Food and Beverage Operation Management docs

FOOD & BEVERAGE
OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Characteristics of food production and food and beverages service systems..................3
1.2 Factors affecting recipes and menus for specific systems................................................3
1.3 Consideration of cost and staffing using the selected alternatives' production systems. .4
1.4 Suitability of the selected food production systems and food and beverage service systems
................................................................................................................................................5
TASK 2............................................................................................................................................6
2.1 Use of Financial statements in food and beverage operations.........................................6
2.2 Application of cost and pricing........................................................................................7
2.3 purchasing process..........................................................................................................10
TASK 3..........................................................................................................................................11
3.1 Case for hospitality event...............................................................................................11
3.2 Justification of menu .....................................................................................................12
TASK 4..........................................................................................................................................14
4.2 health and safety standard in Hotel Four seasons...........................................................14
4.3 factor determine service success....................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Food and Beverage operation management involve a multitude of activities which engage
the staff right from purchasing raw material, preparing food and beverage, maintaining quality of
service and many more. Present study will lay focus on Four Seasons hotel which is an
international luxury hospitality company operating in London, United Kingdom. Company
operates more than 100 hotels worldwide. Firm has been ranked among top hotels in the world
for three consecutive years. Report will highlight Characteristics of food production and food
and beverages service systems. It will also lay emphasis on Factors affecting recipes and menus
for specific systems. Study discusses about Suitability of the selected food production systems
and food and beverage service systems.
TASK 1
1.1 Characteristics of food production and food and beverages service systems
The vast range of activities in food production industries includes- accumulating raw
materials, agricultural materials, processing of food, cleaning of food items, selection of seasonal
food, drying and storage, analysis of required pesticides and preservatives/chemicals, storage and
logistics etc. While, the food and beverage service systems are characterised by proper utilization
of hospitality services basically in terms of staffing, providing secure/comfortable environment,
various relaxation modes, amusement and entertainment to the guests/customers (Griffith, 2014).
The characteristics can be briefly understand with respect to the luxury hotel “Four Seasons,
London” having wide and advanced range of the services, attracting its customers through
pleasing, fascinating facilities. There are various systems involved in food & beverages service
industries that depends on different factors. These involved systems are mainly- Self service,
Centralized, Assembly, Cook and freeze, Traditional systems.
Self service system is mostly preferred at luxury dinning and restaurants based on the
liking of customers and the factors affect the menu in this system can be Economy, Lifestyle
Culture. Four Seasons, has royal dinning services for the customers with customized menu
choices based on the principles of innovative and culture of guests and past service experiences.
In centralized system, the food is prepared at certain place and delivered at required
location with the help of catering services. For this system location, climatic disruptions,
distribution errors may affect the menus. Four Seasons, have professionalised team of
distributors and have various Fleet programs to enhance the quality of delivery (Griffith, 2014).

Assembly system prepare the food for large number of people located at remote areas
within short period and the involved factors are Location, time constraints, Secondary logistics
services. Four Seasons, has partnership with smart transport with advanced tracking systems to
eliminate faults in distributive channels. Also, the Hotel has highly defined refrigeration and
cooling systems to keep the prepared food fresh.
Cook and Freeze system is adopted at restaurants where rate of food consumption is low,
hence the food is cooked, freeze and serve when any customer arrives. Factors involved in it are
Climatic conditions, functioning of equipments, storage procedures. At Four Seasons, the team
has efficient cooling systems that keep the food fresh and consumable for longer period with
specific storing criteria (Farber, Crichton and Snyder, 2014).
The food production and food & beverage service systems at Four Seasons, includes all
the basic functions of food production and hospitality with the services like Children amenities,
Baby sitting services, fitness facilities and other advanced services with way highly sophisticated
personnels involved.
1.2 Factors affecting recipes and menus for specific systems
The factors affecting the menu planning can be- Economy, Location, Climate, nature of
Distribution Channels, Availability of food items, time constraints, Staffing, Budgeting, Culture,
Lifestyle and Seasons.
“Size of families” directly influence menu planning depending upon the consumption of
the food the menu has to be altered in terms of the quantity.
“Culture and Lifestyle” are the important elements that affect menu planning. The
requirements of ingredients varies with lifestyle and culture of the customers.
“Location” is the significant factor that affect menu planning. For instance, if the
restaurant is located in a remote area it may adversely affect the commutation process for
suppliers.
“Climate” must be favourable for the storage, supply and production of food items.
Unfavourable climatic conditions may disrupt the menu planning due to the any unavailable
ingredient.
“Distribution channels” are responsible for making the food item available at required
time. Hence, standard menu planning require proficient delivery channels.

