, recognition and other benefits which theemployee wants from the job


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Staff Training: To make the operation more profitable by reducing the

amount of equipment and material required to produce or

sell in a given unit To minimise discharges because of inadequate skills

To improve morale and achieve a more satisfactory workingenvironment

To encourage willingness, loyalty and interest in thecompany activities


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Staff Training: A training need is present when there is a gap between:

The knowledge, skill and attitudes displayed by people intheir jobs

The knowledge, skill and attitudes needed for them to

achieve the result the job requires both now and in the future


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Staff Training: Advantages of well produces training programmes include:

Standards of performance required being identified

Improved ability of staff

More staff efficiency

Clearer responsibilities


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Staff Training: The role of the manager/supervisor in training is to:

Ensure that staff are competent to carry out the dutiesrequired of them

Ensure that legal company requirements are met

Develop and train staff as required

Develop existing staff to train others Identify training needs now and in the future

Develop the necessary skills in order to achieve thepoints made on the advantages of well-produced

training programmes


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TUTORIAL


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Activity 1

In your groups please design simple hygiene check listfor a kitchen and bar operation.


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Activity 2

Individually please describe financial and staffingissues that can have affect on production of food andbeverage.


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Activity 3

Please complete Lecture Summary Sheet.

Sam FB Op Mgt Session 4

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