Food and Beverage Operations, Financials, and Service Systems Report

This report delves into the multifaceted world of food and beverage operations, encompassing food production methods, service systems, and financial controls. It examines various aspects, including characteristics of food production, factors influencing recipes and menus, and the cost and staffing implications of different service systems such as conventional, convenience, centralized, cook-chill, cook-freeze, and sous-vide methods. The report further explores the suitability of these systems for specific outlets, particularly focusing on a hospitality event, where a buffet service is deemed most appropriate. Financial statements, including operating statements, cost statements, dish costing sheets, and sales records, are analyzed for their role in managing operations. The report also addresses menu planning, including recipe selection, raw material availability, and guest requirements, while considering budgetary constraints and health and safety standards. The evaluation of the service includes making recommendations for improvement.

Food and Beverage

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
1.1 Characteristics of food production and food and beverage service systems ...................1
1.2 Factors affecting recipes and menus for specific systems ...............................................2
1.3 Compare the cost and staffing implications for different systems ..................................3
1.4 Suitability of systems for particular food and beverage outlets ......................................4
TASK B...........................................................................................................................................5
2.1 Use of financial statements in food and beverage operations .........................................5
2.2 Use of cost and pricing processes.....................................................................................6
2.3 Purchasing process ..........................................................................................................6
3.1 Food and beverage menus for a hospitality event ...........................................................7
3.2 The selection and suitability of recipes for menus ..........................................................8
TASK C ..........................................................................................................................................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 recommendations for
improvement.........................................................................................................................11
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
For the hospitality industry, food and beverages are the popular earning sources in the
present time. Generally, people prefer to go in resorts and hotels to celebrate any occasion or to
spend their holidays. In case of hotels and resorts, food and beverages also play an important role
in attracting customers. In this regard, management of resorts and hotels have main responsibility
to offer the best quality services to the customers related to the food and beverages. The present
report will help to understand the daily activities and procedures which are involved in food and
beverage operations. It also includes concepts about different food and beverage production and
service systems. Further, it will help to understand the financial controls which are used in food
and beverage operations. The present report will also focus to devise menus in order to provide
food and beverage services in the hospitality events.
TASK A
1.1 Characteristics of food production and food and beverage service systems
The term food production is basically referred to a planning of preparing menu,
purchasing raw materials, cleaning kitchen as well as preparing, cooking and storing food.
Further, food production and food & beverage service systems are usually related to single
delivery system. In this context, foods from fruits to high gourmet cuisines are prepared and
decorated in different ways. Further, beverages are liquid drinks to accompany the meals and
they can be served either hot or cold. In this context, beverages are of two types cold or hot
drinks and further the cold drinks could be non alcoholic or alcoholic drinks. The few methods of
cooking are categorized in different groups which are discussed below: Conventional method- In this method, food preparation and cooking are done on site and
immediately, it is served to customers. Convenience method- In this, food is pre-processed which could consumed easily and
fast because the ready meals are generally in the form of frozen or canned. Before
consuming, food needs to warn up in microwave etc. (Aung and Chang, 2014) Centralized method- For bulk production, this method is used by the large fast food chain
and in this, food is prepared in central kitchen and distributed to different places like
hospitals etc.
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 Cook-chill method- This method includes normal preparation of food and after that they
require rapid chilling to control the temperature. This is done to keep food fresh for the
long time like 5-6 days. Cook-freeze method- Food is fully cooked by fast freezing method by storing it at -18c or
below temperature. This method keeps food fresh for the several months. Sous-vide method- In this method, temperature is around 70C and cooking of food is
done in vacuum plastic bags by using water bath machines for many hours. This method
helps to enhance the texture, flavour, moisture and tenderness of food (Farber, Crichton
and Snyder, 2014). Service systems which are used to serve food and beverages are
defined below: Table service- In this service system, waiters bring beverages and food to customer’s
table. This service system includes sub styles such as English, American, Silver or French
style.Self-service- Customers who do not have time at their disposal, this system provides
ready to eat food to them and in this, they collect their own food and beverages. Buffet system- Variety of foods are arranged on long table which are placed in platters,
dishes and hot buffet servers. This system serves foods to many customers at same time
because customers can take food according to their choice.
 Cafeteria system- This system allows customers to choose their own drinks and foods
which are displayed at counter and after this, they place them on tray (Mortimore and
Wallace, 2013).
