Food and Beverage Operations Report: Financials, Menu, and Planning

This report provides a detailed analysis of food and beverage operations, focusing on key aspects such as the use of financial statements, including dish costing sheets, operating statements, and variance analysis, to assess a business's financial health. It demonstrates the application of cost and pricing processes, like cost-plus pricing and competitive pricing, to manage a hospitality event within a budget. The report also analyzes the purchasing process, outlining steps from requisition to storage, and compiles a food and beverage menu for a hospitality event, considering diverse guest needs like vegetarian, diabetic, and children's options. Furthermore, it justifies recipe selections based on customer preferences and dietary requirements, and presents a comprehensive plan for food and beverage service, ensuring quality, health, safety, and recommendations for improvement.

FOOD And BEVERAGE
OPERATIONS
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK B...........................................................................................................................................3
a) The use of financial statements in food and beverage operations...........................................3
b) Demonstrating the use of cost and pricing processes..............................................................4
c)Analyzing the purchasing process............................................................................................5
d) Compiling food and beverage menu for hospitality event .....................................................6
e) Justification of selection and suitability of recipes for menus.................................................7
TASK C...........................................................................................................................................8
a) Plan a food and beverage service for hospitality event within an agreed budget....................8
b) Implement the planned service maintaining standards of quality and health, safety and
security.........................................................................................................................................9
c) Recommendations for improvement .....................................................................................10
Conclusion.....................................................................................................................................10
references.......................................................................................................................................12
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INTRODUCTION
Food and beverage is a leading sector at present that is focused in the conceptualization,
preparation and distribution of edible items and drinks. It refers to food and beverage services
provided at places like, hotels, bars, resorts, public house, restaurants and pubs (Tamime, 2009).
Further, it can also be stated that food and beverages operations are related with those
organizations, businesses or establishments that are specialized in providing meals prepared
outside instead of home. Food and beverage is a vital part of hospitality sector (Food and
Beverage Industry Outlook Survey, 2013). It provides significant amount of contribution to the
economic development of UK.
To ensure success in long run, it is important for food and beverage organization to focus
on the elements that are related with hospitality services like, quality, empathy and
responsiveness. In the present report, different aspects of food beverage operations will be
studied in the context of provided case scenario. In this report, learning will be shown regarding
the use of financial statements in food and beverage operations. A plan will be prepared for food
and beverage service for celebrating end of session event within a provided budget of £1000.
Thereafter, the use of cost and pricing processes in food and beverage organization will be
described.
TASK B
a) The use of financial statements in food and beverage operations
Financial statement is a formal process of recording the fiscal functions and position of
organization, individual etc. It reflects the economic position of company in the market. Major
financial statements prepared in food and beverage entities are as follows:
 Dish costing sheets: It refers to the total cost of preparing a dish involving fixed and
variable cost. It involves cost of labor, raw material, ingredients etc. (Davis and et.al.,
2013)
 Operating statements: It ascertains the profits and expenditure generated from the
business operations. It involves preparation of statements like profit and loss, income and
expense statements etc. It includes all the cost involved starting from preparation of food
and beverage to final delivery (Maxime, Marcotte and Arcand, 2006).
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 Cost statements: It refers to the total cost involved in operating the hotel or business
including fixed, variable, direct and indirect cost. It involves major cost incurred on
material and labor.
 Variance analysis: It helps in identifying the difference between the existent and
anticipated behavior. It aids in ascertaining the level of deviation from actual budget.
Variance analysis is important technique that helps hospitality organization in exercising
control over business (Rutherford and O'Fallon, 2007). For instance, budget for food and
beverage cost was £500 while the actual cost is £700. Therefore, management can take
significant steps to control unnecessary expenses in future and meet the budget criteria.
 Sales records: It provides information about total sales of business with regards to
accommodation, food and beverage, extraneous services like, Spa, gym, swimming pool
etc. during a particular period (Bechtold and et.al., 2006). Sales records also provide
information about services purchased by customers, mode of payment, service preferred
by them, their contact information etc.
b) Demonstrating the use of cost and pricing processes
The cost and pricing process helps in determining the correct pricing policy by which
products and services will be offered to the customers. With the help of proper cost and pricing
process, company can recover all the cost and charge the required margin of profit. The major
costs in food and beverage operations are associated with material, labor and overheads
(Stratford, 2006). Therefore, management can recover the amount of preparing dishes, cost of
labor and expenditure on overheads like, equipment for preparing dishes, advertisement,
professional fees etc. Considering the cost and processes statement, local community pub can
manage food and beverage service of event in the provided budget of £1000. In addition to this,
company can set the required margin aside. For instance, local community can set its budget at
£800 so that it can earn £200 margin.
