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Financial Control in F-ood and Beverage Operation 2. 1 Uses of financial statements in food and beverage department 2. 2 Cost and Pricing process of the hotel 2. 3 Steps of Purchasing Process Task 3: Menu for Hospitality Events Task 4: Provide Food and Beverage services for hospitality events 4. 1 Food and Beverage service plan for a wedding reception 4. 2 Steps involved with service Plan 4. 3 Evaluate service and Recommendations Conclusion References As this is one of the most important sources to earn revenue so food and beverage operations have got great significance in hotel management and operations.
Organisations in hospitality industry like hotel and resorts are paying maximum attention on food and beverage production and operations. Through this assignment several aspects associated with food and beverage department would be discussed from the view point of a food and beverage manager of a five star hotel in Manchester. After renovation food and beverage manager has been asked to review food and beverage functions of this department and along with this process food and beverage production and service system would be analysed.
Proper budget and implementation of that budget would a huge challenge for the food and beverage manager of his hotel and costing and pricing would also be a challenging job after renovation. Purchasing decision would be discussed through this assignment and how those decisions could be taken for betterment of this hotel so that it can run with profitability. For this five star hotel food and beverage manager will have to manage banqueting functions and suitable menu would be essential how this menu could more effective and attractive would also be discussed through this assignment.
Later on this report several issues associated with hospitality industry would be discussed such as security, ealth and safety and product quality and service standard. Task 1: Food and Beverage production and seNice systems In Contemporary hospitality management there are several aspects are associated with food production and food and beverage service system. Now in this section these aspects are being discussed in follows: 1. 1 Characteristics of food production and Food & Beverage service system: Demand for Food: Demand of food is not same all over the world there is seasonality of food demand.
Customers might not like to eat same food again and again. Peak times of demand of food occur during breakfast, lunch and inner time. Between these demand times there are valleys or slow times. Competitive events could also be an influential for demand of food and based on demand food production could be modified accordingly (Defranco et al 2007). Labour intensiveness of food production and service It is difficult to get service oriented hospitality people and this is the reason why this industry is labour intensive. Employees need training and skills for both food preparation and service.
Health and safety and food and hygiene certificate must be essential for the employees of this industry. Though mployees need to have proper skills but in many occasions this industry needs unskilled employees and gradually they will be skilled. Perish ability of food Simultaneous production and consumption is one ofthe most important characteristics of food service and produced food must be kept within certain temperature. To protect food from bacteria food must be kept either below 5 degree Celsius or more than 65 degree temperature. Food must be handled properly before, during and after preparation.
Changes of Menus Customers might not like same menu every time and menu should be changed on daily basis and production changes accordingly. In this context variation must be bought in food service and preparation then business would be more profitable. Figure: Food Preparation and service process (Miller, 2009) Modern food and beverage service system could be categorised into several methods and both customers and service people are involved in the food and beverage system. Now in this section food and beverage service systems are being discussed from the view point of Dittmer, Paul R. , and Gerald G.
Griffin (2009): Table Service: This service includes plate se?ce or silver service and customers are served at a laid table. Self service: Customers will be required o help themselves from a buffet or counter. Assisted service: According to this system customers are served part of the meal at a table and part is self service. Single point service: In this system customers order, pay receive food and beverage from the same point Specialised service: Through this system customers are served from the point where they are, this is also called tray service Or room service or even room delivery. . 3 Factors affecting recipes and Menu It has been discussed above that there are several food and beverage service systems and to serve customers according to these system this five star hotel ust prepare menu and there are some factors must be considered while preparing menu and recipes. Now in this section these are being discussed in follows: F-inancial resources available: Financial condition of this hotel must be considered in this context and based on resources available menu should be prepared.
Types of restaurant: This hotel has got four restaurants and according to the nature of the restaurant menus could be prepared. Guest spending power: Spending power of customers is one of the most influential factors to set menu and recipes. Food production cost: If production cost is igh then profit then it would be useless to produce that food. Competitive environment: It must be given preferences to what competitors are doing and this hotel must keep competitors in account to prepare menu. Location of the restaurant: Location of the restaurant is another important aspect to prepare menu.
Chefs’ skills: It must be given preference whether chefs are skilled to prepare specific menu and in this context skilled chefs should be recruited. Guest diet requirements: Some guest might ask for Halal or gluten free or dairy free meal and in this context customers’ diet requirement must e considered. 1. 4 Compare the cost and staffing implication in Food and Beverage department Cost minimisation and employing right number of workforce are the crucial decision of food and beverage department for this hotel.
Several types of cost are associated with food and beverage department, now in this section these aspects are being discussed according to the principles of Coltman et al (2000): Actual Cost: The actual cost is what a cost or expenses actually was, for instance the payroll records and check made out to employees will indicate the actual labour cost for payroll period. Budgeted Cost: When a cost is expected to be for a certain period of time is called budgeted cost. Controllable Cost: A cost which could be changed in the short period of time is called controllable cost.
Non controllable Cost: Which cost cannot be changed in short period of time is called non controllable cost. Fixed Cost: Fixed cost is not changed according to product unit and these costs remain unchanged. Variable Cost: Variable cost could be changed according to the production unit and it increase if production is increased. Food and beverage department is sometimes depends on seasonality so staffing should be strategic. To ensure proper operations this hotel should recruit full time, part time and casual employees.
Right employees should be placed in right position. 1. 5 Suitability of Systems of different food outlets There are four different food outlets are available in this hotel, what systems could be applied with each outlet being demonstrated in follows: Main Restaurant: Buffet service could be the best option to serve food from this restaurant as there would be more customers to eat food from this restaurant. Coffee Shop: Single point service would be used to serve food from this shop as there will be less staffs will be working to serve customers.
