Food and Beverage Operations Management: A Comprehensive Guide

This comprehensive guide delves into the intricacies of food and beverage operations management, exploring key concepts, techniques, and best practices. It examines various food production and service systems, analyzes staffing and cost implications, and provides insights into financial controls, purchasing processes, and menu development. The guide also includes a practical case study of planning a hospitality event, highlighting the importance of budget management, quality assurance, and health and safety considerations. This resource is ideal for students and professionals seeking a thorough understanding of the principles and practices of food and beverage operations management.

Food and Beverage Operations
Management

Table of Contents
EXECUTIVE SUMMARY...........................................................................................................................2
INTRODUCTION.....................................................................................................................................3
BACKGROUND.......................................................................................................................................4
MAIN CONTENT.....................................................................................................................................5
CONCLUSION.......................................................................................................................................19
RECOMMENDATIONS..........................................................................................................................20
REFERENCES........................................................................................................................................21
1

EXECUTIVE SUMMARY
The food and beverages operation is a diversified business comprising of many factors that
aim towards a successful and quality delivery of the services as a part of the hospitality
industry. Food and beverages operation management act as planning and organising for
successfully delivering the service as per the demand of the customers via accurately
arranging the food by deciding menu and recipes and optimising the services with skilled
and trained staff (Lu and Kandampully, 2016). Also the decision regarding the food system
to opt while delivering the food services at an event is the keen decision taken in the Food
and beverages operation management.
2

INTRODUCTION
Hospitality industry comprises of a diversified business operating for providing the quality
services to the customers. Hotels, catering and restaurants are keen to part of the
hospitality sector, making the tourist and public serve with a variety of food and beverages
to fulfil the demand and specific needs and wants of the customers. This essay comprises of
the details regarding the food and beverages operational management with discussing
various food and service system. The essay focuses is on the techniques, approaches and
various methods of cooking and factors influencing and considered while developing and
planning for the menu and recipes (Lu and Kandampully, 2016). Furthermore to understand
the factors and operational management in the food and beverages sector a food event is
planned in context to organising an outing event i.e. lunch by the students of a college in the
UK. For this, a menu is being prepared for successfully organising and conducting the event
in consideration of the budget allocated. The basic food preparation process is being
explained in the below diagram for effectively operating the event (Jahanshani, et al. 2014).
[Source:
https://www.tutorialspoint.com/food_and_beverage_services/food_and_beverage_service
s_cycle.htm]
3

BACKGROUND
This includes planning and preparation of foods and beverages for the particular hospitality
lunch event organized in a college of UK for student’s graduation ceremony. This essay
comprises and focuses on the arranging of the food and beverages with assessing the
factors impacting the event say in regards to the costing, budgeting etc. The food and
beverage operations also consist of various types of factors related with the hospitality
event such as; budget, health & safety, customers' satisfaction, etc (Cousins, et al. 2014).
4

