Analysis of Food & Beverage Operations Management at TGI Friday's

This report analyzes the food and beverage operations management of TGI Friday's, covering various aspects of the industry. It begins with an introduction to the importance of the sector and then delves into the characteristics of food production and service systems, including cultivation, chopping/slicing, and curing processes, alongside buffet, English, and cafeteria service systems. The report explores factors affecting recipes and menus, such as customer demand, economic conditions, family size, and religious factors. It compares different production systems based on cost and staffing implications, including batch, one-off, and mass production systems. The report then justifies the suitability of these systems for different customer segments, from high-class clientele to lower-income groups. Furthermore, it discusses the use of financial statements like cash flow statements, income statements, balance sheets, and budgets in food and beverage operations and demonstrates the use of cost and pricing processes, including fixed, variable, and direct costs. Finally, the report provides a food and beverage menu for a hospitality event, justifying recipe selections and evaluating service success factors. This report provides a comprehensive overview of food and beverage management, offering insights into various operational aspects and strategic considerations for the hospitality industry.

Food & Beverage
Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Discuss the characteristics of food production and food and beverage service systems..1
1.2 Discuss factors affecting recipes and menu for specific systems.....................................2
1.3 Compare the cost and staffing implications for different systems...................................2
1.4 Justify the suitability of systems for particular food and beverage outlets......................4
TASK 2............................................................................................................................................4
2.1 Discuss the use of financial statements in food and beverage operations........................4
2.2 Demonstrate the use of cost and pricing processes..........................................................5
2.3 Analyse the purchasing process........................................................................................6
M2...........................................................................................................................................7
TASK 3............................................................................................................................................7
3.1 Compile food and beverage menu for a hospitality event................................................7
3.2 Justify the selection and suitability of recipes for menu..................................................8
M3...........................................................................................................................................8
TASK 4............................................................................................................................................9
4.1 Plan a food and beverage service for a hospitality event within an agreed budget..........9
4.2 Implement the planned service maintaining standards of quality and health, safety and
security.................................................................................................................................10
4.3 Evaluate factors to determine the success of the service, making recommendation for
improvement.........................................................................................................................11
D2.........................................................................................................................................11
D3.........................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Food and beverages is one of the best alternate in the hospitality industry as it is an
essential to earn more profits as well as generate revenues in better manner. This is a most
important sector because it focusses on quality and excellence. There are number of
organisations who deals in hospitality industry including hotels and restaurants. Their main focus
on productions of quality food & beverages and their operations in an appropriate manner. The
organisation selected for this assignment is “Thank God it’s Friday” , it is well known for its
unique dining and bar side facilities. This report highlights the characteristics of range of food
production systems as well as various factors that affects the service systems. There are certain
roles and uses of financial statements as well as there are number of issues and options that is
used in costing process. Food and beverage service plan will also be formulated by the
organisation.
TASK 1
1.1 Discuss the characteristics of food production and food and beverage service systems
It is the nature of customers that they get attracted towards the organisation system that
delivers high quality food products so that they get satisfied with the services provided by them.
TGI Friday's is a well-established hospitality industry that supply quality food item to their
people and hence manager have to inculcate certain feature of food production and beverage
service system that are discussed below:
 Cultivation process: It is the first step that involve carrying out the cropping process that
is performed by farmer to supply raw materials to the market place.
 Chopping and slicing step: In accordance to this stage input products are chopped in
order to make final product or item. It is the responsibility of Chef to run this process.
 Curing process: In this process important ingredients to the food stuff so that tasty food
item could be produced (Davis and et. al, 2013).
After carrying out the initial step there is proper service system that has been discussed
below:
 Buffet service system: In this system food items are displayed on the table so that
customers have choice to consume any food stuff of their choice and wish.
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 English service system: In this, the food stuffs are presented in distinctive and attractive
manner to the customers so that they get attracted towards it and enjoy the services.
