An Analysis of Food and Beverage Operations Management Report

This report provides an in-depth analysis of food and beverage operations management, focusing on a summer fair at Valentine Park. It explores the use of financial statements in the context of food and beverage activities, including cost statements, dish costing, operating statements, cash flow analysis, balance sheets, income statements, sales records, and variance analysis. The report emphasizes the importance of financial statements for organizational growth, purchasing decisions, menu planning, and customer service. It also examines the purchasing process, outlining the stages of need recognition, information search, evaluation of options, purchase decision, and post-purchase behavior from both consumer and organizational perspectives. The report concludes by discussing factors that determine success and offering recommendations for improvements within the food and beverage operations.

FOOD AND BEVERAGE
OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASKA............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASKB............................................................................................................................................1
2.1) Use of financial statement in food and beverages activities...........................................1
2.3) Analysing process of purchasing....................................................................................4
4.3) Factors determining success and recommendations for improvements..........................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Hospitality industry is one of the fastest growing sector at present time it has been seen
that this is very effectively contributing in development of economy of a country. There is a wide
scope that can be pertained by it as because at present time customers are very much influenced
by products and services of hospitality sector (AbuKhalifeh and Som, 2012). It is very essential
for an organisation dealing with this goods to focus upon food and beverages session as it is a
very important element. With its support a company will be able to grow in appropriate manner
also this will generate maximum revenue for company. This section has been divided into two
parts according to its diversity and size. This assignment report is focusing on a summer fair in
Valentine Park. This is organising so that upcoming summer season can be enjoyed and
customers would have a lot of fun in fair. Through this project numerous aspects related to food
and beverage department will be described to understand effectiveness of summer fair that is
going to be conducted. Financial and budgetary aspect will also be discussed so that manage it
for operations and activities that are carried out by company (Adeoye and Elegunde, 2012).
TASKA
Covered in PPT.
TASKB
2.1) Use of financial statement in food and beverages activities.
Financial statements are those which are used by companies so as to record all the
transactions that are related to finance. These are done by a separate department as because this
job is not an easy task lot of effort and strategic plan is needed. Fund management is a very
crucial part that has to be performed by a company. It is very useful for a firm to perform as
because this will lead in appropriate management of entire operation of a company (Akkerman,
Farahani and Grunow, 2010).
Financial controlling in a hotel is very important because this will lead in cutting down
cost and proper allocation of resources could be performed. With the help of this statement a
restaurant or a hotel would be able to know what all area has to be managed so that cost can be
minimised. This also very useful for understanding level of performance are performed and this
will also influence numerous decisions and plan that are to be implemented in operations and
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functions. Financial statement is an aspect through which company will be able to know income
and expenditure of a firm(Bujisic Hutchinson and Bilgihan, 2014). There are some important
aspects that are related to financial statement reference to food and beverages operations such are
as follows-
 Cost statement- It is statements which is made by finance department which is included
in financial statements as it will show cost's detail that are indulged in introducing a
project and all those activities that are indulged in that. This report is arranged for
measuring all the cost that specifically identified with cost of a venture. For occasion at
Valentine park, administration need to ascertain such costs which are identified with
occasion in which work cost and so on need to get computed.
 Dish costing sheet- This is a kind of statement through which total cost and portion cost
for a single meal is get analysed. This is very frequently used by kitchen management
team of a hotel so that they could know incurred cost for a single item. This system is
very essential in the kitchen as because this will help in knowing all those aspects that are
required. Through this the cost can be easily evaluated and further estimations can be
done. Operating statements- These are statements which show cost that has been incurred in
day to day activities performed in an organisation. This is a part of financial statement as
because it will guide in taking an appropriate decisions.
◦ Cash flow: Monthly based reports which indicates about the cash inflow and surge. In
the occasion that firm cash overflowing is progressively when appeared differently in
relation to inflow then they have to use effective steps for that through which they can
manage their working. In this particular circumstance, component need to perceive
what thought is giving them more favourable position. If they recognize this factor
then it end up being straightforward for them to get such process for expanding whole
deal capability.