MAIN CONTENT
FOOD AND BEVERAGE PRODUCTION AND SERVICE SYSTEM
 CHARACTERISTICS OF FOOD PRODUCTION AND FOOD AND BEVERAGE SERVICES
SYSTEM
There is a variety and wide range of foodstuff consumed and procured by the people and
the hospitality sector serve these individuals as per their demand to carter their needs and
wants. The different food styles and production system has their own specific characteristics
that feature the techniques and methods of cooking and preparing the food (Davis, et al.
2013). The major parts of the food production system are input-process-output. The crucial
characteristics of food and beverages production and service system are as follows.
Food production methods/system and their characteristics
 Traditional or conventional method: this characterised as one of the most
used and approached food system say in the households and kitchens of large
hotels. Under this, the food is prepared onsite and served instantly to the
people. The food is processed under this with fresh vegetables and food
supplies for serving a quality and warm dishes such as in restaurants, live food
counter or in parties and events.
 Cook-freeze method: this method characterises with the cooking technique of
freezing the food after preparing the food. In this, the food is preserved at
minus temperature say -200C for keeping the food fresh and serves it later on
as per the demand. Example serving in bars, cafes and ice cream parlours.
 Sous-vide method: features of this technique is that it applies the method of
vacuum to add flavours in the food or dish prepared at a temperature, below
the boiling point of 1000C. It is a slow and time-consuming technique in which
air sealed plastic bag is used for giving a tenderness and softness to the
vegetables and other food items in the dish. Example serving in the
restaurants and Michelin star restaurants etc. focusing on high and premium
customers.
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 Centralised cooking method: under this, the food is characterised by in-time
preparation and delivery of the food and dish prepared with minimal wastage.
The method implies an in time production, assembly and distribution of food
by assembling them to a central location comprise of mega or large kitchens.
Example serving for aeroplanes, railways and in hospitals i.e. serving a large
public.
 Cook-chill method: in this, the food is prepared with a rapid chilling technique
and storing the food prepared at lower temperature i.e. freezing point for
maintaining its pasteurization level while serving it freshly after reheating the
dish. Such as using blast chillier and cryogenic methods (using gases like
nitrogen) for storing the food or dish prepared and keep it fresh for say 5-6
days.
Service system of food & beverage
The major categories of service system of food and beverage are as follows:
 Table Service: Guests are served at a table with the help of waiters to serve
the specific orders or demand of the customers at their respective table. Its
major characteristics are that the menu and prices of the dishes are
predetermined and mostly fixed; the meal is prepared fresh as per the order
with the pre-procured ingredients and methods.
 Self Service: also known as buffet or counter system in which a large number
of people and customers are served and administered with an attractive style
of displaying the food. This food service is characterised by a less skilled staff
and delay in service and also not have any sit-down system or specific sitting
arrangements.
 A la carte: this is a French style serving in which the guest places or decides
the food items to be ordered and then the food is proportioned to the guest.
The food is prepared or cooked frequently as per the demand and order of
dishes. It is an expensive and time-consuming service system.
 Silver/Russian service: this is featured with a custom-made service by preparing
food in special utensils and serving them in hot sliver containers. Majorly a
Russian style of serving says in the form of banqueting and various fine dining
events and parties. This involves a high cost in terms of waiters and servers and
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other skilled staff for providing customised food with a tremendous art of
presenting the food.
 Family service: this is featured as English serving i.e. serving as a host says for
a party, function etc. in which the active role is played by the host to serve the
invited guest say, friends, family members etc. Under this, all cost is bear by
the host and the prepared food is placed in dishes and supplied by the server
through a central table with special attention while providing services to the
guest and customers.
 Gueridon service: its literal meaning is ‘trolley’, in which the food served and
reached to the customers via a table, displaying all the preparation of food
with all the dishes and food items as per their order. It’s an expensive service
which needed skilled staff with regular updation and innovation in the recipes.
 Specialized Service: also known as tray service or room delivery service under
which the food or meal ordered is served by the staff or waiter at the location
of the customer. In this, the waiters and servers required special and skilled
qualifications and should have acquainted with specialist food services.
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 FACTORS AFFECTING RECIPES AND MENUS FOR SPECIFIC SYSTEM
A menu planning and selection of recipes are to be featured with various factors that
affect the preparation and vastly impact the procedure and system of the food and
service planning. For example, the major features that have to be considered while
planning for the menu and preparing the recipes are; taste and preferences of the
person with the desired needs and want, flavours and likings of the consumers etc. All
this have to be focused on the other elements like quality, nutrition's, facilities etc. as
external factors that hinder the recipes and menu planning. The major factors affecting
the recipes and menu are as follows (Cluss, et al. 2014):
o Customer preferences and perception: to fulfil all the demands and focusing
on the need of the consumers will positively impact the menu and recipe
preparation.
o Size of operation: the menu is to be prepared with diagnosing the number of
people to be served and selection of recipes is to be made accordingly for
fulfilling their demand. Thus the evaluation of size will provide a basic idea and
knowledge of the menu and recipe.
o Nutritional level: determines the quality contents and health factors while
preparing the meal and considering the allergies and other complications on
the menu decision
o Appearances and flavours: the basic criteria to judge a dish is its components
are its colour and taste provide a sense of appeal to the customers and this is
an influential factor for menu and recipes.
o Quality and superiority standards: the food components used in the
preparation of a meal with maintaining quality affects the menu and recipes.
o Availability of ingredients: proper management and inventorying the food
and food supplements impact the recipes as its hampers the taste and making
the process of the meal and diligently affects the menu.
o The spending power of guest: menu costing and expensive recipe serving and
hinders the purchasing capacity of various customers.
(Cluss, et al. 2014)
8