 Cafeteria service system: This is considered as most traditional process of supplying
food items to their customers in which several food items are displayed to the customers
and they are free to select and consume in accordance to their need and availability.
1.2 Discuss factors affecting recipes and menu for specific systems
There are number of elements that are present which directly affect the recipes and menu
of the hotel industry. Amongst all the purchasing capacity of the customers are considered the
major factor that impact this system. It is directly linked with the price, if the hotel charges high
price for the food items than the demand for the same will be diminished and vice versa. Some
factors that impact the menu and instruction of specific systems are illustrated below:
 Current demands of the customers: The consumers keep on changing their preferences
in market place, therefore it become necessary for the TGI Friday to examine all the
current factors in order to take the decisions effective and efficiently.
 Economic conditions: There are some changes that take place in economic condition of
the country that is directly linked with demand and supply concept that is prevailing in
that situation (Mahalik and Nambiar, 2010). Hence, TGI Friday have to continuously
study these conditions and work accordingly.
 Size of the family: This factor has the huge impact on the recipe and menu system. There
is different level of families that is present in the society that are small, nuclear and large
family. As the demand for the food items is directly related to the size number of the
family. For example, the order placed by the nuclear family will be different from the
demand of food items by the large sized family. TGI Friday have to consider this aspect
and make decisions accordingly.
 Religious factors: Different people follow their distinctive belief or religion as it
determines the feeding habits of the people. For example, TGI Friday also offer
vegetarian food products along with non veg stuff.
1.3 Compare the cost and staffing implications for different systems
Nature of production
Process
Meaning Cost system Staff system
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Batch system In this two or more
organisations who club
together to produce
batch products rather
than one single
company.
 Cost related to
acquiring raw
materials and
other items.
 Labour
 Managers and
leaders.
Proper structure must
be formulated as per
the needs and
condition of the staff
members.
One-Off Production
system
In this, sample goods
which are produced by
the business
organisation come into
this category.
 Cost which is
acquired in
hiring talented
and
experienced
individuals.
 Cost for
acquiring basic
necessity
materials.
There is no
requirement of the
staffing function as the
single member
manages all the
functions that has been
carried out in effective
manner.
Mass production
system
In this all components
of the single
organisation system to
produce product or
service, this process is
known as mass
production.
 Labour cost
 office
expenditures
 Other extra
miscellaneous
expenditures
 cost to acquire
raw material
and other input
devices.
Effective staffing form
is needed in order to
carry out the whole
work process in
accordance to set plans
and procedures. Proper
management is drafted
that determine all the
functions in accurate
manner.
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1.4 Justify the suitability of systems for particular food and beverage outlets
Business environment is dynamic in nature which keeps on changing with time and hence
TGI Friday have to consider all these modifications and alterations in order to full fill all the
demands and wants of the customers in the market place. This is the duty of the organisation to
carry out the process of examining the external environment that affect the whole organisation
system in different ways (Massoud and et. al, 2010). There is requirement to study various issues
and aspects in order to design the service system for the available outlets and stores, that are
discussed below:
 Delivering services to the high class people of the society: It is the behaviour and nature
that keeps on changing in market place. High class people always focuses on maintaining
their quality life and living standard. Therefore, it is necessary for the business
organisation in order to maintain their status. Basically, Buffet service system is used for
offering food services to the high class people in order to maintain their living standards.
 Middle Class Family: The family which belong to middle class level of family have less
demand and requirement as compared to higher level and therefore they adjust this
services and goods also. They are happy with high class as well as normal facilities such
as; Buffet service system, English service system and Cafeteria service system are
used by company for these kind of people.
 Lower level of society: It refers to the group of people that belong to the weaker section
of society in which individuals do not have any problem regarding these aspects.
Basically, these members are low class people due to which they are not feel comfortable
with high class services.
From the discussion, it has been find out that TGI Friday have to examine all the
preferences, nature, attitude of the customers in the market place and thus, take decisions
accordingly. It is very necessary for the company to determine purchasing power, income level
of their target customers so that final decisions can be made in considering all these statuses.