Four Seasons incorporates advanced logistics & transport system for transportation,
warehousing and distribution. Along with it the group has advanced sustainability projects for
energy saving and utilization of food production and related services. The Hotel has certified
food services and distributive linkages with huge automated warehouse systems to strengthen its
services (Burger, 2014). Food production are controlled by the storage warehouses with ideal
temperature.
Hence, for different systems, Four Seasons have significant planned outlet that make the
services ongoing without any hurdle and make the process credible yet authentic due to its
professionalised approach, equipments and facilities.
1.3 Consideration of cost and staffing using the selected alternatives' production systems
Cost determination helps in pricing the product. If organisation successfully get the best
idea of cost of operation, It can increase profit by cost management effort and charge reasonable
amount from customer. Four season tries to make balance between cost and staff implication of
various operation system used in hotel. Food and beverage industry being influenced by staff as,
experience, knowledge, skill of personnel affect the customer satisfaction. Cost of raw material
plus salary given to employee gives the actual cost of operation.
Service
system Cost implication Staff implication
Table service In table food service customer get
its ordered food on table by Order is
taken by waiter. Cost of table
services are high because four
seasons use best procuring, storing
and delivery practices offering high
quality food to customer. Cost of
furniture and delighting services also
taken into consideration. It has been
estimated by company that cost of £
150 will be required in this.
Four season required experienced, skilled
waiter because they have to deal with
customer directly with in service
protocols. Professional trained and
experienced waiter demand comparatively
high salary than normal waiters, which
would increase the cost of food and
service.
Self service In Self service system raw material In self service system, hotel appoint

can be avail at low price so cost of
this system is low to medium. Low
price can be opt for food and
beverages. It has been estimated by
company that cost of £75 will be
required in this.
waiter only to observe the availability of
food on table. Normal Monitoring does
not require any spacial skill. So there is
low staff cost associate in it.
Assembly
food service
It is also known as Kitchen less
kitchen system, where prepaid food
purchase, stored, reheated and
served to customer. it is used by
Four season for food which are not
made in its kitchen. Hotel procures
this product form other supplier. Its
operation cost is low as it need less
place to store. Expenses in food
making process is very minim in
such kind of system. It has been
estimated by company that cost of
£55 will be required in this.
In Assembly food service system less
staff is required. An ordinary person can
handle it as personnel don't deal with
customer directly.
1.4 Suitability of the selected food production systems and food and beverage service systems
Hotel four seasons must choose Buffet food system as it allow hotel to earn high profit
margin. There is no need of professional and skilled waiter in self service outlet as customer pic
up food themselves as per their taste. Food and beverage is served in centralised place with eye
catching decoration. This food system has high flexibility and mobility as food table can be set
anywhere. Tableware needs less space. Customer satisfaction also higher in buffet system
because they do not have to wait for water to come and take there order. Consumer also choose
food as per their taste which lead to less food wastage.
It allows Hotel four seasons to change theme, colour, settings, decoration according to
event like Christmas and new year decoration . High functionality can be achieve by avoid
monotonous repetitive action taken by staff, like employee do need to entertain each and every
consumer, waiter will help consumer only when he asked to do so. Same container and utensil