 COMPARISON OF STAFFING AND COST IMPLICATIONS FOR DIFFERENT SYSTEMS
To hire a correct number of workers and to minimize the cost of an event are the imperative
decisions that are taken by the team members of food and beverage department for the
summer food festival. The team has to manage several types of costs that are associated
with the food and beverage department like; Budgeted cost, Actual Cost, Fixed Cost, etc.
The factors on which the organization structure of the kitchen relies are as follows (Piernas,
et al. 2015):
 The requirement for the food
 Kind of recipes and menus
 Needs for the different equipment’s
 Space and size of the cooking area
Some of the key factors like staffing and costing affect the different food system and service
with impacting its success as well. The foremost requirement for a successful service
delivery is the availability of the labours which may include skilled and knowledgeable staff,
experienced or a trained staff. The factors guiding the staffing implications in the different
system are as follows (Ananev, 2013):
• System skill: skills and knowledge needed such as garnishing the meal or dishes,
appearances and decoration of dish, handling the customers and guests etc.
• Job specifications: while employing the staff the details of the job and tasks to be
done should be explained briefly considering all the factors and norms.
• Training: giving guidance to the workers and staff will ensure the proper implication
of the services and better treatment to the customers.
• De-skilling: eliminating the unwanted labourers and replacing them with the
technologies that are to be operated by semi-skilled or unskilled workers.
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The costing factors that are applicable while creating the menu and influence the different
system used in organizing the event and which has an impact on the system are as follows
(Dopson and Hayes, 2015):
• makes the uses of equipment within the convenience of the staff
• training for staff within the norms attracts costing but provides skills and knowledge
to the staff
• the products and materials used approach to cost form the suppliers
For the summer food festival organized by the students, the different types of chefs that are
hired for the preparation of food and beverage are as follows:
 Vegetable Chef: key responsibilities of this type of chef are to serve hot meals,
vegetables or starch etc.
 Pantry Chef: taking care of making salads and appetizers, and handling the
storage and inventories of the food supplements and required food items
 Trawl Chef: this seeks initiative of the chefs to probe and haunt for lacked
items and serve them to the tables with respect to sustaining and handling the
work effectively.
 Relief Chef: this prepares all types of dishes and meals provided to the end
consumers or customers with a variety of soups, starches, veggies etc.
10

 SUITABILITY OF SYSTEM FOR PARTICULAR FOOD AND BEVERAGE OUTLETS
For the particular types of foods and beverages outlets, many different types of services
can be used by the students in the food festival. These services are as follows (Davis, et
al. 2013):
 Plate Service: This type of service could be utilized in the food festival due to its
good portion of control with quality services to the customers.
 Buffet Service: also known as counter service, in this the requirement of staff is
comparatively low and thus it is an economical method.
 Special Service: This type of food service requires high-quality special foods and
beverages for the guests of the food festival.
 Family service: it is an informal way of service such as pubs, less demand for
kitchen services and the thus less skilled staff is required.
 A la Carte Service: in this, the menu changes rarely and the prices are
individualised to earn a higher profit.
(Cousins, et al. 2014)
11

