Food and Beverage Operations Management Report - Hospitality Industry

This report examines the core aspects of food and beverage (F&B) operations management, focusing on TGI Fridays as a case study within the hospitality industry. The report begins with an introduction to the industry, emphasizing the importance of providing quality food and service. Task 1 delves into the characteristics of various F&B service systems, factors influencing recipe design, staffing structures, and service systems for different outlets. Task 2 explores the use of financial statements, cost and pricing processes, and purchasing procedures. The report analyzes financial data, including income statements, costing exercises, and purchasing summaries. The conclusion summarizes key findings and emphasizes the importance of effective F&B operations for success in the hospitality sector. The report utilizes references to support its analysis and recommendations.

Food and Beverage
Operations Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Characteristics of various food product and beverage service system..................................1
1.2 Factors affecting recipes for certain systems........................................................................2
1.3 Staffing structure and cost for various production system....................................................2
1.4 Service system for specific F&B outlets...............................................................................3
TASK 2............................................................................................................................................4
2.1 Use of financial statements in food or beverage operations.................................................4
2.2 Use of cost and pricing process.............................................................................................4
2.3 Purchasing process................................................................................................................5
TASK 3 & 4....................................................................................................................................6
Covered in PPT...........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Hospitality industry is all about serving various types of food products to distinct
consumers with marvellous taste. However, service companies are playing a major role in
facilitating entire society by providing basic needs which is indispensable for common people to
live their life more comfortably (Davis and et. al., 2013). TGI Friday is an American chain
concentrating on offering qualitative and hygienic food stuffs to their desired clients. It stands for
“Thank god its Friday” whose main motive is to serve customers with delicious recipes.
Therefore, assignment is going to highlight various food production system and effective process
of designing attractive recipes for an organization. Financial plan, preparation of menu, service
method are also outlining in this project as well as an appropriate suggestion to improve the way
of serving consumers.
TASK 1
1.1 Characteristics of various food product and beverage service system
TGI Friday is a leading enterprise popularize for its qualitative foods which is only
possible if company is following an appropriate process of production because consumers love to
have hygienic stuffs. Thus, managers needs to use proper method of manufacturing goods which
is having high quality of characteristics are describing as follows:- Cultivation:- Initial step is to crop foods for further preparation and this is done by
farmer by using various materials to protect substance from dangerous effects (Mahalik
and Nambiar, 2010). Chopping or slicing of vegetables:- According to this element an organization is going to
cut input items for making finished products. It is essential for kitchen department
because before cooking a food chief is going to chop it properly.
 Curing food:- Its time to add necessary ingredients to specific food for making it more
delicious and tasty.
After preparing of outstanding item its time to serve consumer in effective manner. Thus suitable
service system are- English service:- Another name of this method is silver service tool and also known as a
standard serving tools in which food stuffs are offer in distinguish method.
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 Buffet :- In this tool, meal are placed on a table at certain area and candidates have their
foods as per their choice without taking help from others.
 Cafeteria system:- Most traditional technique way of offering foods in which clients and
guest place order on counter and employees are providing them as per their demand
(Massoud and et. al., 2010.).
1.2 Factors affecting recipes for certain systems
Hospitality industry is full of opportunities in which number of companies are emerging
at marketplace for gaining maximum benefits. In fact, trends, consumer choices and preferences
changes due to introduction of creative products. Along with this demand of specific items
fluctuated as per situation as well as weather because environment have a major impact on a food
designing. Thus, few major elements which influence the recipes for system is going to discussed
further:- Expectation of consumers:- Choices and preferences of clients always changes due to
emergence of creative items at marketplace. Thus, TGI Fridays needs to analyse the
current demand of consumers in order to design their foods with the use of effective
methods (SlackChambers and Johnston, 2010).
 Inflation or deflation:- Its all about changes in economical condition automatically
affects the marketplace demand. Therefore, managers needs to analyse current marketing
situation for acting as per changed circumstances as well as considered useful facts or
figures.
1.3 Staffing structure and cost for various production system
Manufacturing department is also classified into various sections because products are
produced in various ways such as; sometime only single piece will be designed for distributing it
as a sample. On the other hand, few products are prepared in a batch form like one dish is cooked
which consist of various types of vegetables, veg, non-veg, rice, desserts, and so on (Taj and
Morosan, 2011). It means, production process is also going through several kinds that is
explained below:-
Type of production Meaning Cost Staffing structure
One-off production If sample product is
designed then it falls
 Cost of
talented person
No need of any
staffing structure
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under this category because single
member
whomsoever is
experience in
this are
required here.
 Price of raw
material.
because only one
member is available
here.
Batch Group of three or more
are come closer to
make batch products
instead of whole
organization (Powell
and et. al., 2013).
