Factors Influencing Prices of Food and Beverages

This article discusses the factors that influence the prices of food and beverages offered by Four Season Hotel, Restaurant. It explores the impact of menu complexity, types of services, and other factors on pricing. Understanding these factors can help in understanding the pricing strategy of the restaurant.

Hospitality Operations

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Creativity and connection of Food production systems, Food and Beverage Service systems
................................................................................................................................................3
2) Roles and Responsibility of restaurant manager of Four Seasons Hotels..........................5
3) Factors influencing prices of food and Beverages offered by Four Season Hotel, Restaurant
................................................................................................................................................8
4) Analysis of constraints of menu planning within operations of Food and Beverage.......10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality is basically relationships between guests and the host, it is an act or gesture of
service provider to be hospitable. Hospitality service is formed with bring together lots of
operations and unique practices(Kuo, Chen and Tseng, 2017). These operations include front
office, reservations, selling and administration. Hospitality services are made of various
operations which are made for effective practices and obtaining outcomes by providing best
experience to consumers. Foods production systems are the part of hospitality operations which
is basically a process of preparing food and serving to guests. Restaurants owners and managers
has to go through various actions and has to consider unique components and constraints which
affects menu planning and pricing strategy.
Four Seasons Hotels, Restaurant is used for this assignment and in its context several
factors are studied. Four Seasons Hotels, is a Canadian international luxury hospitality company,
which is serving its offering to worldwide consumers. The company was founded in 1961, by
Isadore Sharp and headquartered in Toronto, Canada. In 2007, Bill Gates and Al-Waleed bin
Talal become majority owners of company, investing through Cascada investments. The
company has its operations in more than 47 countries with almost 117 properties owned by it.
MAIN BODY
1) Creativity and connection of Food production systems, Food and Beverage Service systems
Food production is a process of changing raw material into finished goods, for serving
to consumers and according to the instructions provided by them. Organisations use different
food production systems according to their operations. There are four types of Food Production
Systems present and mostly used by restaurants, these are Centralised systems, Cook Chill
system, Cook Freeze system and Sous Vide. Four Season Hotel, mainly use two systems from
these four and those are Cook Chill system and Cook Freeze system.
1. Cook Chill system of food production is normal preparation of food but then stored in
rapid chilling refrigerators with low-temperature and above freezing point in between 0-3
degree Celsius. This food is then reheated immediately before consumption or demanded
by guests(Buhalis and Leung, 2018). The regenerated in finishing kitchens that require
low capital and minimum employees. Four Season Hotel, use this food production system

for preparing its day to day supplies and needs of their restaurant to meet the daily orders
and satisfy regular visiting guests.
2. Cook Freeze system of preparing food and storing it in deep freezers, which are
sustainable and are needed for longer duration. This method of food production brings
productivity and better earning towards the company(Van der Wagen and White, 2018).
But it is suitable when food is required in bulk or on regular basis. Four Season Hotel,
use this food production system when they receive any bulk orders or any big event is
happening in hotel. These events can be any party, business conferences and other social
event.
Both of these systems are beneficial for Four Season Hotel, they brings productivity,
sustainability towards the hotel and serve good quality food to guests or visitors. One of the
system is used by restaurant of Four Season Hotel for daily activities and another is used caseof
any special occasion or when huge order is received by Four Season Hotel.
Food and Beverage services refers to the ways in which businesses provide their
products to their guests, at particular location(Ogle, Miller and Fang, 2017). It is a great deal and
contribute to every organisation or every hospitality service provider as their profits and success
depends on it. Food and Beverage services can be broadly classified as the procedure of
preparing, presenting and serving of products to consumers. There are several systems for
providing Food and Beverage services to people, but major categories which are used by Four
Season Hotel, Restaurant are as follows:
1. Table service system of F&B, is used in restaurants where customers is sitting on their
tables and ordering food from the menu. One staff member is allotted for every table who
stands their and assist the guests with their orders and other related services they need.
The customer orders their preferred dishes from the menu of the restaurant and then
served by staff members(Kim, Lee and Fairhurst, 2017). Providing good quality services
is what necessary and what required by visitors for attaining satisfaction and earning
better profits.
2. Buffet service system of F&B, is another very unique ways of serving customers, in this
system menu id pre decided by the restaurant, dishes are being served on a table for
convenience of customers. Guests are free for taking whatever they want from provided
dishes and in their preferred quantity. If guests needs any assistance from restaurant staff