Generally, cost of preparing food product is 35-30% which must be included while
charging the final price. In this respect, local community pub can consider cost plus pricing
method which enables to charge direct cost of material, labor and overhead as well as add the
same to desired amount of profit to set the final price (Mavrogianni and et.al., 2008). Further,
local community pub can also use competitive prices which enable company to set prices
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considering the rates charged by rival companies. Thereafter, prices can also be charged by
considering the quality of services offered by community pub. In addition to this aspect,
company will charge 20% VAT and 2% service tax.
c)Analyzing the purchasing process
The purchasing procedure of local community pub helps in identifying the sequence of
operations adopted by company for purchasing various raw material, equipment, goods and
services (Bolivar Cruz and Espino Rodriguez, 2008). Such process assures that no important
item is left out which will directly impact the performance of community pub. For instance, non-
availability of fruit juice during the event can result into dissatisfaction among guest. Proper
purchasing procedure also assists in reducing the redundant cost and thereby increasing the
revenue level (Davis and et.al., 2013). Thereafter, local community pub can focus on following
elements during its purchasing process:
 Requisition of supplies and equipment: There are much equipment that are needed by
local community pub while offering food and beverage services like atmospheric,
pressure steamer, bratt pans, ovens, dish and glass washer etc. The management of pub
should check that these equipment's are purchased from reliable provider only (Coles,
and Kirwan, 2011). Thereafter, while buying these equipment's, focus should be done on
factors like, guarantee, after sale services, replacement in case of defects etc.
 Receiving and comparing quotes: Local community pub can contact the major
suppliers that are ready to provide the needed equipment. For instance, there are 10 main
suppliers in the UK that provide high quality food and beverage equipment. Therefore,
community pub can invite selling quotes from those suppliers which will determine the
price at which they are agreed to offer their products(Wood, 2007). Thereafter, quote of
each supplier will be compared with other and the one who is providing products at
lowest price and of maximum quality can be selected.
 Purchase order: Local community pub can specify the quality and quantity of
equipment required by it. To place the order, company can use modes like
telecommunication, email or personal visit to store. A part of payment can be made to
show that company really wants to make purchase.
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 Delivery and Check: In this step, the delivered products are matched with the purchase
order. Management ensures that equipment are not defective etc. In case there is no
inefficiency on the part of supplier than full payment is done and receipt is collected
(Dittmer and Keefe, 2006).
 Receiving and Storage: The responsible personnel will record the various details like,
equipment received, price paid to supplier, due amount if any etc. thereafter, the
equipment's will be stored in safe location where they cannot be damaged or stolen etc.
d) Compiling food and beverage menu for hospitality event
The success of 'end of term' event depends upon large extent on the efficiency in
compiling the menu (Waller, 2009). Menu represents the list of food and beverage products that
will be provided in the event. Since, it is inception that event will be attended by 60 guest where
50 are grown ups and remaining are children. Further, some guest are vegetarian, diabetic and
others are non vegetarian. These factors should be compulsorily considered while designing the
menu. Since, the number of guests are more, local community pub can use buffet or counter
service style (Dopson and Hayes,2015). Therefore, business can use Table-d-hote menu. In this
respect, management should ensure that it does not exceed the provided budget of £1000
including 200 cost of serving staff. To make the event effective and memorable the special needs
of guest must be considered. In this respect, diabetic patients should be offered sugar free
products, kids can be offered chocolate shakes, ice cream, donuts etc which are liked by most of
them (Considine, 2012). Thereafter, food counter for vegetarian and non vegetarian guest must
be separate. In addition to this, management of local community pub should assure that hygienic
surroundings are maintained.
Adults  Chicken sandwich
 Roast turkey & Chestnut stuffing
 Liver Pork Wrap
 Filet of Sea Bass
 Toasted Goat cheese and cherry
tomatoes
 Green salad, fruits.