4

TASK 2
2.1 Discuss the use of financial statements in food and beverage operations
Every organisation system make uses of financial statements in order to calculate the
profitability and financial position. It is required to maintain the overall cost and expenditures in
effective manner so that stock options must be managed properly and accurately. There are
several important financial statements that are adopted by TGI Friday to manage the financial
system in discussed below:
 Cash Flow statement: It is the statement that is prepared by the organisation to record
various inflows and outflows of that cash that take place in set time period. There are
number of activities that are carried out which results in either inflow and outflow the
cash from the business (Slack, Chambers and Johnston, 2010). For example, TGI Friday
have to make purchase of raw materials in the form of food items that is utilised in
making of several dishes. On the other hand, any income is termed as the cash inflow for
the hotel.
 Income statement: This type of financial statement records all income and expenditures
that take place in the business organisation system. After making proper record off all the
items it is easy to calculate the overall gains or losses for the company which is necessary
to showcase the financial position. The formula to find out the income is Revenue-
Expenses + Gains-Losses=Income.
 Balance Sheet: It is developed by the business organisation in order to calculate the
assets and liabilities that is present in the business. It is determined to calculate profits
and losses for the financial year. Its formula is Assets- Liabilities= Net Worth.
 Budgets: It is calculated to estimate all the expenses that may take place in the business
organisation system. TGI Friday involve the cost which is related tro labour and food
expenditures.
2.2 Demonstrate the use of cost and pricing processes
It is very necessary for the TGI Friday to evaluate all components and elements that
involve the pricing strategies involve in preparation of recipes and dishes. There are number of
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cost system of different nature that is adopted by the business organisation that are mentioned
below:
 Fixed cost: This is the cost which remains fixed with the passage of items and do not get
change with the alterations in input factors. For example, cost of land remain fixed
throughout the business life.
 Variable cost: This type of cost varies with the quality of goods and stocks and
organisation have to properly execute it in proper order so that cost effectiveness could be
achieved in set period of time (Rao and McClements, 2012).
 Direct Cost: This type of cost impact the functioning of the business organisation
directly and the impact for the same have to be faced by the TGI Friday.
 Indirect Cost. There are certain costs that poses indirect impact on the overall
functioning of the system. It includes tax rates, rents and many others which have to be
incurred by TGI Friday.
There are certain criteria which have to be met by introducing cost and prici9ng system in
the TGI Friday and that can be carried out in distinctive manner which is described below:
 Proper and effective calculation of the food cost before determining the final price.
 Proper and healthy recipe can be determined in order to full fill the demands of the
customers in the market (Taj and Morosan, 2011).
 FIFO method can be adopted in determining the final price by the restaurant.
 Economic Order Quantity must be calculated in order to find out the minimum stock
quantity.
2.3 Analyse the purchasing process
Operating procedure that has been carried but by food and beverage industry involve
storage, issuing preparation process and purchase function and many other. The purchasing -
process is performed by the management in effective and efficient manner so that optimum
utilisation of the overall system could take place. The buying process in this industry is taken up
in the following steps that are discussed below:
 Firstly, the TGI Friday have to analyse the needs and demands that are prevailing in the
market and is generated by the customers.
6

 After analysing the actual requirements of the people next step involve checking the
actual position of the stock materials and proper place so that buying amount can be
calculated in effective way (Speers, Harris and Schwartz, 2011).
 Nest step involve choosing the best provider party and make comparisons among the rate
between these and selecting the best possible manufacturer that will yield them high
outcomes and gains.
There are certain criteria that must be kept in mind while carrying out the purchasing
process in the TGI Friday so that no losses can be incurred. Some key pints are discussed below:
 Proper examination of the overall cost fluctuations: This is one of the major factor that
must be consider by the company in order to prevent any undesirable losses. There are
several unfavourable situations and conditions that happen in business environment
which is related to fluctuations and changes that have to be properly managed by them in
effective way (Powell and et. al, 2013).