that is also provided to them by restaurant staff. Four Seasons Hotels, Restaurant
managers focuses on providing best quality food and beverages to their visitors along
with satisfactory services. By this Four Seasons Hotels earn the trust and loyalty of their
guests, also retain them with the hotel for longer term. \
3. Silver plate service is similar with other style, basically in this service the only difference
if the sterling silverware used by food and beverage service. This type of service is
provided by only fine dine and speciality restaurants as it involves huge investments and
maintenance costs. While providing silver plate service Four Seasons Hotels servers food
and beverage sin silver cutlery and cookery, all serving spoons and forks are also made of
silver.
4. English service style is also a very unique style of service, while rendering this form of
service the food is served in large platters and bowls. Once all the food is checked by the
guests then it is placed on the tables. This style of service is easy for Four Seasons Hotels
to plan and implement.
5. Cart service- In this type of F&B service food is half-cooked and brought in the service
area on a trolley or a cart. This cart has a portable heating unit which is used to complete
the cooking of food. Four Seasons Hotels, need special and well designed dining room to
provide this type of F&B service.
6. Snack bar service- In this a counter is their behind from all the drinks are served to
guests and this is a tall counter, opposite side of this counter tall chairs are places so that
customers who wishes to have something with their drinks can order and enjoy their food
and beverages. Bar services are rendered by Four Seasons Hotels for their hotel guests
and also for those who just wants to visit bars and just have a good time.
7. Room service is specifically for those guests who are staying in Four Seasons Hotels, the
menu should match with guests needs, expectations and the operations of organisation. In
this F&B service the orders are placed by guests from their room and then when food is
ready it is served to them in specified room.
2) Roles and Responsibility of restaurant manager of Four Seasons Hotels
Restaurant manager are in charge of planning, coordinating, organising and assessing all
the activities taking place in the restaurant. They are responsible for smooth functioning of all the
functions of restaurant and perform their duties in relation with fulfilling all respective aims or

objectives. The managers of restaurant plan the strategies and provide directions to their
subordinates or team mates for executing those plans(ZHANG, 2018). Main goal of every
restaurant manager is to provide good quality services to their customers which includes its
several products like food or beverages. Fulfilment of these objectives will increase the
reputation of restaurant, customer affluence and slowly profits or earnings.
Some specific roles and responsibility of restaurant manager are mentioned below in context of
Four Season Hotel:
ROLES
1. Planning menus- This a very important role of a restaurant managers of planning,
selecting and offering best menus to consumers according to their taste and preferences.
Planning menus is a very crucial and mind consuming role which is performed by
restaurant managers(Kim and Jeong, 2018). Four Season Hotel, Restaurants menu change
regularly because of mixed customers and their regular changing needs. People need
something new every time they visit. Menus also change due to the changes taking place
in external environment specifically with changing weather need for alteration in menus
arises.
2. Recruiting, Training and Supervising staff- The next very essential role of a manager is
to appoint best talents for their restaurant and for effective operations. Staff is the key
element of every hospitality service provider and as so is for restaurants. Best suited
experts are required for running the activities of a restaurant. Staffing is a role performed
by restaurant managers of Four Season Hotel in accordance with the needs of expertise in
the organisation.
3. Greeting and Advising visitors- Providing best experience to guests is another role which
is performed by restaurant managers(Nazari, 2018). Greeting the visitors is part of it,
guests feel respected and important which makes them happy and satisfied. Managers
also advise the guests about the best food and beverages their restaurant is offering
according to the preference of the guest and feedbacks restaurant have received from
their past visitors. A very special quality of Four Season Hotel restaurant managers is
they greet their visitor with warmth, giving them utmost respect which enhance the
reputation of the hotel and experience of their guests.

4. Ensuring Health and safety standards- Another role of restaurant managers is to comply
and make sure that the restaurant is operating and following all the food safety and health
instructions and maintain all the standards. This is one the primary role of restaurant
managers which they have to perform and ensure that all actions taking place in
restaurant are in accordance with the health laws ans standards.
RESPONSIBILITIES
1. Managing the restaurant- The first and foremost responsibility restaurant managers has
is to manage their respective workplace and bring efficiency in its operations. The
managers performs various jobs and make several plans for conducting management
actions. Four Season Hotel is a huge hospitality service providers having huge customer
base. Therefore, it is restaurant managers has to be very efficient holding enough
management skills and abilities.
2. Managing Food and Production quality- Restaurant managers are responsible for
maintaining and overseeing the quality of food and beverages offered by them. Although,
the kitchen managers or head chefs handles the food quality but at the end restaurant
managers are responsible. They act as link between the consumers and chef's of the
restaurant(Yakymchuk and et. al., 2017). For instance, managers of Four Season Hotel
can observe food production and delivery by themselves for keeping check on quality of
food produced and served to guests. Managers should also work with kitchen purchasing
department to make sure that raw material is available to chefs for meeting the daily
requirements and all the ingredients are fresh and are of best quality.
3. The Dining experience- Another, factor for which restaurant managers are responsible is
providing best dining experience to the customers visiting their restaurants. At the end,
what matters to guests is the food quality and the experience they had while eating at the
restaurant. These two factors brings customer loyalty towards the restaurant and keeping
them returning to restaurant on regular basis(Ivanov and Webster, 2017). For example,
Four Season Hotel restaurant managers can work on some specific elements for providing
their guests the best experience. These factors are customer service being rendered to
guests when they visit the restaurant, décor and atmosphere also plays a very essential
part in providing best experience to the visitors.

