Food and Beverage Operations Management for a Christmas Party Event

This report provides an in-depth analysis of food and beverage operations management, specifically focusing on a Christmas party event organized by Montrose College students. It begins by examining the use of financial statements in event planning, emphasizing the importance of budgeting, income projections, and contingency plans to avoid financial losses. The report then delves into the purchasing process, outlining crucial decisions regarding food selection, sourcing from suppliers, and ensuring food quality. Finally, it identifies key factors that contribute to the success of such events, highlighting the importance of audience focus, menu selection, and catering to diverse religious preferences. The report underscores the need for effective financial planning, strategic purchasing, and a customer-centric approach to ensure a memorable and successful Christmas celebration. This document, available on Desklib, offers valuable insights into the practical aspects of event management within the hospitality industry.

FOOD AND BEVERAGE
OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK B...........................................................................................................................................3
1. Use of financial statements in Food and beverage event........................................................3
2. Analysis of the purchasing process.........................................................................................5
3. Factors to determine success and recommendations ............................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Food and beverage operations management is all about effective administrative of events
and functions. Food and beverage manager are all about overseeing all the operational aspects of
events and conduct it in best way. Montrose college students are conducting an event of
Christmas party and inviting around 250 guests consisting of 200 adults and 50 children. The
event to be conducted in appropriate manner considering all aspects involved such as food and
beverages, interior decorations, entertainment and friendly environment. This event is organising
in Valentine’s park and called as Summer fair. The main goal of food and beverage management
is to facilitate best services to customers. Usually job responsibilities are extensive (Slining,
Mathias and Popkin, 2013). The design of event, food arrangement, also addressing customers
concern are necessary to effectively coordinate an event. Usually food is the biggest motivation
for people to attend such parties. This involves all the activities of planning, organising,
execution and follow-up of an event. The food and beverage operations management is all about
how well events are planned and arrangements are to be done for the same. The event is
organising for Christmas celebration and around 250 people will be gathered there. Christmas is
one of the main festival of Christians and they celebrated it on a high note. Hospitality industry
requires strong finance, marketing and communicational skills. Thus, entertaining guests and
facilitating quality services are important for successfully managing an event.
TASK B
1. Use of financial statements in Food and beverage event
Considering how much money required to successfully coordinating Christmas party is
important. Finance is vital task to be handled. Any event manger who is organising party will
obviously focus on financial part also. Manger usually prepare event budget to keep cost spend
on different components accordingly. It is projection of income and expenditure based on plans
and information available. Also organisation of past events will definitely help them to
successfully plan an event (Use of financial statements in Food and beverage event. 2017). This
part is crucial as event directors are able to predict in advance whether the same result in profit,
loss or break-even (Wood, 2010). After that only they will decide whether they have to take up
task or not. Financial statements are prepared by identifying and costing all possible expenditure
and all expected incomes generation. The outcomes need to take place before even deciding

booking dates, venues and timings. Financial statements are needed to have flow of money
control in an event. Many organisations results in lack of finance at the later stage of
coordinating an event. The outcome is because of inaccurate financial statements and budget
planned. Food and beverage manager should make sure that they facilitate quality services along
with meeting expectations of people. Basic event budgeting rules can be discussed as under-
Budget to avoid losses- If an event is going towards loss, coordinator can change plan at
any point of time to at least make a break even. If a company is making loss, there is no point in
running such businesses.
Event incomes- Event income generation to be kept in mind while preparing financial
statements. Timely suggestions to be taken from staffs also to know where cost will be less. The
amount charge by organising company are usually fixed and they prepare budget as per those
incomes.
Contingency Plan- There should be contingent plan available with event management
company to deal with any of uncertainties. Then only company will able to accomplishment
objectives.
The expenditure of events can be grouped under following categories are as follows-
Menus for food- Menu of food must be decided in advance. Food arrangement involves
Different varieties of food along with sweets, deserts, alcohol etc. what kind of food such as
Italian, Mexican etc. are to be planned and budget for preparations of same should be prepared.
Staff service Expenses- Staffs are required to service foods and beverages to people who
are invited. How many waiters are required along with staff coordinators. They should be experts
in their work.
Venue hire- Deciding venue is necessary. There should be pre-booking for venue. How
much cost is incurring in hiring a venue and for what time are important decision. This cost will
be included in preparation of financial statements as more cost is incurred in hiring venue.
Designing- the designing cost is also one of the components. The cost of staff for interior
decorations and design are necessarily decide. Now-a-days people prefer some innovative
decorations, for such different professionals are required.
Transport- Flow of materials are through transport only. Also carrying of guests from
airports and hotels to venue will result in incurring cost. The driver is required for the same.
Thus, this components also incur more money.