1.2 Factors affecting recipes and menus for specific systems
There are several factors which affect both the recipes and menus which are described
below:
 Skills of kitchen staff
In preparation and decoration of foods, skilled kitchen staffs are required because good
appearance of dishes also satisfy and influence customers to taste it. Skilled staff members will
enhance the flavour, texture and moisture of food. If the taste and decoration is not up to the
mark as per the expectation of guests than lot of food will be waste (Mensah and Julien, 2011).
 Nutrition value-
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Kitchen staff members are required to focus on both the quality and nutrition value of
food. In the present time, people are aware and more conscious about their health so, nutrition
value of food should be maintained.
 Raw material availability-
Availability of raw material also affects the menus and recipes because budget is limited
according to case study and time is also required to arrange raw material in order to meet the
demand of party. After selecting the recipe option, if required raw material quantity is not
available to meet the demand of guests than it creates a problem. So, in this manner raw material
availability also affects the recipe and menus of food and beverages (Macheka and et.al., 2013).
 Availability of storage
The selection of recipes and menus also depends upon the storage facility and
equipments. If in menus there are drinks and foods which should be chilled before serving. For
this purpose refrigerator is required or space in existing refrigerator is required. If the storage
facility is not proper than freshness of raw materials like vegetable and food may change.
 Guest requirements
According to case scenario, some guests are vegetarian and few of them face diabetes
issues. According to guest's requirements, recipes and menus are decided for the party in order to
satisfy everyone needs. In party, children are also involved so, in preparation of menu and
recipes children are also required to be considered (Trematerra, 2013).
1.3 Compare the cost and staffing implications for different systems
Manger of food and beverages has to carefully calculate the cost and also to maintain
balance between the cost and staffing implications. In the cost calculation, prices on menu should
be set in an acceptable manner from the customer’s point of view and prices should be also
acceptable in terms of profit margin. The costs and staffs may vary according to the changes in
market. Cost and staffing implication on different services are described below:
Type of service system Cost implications Staffing implications
Self service Requirements of minor
storage. Food which is served
to guest is mostly available at
low cost as raw material price
Very low cost because in self-
service, unskilled person can
also handle.
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is also low.
Silver service In silver service, food cost is
very high.
(Luning and et.al., 2015)
Large number of skilled
persons are required to carry
out the operations of silver
service.
Counter service For food preparation, low cost
is required.
Two or three skilled or non-
skilled persons are required.
Table service Cost of raw material,
production and storage of food
depend on the quality level of
outlet. Cost ranges from low to
high.
There is requirement of both
the high and less skilled person
to successfully carry out the
operation.
1.4 Suitability of systems for particular food and beverage outlets
According to suitability and convenience, the buffet service system is best for the event
because it includes self service system. According to the buffet service system, food and
beverages which could be hot or cold are attractively placed on the series of long table. On the
table both hot and cold beverages and foods are placed together. According to case study, party
is to celebrate end of term of students. The party guests are almost 60 in which 50 guests are
adult and 10 are children. Among the guests 10 are vegetarians and 4 are suffering from diabetes
disease. In buffet system, vegetarian food could be placed on another table which holds a banner
named with “Vegetarian food”. With the help of this, 10 vegetarian guest will easily notice the
table which only include vegetable food. Further in this context sugar free beverages and desserts
are also placed on other table with banner of “Sugar free food”. Through this table the 4 diabetes
guests can also identify their meal. In the party 10 children guest are also expected, for the
children another table with attractive decoration can be placed which holds special foods for
them. Through this service system, all guests will have choice of different variety of food and
beverages. In this staffing cost is low because in this requires staff could be less skilled (Griffith,
2010).
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TASK B
2.1 Use of financial statements in food and beverage operations
The financial statement describes the financial status of organization and it is also a
formal record of all financial activities of business operations. The financial statements are
basically of four types such as balance sheet, cash flow statement, retained earning statement and
income statement of company. For the financial state of food and beverage operation, the
managers uses the financial statements as a tool. With the help of financial statements, the
manager keeps the formal record of daily transactions which are related to purchasing the raw
material, kitchen equipments and beverages items. For “end of term” event, the few financial
statements that are used in food and beverages operations of this event are described below:
 Operating statements
The operating statement describes the final preparation cost of food and beverages. It also
includes carrying cost, procuring material cost and transformation cost of material to final
product. For the end of term party, he operating statements includes final cost of food and
beverages with the preparation (Pomeranz, 2013).
 Cost statements
It is breakdown of all incurred costs which includes direct and indirect expenses of
preparation of food and beverages. This statements helps to allocate the budget for ever single
dish which is presenting in the party.