can be use for different temperature food like chilled food can be kept in icebox where the same
box can be use for keeping food warm by attached chafing fuel support in it, it saves cost of
utensils. This structure allow Hotel to show its creativity to attract customer by using LED buffet
lighting. Accuracy is at its pace in Buffet food system because Clint serves themselves, so there
are fewer chances of customer dissatisfaction and interpersonal conflict with staff member.
Food and beverage service system is basically the process of preparing, serving and
presenting of food. It can be of two types on premises and off premises. Four seasons will
increase its profit, if they are engage in enhancing service system.
TASK 2
2.1 Use of Financial statements in food and beverage operations
The operations of food & beverage services require high capital funding and financial
statements to comply with required standards of the industry. Personnels need to keep a track on
daily cash flow and budgeting activities in the industry/hotel/restaurant. Financial statements like
Balance Sheet, Income statements, Food cost, Production cost, cost of logistics, Sales/profit
margin, Labour costs, additional expenses, Income tax, cost of sales & distribution provide a
simplified way of handling industrial issues, legal complications, theft and misplace of any
treasury (Burger, 2014). Use of Financial statements in food operations are in the context of Four
Seasons, London.
 Balance Sheet provides a track of assets and liabilities, stockholders of the industry. Four
Seasons keep a full record of the assets and budget allocations in the past years to control
the cash flow and improve the working capital and forecasting. It also ensures its
sustainability with the help of balance sheet.
 Union bargaining can be conducted on the basis of these financial statements. Employees
at Four Season may easily go for collective bargaining for certain requirements. Through
its advertising partners, Four Seasons hotel continuously post its updates regarding the
capital, profit margins and shareholders to deliver the useful financial statements for
different concern of employees (Griffith, 2014).
 Income statements of the food industry provides the operational performance review of
past two to three years to compare the growth and to retain its customers in the
marketplace. Four Seasons delivers its income statements continuously to increase
customers interests, market value and investors. Four Seasons present its official annual

reports on the basis of profits and critical financial analysis and relevant financial
statements.
Four Seasons being a great hospitality industry need to go through various financial
activities and have to maintain standard record of these activities. The financial statements are
directly linked with the company profile and its integral issues.
Use of cost and pricing
 Hotel four seasons use cost process to determine the selling price of the food and
beverage.
 Value addition decision are taken by cost analysis.
 Hotel evaluate its performance by compare cost and revenue of food product (Cen and
He, 2017).
 Cost reduction effort are taken on time like Hotel find supplier increase the price of
ediblee oil. Hotel now can switch to another supplier to keep itself fit in budget. Hotel
can increase it prices so quickly.
 Cost process help four seasons to know behaviour of its expenses. It enables Firm to
predict the change in cost.
 Process costing is used by four seasons, so that manager can know the point of error,
reason of variation in process. For example manager noticed kitchen's expenses in
increased by 5% in this month, manager find the reason of this extra expense is vegetable
wastage due to poor cooling in fridge.
 Hotel Four season use costing for setting accountability and responsibility of employee.
Like kitchen department can not go exceed to budget, if they do so, department has to
answer the operation manager.

Uses of pricing
 Differentiate pricing enable Hotel four seasons to change its price to counter adverse
economy condition and grab opportunities in favourable situation.
 Discount, rebate, coupons are used to grab customer attention so quickly.
 Hotel for season use pricing to make new customer by rendering them packages and
offers.
 Different pricing policies are exercising by Hotel to take competitor advantage or to
increase its market share (Cen and He, 2017).
 Premium pricing policy are used for value addition and food having great satisfaction
level. Premium pricing help hotel in its “ elite brand positiong effort”.
 People are able to consume food and beverage as per their affordability.
Illustration 1: factor affecting pricing
Sources: (Pricing products effectively. 2015)

 Pricing can be change with change in cost.

2.2 purchasing process
 Identification of need
Operation manager of Hotel four Season first tries to identify need of procurement. Need
requirement incudes quality and quantity specification of product, feature, customer preference
and trend etc. Hotel takes help of RFID in inventory, which give real time information of level of
raw material. Customer preference are accessed by past data gathered in CRM. Hotel also asks
marketing team to render information of the latest trend so that it can align its operation
management to meet consumer expectation regarding taste. Hotel do not accept Quality of
vegetable, oil, pulse, dairy product, spices, is less than set by standard set by higher authorities.
 Select suitable supplier
Hotel operation manager put advertisement on social media, common supplier forum and
in newspaper. Manager asks supplier to fill E tender form available on hotel site. Tender contain
cost per unit, supportive services information and product quality standard information. Four
seasons give more weight age to quality of product over price as it is committed to consumer’s
health too, it doesn’t mean expensive raw material will be purchased. Hotel try to make balance
by negotiating with supplier for price. Cost affects the price offer to consumer.
 Purchase order