FINANCIAL CONTROLS USED IN FOOD AND BEVERAGE OPERATION
 USE OF FINANCIAL STATEMENT IN FOOD AND BEVERAGE OPERATIONS
A financial statement reflects the current position and evaluates the effectiveness of
the planned event within the allocated budget. The major financial statements used
in the food and beverage operations articulating the base for cost per dish or recipe
and per person are as follows (Wahlen, et al. 2014):
 Dish costing sheet: keeps on recording the cost raw materials and food items
like fruits, veggies and spices etc. required for completing a dish or meal as
per the recipe.
 Cost statement: this comprises of the associated costs i.e. from production to
the final preparation of the recipes or meal. This also includes the overhead
expenses and labour cost for setting the final pricing inclusive of all the
services rendered to the customers.
 Variance analysis: this will help in planning the event with determining the
difference between standard cost and actual cost for effectively planning the
budget and controlling the operational factors concerning with the event.
 Operating statement: this tracks and records all the revenues and expenses
of the event to assess the profit and loss from the food services carried out
with the costing of material procured, transportation and freight cost,
transformation cost etc.
 Sales records or statement: this analysis the sales target in regards to the
number of guest and dishes put in the menu doe ascertaining the actual
demand and prerequisite the food items to prepare the menu accordingly.
 Cash flow statement: this transacts the working capital requirement for
planning the event and keeping a check on the cash requirement for
effectively organising the event as per the planned and allocated budget.
 Balance sheet: this summarises the whole statements and transaction in a
single place assessing and evaluating the financial position of the food and
beverage operation of the organisation. This ascertains the assets and
liabilities for the event planned by the organisation to analyse the success of
the event. (Pratt, 2016)
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 USE OF COST AND PRICING PROCESSES
In order to improve the food costs, the pricing systems and cost systems are needed. Cost
refers to the operating expenses to the event for the foods and beverages when the services
are delivered or the commodities are consumed. The two basic types of costing system or
methods applied in any organisation are (Dopson and Hayes, 2015):
 Value-based pricing: the pricing is set according to the ability and willingness of
the customers to pay for the services due to the high quality and brand value of
the products.
 Cost-based pricing: the pricing is done in consideration with the actual cost
incurred and adding some profit margin to it.
The utilization of cost and pricing systems are done in different ways. They are as follows:
 By regularly examine the pieces for the preferred precision.
 Analysing the stock before purchasing the goods.
 Evaluating the cost per dish and menu prices prior to deciding
(Ananev, 2013)
13

 ANALYSIS OF PURCHASING PROCESS
In the food and beverages operations, purchasing process cat as a base for preparing the
planned dish or receipt as per the menu. This starts form procuring of the raw materials or
required food items till the final fulfil of the order as demanded by the customer (Ivert, et al.
2015).
[Source: https://www.slideshare.net/rajendranabar/food-purchasing-control-18991051]
The major steps involved in the purchasing process are as follows (Ivert, et al. 2015):
 Determination of the requirements – materials or services
 Requisition – assessing the inventories for evaluating the supplies needed
 Purchase order – approving and placing the order for the required items and
material
 Invoice received – verifying the quality and conditions of the material and vendor
respectively form the receipts
 Vendor payment – reconciliation of the delivery and making payment for it
14

DEVISE MENUS FOR HOSPITALITY EVENTS
• COMPILE FOOD AND BEVERAGE MENUS FOR A HOSPITALITY EVENT
A hospitality event is being planned in a college of UK for students’ graduation ceremony
and contracted with a renowned caterer for serving the lunch at the event. For this
proper planning for the preparation of the menus is required as it is a food festival. The
major considerations of the menu for the food festival are as follows (Kerzner, 2013):
o Guests of the event
o Requirements of the foods and beverages
o Latest trends
o Business and operations
o Number of adults in the event
o Number of children
o Theme of the event
o Allotted budget
o Suppleness
o Balance of ingredients
Menu sample for the food festival
 Starters:-  Chilly cheese potatoes
 Orange juice
 Fried chicken rolls
 Main Course:-  Chicken salad
 Dry cheeseburgers
 Italian club sandwiches
 Ham toasty and Pancakes
 Desert:-  Strawberry pie
 Dark chocolate brownie
 Beverages:- o Beer and Wine
o Soft drinks
15