4. Managing budgets and keeping costs controlled- Budgeting is one of the main
responsibility of restaurant managers. They have to perform this responsibility effectively
and manage all the finances. They will first prepare a budget for the restaurant and work
accordingly, this budget they made have to be cost effective and should involve lowest
cost in which the organisation can serve the best quality food and beverages to guests.
The mangers has this responsibility of coming up with new ways which are better than
earlier methods which are being used and should be cost effective.
3) Factors influencing prices of food and Beverages offered by Four Season Hotel, Restaurant
A restaurant not just provide food and beverages to their guests, they perform various
other activities to serve the best quality products and services. These actions influence the prices
of food and beverages served to customers, these prices are influenced by many factors and are
mixture of several costs associated with the main offering(Karadag, 2017). Price of food and
beverages include small costs like raw material, ambiance restaurant is providing, customer
services made available to guests and many other costs. These costs are incurred by restaurant
for smooth running of operations and providing what guests expect from the restaurant. Few
factors influencing the menu pricing of Four Season Hotel, restaurant are as follows:
1. Number of item in menu- Prices of a restaurant menu is affected by the number of food
and beverages are present in that menu. This is because restaurant has to be prepared and
have to keep their stock of raw material updated according to the menu which will
involve cost of raw material and storage cost. These costs will be added to the price of the
item. Another element is complexity of the product, which is related to availability of raw
material or ingredients and process of producing that food or beverage(Wudie, 2018).
Restaurant of Four Season Hotel provides innovative food and beverages to people which
are made through various complex steps. Therefore, they charge high prices in
comparison from other local restaurants.
2. Types of Services and Facilities provided- Another, component which has its impacts on
the prices of food and beverage or menu pricing is the types of services and additional
services restaurant provides. This factor refers to the complexity of dishes they have
added in their menu and the labour it needs to prepare. Unique menu and customer
services require more skilled staff who has expertise in making specific food or beverage
restaurant have on their menu. Also, these expertise can be required for some special

service restaurant render to their guests, which are of complex nature and only
professional can perform them. For instance, Four Season Hotel, Restaurant has
introduced a unique deserts on their menu which is prepared by a professional live in
front of customers on their table(Ogle, Miller and Fang, 2018). This desert costs is really
high as restaurant had to hire the professional for it who's job is just to make two or three
deserts.
3. Ambiance of restaurant- The ambiance which is provided by restaurants in to visitors is
another components which is adding its contribution on the menu pricing. The cost which
is incurred due to providing a comfortable atmosphere which is soothing for guests is an
indirect expense. But it is an expense which restaurants can not ignore, as it is not only
the food quality which attracts visitors towards restaurant, its ambiance is one of the
element too. Four Season Hotels are very popular hospitality organisation, serving to
worldwide customers. Therefore, they maintain best ambiance in their restaurants for
guests and for providing them best experience(Kunwar, 2017). This cost is covered and
have its impacts on the prices of their menu but it is justifiable and satisfying for
consumers.
4. Brand image- This is also another factor which is internal to company having impacts on
the menu pricing. The brand and reputation restaurant hold in marketplace plus in mind
of customers has great power to influence the prices of products and services offered by
restaurant. Four Season Hotel and their restaurant have large customer base as they are
serving to worldwide population, also they have huge goodwill in market. Therefore,
restaurant managers set menus and its prices according to the image of restaurant in
public. Restaurant manages has to keep this factor in mind while deciding menu and
prices of food and beverages they have to be in accordance of the reputation and
expectations of consumers. Otherwise, the brand will start loosing its value and that is not
favourable for Four Season Hotel(Bharwani and Jauhari, 2017).
5. Cost associated with food and beverages- Another very influencing factor which has it
impacts on the prices set by the Four Season Hotels, for the food and beverages they offer
to public or their guests are the costs involved. Food and beverages which hotel are
serving to their customer involves many costs such as procuring of raw material,
transport cost, seasonality and price fluctuation. This ill have huge impact on the prices