◦ Balance sheet: It helps in recognize the net assets and net liabilities of a firm which is
an incredibly central thought. Assets is a property which is assert by an affiliation
where as liabilities are generally commitments which an association need to pay in
their without further ado of whole deal.
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◦ Income statement: This is a report in which association's money related execution for
an accounting period is say. In this salary and expenses have confine fragment, for
which all the advantage and grabs are gone under wage section where as all expenses
and setbacks will viewed as expenses of an association. These all are measure in the
wake of figuring the working and non working advantage and loss of an association.
 Sales records- In this all details that are recorded which are related to product that has
been sold at time of making the statement. Sales record are mentioned here so that
company will be able to plan for future aspects (Cichy and Hickey, 2012). According to
this statement firm will be able to know which all products are demanded in large number
so according to this firm will offer their products and services. Variance analysis- This is a plan through which company will be able to know
differences that has taken place in firm in operations and activities. It is very essential to
understand this aspect as because with the help of financial aspect.
Usefulness of financial statement-
1. It is very essential as because it will help in attaining organisational growth in more
effective and appropriate manner.
2. This is beneficial at times of purchasing of products and raw materials as per
requirements. This is because financial statement will show a straight path through which
company will be able to spend the funds in proper manner (Davis and et. al, 2013).
3. This statement is very helpful as it will guide in managing each and every aspect of
activities and operations that has to be carried out in an organisation who is dealing in
hospitality industry.
4. This shows the management to choose an accurate plan of menu and recipe that has to be
included in offerings that a company should display for customers.
5. This will lead in proper planning of budgets and funds for performance of firm.
6. This will lead one to know and determine aspects that are related to a successful service
to customers. A qualitative services could able availed by customer with the support of
financial statement if planned in appropriate manner (Hock, Ringle and Sarstedt, 2010).
7. This is very helpful for future planning as because it shows past experience that was
carried out by firm in last year. Through this a firm would be able to plan and make new
and effective strategies that could assist in operating in more appropriate manner.
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8. Through this an operating profit could be calculated and according to that hotel or
restaurant could be able to function and will lead in enhanced productivity and high rates
of turnover.
2.3) Analysing process of purchasing.
Consumers are very rational, they do many activities at time of buying an goods and
services. It is very essential for one to know all those aspect which are very important as because
this will help to buy a correct thing for many options that are available in the market. A certain
procedure is been followed by customers while purchasing any goods and services. Customers as
well as company both are carrying out this activity so as to opt the better and appropriate option
from numerous alternatives that are available in market (Hvolby and Trienekens, 2010).
Basically there are 5 procedure that are followed by both consumers and companies at time of
purchasing any goods and items. They are as below-
1. Need recognition- This is first stage where a customers will at initial phase try to identify
problems and find out what are those needs which did not get satisfied yet. This step
cannot be able to processed until and unless a identification of need does not get
performed. Need can get generated with basically two aspects internal stimuli and
external stimuli. Internal stimuli are the hunger and thirst condition which will lead to a
situation where need to buy any good and service will take place (Johanson and et. al,
2011). Whereas, external stimuli are advertisement, publicity etc. This is very essential to
know then only one will lead to a situation where a purchasing process will get start.
2. Searching information- After identifying the need, next step takes place that is
information search. Here information and data related to the defined problem will be
gathered so that a proper guidelines through which best solution could be find out. This
stage is performed by customers in very proper manner so that they can be able to get
various options that are provided by several companies (Kapiki, 2012). Buyers are very
much depended upon factors like internal and external which is helping a client to gather
relevant information.
3. Evaluating different options- In this stage, customers will evaluate available alternatives
which are provided by companies in market. Here clients will be bothering about
attributes of products which will satisfy their needs and wants and will solve those
problems which are identified at first stage. One of the factor that is affecting this phase
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is customers attitude that it is having for a particular product or item. One more thing that
is affecting this stage is involvement of customers in evaluating number of available
options with them.
