Cost Control in Hospitality Operations

This assignment examines the cost control strategies employed by an Executive Chef at a Hilton Hotel. The interview with the chef reveals their approach to maintaining profitability by managing food costs (28%-35%), reducing waste through standardized recipes and weekly inventories, and implementing financial controls across receiving, storing, purchasing raw materials, and daily operations.

Running head: FOOD AND BEVERAGE MANAGEMENT
Food and Beverage Management
Name of the Student:
Name of the University:
Author Note:

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Contents
Introduction......................................................................................................................................2
Analysis of the Interview Findings..................................................................................................2
Type of hospitality enterprise managed by the chef....................................................................2
Maintaining the cost control of front of house operation............................................................3
Maintaining the cost control in back of house operation.............................................................3
Financial cost control methods used in daily business operation................................................3
Evaluation of the findings and its effectiveness in managing food service operation.....................4
Reference List..................................................................................................................................6
Appendices......................................................................................................................................8

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Introduction
Hilton Hotel is one of the famous hotels in Sydney with its high end restaurants. Hilton
Hotel has dining restaurants for its customers and it provides great quality service. This paper
will analyze the interview of an executive chef of the hotel. The restaurant is famous for its
various famous dishes which are available at an affordable price to the customers. The chef
manages both the front house of operation and back house of operation. There must be proper
communication between the front house and the back house which has to be managed by the
chef. It is also important to analyze the cost of operation so that it will benefit both the
management and the customers. The customers must be provided better service at an affordable
cost (Karatepe et al. 2014).
Analysis of the Interview Findings
Type of hospitality enterprise managed by the chef
An executive chef of Hilton hotel will build the reputation for the hotel by maintaining by
managing, developing and training the team members of the kitchen. The chef manages the
kitchen brigades and provide them necessary training. Hilton is one of the leading hospitality
company which is operating globally. The chef has the ability to implement new plans and bring
changes in the food so that customers will be attracted to try out new cuisines (Molina-Azorín et
al 2015). An executive chef of Hilton hotel also tries to bring innovative ideas so that it yields
profit oriented results to the hotel. The chef is able to convince others and should possess
excellent cooking skills so that it becomes easy for his colleagues to admire him or her (Sachs et
al. 2014). Moreover, the chef can also confront various challenges and work co-operatively in
the group. The chef is also able to fulfill the demands of the customers and provide them the
right cuisines of their choice. The chef also mentioned that he frequently visits the customers and

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ask them about the feedback and tastes so that they can bring improvement and change the taste
of the food (Benavides-Velasco et al. 2014).
Maintaining the cost control of front of house operation
Front of house operation refers to that part of the restaurant where all the staffs works
especially outside the kitchen. This is generally the public area of the restaurant.The chef has
mentioned that to maintain and attain profitability, it is important that the restaurants can
generate the food costs between 28% and 35% without hampering the quality. The food cost can
affect the bottom line of the business if it is too high. The chef has also mentioned that it is
important to prepare the menu in such a way so that it can be easily altered. The chef has
mentioned that they must also know the options or the alternatives which are available so as to
satisfy the customers. They always try to provide the customers related or alternative cuisines so
that the customers do not get disappointed (Nieves and Segarra-Ciprés 2015).
Maintaining the cost control in back of house operation
Back of house operation includes that part of the restaurant which is not visible to the
public. It involves the kitchen and the storage room in the restaurant. The chef has mentioned
that it is necessary to streamline the waste reduction. They always use written recipes so that the
proportion or the amount of spices or seasonings is proper. Moreover, the chef has also
mentioned the importance of weekly inventories so as to keep a track of the food that is wasted
and adjust the inventory accordingly. This has also helped them in identifying the losses of the
restaurants and improving the order process. The executive chef also has to manage the other
kitchen staffs and take important decisions. They also have to bear the responsibility to preparing
special menus for festival seasons. The chef also has to take care of various administrative tasks
and hire the kitchen staff according to the specialization (Ali and Amin 2014).

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Financial cost control methods used in daily business operation
The food and beverage establishments involve huge processes which are associated with
receiving, storing, purchasing the raw materials. The chef has mentioned that at each stage of
operation, there are certain cost control measures which will help in mitigating the problems. The
chef has highlighted the role of standards which is vital and necessary to make comparisons or
judgments. Maintaining standard and quality of the food is the vital responsibility of the chef.
Moreover, there must be certain standard procedures which are necessary for preparation of the
food items within limited cost. Several steps must also be taken to improve and maintain hygiene
conditions. Proper training is provided so that it becomes easier for all the employees to
understand their duties. The most important aspect of cost control which has to be followed by
the chef is to prepare the operation budget which will help in giving a forecast of the sales
activities and the overall business volume (Gin Choi, Kwon and Kim 2013).
Evaluation of the findings and its effectiveness in managing food service operation
It has been found that the executive chef of Hilton hotel has tried to maintain cordial
relation with the employees as well as the customers. The chef has overcome the various
challenges and provided quality food to the customers. As this industry is facing steep
competition with its other competitors, it is necessary for the chef to maintain the quality of the
food in an affordable price. It has been found that the main role of executive chef is to implement
new ideas and plans so that it will improve the business of the hotel. As the head of the kitchen,
the chef must also monitor the activities of the employees so that they provide the necessary
training to the employees and thus it will help in improving their business as well as customer
satisfaction (Jani and Han, 2014). The chef must also take care of various kinds of administrative