which restaurant manager will decide to offer any item to the guests or customers visiting
the hotel. For instance, one customer is regularly visiting the Four Season Hotels,
restaurant for enjoying one particular dish but the ingredients which are used in
preparation of the dish are very expensive and not easily available. Huge costs are
involved in transporting those to the hotel pantry which is why the prices of that food
item are high in comparison with other. Therefore, costs associated with the food item
from beginning till turning it into finished good plays vital role in deciding price levels of
the food and beverage.
There are several other components which has huge influence on menu pricing of Four Season
Hotel, Restaurants. These prices are set in accordance with both the organisation and costs
incurred by them and the guests along with providing satisfaction to them.
4) Analysis of constraints of menu planning within operations of Food and Beverage
Menu planning is an analytical process, which involves lots of components and
constraints before and while menu is being planned. Managers has to apply their acumen and
conduct lost of market research, also they have go through the past data of restaurants to gain
knowledge about the existing and new emerging trends. These constraints are considered
because they have huge contribution in planning an effective menu. If these components are not
considered or taken very lightly it can also result in opposite manner. An analysis of these
constraints is shown below in context of Four Season Hotel.
1. Operations Hours- This constraint refers the working hours of restaurant, it says that the
manager should consider the operating hours of restaurants in order to plan menu. If the
restaurants is operating and serving guests the whole day. Then the menu should have all
the dishes which are preferred by public at different time. The menu should be divided
into parts like Breakfast menu, lunch menu etc. for the ease of visitors. Four Season
Hotel, Restaurants do not serves 24/7 to outside customers but they are open for the hotel
guests when they need anything. Which makes its important for managers to plan their
menu in accordance with the operating hours and capabilities.
2. What to serve- The next constraint is the serving policy and permits restaurant have,
managers has to see the various policies for knowing the permits restaurants have for
serving beef, pork or any other non-vegetarian dishes. Menu can only have those dishes
which are added in accordance with the establishment policy of restaurant(Lin and et. al,

2017). Restaurant managers of Four Season Hotel have to plan menu in relation with the
needs of their customers and in accordance with the policies of the hotel.
3. Production Process- Next, constraint to be considered is the production process of
restaurant, which it chooses for preparation and preservation of food. These systems are
traditional partie system, cook-chill, cook-freeze and so on. The production system plays
a vital role in planning menu as it will define the types of goods and raw materials needed
by restaurant. These raw material requirement then define the types of dishes restaurant
should add in their menu. Four Season Hotel, Restaurant will also have to consider this
constraint foe being effective and to attain aims and objectives.
4. Type of menu- Another, constraint of menu planning is the type of menu is being
planned. There are various types of menu which are mentioned below:
 À la carte which stands for from the card, this menu is basically established for thos
guests who wishes to choose their dishes for themselves(Lang, Purdue and Switzer,
2017). This menu specify prices of each food and beverage item separately offering
greater choices to customers. The choice of food is on them they set the combinations of
items they want and which will satisfy their needs.
 Du Jour menu is developed for special dishes which lasts just for a day or so. It changes
daily by the management they put new dish everyday in the menu which is special, it
helps the Four Seasons Hotels, in attracting more people and attain competitive
advantage over others.
 Wine and Beverage menu is also required by the Four Seasons Hotels as they serve
different beverages and alcohol to their guests. They have special area or bar area for
serving all beverages which involves alcohol. Also, they serve wine therefore, this menu
includes speciality wine. Other non-alcoholic beverages such as coffee, tea and sodas also
includes in this menu.
 Static menu are offered all year along, this menu contains those food and beverages
which can be served by hotel the whole year. Basically all those food items who's
ingredients are easily available everyday 24*7 are included in this menu. These menus
are the prime reasons of many customers visiting Four Seasons Hotels regularly on very
large scale.

 Day menu are also known as cycle menu, many restaurants and hotels have a practice of
offering specific menu on particular days which are known as day menu. A cycle or day
menu can be weekly, bi-weekly, monthly or on some special occasions or festivals like
Christmas and thanksgiving.
 Dessert menu offers and includes several desserts and various types of desserts Four
Seasons Hotels are serving to guests. In this menu all speciality and regular desserts are
included for which the restaurant and hotel is famous.
Four Season Hotel, serves with all these menus leaving the choice on the visitors, therefore,
restaurant managers has to put more efforts and plan to effective menus. This way they can
attract all different type of crowd with unique taste and preferences.
CONCLUSION
In above report, a through study is done about the concept of hospitality, which is a
procedure of building relationships amongst host and the guests by providing services of their
choice. Hospitality service providers takes good care of the customers as its their prime objective
to satisfy their needs. For providing satisfaction and fulfilling the needs of consumers, food and
beverage department of hospitality goes through several unique tasks. They conduct market
research to adopt best pricing for their menu according to their brand to attract consumers. They
keep in mind various constraints and while planning their menu so that they can give best to their
guests. Restaurants uses systems of preparing food and serving their Food and Beverages to
visitors and assist them with other related services if required. All these actions are taken by
restaurant managers with sole motive of rendering high quality food and experience to guests.
After, doing so the company automatically will earn more profits, retain their customers, gain
their trust plus loyalty and sustain in continuous changing market conditions.

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