Stationery-
Music- Music arrangement again needs experts and stage for the same. If function
coordinator are inviting celebrities to attract more guests and make an event impressive,
additional cost is incurred.
Entertainment- Different games arrangement can be done for children to entertain them.
Planning the same will also incur expenditure.
Salaries- Salaries needs to be given to different professionals and experts along with
staffs involved. An organising company should consider all these view point while preparing
financial statement. Also there may be expenses in stationery and equipment hiring. A list of
expenditure to be made and appropriate cost to be planned for each component for successful
budget plan. Usually Christmas party is celebrated by millions of people. It is one of the biggest
event. The people don't even bother about cost and budget in such party. However, planner
should ask for budget of function. They should know how much a person is willing to pay to
them. In case itself they have mentioned their budget of 2000 pounds. Out of them, venue hiring
and decoration incur majority of portion of cost. Thus, these all components helps in achieving
profit for an organisation of event management.
2. Analysis of the purchasing process
To organise the best events, it is the responsibility of the company to provide good
quality of products and services as well as proper arrangement of menu and venue that helps to
give best experience to people and they will enjoy a lot of their parties. So for this purpose food
and beverage company has to take decisions regarding where to buy their foods and drinks from,
what kinds of foods people want in Christmas party and how to provide best quality of foods and
beverages to satisfy their needs and wants (Robinson, Lück and Smith, 2013). The purchasing
decision is always a vital decision for conduct of any programme. Every organisation wants to
keep their cost less, they always have fixed suppliers who supply them materials of decoration
and food preparatory. The purchasing process comprises of from where company is buying raw
materials or other equipment needed. Brief elaboration of same is described as follows-
There are various process for analysing the purchase of Christmas party:
Purchasing process:
Choose right foods: first and the most important part of the purchasing process is to take
decision regarding food choice as what kind of food and drinks should be purchase for the people

because at party there will be different types of people as younger, elders, children etc. so
according to consumer segmentation organiser will take decision of food purchasing to provide
satisfaction to people. There are different varieties such as Italian, Mexican, Russian based on
that materials are required to prepare food and beverages.
Organic foods: organiser should purchase organic food as now a days everyone take care
about themselves so they would like to prefer organic foods specially younger and women. And
it is good for health so for the Christmas party organic food can be purchase (Martinez, 2013).
People are health conscious today so organiser also like to keep such food products in their
menu.
Fresh foods: foods and drinks must be fresh as its quality should be good and it must be
healthy food. Soft drinks must have company's brand names mark or logo on its labels as well as
also mention about products details or information and having a reliable quality and amount
(Powell and et. al., 2013).
Supplier or vendors of foods: party organiser has to decide to select best supplier among
the food suppliers. A supplier who supplies nourish and organic food stuffs in effective price as
well as in budget and also supplies foods on time whenever demands so that people can enjoy
food in the party. Coordinators have different fixed suppliers from where they buy materials and
equipment. They offers materials to them normally at lower price as compare to other.
Budget planning: in purchasing process it must be determine as budget decide to
purchase foods. It is consider that high quality of foods means higher prices. Generally organic
foods are more expensive than non organic foods so organiser has to make plans according to
decided budgets. Company's main purpose is to get more outcomes in minimum inputs so
organiser will set the budget which helps to get best foods and drinks in minimum costs. Budget
planning is done by considering all components needed to manage programme effectively and
efficiently. This decides whether company is going towards profit or loss.
Inspection of foods and beverages: before purchase order and after delivery of food
materials it is the responsibility of organiser to check the quality of food stuff by inspection of
food and beverages. Because it can increase the chances of food poison and affect on people's
health so quality checking must be required for any event. Health of guests are of utmost
importance for any coordinator (Koplan and Brownell, 2010).

Decide the quantity of foods and beverages: it should be clear that how much quantity of
food is going to purchase as according to members who are coming to celebrate the Christmas
party, decide the quantity of foods and drinks as well as deserts within decided budgets and
organiser should make sure that food is not going to short as well as it should be sufficient for
members of the party.
3. Factors to determine success and recommendations
The hospitality sector is one where satisfaction of guests are vital for success. In a
function, Manager will always look to deliver best services and quality food, entertainment to
make it memorable. Since functions are not organised on monthly or weekly basis. Any person
coordinate an event usually in years (Jung and Yoon, 2012). Their expectations from company is
usually more. Christmas is such celebration which is full of kindness and enjoyment. People
even doesn't care about their budgets also. The factors that determine success of event
management company are as follows-
Keep audience in centre- Any function is conducted definitely to serve guests. Audience
is definitely centre focus. Keeping demographics of people in mind is essential that determines
successfulness. Youngsters and adults have their own requirements, children are keen towards
games and food & beverages. The seating and standing arrangement, quality service delivery is
necessary for successful conducting programme.
Menu selection- Menu selection involves selection of food type and beverages Russian,
French, Italian, Mexican etc. it should be done as per new tradition. Organisation working in
such sectors are aware about people requirements (Galbraith‐Emami and Lobstein, 2013). Mix of
alcoholic and non-alcoholic will definitely adds value. Wine, Beer, Hard liquor are quite
common in Christmas parties. Also servicing of food and beverages style are important like
Plated style, Buffet style, Cafeteria style etc.
Religious groups- Usually Christmas is one of the main festival of Christians and they
celebrate it with their whole heartedness. Some groups don't eat non-vegetarian food &
Beverages. So, special arrangements needs to be made for them. If guests are from same
religious groups, there will be no problem with them.
Quality food- Food quality and quantity should be good. If bad quality food is offered to
people, it will subsequently result in failure of an event. Also where event is held is important

