Detailed Report: Food and Beverage Operations Management Analysis

This report provides a comprehensive overview of food and beverage operations management, focusing on key aspects such as financial statements, purchasing processes, and service strategies. It begins with an executive summary highlighting the importance of food and beverage service systems in event management and emphasizes the role of financial statements in cost control and expenditure planning. The report then delves into the significance of financial statements, including balance sheets and income statements, and their application in managing budgets and expenses. It also explores the purchasing process, including market evaluation, search and selection, and the importance of keeping accurate records. Finally, the report discusses factors contributing to efficient service and offers recommendations for improvement, aiming to provide readers with practical insights into the daily operations and procedures within the food and beverage sector.

FOOD AND BEVERAGE OPERATIONS
MANAGEMENT
STUDENT NAME:
STUDENT ID:
1

Executive Summary
Food and beverage service system are one of the most important factors, which hold a crucial
place in the functional section of the management system. This is because, without this
section, any event or occasion fails to achieve success. Hence, in the conducted report, an
attempt has been made to understand the functions and process which is concerned with the
food and beverage service system. A short yet compact discussion is conducted which
discusses the appropriate financial statements that can be efficiently used in planning
regarding the section of food and beverage. This explains proper calculation regarding
various essential expenses. Apart from this, a detailed explanation is given which discusses
the process of purchasing of food and beverage commodities that are going to be needed in
the concerned case scenario. In the last point of the conducted report, factors helping to
provide good service are also discussed. Suitable recommendations are also given concerning
the mentioned purpose.
2

TABLE OF CONTENTS
Task B...............................................................................................................................................4
Introduction.....................................................................................................................................4
Elucidate the significance regarding financial statements employed in the event concerning
beverage and food ..........................................................................................................................4
Investigation of the process related to purchasing..........................................................................8
Factors related to efficient service, recommendations regarding improvement...........................11
Conclusion......................................................................................................................................14
Reference List ................................................................................................................................15
3

Task B
Introduction
In order to become efficient in management, it is necessary for an individual to know the
function and process related to food and beverage section. This is one of the most important
management responsibilities. In order to organise any kind of events, functions handling the
section of food and beverage is one of the most important responsibility. This depends on
various factors like proper head count, accurate evaluation of the general food palate,
estimation of appropriate cost and price related to food materials and beverage. The chief aim
of the presented report is to make the readers aware of the everyday activities along with the
procedures used in operations concerning food and beverage. The report also aims to
elucidate various practical functional skills.
A discussion regarding food production and beverage service systems is made, followed by
the use of specific menus and recipes as per requirement. Purchasing methods along with
appropriate financial controls are also elaborated (Cousins et al. 2014, p.2). The report is also
conducted with a view to understanding recipes and menus required for hospitality events.
Lastly, recommendations for food and beverage service systems are also properly discussed.
Elucidate the significance regarding financial statements employed in the event
concerning beverage and food
The food and beverage service system consist of various financial statements, which consist
of various operations. These operations consist of variance, sales record, cost statements,
along with costing of the dish (Eyler et al. 2015, p.639). The main function of the financial
statements is to keep track of all the financial statements, which help in proper expenditure
calculation. This can be explained with the help of relevant examples. In the context of the
case scenario, since the budget is tight ($3000), the expenditure related to decoration must be
carefully assessed. A good amount of money must be set apart for expenditure related to
staffs. This is because, in order to conduct delivery in an efficient manner, efficient staff must
be recruited. Most of the budget money must be given on the buying food commodities and
necessary ingredients. Foods can be distributed in paper plates and cups. Paper plates are
reasonably cheap and are also convenient to carry food. Apart from the expenses in the
above-mentioned parts, a part of the allocated budget is also kept aside for miscellaneous
expenses. The financial statements for this particular events helps in to review the costs
incurred in different components required for arranging the event and other expenses with
4

regards to income to service staff and other props and accessories required for decorating the
fair at Valentine’s Park.
Balance sheet
Assets Current year
(£)
Previous
year
Liabilities Current year
(£)
Previous
year
Property
Intangible assets
Inventories
Exchange
transactions
Cash
Non-exchange
transactions
25000
13000
36520
8500
7890
36584
8901
24000
11200
36500
9000
8000
45008
8800
Healthy benefits
Long terms
Trade and other
Short term
Reservation
deposits
Liabilities form
non-exchange
transaction
30000
15000
51620
7500
16275
16000
29000
14000
51600
75200
14292
13000
Total 136395 142508 Total 136395 142508
5