Children  Puddings
 Donuts
 Blueberry and dark chocolate torte
 Apple pie and fruit custard
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 Spaghetti
 Nachos
Vegetarians  Fruit salads
 Vegetable soup
 Parma Ham and melon
 Three Mushroom Fajita
 Vegetable Burrito
 Fruits and Salads
Diabetic  Fish and rice
 Garden salad
 Juice
 Green Tea
 Traditional Roast Turkey
 Sugar free pineapple cake
e) Justification of selection and suitability of recipes for menus
The aforementioned menu is compiled on the basis of needs and preferences of
customers. From the provided case study, it is clear that there will be 60 visitors in the event out
of which 50 will be adults, 10 will be kids. Thereafter, 10 guest are vegetarians and 4 are
diabetes patients. On the basis of it menu is designed for the event. Further, separate dishes are
kept in menu devised for the event to celebrate end of term at local-community pub (Bowling,
2014). Therefore, sugar free food products are kept for diabetic patients while tasty and
impelling items are kept for children. Fish and rice, garden salad are some healthy dishes kept
only for guest suffering from diabetes. Thereafter, food will be prepared as per the needs of both
vegetarian and non vegetarian guest. Parma Ham and melon, Three Mushroom Fajita and garden
salad etc are main course items especially for vegetarian guest. On the other hand, Roast turkey
& Chestnut stuffing, Liver Pork Wrap and Filet of Sea Bass and Toasted Goat cheese and cherry
tomatoes are the non vegetarians dishes (Food and Service system, Ntd.). The counter will be
separate for each group and will be marked like, only for diabetic patients, kids or vegetarians.
Therefore, guest will be served only what is meant for them. Further, for serving the local
community pub can chose buffet system which will help in managing large guest easily.
Therefore, it will also help in minimizing the wastage of food as customers will serve only what
they want. With the growing health consideration among individuals, juice, fruits and salads are
included in menu. Further, guest can order any other item on special request by paying extra
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charge. Therefore, above dishes are appropriate for successful execution of event because they
are included after consultation of culinary experts and trained chefs. In addition to this, these
people will be appointed to prepare the dishes mentioned in buffet menu.
TASK C
a) Plan a food and beverage service for hospitality event within an agreed budget
In order to ensure success of the event, management of local community pub can develop
a plan which will serve as guide while functioning. The proper planning will ensure the
management about availability of adequate resources required to satisfy the customers (Stratford,
2006). The description of which is as follows:
 Type of menu: There are two kinds of menu, A-la-carte and table d hote. In Ala, carte
menu the prices of dishes are mentioned separately (Jemmasi, Strong and Taylor, 2011).
On the contrast, in table d hote, multiple dishes are offered to customers at fixed price.
However, the budget is provided by guest already therefore, only those dishes and
beverage falling in budget will be provided. Hence, community management can plan
what type of menu should be kept by them.
 Type of service: The major kinds of services that can be offered by community pub are
table, buffet (Maxime, Marcotte and Arcand, 2006). In table service, the food and drinks
are served by waiters on the specific table. On the contrast, buffet is kind of self service,
food in not served by waiters and kept on separate counters.
 Cost of staff material and overhead: The cost of staff will be determined while making
plan. Therefore, wages of staff like, waiters, chefs should be evaluated. Further, cost of
buying equipment for preparing food should also be considered (Rutherford and
O'Fallon, 2007). Along with this, contribution of community pub in government tax,
bonus, pension fund of workers should be considered. Therefore, plan will help in
determining the cost of material, labor and overhead. Further, considering the cost, pub
can determine the desired profit of 10%.
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b) Implement the planned service maintaining standards of quality and health, safety and security
In order to implement the event service within the hospitality organization it is essential
for the management to focus on implementing different standards that are framed by the
government so that they can maintain adequate safety of food within the organization (Dittmer
and Keefe, 2006). Management of the hospitality organization must ensure proper security and
safety to keep attract the business clients towards their services.
Despite of this management of the organization must ensure adequate safety precaution
during organizing the events that is the rooms as well as important areas of the hotel must be
covered with adequate security measures and fire alarms. So, that at the time of emergency
manager can maintain their standard of safety and security that keep attract the business clients
towards their services (Dopson and Hayes, 2015). Consequently, by following the adequate
quality standard among the organization it results in developing and building trust among the
customers who visits heir place. Furthermore, the hospitality organization must also focus on
maintaining standard of quality within the food production system so that organization must
ensure quality food service at the event. The different food safety laws that are framed by the UK
government are- Food Labeling Regulations 1996: According to the government the law outlined
necessary guidelines and program that need to be focuses by the management of food and
beverage department to ensure that purchased raw material are of effective quality or not.
Furthermore, through this act operational manager within food and beverages department
must ensure proper labeling of the food items so that it should define the standard of the
food products (Coles and Kirwan, 2011).