 Dish costing sheet
The dish costing is used to calculate the selling price of dish or menu. With the help of
this costing statement, it is easy to evaluate cost of all ingredients and raw materials that are used
by chefs to prepare and cook the food. In the sheet of dish costing, each and every ingredient's
costs are calculated. This costing helps manager in taking the decision of food selection for menu
of end term party (Wyness, Butriss and Stanner, 2012).
 Sales records
With the help of sales record, manager easily understand that what guest would like to
prefer. The sales record are very essential to be maintained properly because it helps to forecast
the future sales of food and beverages. The frequent purchasing of goods and services describes
the purchasing pattern and preference of guests. The pub;s sales record will also help to decide
the menu and recipes of end term party.
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 Variance analysis
With the help of variance analysis, difference between actual prices of products and
planned budget are evaluated. In this context, actual prices of products which are sold to
customers by hotel or resort. This analysis tool helps manager to understand the present cost and
also helps to control the future cost (Gootman, McGinnis and Kraak, 2006).
2.2 Use of cost and pricing processes
The process of cost and pricing includes various elements such as beverages, dishes,
menu prices, sales mix, net & gross profits, VAT, direct, fixed, variable and indirect costs. The
term pricing is related to amount of money which is needed for buying products and services. On
the other side, the term cost involves the money, time, efforts, labour cost and transformation
cost which are used at the time of preparing the recipes, menus and events. As per the case
scenario, to decide the menu of various recipes according to the guest nature, so, it is important
to spend the decided budget money in more effective and efficient way to make the event more
enjoyable and memorable. For this purpose the cost and pricing process is used and required. In
this context the direct cost is cost of ingredients and materials which are used to prepare the food
and beverages items by the pub. Further the indirect cost are the cost which are not added in the
food preparation but they are the most important part during the process of food preparation such
as required equipments or oil is required to cook the food etc. The variable cost is related to the
ingredients cost of food and beverages and this cost varies with the time because cost of
ingredients also varies with the time. The next cost is fixed cost which remains invariant with the
time and even at the growth stage of business the fixed cost remains constant (Burger, 2014).
2.3 Purchasing process
The process of purchasing plays a important role in the hospitality industries. The
purchasing process is related to buying the required equipments and tools to prepare the food and
beverages. It includes the raw material to prepare the final dish, utensils for serving the hot and
cold food and beverages, tables and chairs which are used in buffet service system to serve the
food on long tables and other things which are required to make the party successful in respect to
food and beverages production and service system. It is very important of manager to manage
and control the inventory level. The accurate purchasing process helps to maintain the stock of
prepared food which use to meet the demand and expectation s of all guests. The purchasing
process includes following steps which are as follows:
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 Purchasing of food and beverages- In this pub manager has to find out the requirement
of material which are needed in food and beverages. With the help of previous sales
record and statements, manager can determine the need. Suitable suppliers- In this list of required material are made which have to be purchase.
Further in this step, the appropriate supplier are identified who can sell the materials in
lower costs as compare to other suppliers. For this purpose, pub can use the tender option
for a long term contract (French, Story and Fulkerson, 2002). Placing order- After requisition of suppliers, it is time to place the order which are
essential in the food preparation. Order receiving- In this step, after receiving the order, it is essential to check the quantity
and quality of raw material because damage things can affect the taste of food.
 Storing facility- After the process of checking, the raw material are required to store in
data ware house to keep them safe and fresh. For the convenience, kitchen staff can store
the material with the tag name (Lo, 2015).
3.1 Food and beverage menus for a hospitality event
According to given scenario, one event named end of term is celebrated in pub. The main
motive at the time of serving is to satisfy the need and expectation of all guests. In party few
guests are vegetarian, children and diabetes patients, according to this the food and beverages
recipes are selected in the menu of pub. In the selection of various dishes, the sweet dishes are
also require to involve in menu. As per the case study the budget is also mentioned which is
£1000. so, it is very important to select the dishes in menus according to the given budget. The
menu of “End of term” party is described in below:
Adults
Apple Pie
Chicken breasts with croissants
Mexican themed burger and hot dog
Beer
Vegetarian
Fresh green salad, nachos with salsa sausages
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Shallow fried potatoes and mushroom
Hot tea or cold Coffee
Green Tea
Diabetes
Sugar free Chocolate and walnut Brownie
Grilled vegetables with Russian salad
Grilled fish with rice
Children
White pasta and spaghetti pasta with sauce
Strawberry Mousse Cake
Chocolate fudge
Apple Smoothie
Orange juice
3.2 The selection and suitability of recipes for menus
In the process of compiling, the menu of end term party takes the lots of consideration to
meet the expectations of guests. In the making of menu, the nature and taste of guests are keep in
mind because in the party few guests are purely vegetarian, few are children and four are facing
the problem of diabetes. While considering recipes of menu factors are considered such as
nutrition value, hygiene issues and balance diet for every guests (Brownell and et. al., 2009).