Revenue Current
year (£)
Previous
year (£)
Expenses Current
year (£)
Previous
year (£)
Retail and other
Sale
Operation
Grants
Special project
grants
Donations
1200012
33529
20169
392738
34039
5391
1058117
3752
20196
196158
19124
2737
Operating
Administration
Compensation
Expense
retailing
715 942
63438
885530
516 864
689 540
58 982
640 394
425 116
Total 1685878 1300084 Total 2181774 1814032
Explanation of Financial statements of the food and beverage company:
When looking at the balance sheet of the company introduced then it can be found
that total assets and liabilities both declines in further year. Basic reason behind reducing
total assets is that, transactions in terms of cash decrease from 45008 to 36584 GBP. Along
with this, negative change occurs in the inventories as well which are from 9000 GBP to
8500 at the end of current year. When considering to the liabilities section then it can be
visualised that, only short-term reservation deposits are increasing from 14292 to 16275 GBP
6

at the end of present year. Apart from this, all the values of current and fixed liabilities are
reduced which lead to decline total liabilities from 142508 to 136395 GBP in current year.
As per the income statement, performance of the food company is increasing from
previous to the current year. The reason is that total revenue was worth of 1300084 GBP in
previous year which enhanced and reached up to 1685878 GBP in present financial period.
On the other hand side, expense level of the food entity also enhanced by which performance
affects up to the higher level. Total costs kin the company was 1814032 GBP in previous era
which is 2181774 GBP as of now. Moreover, when considered to the difference of expenses
and revenue then it is worth of 367742 GBP and 385794 GBP respectively. Henceforth, it
able to generate more revenue after making expenses additional expenditures of 367742 GBP
in the current accounting period.
Use of financial statements for the food and beverage operations
Financial aspects play very important as well as significant tool in the each and every
whether it is already existing or going to introduce in the industry. Under this concept several
kinds of financial statements and reports are to be prepared which are useful in order to
assess its profitability and liquidity condition within the whole industry. There are several
kinds of financial accounts and statements are to be prepared by the food and beverage
operations which are like balance sheet, profit and loss, cash flow etc. On the basis of such
kinds of accounts the food operations able to know and determine its level of costing as well
as expenses in effectual ways (Cousins et al. 2014, p.2). Moreover, it is useful in terms of
assessing its various positions like profitability, cash amount etc. at the end of year.
The company needs different financial statements in order to know its business
performance and on the basis of that further decisions as well as strategies are to be made. If
the businessman of the restaurant or food firm assess that costs are increasing in the present
time as compare to previous then able to prepare strategies for reduce them. In addition to
this, requirement of raising fund are also determined through financial statements for the
further accounting periods. Revenue and profit, these both are the highly significant concept
of every food and beverage enterprise which are analysed with the help of profit and loss
account.
In addition to this, it can be said that by having an improved focus on the balance
sheet evolution the issue can be resolved effectively. With an assistance of information in
regard to sales and other financial terms the better decisions in respect to food and beverage
operations can be taken into account. Along with this, effective development of key tools is
also significant which need to be referred by management so that better aspects can be
7

covered. According to analysis, the current year assets and liabilities are less which helps
might affect the development of business. It is significant for entity to ensure that long term
sustainable values can be advanced through control over financial terms.
Moreover, the cited entity is beneficial through financial statements in terms of
accomplish the objectives and goals of the business in proper manner (Davis et al. 2013, p.7).
The reason is that, these reports support to manage as well as control costs and raise
profitability as basic objective of the food operations is to maximise the profit conditions.
Most of the business aspects with regard to financials, the food entity can be known and
derived as it is the utmost part of the firm.
Investigation of the process related to purchasing
In a context of the case scenario of Summer Fair in Valentine Park, it is observed that the
event is being conducted within a tight budget. Hence, expenditure assessment regarding the
food and beverage section needs to be carefully considered. The process of purchasing
basically refers to the functions which are carried out in order to successfully conduct the
task of food and beverage management service (Cousins et al. 2014, p.5). This process
involves functions like market evaluation, search and selection, followed by purchase,
keeping track of receipts. After all these functions, the use of the selected raw materials or
commodities which are brought for the concerned purpose. For example, the concerned event
is the
Summer Fair held in Valentine’s Park .
Market evaluation
The main part of the purchase is the evaluation of the market. By gathering all the correct
information about e market value of the products the responsible person need to find out the
exact situation of market. Before conducting the purchasing process evaluation of the market
is the necessary process. In order to control the whole cost of purchase process the valuation
process plays important role.
Search and selection
Before purchasing any items from the market and it search for the item first and after getting
the right item for purchase it is important to, purchase. They search and selection process
provides positive impact upon the whole purchase process.
Followed by purchase
Following the market evaluation and the market value of the materials the person can
conduct the purchasing process. Need to choose the right item for purchase and by
8