 Proper Selection of Supplier: According to this factor, TGI Friday have to maintain the
consistency and reputation so that proper selection of the supplier can be made. The main
element that is consider in this component is that proper formulation of terms and
conditions should be well known between the producer and supplier.
M2
By going through the different financial accounts it can be analysed that how customer is
responding to variety of food products. Through same it can be identified that how by going
through the various accounts trend in market can be indented so that accordingly decisions
regarding menu can be taken. The purchasing trends gets effected when there is some new
product launched in the market by other competitor as clients gets easily fascinated.
TASK 3
3.1 Compile food and beverage menu for a hospitality event
Every food and beverage industry have to formulate proper menu system that contains all
the information related to food items and prices offered by the hotel (Chriqui, Pickel and Story,
2014). Similarly, TGI Friday have to maintain their menu card in proper manner so that during
the time of any event and function the client do not face much problems regarding the
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information of food offerings made by them. Thus, an outstanding menu is going to design for
“Small conference of local professional association: is discussed as follows:-
RECEIPE COST SHEET
Name of
Items Cost Price
Cost Per
Unit Total cost
Ginger Breads 10 £1.09 £5.00
Green Chillies 5tsps £3.00 £6.3
Sea Salt 6 £0.59 £4.52
mustard Oil 26tsps £1.35 £8.00
Potatoes 25 £5.00 £5.60
Cakes 1kg 500g £0.56 £4.85
Pastries 0.5kg £0.96 £4.20
Eggs 15 £1.25 £5.80
Frozen Meat 2kg £0.50 £7.52
Chicken 400g £0.85 £5.63
Spices 20tsps £0.96 £8.00
Tomatoes 20tsps £1.00 £5.00
Under this, the menu for an event is mention below as above:
Appetizers  Roasted chicken
 Honey potatoes
 Crab cakes
 Dips and Spreads
 Ginger Breads
Main course  Frozen meat
 Spinach
 Artichoke Risotto with Capocollo and
Pecorino
 Southern Thai Rice Salad with Shrimp
(Khao Yam)
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Desserts and Drinks  Chocolate mousse
 Double chocolate brownie
 Ice cream
 Soft drinks
3.2 Justify the selection and suitability of recipes for menu
The menu which has been selected has been taken into consideration on the basis of
certain criteria as there are number of reason behind it. For instance, customers that prefer
vegetarian as well as non-vegetarian food items must be included in the menu list. Other than
this, proper attention is made on the health issues that no high intake of calories must be included
in the food items that may cause health issues to the customers (Thorndike and et. al, 2012). The
major element that include is aspects related to recipe of the food items which adopts other
criteria too:
 use of Current seasonal ingredients.
 Storage and suitability criteria
 Availability of sustainable amount of ingredients.
There are certain nutritional factors that must also be included in the recipe and food
items that are been offered by the hotel.
M3
As the structured menu contains all the required information regarding the food products and
its cost it can be said that it is an appropriate one. The dish selected is in very much demand
hence can be used to increase the total sales volume. Every detail of the ingredients is given
which shows that detail study has been done. Customers can take their buying decision on the
basis of same hence shows that it is effectively communicated to clients.
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TASK 4
4.1 Plan a food and beverage service for a hospitality event within an agreed budget
TGI Friday is planning to organise the business events and hence have to draft the
budget plans in order to carry out the plan in effective manner. The estimated amount for the
hotel is 90000 pound in this proper allotment must be made therefore, the proper budget plan
must be launched for the business event which is described below:
MENU
Items Budget
Beverages hot/cold coffee 5000
Beer/vodka/juices 14000
Food Products Noodles 14000
Pizza 12000
Continental Food 6000
Italian Food 11000
Hot Garlic bread 3000
Mexican Food 15000
Desserts vanilla Ice Cream 5000
Chocolate Ice
Cream 2000
There are certain methods and services that are introduced by the organisation that are
discussed below:
 Self Services: According to this, guests are allowed to adopt the services by themselves.