While considering the all these factors and nature of guests, the selection of food and beverages
are mentioned above in which chicken breasts with croissants, Mexican themed burger, hot dog,
beer and apple pie is for the adults. Further in this context, the fresh green salad, nachos with
salsa sausages, shallow fried potatoes and mushroom, hot tea or cold coffee and green tea are
chose for the vegetarian guests. The adults can also have these dishes according to their choice.
For the diabetes guests, the dishes such as grilled vegetables with Russian salad and grilled fish
with rice are considered. In the sweet dishes sugar free chocolate and walnut brownie are also
selected for the diabetes guests. All these dishes are kept according to the diabetic people so they
do not face any issues in eating and they can also enjoy the party in more effective way. The
combination of rice with fish is selected because it is low in fat and it includes vitamins and
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carbohydrate which are good for diabetes people. For the enjoyment of children the dishes are
selected such as orange juice, apple smoothie, white pasta and spaghetti pasta with sauce,
chocolate fudge and strawberry mousse cake in the menu. The adult and vegetarian guests can
also enjoy these dishes because they are full healthy for all (Alliance, 2001).
TASK C
4.1 Plan a food and beverage service for a hospitality event within an agreed budget
In order to plan food and beverage service within an agreed budget for hosting party at a
local community pub following table can be referred:
Menu Items Budget
Food Fresh green salad, nachos
with salsa sausages
£ 25.00
Grilled vegetables with
Russian salad
£30.00
White pasta and spaghetti
pasta with sauce
£25.00
Grilled fish with rice £40.00
Shallow fried potatoes and
mushroom
£25.00
Chicken breasts with
croissants
£45.00
Mexican themed burger and
hot dog
£15.00
Beverages Hot tea or cold Coffee £2.50
Green Tea £2.00
Orange juice £2.00
Apple Smoothie £2.00
Beer £4.00
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Desserts
Mineral Water £1.00
Apple Pie £30.00
Strawberry Mousse Cake £50.00
Chocolate fudge £35.00
Sugar free Chocolate and
walnut Brownie
£40.00
4.2 Implement the planned service maintaining standards of quality and health, safety and
security
It is very important to plan effectively before hosting a hospitality event to satisfy the
needs of guests as well as safeguarding them from various risk factors such as food poisoning
and other mishaps (Alliance, 2001). These days people who are involved in organization and
management of hospitality events are increasingly getting aware of the importance of standards
related to health, safety and security (Brownell and et. al., 2009). Therefore many organizations
related to hospitality such as restaurants, resorts, pubs etc. lay emphasis on the maintenance of
food and health standards in order to provide superior quality of food to guests (Cen and He,
2007). In addition to this, a healthy and hygienic environment is also ensured to customers to
protect them from accidents and injuries. All the hospitality organizations of UK need to abide
by the Food and Safety Act 1990 (Lo, 2015). The Act is a statutory obligation that regulates the
operations of food processing as well as hospitality sector where food is offered for consumption
to individuals (Food Safety Act 1990, 2016). In the given scenario, the local community pub
where the term end party is planned to be hosted need to implement planned services as per the
food, safety and security standards to satisfy the needs of guests
(French, Story and Fulkerson, 2002).
Before organizing the event it is very important to ensure the quality standards related to
service planning, food and beverage preparation and cooking and presentation methods. These
days people pay attention to quality of food and services of hospitality organizations (Burger,
2014). Therefore it is very cardinal to take care of quality in every process of the service right
from the purchasing of high quality raw materials from better suppliers. This is one of the crucial
element of maintenance of food quality standards. Other than this, quality of preparation
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methods is also cardinal. The hospitality service staff need to follow guidelines laid by the Food
and Safety Act 1990 to maintain the quality of food and beverage preparation and presentation
methods (Food Safety Act 1990, 2016). The staff need to ensure that cleanliness and hygiene is
properly maintained in the kitchen of the pub. Dirty and filthy kitchen is a favourable place for
microbial growth which leads to food related infections such as food poisoning, cholera, etc.
which negatively impact the health of guests. Thus proper food and health safety of guests can be
ensured by maintaining proper cleanliness in the cooking and food storage area of the pub.