purchasing it the person need to try to control the cost of the product. Following all the rules
and process of purchasing the person can conduct the process very easily.
Keeping track of receipts
The important part of the purchase process is to keep the receipt of the purchase. For the
process of calculation of whole cost of the purchasing process and to understand the cost
control it is necessary to keep all the receipt of the purchase.
In order to conduct the right process of purchase and to make control over the whole cost of
the purchase it is important to follow all the process of purchasing.
This indicates the individual, who has the responsibility to buy foods and beverages for the
mentioned event, apart from purchasing, is also responsible for storage, receiving and issuing
the commodities.
The function of purchasing is an important factor if one wants to conduct successful
management. Balancing is crucial to conduct efficient purchasing. This means, handling and
maintaining sufficient stock levels in order to fulfil criteria concerning customer service is a
necessity. Diverse types of product need suitable procurement strategies (Zenk et al. 2014,
p.2170). For example, since, the report is made keeping in mind the prescribed guests for the
Summer Fair, high quality, and fresh products are needed for the purpose, along with
seasonal produce. Quality desert, which suits diabetic individuals as well as children, needs
are considered.
In the context of the case scenario, it is observed that a tight budget is sketched for the
purpose. Ingredients of food are taken from various distribution channels. In this regard,
suppliers from whom ingredients are bought on a number of occasions can be much helpful.
Sugar, sweeteners, for instance, are brought from small retailers, since they tend to provide
discounts in order to attract customers (Walker, 2016, p.10). Milk, cheese, fresh cream, for
example, are brought directly from dairy farms. Another good alternative is going to a good
wholesaler. Eggs are brought from known poultry. Fresh green vegetables are bought from
local markets at low cost. Boneless chicken pieces are bought from markets to get them at a
reasonable pricing range. In order to make honey grapefruit along with banana, honey are
obtained from the small retailing channel or directly from the manufacturer. Hot beverages
like tea, coffee are bought from online retailers at a reasonable price. Taking into view the
mentioned case scenario, fruit juice, soft drinks are obtained easily from local wholesalers
(Viljoen et al. 2014, p.28).
Procedures of Purchasing Products
9

The company of food and beverages when going to purchase any kind of raw
materials then proper procedures and method is necessary to use. At the current case, the
cited firm is going to buy some required items for it under which the process of purchasing is
mentioned below:
Stage 1: Requisition of Equipments and Supplies:
 At the initial time, the company analyse that which kind of items and equipments are
needed and on the basis of that take further actions. In the first stage, management
recognises about the needs and requirements of the particular product at the
workplace.
 After that, very basis and general description of the needed products and services is to
be analysed in the proper manner. Moreover, characteristics as well as quantity of the
required services and items are to be identified by the management of food enterprise
(Bragg et al. 2016, p.20154). Along with this, pricing aspect, durability, attributes as
well as reliability of the potential products are also assessed at the current stage of
purchasing.
Stage 2: Purchase Specifications:
 In this, specifications and facts about the particular required products are to be
discussed and assessed by the company. It is significant for business firm to ensure
that all terms in regard to products are need to be verified so that purchase process
can be advanced. It helps in effective selection of products for sustainable
development.
 After deciding the product which is required, the entity go for search the suppliers or
providers. Entrepreneur of the firm will analyse that which supplier offer the best
quality of products and on the basis of that specific provider is to be selected.
 After selection of supplier, the company invites to him for submission of the proposal.
In the section of proposal, the product provider must include price, characteristics and
attributes of the required item.
 When the proposals are to be evaluated then management of the food firm select and
choose the supplier (Evert et al. 2013, p.3822). In this, management focuses on the
activities which allows to have proper evaluation of measures which might affect the
purchasing of products. On the basis of key factors analysis the decision is being
taken for the benefits of business.
Stage 3: Receipt:
10