Purchase order is placed with help of electronic purchasing system. System automatically send
generate invoice to vendor. Payment soft used by four season Hotel able to record order date,
track the order and store it to cloud. Hotel use internet of things , RFID, GPS embedded lorry to
get order on time.
TASK 3
3.1 Case for hospitality event
STARTERS  Seasonal Tomatoes, Basil, Anchovies
 Mixed Vegetables, Herbs and Toasted
Bread
 Air-Dried Ham, Smoked Aubergine
Caviar and Gnocco Fritto
 tomato and Basil Soup
Caviar (non veg)  Beluga Caviar, Imperial 30g
 Caviar Alverta, Imperial 50g
 Caviar Ossetra, Imperial 50g

Contorni(salad)  Mixed Salad
 Seasonal Vegetables
 Garlic Spinach
 Broccoli

International menu  Chicken & Bacon or Lobster & Avocado
 Mushy Peas and Tartar Sauce
 Grilled Tuna or Fillet Bonito Tuna
 The Cobb - Organic Chicken, Stilton Blue
Cheese, Sweetcorn and Avocado


Children corner  Apple Pie, chocolate milk. Ice cream
 Strawberry Mousse Cake
 donuts, Chocolate, sweet securp( all


flavour)
 pasta, French Fries
 Peanut butter bread, lean meats, Smoky
Mashed Sweet Potatoes.
Beverage  Cold drink
 health drink
 coffee( Hot and Cold)

3.2 Justification of menu
Hotel Four season make its menu after knowing the latest trend, costume preference and
affordability of people. Green vegetable and organic food are provided as UK face some serious
heath issue like diabetes, obesity, PCOD and other lifestyle diseases. Toppings on pizza and
other junk also available with healthy ingredients because young generation are more conscious
more their health. International dishes added because of globalisation and migration. People
from different culture has their own taste and preference, so hotel try to full fill the need of
international customer by add these on menu (French, Story and Fulkerson, 2012). People can
order cold drink as well as healthy drink (Four seasons dining, 2018). Chocolate and sweets
dishes are added for children. Different soup can be order by customer to enjoy waiting time.
Roasted food given to people who totally avoid oil. Sandwich, burger, crisps are made on the
spacial demand of customer. Seasonable vegetable satisfies the season craving of food. Hotel
also have Kiosk food menu, where clint can customised food according to their choice.

TASK 4
4.1 food and beverage service plan
Agreed budget is £1000 for wedding event and service plan is as below:
Menu Budget Items
Food £ 300 Caviar Alverta, Imperial,The Cobb - Organic
Chicken, Stilton Blue, Grilled Tuna or Fillet
Bonito Tuna, tomato and Basil Soup,
Seasonal Vegetables, Seasonal Tomatoes,
Basil, Anchovies.
Beverage £150.00 Hot and Cold coffee, cold drink, health
drink .
Desserts £200.00  Apple Pie, chocolate milk. Ice cream
 Strawberry Mousse Cake
 Do-nuts, Chocolate, sweet drinks( all
flavour.

Cost of other factors included in Budget
Cutlery and crockery £20
Tables, chairs, cloth napkins £150.00
Stage decoration £80
Red carpet walkway £50
Waiter / Waitress £50
4.2 health and safety standard in Hotel Four seasons
Consumer health, safety and security is prime concern activity for Hotel Four season
because any mishandling can lead huge financial and goodwill loss. Operation management
know the significance of safety, so all the standard of kitchen management set by Food standard
Agency are followed by hotel, Which are given below:
for kitchen staff
 Personal hygiene is mandatory while performing food making activities. Hotel Four
season renders gloves, anti bacterial hand wash, uniform, hair cover, blue plasters to its
staff.
 Smoking, drinking, nail biting are strictly prohibited in kitchen.
 If any employee feel sick, hotel try to send him on leave so that infection will not pass on
to food.
For kitchen premises
 Fridges, food store containers, kitchen equipment and electronic gadates are checked and
clear frequently.
 To avoid food poisoning Hotel use separate self for vegetable, non veg, dairy product.
 Waste and remaining food is not kept in kitchen.
For safety
 Hotel follows safety measure like Smoke Alarms, fire hydrant and sprinkler systems, gas
safety tools etc.
 Cameras are attached with alarm, so that threat can be deduct and informed on time.
 Hotel even render information of emerge exit in booklet, placed in rooms.