Chinese Restaurant: There would be plenty alternatives for customers so again buffet service would be good for the customers as serf service would be helpful to reduce cost for this hotel. Fine Dining Restaurant: Tray service would be essential for this restaurant as customer will be given personal service. Task 2: Financial Control in Food and Beverage Operation Financial control and management would be very important aspect for this hotel as cost minimization would be given preference. Now in this section several aspects associated with financial control would be discussed: 2. 1
Uses of financial statements in food and beverage department: Financial statements for this hotel could be used to understand key facts about the performance and disposition of this hotel and several decisions could be influenced by financial statements. This hotel just finished its renovation and long term decisions should be taken to improve profitability of this hotel. Now in this section needs and uses of financial statements are being discussed in follows: Financial statements could be very useful as a precise measurement of operation profit, hotel profitability and financial position could be revealed through the financial statement.
After renovation how long will be taken to bring this hotel to profitability could be understood from financial statement. Current events of the hotel and production process could be monitored through the financial statement. Financial statements could also be helpful to take better decisions for the future. In decision making process financial statements could be very effective as decisions would be taken based on the financial position of the Hotel. 2. 2 Cost and Pricing process of the hotel Cost is defined as the expense to a hotel or restaurant for goods or services when the goods are consumed or the services are rendered.
Food and beverage for this hotel are considered consumed then they have been used and costing would be very important to ensure profitability and hotel must ensure cost effectiveness while making decisions for the hotel especially for the food and beverage department. In costing process this formula could be used: Opening Inventory Value + Cost of Purchases – Closing Inventory Value = usage Amount Usage Amount / Sales Revenue Cost of Goods Sold (%) Pricing decisions: based on situations different pricing decisions could be sued to ensure customer attraction and profitability for this hotel.
There are Some strategies are being discussed those could be used for this hotel: Cost Based Pricing: This method of pricing is often referred to as ‘”cost-plus” pricing. In its simplest form, cost-plus pricing involves hotel calculating average cost per unit and then allocating a specified mark-up, which may be related to rate of profit required by the company, to arrive at the selling price. Value Based Pricing: How much customers are willing to pay for the food this hotel is the main theme of this value based pricing.
According to this strategy hotel cannot impose any price rather they can assess customers perception bout the food standard and quality of this hotel. Customers feedback could be important in this aspect to set price. Competition based pricing: Competitors pricing strategy would be considered to set price according to this strategy. Service standard and product quality could also be considered in this aspect. 2. Steps of Purchasing Process: There are several steps are involved with purchasing process for this hotel, now in this section these steps are being discussed in follows: Figure: Purchasing Process (Chabon, 2007) Need recognition: This process begins with recognizing the need for specific product for this hotel. A problem or need can be solved by acquiring a specific product. General need description: This is description of the general characteristics and quantity of the needed item. Emphasis here is on reliability, durability, price and other attributes desired in the item.
Product specification: The item’s product specifications are analyzed and the purchasing team decides on the best product characteristics and specify them accordingly for the hotel. Supplier search: Who could be the best supplier for the food and beverage products this is carried out to find the best suppliers? Some suppliers may not be considered because they are not arge enough to supply the needed quantity or because they have poor reputation. Proposal solicitation: This hotel will invite qualified suppliers to submit proposals.
When the item is complex or expensive, the buyer will need detailed written proposals from each potential supplier. Supplier selection: Food and beverage department will review the proposals and select a supplier. They will consider competence of various suppliers, their ability to deliver the item on time and also deliver the necessary services. The following attributes have a strong influence on the relationship between the supplier and customer. Order routine specification: This involves preparing the final order with the chosen supplier, listing the technical specifications, quantity needed, expected time of delivery, e. . c. Performance review: Here the hotel will review the performance of the supplier. The hotel may retain, modify, or drop the supplier in future hence the supplier should ensure that he is giving the expected satisfaction. Task 3: Menu for Hospitality Events In hospitality industry for a caterer compiling a menu is one of the most important jobs and several factors must be considered before any menu is prepared. In menu preparation what customers Want should be given preference not what the caterer has got to serve.
This is the situation where for a wedding reception a menu should be prepared and justification of choosing that menu. Assume this is the Pakistani wedding and guest would be Asian community. Menu must be prepared according to the choice of this community. Let’s look at the Menu first: Starters: Sheesh Kabab Chicken Roast Vegetable Samosa Main Dish Chicken Palok Beef Bhuna Nan/ Roti Brown Rice with meat Desert Gajrela Golap Jam with Ice cream Tea/ coffee Aspects of Preparing this Menu Wedding Date: 15 September, 2014 Type of Customer: Pakistani, Indian and Asian Budget: E13. 5 Per person Diet Requirement: Halal Justification of Selection and Suitability of recipes for menu: There are several aspects are creating impact of choosing this menu, now in this section justification of using that menu is being discussed with suitability of recipes for menu: Customers Profile: Majority of the customers are Pakistani origin and while preparing menu Pakistani cuisine has been chosen. This menu has been widely preferred by Pakistani community. Customers Preference: While choosing this menu discussion with wedding reception has been conducted nd according to their choice menu has been selected.
Menu Choice: In this menu there would be three starters, two main dishes with rice and nun or roty and two dessert. With starter guests will get complimentary Salad and Chutney. Selection of menu with event schedule: Customers will be served during lunch time and before serving meal there would be an drinks reception and in total customers will be at the venue for 2 hours. Anticipate special needs: Customers has been asked whether there would be any special requirements such as food allergies, religious requirement and diet requirement.