i.e. indoor or outdoor. Indoor facilitates to have more variety of food than outdoor. The attraction
of arrangement of food should be eye-catchy. Children always expect something tasty.
Early planning- Planning have to be done in advance (Davis and et. al., 2013). Pre-
planning is necessary for conducting any programme in appropriate way. Budget analysis and
financial statements preparation adds value for a company. The planning of food and beverages
are usually done 2-3 months ago. Deciding menus is not an easy task. It involves taste testing,
researching options and final decision of choosing menu.
Professionals- Any work if needs to be done effectively and efficiently, will need expert
or professionals. Professional know their specialised area and do the same in right manner
according to managers requirements (Coles and Kirwan, 2011). However, cost of pay to these
professionals are usually more. Also staff requirements are there for serving food to guests and
organisation of games, music etc.
Hidden cost- Any enterprise who is engaged in the arrangement of a programme
definitely kept something in reserve for contingencies and hidden cost. Right budget will make
enterprise to earn profit while if a firm is going towards loss, it will result in failure of event.
While assign any task to professionals, ask about different cost to be incurred. Sometimes they
forget hidden items and requirements will get generated for money, which is impossible to have
at last moment.
Address customer concerns- Customer service is needed to be excellent in order to make
guests repeat the same experience. However, poor service result in complains to customer's
friends and family which bring value of coordinator down (Castleman, 2014). They should know
hoe to efficiently spot services issues and mitigate risks and complaining that arouse.
Seating and floor arrangements- Seating and floor arrangements in event is innovative
now-a-days. As a result, guests like to attend those parties. In a Christmas party, there should be
tree arrangement with lights and decoration. Also Santa Claus should be there for children fun
and enjoyment. This all helps in successfulness of Christmas party.
Entertainment- There should be dance arrangement for youngsters. Celebrities are
sometimes invited to make party memorable and pleasurable. Entertainment factor is all about
dance and music, games and fun etc.
Follow-up- The follow-up of all these factors are essential to organise Summer fair in
Valentine's park successfully. Not only planning but successful implementation of same is

important. The sub-plans are also required along with major plan (Arendt and Zannini, 2013). If
coordinator think that it is going towards loss, they have to change their strategies quickly and
bring it to right path.
CONCLUSION
By this report, it has been concluded that conducting an event is not an easy work. It
generally require event management company. The food and beverages manager know how to
satisfy customer demand and facilitates best possible quality service. They should seek all
operational function and conduct the same in right manner. Definitely in this case arrangements
are being done to conduct Christmas party to have get together and celebrate. The Christmas is
always a big event resulting in millions of guests. It is a way of showing love and kindness. This
programme is organising in Valentine’s park and called as Summer fair. The main goal of food
and beverage management is to facilitate best services to customers and make a programme
pleasurable and memorable. This involves all the activities of planning, organising, execution
and follow-up. Any event management company look for opportunity and grab the same to
create their value in the minds of customers. So, that they will have more and more opportunities
in future-course of time and drive business towards success.

REFERENCES
Books and Journals
Arendt, E.K. and Zannini, E., 2013. Cereal grains for the food and beverage industries. Elsevier.
Castleman, T., 2014. Food and Beverage. Network Journal. 21(4). p.20.
Coles, R. and Kirwan, M.J., 2011. Food and beverage packaging technology. John Wiley &
Sons.
Davis, B., and et. al., 2013. Food and beverage management. Routledge.
Galbraith‐Emami, S. and Lobstein, T., 2013. The impact of initiatives to limit the advertising of
food and beverage products to children: a systematic review. Obesity Reviews. 14(12).
pp.960-974.
Jung, H.S. and Yoon, H.H., 2012. The effects of emotional intelligence on counterproductive
work behaviors and organizational citizen behaviors among food and beverage
employees in a deluxe hotel. International Journal of Hospitality Management. 31(2).
pp.369-378.
Koplan, J.P. and Brownell, K.D., 2010. Response of the food and beverage industry to the
obesity threat. Jama. 304(13). pp.1487-1488.
Martinez, M.G. ed., 2013. Open innovation in the food and beverage industry. Elsevier.
Powell, L.M., and et. al., 2013. Assessing the potential effectiveness of food and beverage taxes
and subsidies for improving public health: a systematic review of prices, demand and
body weight outcomes. Obesity reviews. 14(2). pp.110-128.
Robinson, P., Lück, M. and Smith, S., 2013. Food and beverage. Tourism. pp.171-184.
Slining, M.M., Mathias, K.C. and Popkin, B.M., 2013. Trends in food and beverage sources
among US children and adolescents: 1989-2010. Journal of the Academy of Nutrition
and Dietetics. 113(12). pp.1683-1694.
Wood, R.C. ed., 2010. Strategic questions in food and beverage management. Routledge.
Online
Use of financial statements in Food and beverage event. 2017. [online]. Available through
<http://www.leoisaac.com/evt/top545.htm> [Accessed on 17th November 2017].

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