4. Purchase decision- This is the stage where actual purchasing of product will take place.
Here one of the best alternative is get selected by client and then he/she will purchase it
finally. There are two major factor that will affect this purchasing stage they are negative
feedback that has been given by other who have used it before and motivation to accept
those feedbacks. Negative feedback will affect in not buying of that particular product
and level of motivation to accept feedback will lead to a situation where customers will
neglect the negative aspect and will take step to buy goods and services.
5. Post purchase behaviour- This is the stage where customers will be comparing their
experience by present and past services and products that they have used. At this stage a
behaviour of understanding better option takes place. They will identify which item has
satisfied with their needs and desire (Mahalik and Nambiar, 2010). This will lead to a
situation where it can be analysed that a hotel's services that has chosen was more
effective or the one whose experience were taken previously. If result is positive then a
frequent purchasing and availing of same services will take place and if a negative
impression takes place then consumers will not go for same item in their next purchase,
they will switch products and services. Negative experience will lead a circumstance
where again same procedures will be performed by customers.
For an organisation purchasing process is very essential to understand and to follow as because
this will lead in smooth functioning of activities and operation of a company. They need to
consider various aspect so as to reach an extreme positive end and a proper services could be
availed by them to ultimate king of market, the customers (Marucheck and et. al, 2011). They
have to focus upon things such as-
 Requirement of equipments and tools-
◦ Cost
◦ Sustainability
◦ Delivery time
◦ Quick response
 Purchase specification-
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◦ Receiving
◦ Storage equipment and suppliers
Business purchase process
1. Requisition of equipment and supplies- Organisation has to identify the various things
that are required for their operations and functions and a short time later present a
demand against that. Request of suppliers and equipment is presenting a demand by a
relationship for such material which is required for gathering a thing or incredible.
2. Purchase specification: Purchase specific is an once-over of record in which all the
fundamental experiences about thing are consolidated. This summary is set up by
organization so they can purchase simply such measure of items which genuinely
required by them.
3. Receipt: It is a proof or affirmation which is getting by a relationship from their suppliers
as a proof of purchasing material. This is consider as a bill or anything which is used as a
proof at the period of procuring thing or material.
4. Invoicing: It is same as like receipt yet there are still some partition happened in which
receipt joins summary of all materials which is purchase by a man.
5. Storage of equipment and suppliers: It is a system which is seen as the route toward
buffering and holding of items from a time span.
4.3) Factors determining success and recommendations for improvements
As to implement a better service to customers it is very essential to consider about the
several success factors which will guide one to carry out operations and functions in most
effective manner. As to attain success of all those services that are offered by it to clients,
planning and organisation is he vital part to be focused. Planning is a part that is done before
starting any activity, it plays a very important role as because it guide one to know the present
condition and shows a path where one need to search for its long term aspect (Massoud and et.
al, 2010). As summer fair is to be performed it is very necessary for a firm to plan out what all
things that has to be indulged in program. Organisation of several actions and functions is very
necessary, all the resources which are indulged in
It is recommended that communication has to be very effectively done with customers so
that they can be able to know about all those offerings that are made by the firm. This will also
help in availing excellent accommodation to clients in most appropriate way. With help of this
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customers will also feel comfortable and in easy way they could communicate all those issues
that they face. It is very necessary for a firm to consider about customer's feedback as they play a
supporting role in developing positive relationship with the clients. This will aid in improving
quality of services in better way. Another major aspect that must be considered by company is
the cost. It is important for the firm to manage all the resources as to minimise cost (Murray and
O'Neill, 2012). Unnecessary cost will affect functioning of an organisation, it is very much
needed by company to run its activities in set budget crossing that will lead to hike prices which
will ultimately affect entire operation and services. Therefore according to plan work has to be
performed. Areas that can be focused by management that has to be improved is the standards of
the plans and quality. It is very essential for authority to take effective decisions so that products
and services can be addressed in more appropriate way. With its support standards for delivery
will also get improved. Cost is another aspect that can be considered. Higher the spent return will
be accordingly attained.