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tasks. There must be mutual trust and respect among the employees so that they can provide the
best services with quality food to their customers. It has also been found that the chef must
prepare the menu in such a way so that it can be easily altered if any particular item is not
available. It is also important to track and manage the inventory cost so as to control and reduce
the food wastage. The chef can also raw materials on credit so as to reduce costs. To stay in
competition with its competitors, it is necessary to change the menu of the restaurant and include
their traditional cuisines in festive seasons. The executive chef must take care that the kitchen
brigades serves food to the customers at an appropriated time. If they do not do that, it is the duty
and responsibility to look into the matter and solve the problem. Emphasis must also be provided
to cost control materials (Saleem and Raja 2014). There are certain cost control measures which
are to be taken by the management as well as the executive chef. This will help in improving the
quality as well as standard of the food. Moreover, direct interaction with the customers will help
the chef in knowing their demands and thus it will help the hotel in improving the performance.
The back house cost control measures will the chef in identifying the losses of the restaurants
and improving the order process. The chef must also prepare the menu in such a way so that it
can be easily altered. The chef has mentioned that they must also know the options or the
alternatives which are available so as to satisfy the customers. It is also the responsibility of the
chef to take care of reduction of wastage of food. The food must be provided in proper quantity
so that people do not waste it. Thus, it is important that an executive chef carries out all the
duties in a responsible manner ((Leung et al.2015).

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Reference List
Ali, F. and Amin, M., 2014. The influence of physical environment on emotions, customer
satisfaction and behavioural intentions in Chinese resort hotel industry. Journal for Global
Business Advancement, 7(3), pp.249-266.
Benavides-Velasco, C.A., Quintana-García, C. and Marchante-Lara, M., 2014. Total quality
management, corporate social responsibility and performance in the hotel industry. International
Journal of Hospitality Management, 41, pp.77-87.
Gin Choi, Y., Kwon, J. and Kim, W., 2013. Effects of attitudes vs experience of workplace fun
on employee behaviors: Focused on Generation Y in the hospitality industry. International
Journal of Contemporary Hospitality Management, 25(3), pp.410-427.
Jani, D. and Han, H., 2014. Personality, satisfaction, image, ambience, and loyalty: Testing their
relationships in the hotel industry. International Journal of Hospitality Management, 37, pp.11-
20.
Karatepe, O.M., Beirami, E., Bouzari, M. and Safavi, H.P., 2014. Does work engagement
mediate the effects of challenge stressors on job outcomes? Evidence from the hotel
industry. International Journal of Hospitality Management, 36, pp.14-22.
Leung, X.Y., Bai, B. and Stahura, K.A., 2015. The marketing effectiveness of social media in the
hotel industry: A comparison of Facebook and Twitter. Journal of Hospitality & Tourism
Research, 39(2), pp.147-169.

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Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., López-Gamero, M.D. and Pertusa-Ortega,
E.M., 2015. The effects of quality and environmental management on competitive advantage: A
mixed methods study in the hotel industry. Tourism Management, 50, pp.41-54.
Nieves, J. and Segarra-Ciprés, M., 2015. Management innovation in the hotel industry. Tourism
Management, 46, pp.51-58.
Sachs, C., Allen, P., Terman, A.R., Hayden, J. and Hatcher, C., 2014. Front and back of the
house: Socio-spatial inequalities in food work. Agriculture and Human Values, 31(1), pp.3-17.
Saleem, H. and Raja, N.S., 2014. The impact of service quality on customer satisfaction,
customer loyalty and brand image: Evidence from hotel industry of Pakistan. Middle-East
Journal of Scientific Research, 19(5), pp.706-711.

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Appendices
Interview Script of an executive chef of Hilton Hotel
Interviewer: Which type of hospitality enterprise do you manage?
Executive chef: We build the reputation for the hotel by maintaining by managing, developing
and training the team members of the kitchen. We also manage the kitchen brigades and provide
them necessary training. We also confront various challenges and work co-operatively in the
group. We try to fulfill the demands of the customers and provide them the right cuisines of their
choice
Interviewer: How do you maintain cost control of front house of operation?
Executive Chef: We try to maintain and attain profitability. It is important that the we generate
the food costs between 28% to 35% without hampering the quality. We give preference to this
because the food cost can affect the bottom line of the business if it is too high.
Interviewer: How do you maintain cost control of back house of operation?
Executive chef: We try to streamline the waste reduction. Moreover, we always use written
recipes so that the proportion or the amount of spices or seasonings is proper. We prefer weekly
inventories so as to keep a track of the food that is wasted and adjust the inventory accordingly
Interviewer: Which financial control methods do you use in daily business operation?
Executive Chef: As the food and beverage establishments involve huge processes which are
associated with receiving, storing, purchasing the raw materials, it is our duty to implement
certain cost control measures which will help in mitigating the problems. We must give more

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importance on the role of standards which is vital and necessary to make comparisons or
judgments.

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