 Cost of three to
four labour
 Raw material
 Leader for
assisting them
Need to make an
appropriate structure
as per team demand by
consulting with group
members.
Mass Involvement of whole
enterprise in forming a
company leading
product are known as
mass production.
 Labour price
 Raw materials
 Miscellaneous
expenses
 Official cost.
 Other
additional also.
Requires a proper
structure by preparing
an appropriate plan or
strategy. In fact,
staffing structure for
this will take proper
time period.
1.4 Service system for specific F&B outlets
In today's scenario number of people are living but amongst them few are very rich, some
are of middle class and some are belong from totally weaker sections of society (Thorndike and
et. al., 2012). Thus, company needs to analyse each or every aspect while designing service
system for different outlets. Hence, an appropriate system of service to clients are as followed:- Service for wealthiest group:- Rich people are always curious about their standards and
luxurious due to which it is essential for organization to design outstanding service
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system as per their level. For example; sports man always maintain their image by
acquiring high level of services. Middle class:- Members belongs from middle background are very adjustable as they are
ready to adjust in less services also.
 Weaker sections of society:- Poor people are not worried about any environment or
hygiene they just want to have without considering any aspect.
It means, managers of TGI Fridays is treating customers according to their status,
background and income level (Powell and Nguyen, 2013).
TASK 2
2.1 Use of financial statements in food or beverage operations
Income statement Currency in GBP. All numbers in thousands
Revenue 31/12/17 01/01/17 27/12/15 28/12/14
Total revenue 679282 710712 685381 635225
Cost of revenue 589490 598136 558491 516623
Gross profit 89792 112576 126890 118602
Operating expenses
Selling general and
administrative 31188 33420 37999 33588
Total operating
expenses 620678 631556 596490 554913
Operating income
or loss 58604 79156 88891 80312
Income from continuing operations
Total other
income/expenses
net -15018 -118683 -2046 4615
Earnings before
interest and taxes 58604 79156 88891 80312
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Interest expense -1911 -2073 -2128 -2488
Income before tax 43586 -39527 86845 84927
Income tax expense 10653 638 17959 17928
Net income 32933 -40165 68886 66999
2.2 Use of cost and pricing process
COSTING EXERCISE
Ingredients Specification
Unit of
Measure
[UoM]
Cost /
UoM
Quantity
Required
Total
Cost
plain flour 140 gram £5.00 6 £30.00
TOTAL COST £30.00
COST PER PORTION (total 5 portion) £6.00
Wastage (Per
Portion) 6% £0.28
Cost Price Plus
Gross Profit 37% £1.95
Adding VAT to
Achieve Selling
Price 5% £0.28
Portions Sold 5
Selling Price £8.50
Gross Revenue £2.50
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Net Revenue (After removing VAT) £2.22
Actual GP% Achieved 25%
Actual CoS% Achieved 2%
2.3 Purchasing process
FINANCIAL SUMMARY
Budget Actual Variance £ Variance %
Pudding £120 £125 £5 4.0%
GROSS PROFIT % 25.0%
Food Gross Profit %
TASK 3 & 4
Covered in PPT
CONCLUSION
From the above report it has been summarised that hospitality industry needs to focus on
their food and beverages because success is depend on their service system. Thus, entire report
was concentrating towards measures for preparing an outstanding way of designing a menu
which may attract minds of clients. TGI Friday is restaurant chain which is involved in serving
numerous of customers in various ways as well as handled catering department of millions
programmes.
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REFERENCES
Books and Journals
Davis, B., and et. al., 2013. Food and beverage management. Routledge.
Mahalik, N. P. and Nambiar, A. N., 2010. Trends in food packaging and manufacturing systems
and technology. Trends in food science & technology. 21(3). pp.117-128.
Massoud, M. A., and et. al., 2010. Drivers, barriers and incentives to implementing
environmental management systems in the food industry: A case of Lebanon. Journal of
Cleaner Production. 18(3). pp.200-209.
Slack, N., Chambers, S. and Johnston, R., 2010. Operations management. Pearson education.
Taj, S. and Morosan, C., 2011. The impact of lean operations on the Chinese manufacturing
performance. Journal of manufacturing technology management. 22(2). pp.223-240.
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.
Thorndike, A. N. and et. al., 2012. A 2-phase labeling and choice architecture intervention to
improve healthy food and beverage choices. American Journal of Public Health. 102(3).
pp.527-533.
Powell, L. M. and Nguyen, B. T., 2013. Fast-food and full-service restaurant consumption
among children and adolescents: effect on energy, beverage, and nutrient intake. JAMA
pediatrics. 167(1). pp.14-20.
Davis, B. and et. al., 2013. Food and beverage management. Routledge.
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