There are different types of food stuffs that can be taken up by them.
 Table services: There are number of table habits that has to be consider in which proper
menu lists is provided to the customers demands could be fulfilled (Powell and Nguyen,
2013).
 Specialised services: In this TGI Friday hotel sometimes serves specialised services to
their customers so that they remain happy and contented.
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4.2 Implement the planned service maintaining standards of quality and health, safety and
security
TGI Friday concentrates on maintaining the standard of quality of food products and that
is how they could able to satisfy the demands of the customers in effective manner. They also
focus on safety and security of their clients which is very much necessary to retain maximum
number of people as their regular customers. Every consumer demands for high quality products
and food items that has to be maintained by them so that sustainable image could be established
in the market place (Jung and Yoon, 2012). There are certain laws and regulations that has to be
contained by TGI Friday that are discussed below:
 Health and Safety: it is the duty of the hotel to maintain the safety of their people whether
employees or their customers so that they remain protected in the area. For example
proper instructions must be given to the staff members of the hotel how to use the tools
and equipments so that no misshapen could take place.
 To maintain the standard quality of food products: It is the responsibility of the hotel to
maintain the quality of the food products so that customers remain satisfied with their
services.
 Safety Aspects: Proper security system must be introduced by the TGI Friday so that their
customers feel safe and secure while they are in the hotel area. It is directly linked with
the establishment of conducive and proper relations with the customers and retain them
for longer period of time (Davis and et. al, 2013).
From the above discussion it has been clear that hotels have to maintain number of
aspects related to health, safety and security of the individual associated with the hotel.
4.3 Evaluate factors to determine the success of the service, making recommendation for
improvement
There are number of factors that are present in the business organisation system that
determine the success of the services that are offered by the TGI Friday hotel as well as there are
some recommendations that are drafted which are discussed below:
 Factor related to customer satisfaction: Every company aims to satisfy the demands and
needs of the customers. Therefore, it is necessary to carry out the overall work process in
11

proper and innovative way so that they could deliver effective services and products to
the people present in the market place.
 Advertisement strategies: It is very important for TGI Friday to make proper
advertisements in front of the customers and clients in order to deliver the relevant
information and data to increase awareness and knowledge in the customer's mind
(Galbraith‐Emami and Lobstein, 2013).
 Effective controlling of the cost: This is one of the major factor that determine the
success of the restaurant. It involve setting up of overall prices and rates in accordance to
the requirements and situation of the current market. There are number of cost effective
techniques and tools so that extra cost can be controlled in effective way.
 Product Differentiation factor: As it is important for TGI Friday to produce foods and
beverage factors in unique manner so that customers could able to get attracted towards
it. It is very necessary for the hotel to introduce new and advanced techniques to become
famous among the customers.
 Conducting planning and organisation process: This factor involve carrying out the
management function in effective way so that overall functions and steps can be
conducted in proper way so that final outcomes and results must be accomplished in set
time period (Slining, Mathias and Popkin, 2013).
D2
Responsibility will be divided among the distinct departments which will further help in
launching the event in most appropriate manner. The placement of food products will be done in
a manner that no one finds it difficult to serves themselves. Supervisors will be there who will
ensure that everting goes as per the planning.
D3
In order to complete the project on time and supported with high quality it is important that
ideas which are suggested by others are implemented. This way the work done is more effective
and has high degree of acceptance. When collective recommendations are used the investments
of resources has higher chances of giving more effective returns.
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CONCLUSION
As per the above prepared report it has been concluded that food and beverage industry
play an important role while delivering hospitality services to thee customers in the market place.
There are number of issues and challenges that are faced by this industry is that they have
continuously introduce new and innovative methods to improve the quality of the food products
to satisfy the customer's needs and demands in effective manner. “Thank God Its Friday” hotel
have to evaluate number of pricing and cost procedures as well as have to determine the factors
that will affect the recipe for the system.
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