 It is the second last stage in which the company give order to the supplier for
dispatching in the workplace. It is a stage where confirmation of purchase order has
been provided to suppliers in order to ensure about sustainable development.
Improvement in long term values can be taken into account through effective
dispatching of products. Further, receipt collected from the supplier about those
equipments purchased from him.
Stage 4: Invoicing:
 Invoice is considered as a final bill of the purchasing in which all the details are
included which mandatory. Along with this, it is legal or formal bill of the product
purchasing. Further, things involved in the invoice are date of purchasing, price of
each unit, product name, quality of product, tax rate and total amount.
Stage 5: Storage and equipment and supplies:
 In this stage, order to the equipment supplied in the company by supplier which are
either stores or used in the workplace of food and beverage company.
 At the end, performance is to be reviewed and measured of the selected supplier by
the firm. In this, as per monitoring outcome of process the performance under
purchase process is being reviewed so that long term goals and objectives can also be
accomplished.
Factors related to efficient service, recommendations regarding improvement
In the sector of service management, one of the chief important factors is efficient
management. This is because, without proper management service, it is impossible to handle
the task of the service system. Taking the case scenario into consideration, there are various
factors which need to be considered for the concerned purpose. One of the first tasks to
conduct efficient service is making a comprehensive plan for the event. The plan needs to
consider all the essential factors, which involve various aspects of the event (Wu et al. 2014,
p.171). After sketching the required plan, a separate plan must be sketched out regarding the
expense of food and beverage service section. Second important factor that needs to be
considered is taking into consideration the types of guests who are coming in the event. For
example, as per the case scenario, among the invited guests, some of them suffer due to
diabetes while 20 invitees are vegetarians. Hence, recipes and menus need to be made
keeping in mind the food criteria and food palate of these people. On the other hand, children
are also present; hence, the food must be accordingly made. Therefore, suitable goals must be
planned and set to meet all these food criteria.
11

Resources and time management is an important factor which proves management efficiency.
This can be explained with the help of appropriate examples (Zhen et al. 2013, p.125). For
example, a number of cooking hands, cooking ingredients, raw food commodities and such
needs to be properly assessed. Expenditure regarding these factors must be properly
conducted. On the other hand, foods recipes must be decided based on the number of invited
guests. Along with this, the type of guests must also be considered. Food recipes must be
based on the type of event. Since this is a summer event, much amount of time cannot be
considered. Hence recipes must be chosen in a way which consumes less amount of time so
that quick delivery can be processed (Evert et al. 2013, p.3822).
Commitment is an important factor, which needs to be considered. This means the
commitment to complete the given task. The Strong determination must be present to finish
the task which is taken by the event manager related to food and beverage service system so
that every food criteria of the concerned guest are efficiently met and fulfilled (Finley et
al.2014, p.440).
The food and beverage service system are such that there always remain places for
improvement. For example, emphasis must be given in making foods, which suit
everybody’s taste palate. Food for diabetic individuals should be made in a way suitable for
other guests. For example, Applesauce Pancakes is a good recipe. Honey Grapefruit made
with Banana is an excellent dish, promising taste and health. Veggie Sausage-Cheddar
Frittata is a delicious dish, which also suits the vegetarian palate.
Service system must be quick without any delay. In order to do this, efficient staff should be
hired for the purpose. Decorations must be simple yet elegant. More concentration must be
given on providing good quality food (Bragg et al. 2016, p.20154).
In order to develop and provide the proper services to the customers it is essential to collect
the feedbacks of the customers. From the feedbacks of the customers the organisation can
understand the requirements of the customers and can improve their service process as per
the requirements of the customers. On the other hand the reply of the employees’ of the
organisation is also important to develop the service and product quality of the organisation.
By providing own views the employees of the organisation can take part in the development
of the service system. Te reply of the employees can improve the quality of the products.
Fulfilling the requirements of the employers the organisation can develop their service
system.
12

The above discussed several kinds of factors as well as elements create impact on the
food operations in different ways like positive or negative. Such aspects lead to influence on
the success or service providing up to the customers and users. The factors are like planning,
scheduling of the firm, management of the organisation, level of customer satisfaction,
product quality, services standards, assurance etc. Along with this, due to increasing cost and
staff turnover also success of food services affected up to the highest level. In order to raise
such kind of services and achieve success in the industry the company needs to take various
steps and frame the strategies (Walker, 2016, p.10). Moreover, some recommendations or
suggestions to the food enterprise for improvement are given as below:
 Very first and utmost the management needs to make communications channels very
clear and proper which support to communicate with the existing and potential
consumers properly.
 The firm requires to maintain and manage the quality of products and services up to
the better ways which support to raise and improve its quality of services effectively.
For this, hygienic ingredients and nutritions need to consider while producing the
food items within cooking procedure.
 With the help of giving personal or private attention up to the customers lead to raise
level of their satisfaction and meet with the success of services. Along with this, it
must show positive attitude towards the users whether number of users are one, two
or more (Viljoen et al. 2014, p.28).
 For raising and improving the quality of services the management of food company
should purchase raw materials from the best supplier. Such kind of suppliers will
inbound or supply the best quality of nutritions and ingredients which is signal of
enhance standard of service and food products.
 Along with this, the firm should arrange training and development programs in proper
ways as well as within specific period of time. Through this, the employees and staff
will be able to become highly skilled, qualified and talented within workplace. Due to
this, staff expenses as well as their turnover will be decline and helps to meet with the
goal or success of services.
 In addition to this, relationship with the local businesses and food operations must be
establish and maintain in the effectual manner.
13