 For to reduce human error hotel take help of artificial intelligence in monitoring.
 Hotel do not accept any product( electronic and equipments) which do not have legal
safety sign (French, Story and Fulkerson, 2012).
 Safety training and development plan aligned with health and safety legal compliance.
4.3 factor determine service success
Success of service can be measure by satisfaction of customer. Service is intangible so its result
also taken in intelligible measure. Hotel Four Season focuses, that it can give value of money to
its purchaser as people spend their disposal income on hotel. Here are some factor that determine
weather Hotel provide the best service or not
Timing
Consumer do not want to wait for long to avail service. If there is any delay in delivery of
service, it would cause frustration in customer because all are engaged in their engaged life.
Suggestion
Hotel can use face recognition technology in restaurants which scan the image of
customer and give information of last order. This is best for loyal and frequent purchaser. Hotel
ask to employee to complete order before any work.
Need satisfaction
Earlier service sector provider standard and one size service to all, but now services
effectiveness in measure by “ weather it is full fill the individual need or not”. Like Hotel Four
Season waiter ask customer if they like spicy or normal food.
Suggestion
Hotel try to go extra mile by taking proaction action. Staff must be trained in identify the
individual need. It will be best for Season Four to keep basic food ready and value addition done
after know the customer. Communication plays a big role in this.
Quality standard of service
Quality of service create impression in customer mind. If Hotel has nice decoration, well
trained employee but poor food service, no customer will come again. Service quality in food
and beverage industry cover hygienic food and better environment.
Suggestion

Hotel must not lose its concentration from quality of food. Manager must give training to
staff member about the latest change bring in food industry. More automation can be used to
maintain service quality.
CONCLUSION
From the above study it has been concluded that food and beverage industry must make
its policy on the basis of customer preference and ability which can give competitor advantage
and increases market share. Word of mouth marketing play a big role in this industry so, apart
from food taste, consumer safety and health must be taken into serious note.

REFERENCES
Books and Journals
Brownell, K. D. and et. al., 2018. The public health and economic benefits of taxing sugar-
sweetened beverages. New England journal of medicine. 361(16). pp.1599-1605.
Burger, J., 2014. Food safety-a shared responsibility: processing. The Dairy Mail. 21(5). pp.104-
107.
Cen, H. and He, Y., 2017. Theory and application of near infrared reflectance spectroscopy in
determination of food quality. Trends in Food Science & Technology. 18(2). pp.72-83.
Farber, J., Crichton, J. and Snyder, O. P., 2014. An Introduction to Retail Food Safety. In Retail
Food Safety. Springer New York. pp. 1-2.
French, S. A., Story, M. and Fulkerson, J. A., 2012. School food policies and practices: a state-
wide survey of secondary school principals. Journal of the American Dietetic Association.
102(12). pp.1785-1789.
Gootman, J. A., McGinnis, J. M. and Kraak, V. I., 2016. Food Marketing to Children and
Youth:: Threat or Opportunity?. National Academies Press.
Griffith, J. C., 2014. Do businesses get the food poisoning they deserve?: The importance of
food safety culture. British Food Journal. 112(4). pp. 416 – 425.
Hall, P., 2002. Food and Beverage Management. Prentice Hall.
Kipps, M. and Middleton, V., 2012. HOSPITAL CATERING. Nutrition & Food Science. 90(2).
pp.5 – 7.
Online
Four seasons dining. 2018. [Online]. Available through:
<https://www.fourseasons.com/london/dining/restaurants/restaurant_menus/
amaranto_restaurant_all_day_dining/>