CONCLUSION
This report helped in knowing all the aspects related to products and services that are
availed by hospitality industry to customers, especially about food and beverages services. A
summer fair in Valentine's Park has been discussed here where a menu has been made and entire
budget has been set for customers which Are very much effective and affordable. Plans has also
been discussed along with their justifications. At last suggestions has been concluded so as to
provide a future improvements in several areas. It has been analysed that in hospitality sector the
organisation can be able to earn maximum outcomes from the food and beverages sector.
Serving clients in appropriate manner will lead to the situation where firm will able to sustain
and survive in positive way. It has also understood that a proper feedback process must be
followed so that reviews of customers can be gained and accordingly corrective actions can be
taken.
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REFERENCES
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AbuKhalifeh, A. N. and Som, A. P. M., 2012. Service quality management in hotel industry:
conceptual framework for food and beverage departments. International Journal of
Business and Management. 7(14). p.135.
Adeoye, A. O. and Elegunde, A. F., 2012. Impacts of external business environment on
organisational performance in the food and beverage industry in Nigeria. British
Journal of Arts and Social Sciences. 6(2). pp.56-65.
Akkerman, R., Farahani, P. and Grunow, M., 2010. Quality, safety and sustainability in food
distribution: a review of quantitative operations management approaches and
challenges. Or Spectrum. 32(4). pp.863-904.
Bujisic, M., Hutchinson, J. and Bilgihan, A., 2014. The application of revenue management in
beverage operations. Journal of foodservice business research.17(4). pp.336-352.
Cichy, R. F. and Hickey, P. J., 2012. Managing service in food and beverage operations.
American Hotel & Lodging Educational Institute.
Davis, B., and et. al., 2013. Food and beverage management. Routledge.
Hock, C., Ringle, C.M. and Sarstedt, M., 2010. Management of multi-purpose stadiums:
Importance and performance measurement of service interfaces. International Journal
of Services Technology and Management.14(2-3). pp.188-207.
Hvolby, H.H. and Trienekens, J.H., 2010. Challenges in business systems integration. Computers
in Industry.61(9). pp.808-812.
Johanson, M. and et. al., 2011. Changing competencies of hospitality leaders: A 25-year
review.Journal of Hospitality & Tourism Education.23(3). pp.43-47.
Kapiki, S. T., 2012. Current and future trends in tourism and hospitality: the case of Greece.
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.
Marucheck, A. and et. al., 2011. Product safety and security in the global supply chain: Issues,
challenges and research opportunities. Journal of Operations Management.29(7).
pp.707-720.
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.
Murray, D.W. and O'Neill, M.A., 2012. Craft beer: Penetrating a niche market. British Food
Journal.114(7). pp.899-909.
Slack, N., Chambers, S. and Johnston, R., 2010. Operations management. Pearson education.
Stark, J., 2011. Product lifecycle management. Product Lifecycle Management. pp.1-16.
Sun, X., Jiao, Y. and Tian, P., 2011. Marketing research and revenue optimization for the cruise
industry: A concise review. International Journal of Hospitality Management.30(3).
pp.746-755.
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.
Xu, L.D., 2011. Information architecture for supply chain quality management. International
Journal of Production Research. 49(1). pp.183-198.
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Online
Food and beverage operations : Production and service. 2017. [Online]. Available through:
<https://etravelweek.com/imported/food-and-beverage-operations-production-and-
service>. [Accessed on 3rd July 2017].
Johnston, E., 5 steps to understanding your customer’s buying process. 2016. [Online].
Available through: <https://www.b2bmarketing.net/en-gb/resources/blog/5-steps-
understanding-your-customers-buying-process>. [Accessed on 3rd July 2017].
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