In addition to this, it can be said that for better improvement in services the management will
focus on effective evaluation of standards through diverse methods. It allows to have
sustainable development and advances the overall performance. It means the use of better
communication strategies is also beneficial in order to have sustainable development.
Conclusion
In conclusion, it can be said that food and beverage system is one of the core function, which
plays a major role in deciding the success rate of an event. Without a proper and efficient
service system, it is impossible to manage an event in a proper manner. Therefore, emphasis
must be given on this section. In order to do this, it is necessary for an individual to become
familiar with the operational process related to food and beverage service system and that is
why this report is being conducted. Importance and significance of the financial statement
needed and employed in this section are conveniently briefed, taking the case scenario of
Summer Fair in Valentine's Park into consideration. An investigation is done describing the
concerned purchase process. This involves from where the purchase is being processed.
Lastly, a discussion is made regarding the factors, which are essential in providing efficient
service. Apart from describing food service factors, suitable recommendations to improve
management service are also provided concerning the mentioned event.
14

Reference List
Bragg, M.A., Miller, A.N., Elizee, J., Dighe, S. and Elbel, B.D., (2016). Popular music
celebrity endorsements in food and nonalcoholic beverage marketing. Pediatrics,
p.e20153977.
Cousins, J., Lillicrap, D. and Weekes, S., (2014). Food and Beverage service. Hachette UK.
Davis, B., Lockwood, A., Pantelidis, I. and Alcott, P., (2013). Food and beverage
management. London: Routledge.
Evert, A.B., Boucher, J.L., Cypress, M., Dunbar, S.A., Franz, M.J., Mayer-Davis, E.J.,
Neumiller, J.J., Nwankwo, R., Verdi, C.L., Urbanski, P. and Yancy, W.S., (2013). Nutrition
therapy recommendations for the management of adults with diabetes. Diabetes care, 36(11),
pp.3821-3842.
Eyler, A.A., Blanck, H.M., Gittelsohn, J., Karpyn, A., McKenzie, T.L., Partington, S., Slater,
S.J. and Winters, M., (2015). Physical activity and food environment assessments:
implications for practice. American journal of preventive medicine, 48(5), pp.639-645.
Finley, J.W., Finley, J.W., Ellwood, K. and Hoadley, J., (2014). Launching a new food
product or dietary supplement in the United States: industrial, regulatory, and nutritional
considerations. Annual review of nutrition, 34, pp.421-447.
Ho, C.T.B., Yang, J.M.D. and Hung, C.S.V., (2015). The factors of information system
success: An example of customer relationship management implementation in food &
beverage industry. International Journal of e-Education, e-Business, e-Management and e-
Learning, 5(3), p.114.
Viljoen, A., Kruger, S. and Saayman, M., (2014). Understanding the role that Quality of
Work Life of food and beverage employees plays in perceived service delivery and
productivity. Southern African Business Review, 18(1), pp.27-52.
Walker, J.R., 2016. Introduction to hospitality. Pearson Higher Ed.
Wu, P.H., Huang, C.Y. and Chou, C.K., (2014). Service expectation, perceived service
quality, and customer satisfaction in food and beverage industry. International Journal of
Organizational Innovation (Online), 7(1), p.171.
15

Zenk, S.N., Powell, L.M., Rimkus, L., Isgor, Z., Barker, D.C., Ohri-Vachaspati, P. and
Chaloupka, F., (2014). Relative and absolute availability of healthier food and beverage
alternatives across communities in the United States. American journal of public
health, 104(11), pp.2170-2178.
Zhen, C., Finkelstein, E.A., Nonnemaker, J.M., Karns, S.A. and Todd, J.E., (2013).
Predicting the effects of sugar-sweetened beverage taxes on food and beverage demand in a
large demand system. American journal of agricultural economics, p.aat049.
16