Restaurant Management and Operations: A Comprehensive Overview

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FOOD AND BEVERAGE
INDUSTRY
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Table of Contents
INTRODUCTION........................................................................................................................3
1.1 CHARACTERISTICS AND FUNCTIONS OF F&B INDUSTRY.................................................4
1.2 DIFFERENT TYPES OF FOOD AND BEVERAGES SERVICE SYSTEMS-.................................5
1.3 EVALUATION OF THE FACTORS AFFECTING THE PREPARATION OF RECIPES AND
MENUS................................................................................................................................. 6
1.4 COST AND STAFFING IMPLICATIONS..............................................................................6
2.1 FINANCIAL STATEMENTS................................................................................................9
2.2 COST AND PRICING PROCESS IN FOOD AND BEVERAGE BUSINESS..............................13
3.1 PLANNING THE MENU INCLUDING THE COST AND OTHER FACTORS INTO
CONSIDERATION.................................................................................................................16
3.2 IDENTIFYING SUITABLE RECIPES FOR THE MENU-........................................................18
3.3. PREPARING FOOD AND BEVERAGE MENU FOR HOSPITALITY EVENT..........................19
4.1 FORMULATING A FOOD AND BEVERAGE SERVICE FOR A CUSTOMER WITHIN THE
LIMITED AND AGREED BUDGET..........................................................................................20
4.2 HEALTH, SECURITY AND SAFETY ISSUE IN FOOD AND BEVERAGE INDUSTRY...............21
4.3 RECOMMENDATIONS FOR SERVICE IN HOSPITALITY INDUSTRY...................................22
CONCLUSION.......................................................................................................................... 25
REFERENCES........................................................................................................................... 26
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INTRODUCTION
This assignment is based on the food and beverage industry and the characteristics,
challenges in the food industry are to be discussed in this assignment. This assignment is
focused on opening up the restaurant, the steps from opening the restaurant to mainlining
it including the financial planning, menu planning, layout and store management and
everything related to manufacturing and management of food and beverages is to be
discussed here.
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1.1 CHARACTERISTICS AND FUNCTIONS OF F&B INDUSTRY
Food and beverage service is the process of preparing the meal or food presenting the final
food and serving the same with beverages to the customers (Bigliardi and Galati, 2013).
The aim of food and beverage operations is to offer-
1. Food and beverages of good quality.
2. A clean, safe and hygienic place for consuming the food and beverages.
3. A comfortable ambience with basic and designed facilities of a washroom, furniture
etc.
4. Services in a professional, attentive and friendly manner to the customers.
5. Food and beverages of equal worth for money.
Challenges And Problems In Hospitality And Food Industry-
1. Intangibility- Intangibility for creating a good ambience is a challenge at the
restaurants.
2. Simultaneous production and consumption- as producing food for a very large
audience of the customer is difficult because there will be a need of a large number
of producers of food all at one place which can lead to environmental, cultural, social
and economic problems.
3. Heterogeneity- as this is not a production of goods sector but a service-based sector
so every time the services provided to the customers will be different and is
customized according to the taste and need of customers ordering food.
4. Consistency- to maintain the regularity at the intangible food services also a
challenge in the food industry.
5. Perishability- the food and beverage items have a very short shelf life so they need
to be disposed of very early before they create a loss for the producer. The
hospitality services cannot be stored, returned to the producer and once received
cannot be claimed again.
6. In this industry, imitation can be very easily done by competitors.
7. The ownership of the person is limited to a specific period.
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8. The staffing and operating expenses differ according to the season
9. The external environment factors like economic factor, social factor, and political,
legal and technological factor affect the operations of the food industry (Hayes and
Miller, 2011).
Source- (Bigliardi and Galati, 2013)
1.2 DIFFERENT TYPES OF FOOD AND BEVERAGES SERVICE SYSTEMS-
For serving the food at restaurants there are different methods of serving-
1. Plated System Service- the food is produced and presented in the plates of each
customer and then served to the customer example- hotel and independent
restaurants (Tansey and Worsley, 2014).
1. Buffet System- the food is prepared in a very large quantity and the food prepared
in advance is placed in big containers where the customer is allowed to serve by
themselves. Example- banquet halls and conference halls (Tansey and Worsley,
2014).
2. Family Service- the food is prepared for the whole table and then is served in large
bowls to the table and the family members or the friends serve them individually
(Tansey and Worsley, 2014). Example –Chinese restaurants.
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Characteristic
s of the food
and beverage
industry-
A significant part of every human’s life for everyday survival
This food and beverage sector is one of the largest contributors in
the economy.
Food and beverage sector generates employment
New and innovative business ventures or entrepreneurship is
promoted through this.
The diversity in food cuisines and is promoted through different
variety of food concepts.
Consumer focused and competitive sector of economy
These restaurants provide the individual to spend some quality
time with family and friends while fulfilling the basic needs of
hunger.

3. Silver/ Russian Service- the food is prepared in large quantity and poured in the hot
serving silver platter and then the server transfers the food in each of the
individual’s plate. Example- Fine dining’s (Tansey and Worsley, 2014).
4. Gueridon Service- the ingredients and the raw materials are collected in a big trolley
and the waiter then according to the customer specifications prepare the food in
front of the customer. Example- fine dining restaurants (Tansey and Worsley, 2014).
1.3 EVALUATION OF THE FACTORS AFFECTING THE PREPARATION OF
RECIPES AND MENUS
Factors affecting the competition and preparation of food menus are-
For surviving in the competitive market a very appropriate location is to be chosen where
the raw material is easily available and the footfall of customers is high. The new and
upcoming social trends should be adapted to the new choices of customers. The large or
medium-sized kitchen should be chosen for preparing food and for attracting customers.
The restaurant should supply the value for money goods at a competitive price with variety
especially at holidays and good locations. For preparing meals the dietary changes of
demand should be implemented. The business owner should have to create a positive and
good environment after doing the SWOT analysis of own business (Davis, et al., 2018).
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1.4 COST AND STAFFING IMPLICATIONS
The cost is to be controlled to increase the revenue and implications are according to the
size of the business, capital funding, and inventory management are the benefits of cost
control.
Staffing implications-
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planning
purchasing
recieving
storing
preparing
issuing
sales and
service
accounting
and
evaluation

Points to remember for the planning of restaurant outlet-
Source- (Davis, et al., 2018)
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location
target market
business
potency budget
space
avaliablity
qaulified and
skilled
personnel
local influence
competition
legal aspects

2.1 FINANCIAL STATEMENTS
Balance sheet
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Cash flow statement-
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