 Food Safety Act 1990: The UK government has also developed a food safety act in 1990
that generally focuses on devising principles and guidelines through which hospitality
organization will delivery quality food services to the guests and customers. With the
help of implementing and planning this act it results in maintaining quality aspect within
the premises (Rutherford and O'Fallon, 2007). This legal document also assure that
nutrient is being tagged correctly at the food production system.
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c) Recommendations for improvement
By implementing the planned services and critical analysis of event executed by
community pub it has been identified that event was not as per plan. The services were delayed
which caused dissatisfaction among customers. The food was not prepared and served on time.
Due to buffet system, customer faced problem of long queue whereas, self service by kids
resulted into lots of food wastage. From customer feedback it has been identified there was food
shortage like, juice, ice cream where not served to all. Thereafter, the budget was £1000 while
the overall cost of providing services was £950 therefore, low profit could be earned by
community pub. Therefore, plan was not cost effective as it could not attain the expected profit
of 10%. Further, feedback of staff reveals that they were not given proper instructions by
management like, timing when food must be prepared or served etc. The lack of training to staff
affected their performance in the event. On the basis of these factors following recommendations
can be considered by community pub in future. Therefore, it can improve its performance in
future:
 The planning of event should also consider time management strategy so that correct
services can be offered at proper time.
 The training needs of staff must be identified so they are well prepared before the event.
 To entertain the kids and avoid boredom games can be organized.
 The cost of material, overheads and labor must be properly ascertained in order to do cost
effective planning.
 The chefs and waiters should be persuaded to wear hair mask and hand gloves during
preparation and serving of food.
 Conformation can be taken from guest one day prior to event to ensure their arrival.
 The food equipment's must be purchased from authorized and reliable dealer only.
 Food safety laws should be followed while planning the event.
 The quality marks on food supplies should be verified.
CONCLUSION
From the above report, it can be concluded that cost and pricing process helps in
recovering the cost while earning the desired amount of profit. Food and beverage companies
must offer only those food and beverage items and services that fall in the provided budget.
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Hence, it can be stated that, proper planning also helps in estimating the cost of event and
identifying the unnecessary cost which can be avoided by management. The presented plan helps
in taking various decisions like, type of menu that should be devised, style of service, budget,
cost of overheads etc.
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REFERENCES
Books and Journals
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wastes released from the food and beverage industry. Journal of the Science of Food
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Bolivar Cruz, A.M. and Espino Rodriguez, T.F., 2008. An analysis of operations strategy in the
food and beverage sector. International Journal of Services and Operations
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Bowling, A., 2014. Research methods in health: investigating health and health services.
McGraw-Hill Education (UK).
Coles, R. and Kirwan, M.J., 2011. Food and beverage packaging technology. John Wiley &
Sons.
Considine, D. M., 2012. Foods and food production encyclopedia. Springer Science and
Business Media.
Davis, B., Lockwood, A., Pantelidis, I. and Alcott, P., 2013. Food and beverage management.
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Dittmer, P. and Keefe, J.D., 2006. Principles of food, beverage, and labor cost controls. Wiley.
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Jemmasi, M., Strong, K. C. and Taylor, S. A., 2011. Measuring service quality for strategic
planning and analysis in service firms. Journal of Applied Business Research (JABR).
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Mavrogiannis, M. and et.al., 2008. Assessing export performance in the Greek food and
beverage industry: An integrated structural equation model approach. British food
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Maxime, D., Marcotte, M. and Arcand, Y., 2006. Development of eco-efficiency indicators for
the Canadian food and beverage industry. Journal of Cleaner Production. 14(6). pp.636-
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Rutherford, D.G. and O'Fallon, M.J. eds., 2007. Hotel management and operations. Hoboken,
NJ: John Wiley.
Stratford, M., 2006. Food and beverage spoilage yeasts. In Yeasts in food and beverages (pp.
335-379). Springer Berlin Heidelberg.
Tamime, A.Y. ed., 2009. Cleaning-in-place: dairy, food and beverage operations. John Wiley &
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Waller, K., 2009. Improving food and beverage performance. Taylor & Francis.
Wood, R.C., 2007. The future of food and beverage management research.Journal of Hospitality
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Food and Beverage Industry Outlook Survey. 2013. [Online]. Available through:
<https://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Documents/
food-beverage-outlook-survey-2013.pdf>. [Accessed on 24th Februrary 2016].
Food and Service system. nt.d. [Online]. Available through:
<http://nfsmi.org/documentlibraryfiles/PDF/20080212032530.pdf>. [Accessed on 24th
February, 2016]
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