• JUSTIFY THE SELECTION AND SUITABILITY OF RECIPES FOR MENUS
The menu selected for the college event of organising lunch for the graduation
ceremony is decided by keeping various factors in mind. Those factors are as follows
(Ananev, 2013):
 The budget for the food and beverage
 Number of adults and children
 Accessibility of the needed ingredients
 Preference of the guests
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PROVIDING FOOD AND BEVERAGE SERVICES FOR HOSPITALITY EVENTS
• PLAN A FOOD AND BEVERAGE SERVICE FOR A HOSPITALITY EVENT WITHIN AN
AGREED BUDGET
The total budget allotted to the students for the event was £8000. Other than foods and
beverages, the cost spends on the event was £5000. This includes:
 Purchasing of goods (£1500)
 Wages of chefs and cooks (£1000)
 Wages of workers (£1500)
 Entertainment cost (£1000)
The budget of the food and beverage for the event is as follows:
 Starters:- £700
 Main Course:- £1500
 Deserts:- £500
 Beverages:- £300
As per the budget, the food and beverage service that will be better for the graduation
ceremony lunch is the table service and self-service. Both this will serve the guest as per
their demand and preferences.
 IMPLEMENT THE PLANNED SERVICE MAINTAINING STANDARDS OF QUALITY AND
HEALTH, SAFETY AND SECURITY
There are several factors kept in mind by the students to implement all the planned
services effectively. The main things which are planned for the event are as follows (Alli,
2016):
o Health and Safety of all the guests
o Fire alarms at various places
o Fire extinguishers for safety
o Bouncers for avoiding any violence
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• FACTORS TO DETERMINING THE SUCCESS OF THE SERVICE, MAKING
RECOMMENDATIONS FOR IMPROVEMENT
The major factors that affect or influence the service in context to the planned lunch event
for the graduation event are as follows (Papargyropoulou, et al. 2014):
 Customer service: providing quality services to the visitors or guest is the priority
of the organisers with serving them effectively with the help of the skilled and
trained staff.
 Cost control: allocating the resources and materials as per the planned budget
is the critical success factor for succession in the service with the cost
determined and enables the organisers to earn profit out of the event.
 Product differentiation: to uniquely present the dishes and meal prepared by
the food and beverages company will urge towards the success of event making
the services effective by reaching to the targeted guest or customers.
 Quality assurance: setting proper quality measures and checks for quality
delivery of the meal and food products and services to the guest and students in
the event with safety and security.
Recommendations for improvement in the services are:
 Establish proper communication with the organisers and food servers
 Provide training and guidance to the employees for quality service
 Making a checklist of the factors that influence the service and food
 Effectively choosing the food system to be taken for the lunch event
 Creating and setting quality norms and specifications for each and every dish to
be served at the event
 Measuring proper quality checks as per the standards and instructions
18

CONCLUSION
It can be concluded that in the operations management of food and beverage for any
hospitality event, proper planning for the goods and services has been done keeping in mind
the preferences of the guest and their complete satisfaction.
19

RECOMMENDATIONS
To effectively plan and organise the lunch at the graduation ceremony of the student's
proper allocation of the budget and resources should be made, priorly while event planning.
Food and operations in-charge should take care of the quality norms and hygiene of the
food served as per the set food standards followed by the food act. To avoid any
repercussions for the success of the event purchasing process should be followed
specifically as per the activities planned.
20

REFERENCES
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nutrition improvements on elementary school cafeteria lunch purchase patterns.
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management. Routledge.
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S.M.S., 2014. Study the effects of customer service and product quality on customer
satisfaction and loyalty.
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Lowest value principle implementation in inventory measurement of financial
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p.406.
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options in the hospitality industry?. Research in Hospitality Management, 6(2),
pp.119-126.
 Papargyropoulou, E., Lozano, R., Steinberger, J.K., Wright, N. and bin Ujang, Z., 2014.
The food waste hierarchy as a framework for the management of food surplus and
food waste. Journal of Cleaner Production, 76, pp.106-115.
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 Pratt, J., 2016. Financial accounting in an economic context. John Wiley & Sons.
 Wahlen, J., Baginski, S. and Bradshaw, M., 2014. Financial reporting, financial
statement analysis and valuation. Nelson Education.
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