Other than ensuring the quality of food, it is also crucial to follow health and safety
regulations to protect customers as well as pub staff from accidents and injuries at the working
environment of the pub. UK government has crafted Health and Safety at Work Act 1974 to
protect workforce as well as individuals at their workplaces (Health and Safety at Work etc. Act
1974, 2016). The legislation include all the organizations including hospitality sector which need
to comply the guidelines of the act (Gootman, McGinnis and Kraak, 2006). In the given scenario,
the pub can make organizational policies that are meant to protect its staff as well as guests. The
premises and equipment need to be placed at safe locations to prevent accidents and injuries. The
pub need to take extra safety measures while hosting an event for large number of guests
(Wyness, Butriss and Stanner, 2012).
For maintaining security standards the pub can install security measures such as fire
extinguishers to prevent the perils of accidental fires. This will not only protect guests and staff
but also help in reducing the penalty cost for the pub (Pomeranz, 2013). Proper implementation
of safety standards not only protect guests but also help in increasing their satisfaction level
which is a key driver of growth for hospitality organizations (Aung and Chang, 2014).
4.3 Evaluate factors to determine the success of the service, making recommendations for
improvement
There are number of factors that help in determining the success of the hospitality event.
These include planning and organization of the event, maintenance of quality standards and
satisfaction level of guests which evaluated in the following points:
Planning and organization of event
Planning is the most important part of any hospitality event that determine its success. It
It can be evaluated that effective planning and organizing is responsible for elevating satisfaction
level of the guests in the given scenario (Griffith, 2010). The planning is done prior to the event
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which include designing a diverse menu to suffice the needs of guests who have different food
and drinking interests. It can be evaluated that the guests off the event have varied taste for food
(Luning and et.al., 2015). Few of them are vegetarian wile other have concern for their diabetes.
Besides this, children are also included in the party list. Therefore it is very important to plan and
organize effectively to address the needs of the guests considering their health, safety and
security (Brownell and et. al., 2009).
Maintenance of quality standards
Another factor that play important role in the success of the hospitality event in the given
scenario is the maintenance of the quality standards. These standards are associated with
cooking and preparation as well as their presentation (Child, 2011). It can be evaluated that tin
the given case this factor is taken into consideration for delivering superior quality of food and
beverages to guests. It has been made sure that cleanliness and hygiene factor is given prime
importance to prevent contamination of food items. The storage of food and beverage is done
very cautiously to maintain the quality of food components. In addition to this, it is also
evaluated that the staff of the pub is also well trained in storage and organization of the food and
beverage items (Macheka and et.al., 2013). Apart from this, health and safety measures are also
paid proper heed while organizing the party in the given case.
Satisfaction level of guests
It is the most important factor that significantly affect the success of the hospitality event.
In the given scenario, the menu has been planned by considering the needs and eating habits of
the guests (Mensah and Julien, 2011). The guest list included vegetarian and diabetic people as
well as kids. Therefore the food and beverage menu consist of vegetarian food items, low fat and
sugar free recipes and delightful meals to satisfy the needs of respective guests.
Cost effectiveness and time management
Cost and time are the vital determinants that play cardinal role in the success of the
hospitality event. These factors are essential for deciding the budget for hosting party in the
given scenario. While selecting the menu for food and beverages the prices of recipes as well as
financial statements of the pub is taken into consideration (Mortimore and Wallace, 2013). It can
be evaluated that going through financial statement will be helpful in selecting appropriate menu
that include food and beverages to address the needs of guests of the event. Other than cost, time
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management is also taken into consideration while making arrangements for the party (Farber,
Crichton and Snyder, 2014).
Recommendations
 In order to improve the quality standards, it is very important to train staff of the pub
about food and safety as well as health safety acts.
 The food and beverage suppliers need to be selected wisely to ensure the quality of the
food products remain intact.
 The cooking equipment need to be checked on a regular basis to prevent the chances to
mishaps (Aung and Chang, 2014).
Conclusion
In a nutshell it can be concluded that food and beverage play very important role in the
hospitality sector. These are the essential elements of the success of a hospitality event. It has
been learned that effective menu planning helps in meeting the needs of guest who have varied
food and drinking habits and interests. The first part of the report provide clear understanding on
different food and beverage production and service systems. In addition to this, the second part
of the study develops clear understanding on the financial controls which are used in food and
beverage operations such as cost and pricing processes. The final part of the study entails
planning of the food and beverage service in the given scenario. It has been learned in this part
that implementation of planned services requires maintenance of quality standards related to
food, health and safety aspects. It is very important for the hospitality organizations to maintain
the quality of food items as well as preparation and procedures to minimize the risk of health
hazards.
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Burger, J., 2014. Food safety-a shared responsibility: processing. The Dairy Mail. 21(5). pp.104-
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Online
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