Analysis of Food and Beverage Operations Management Report

This report delves into the intricacies of food and beverage operations management, focusing on key aspects crucial for success in the hospitality industry. It begins by highlighting the significance of effective management in providing quality products and services, emphasizing the importance of financial statements in decision-making, including balance sheets, cash flow statements, and income statements. The report examines the use of financial statements for operational profit analysis, and variance analysis. Furthermore, it explores the purchasing process, including supplier selection and order specifications, and the role of purchasing power in acquiring necessary equipment and raw materials. Finally, the report evaluates factors that contribute to the success of food and beverage events, such as cost estimation, communication with consumers, and time management, offering recommendations for improvement to achieve desired goals. The report also covers the cost and pricing strategies. Overall, the report provides a detailed overview of the operational and financial considerations essential for effective food and beverage operations management.

Food and Beverage Operations Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
TASK B...........................................................................................................................................1
1 Use of financial statements used in the food and beverage event.......................................1
2 Analyse the purchasing process...........................................................................................1
3 Evaluation factors to identify the success of the services and recommendations for
improvement ..........................................................................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Food and beverage operation management has great significance in the hospitality
industry. They have main responsibility to provide good quality products and services to the
customers. During preparing the menu they should consider the client preferences that help to
increase the performance and get desired target of the event. Management needs to provide
effective training to the employee so that they can create effective planing and management for
the specific event. This report includes the characteristics of food and beverages, factors
affecting the menus and recipe, comparison of the cost and staffing implications for the system.
TASK A
Attached in PPT.
TASK B
1 Use of financial statements used in the food and beverage event
Through the financial statements they can easily know the operation profit, financial
condition etc. Financial statements helps to take appropriate and valuable decisions for the events
or the company. Manager has a responsibility to prepare accurate financial statements to take
effective decision which help to increase overall performance and they can easily get desired
objective or target. From these statements they can easily know the actual condition of the firm
and they can take innovative and right decision to increase efficiency and performance in the
world (Walker and Jones, 2012).
The details about the financial and accounting status of the organization can be gained
from the records of the financial statements. The balance sheets, cash flow statements, income
statements, retained earnings statements are the types of financial statements. The raw materials
and products evaluation in food and beverages operation can be done by catering business which
is an important part of chef's role. In order to calculate price of all portions of recipe the dish
costing sheet is needed. With this the menu price and the selling cost can also be calculated. The
operational statements are also essential for the food and beverage operations. The performance
of the company and its financial positions can be calculated by using operational statements.
Over the particular period this will summarize the revenue and expenditure of the company. It is
also termed as profit or loss statements, income statements etc. Net income=revenue- expenses
is the equation of this statement (Walker and Jones, 2012).
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By the food and beverage industry the variance analysis is also used. The difference
between actual cost and the standard coast that is needed for a good result will be evaluated from
this. By using financial statements the managers can keep the records of all forms of daily
activities that is done such as buying of raw material, kitchen utensils and beverages items. For
these events for Christmas some financial statements that can be used in food and beverages are
as follows-:
Operational cost – The final preparation cost of food and beverages can be described in this
operational statements. The carry costs, procuring material cost and transformation cost to final
products are included in the this (Strittom and Schiraldi, 2013.).
Cost statements – For the preparation of food and beverage it includes both direct and indirect
expenses. The budget is allocated by using these statements. For every single dish that is there in
that event the budget will be allocated.
Dish costing sheet – The selling price of dish or menu can be calculated by using dish calculating
costing. The cost of all ingredients can be easily evaluated from this and also the in preparation
of food and raw materials that is required will also be find out. The cost of each and every
ingredient that is used in food will be calculated by using dish costing. In order to take decisions
of selection of food menu of this event this cost line will help the manager (Pizzuti and et.al.,
2014).
Sales record – The preference of gusts can be understood easily with help of sales record. It is
vert important to maintain sales records as the focus on future sales of food and beverages will
be made by using these records. The purchasing pattern and preference of guest is described by
the frequent purchase of goods and services. The menu and the recipes for this event can also be
understand by sales record.
Variance analysis- The evaluation of difference between actual prices of products and planned
budget can be one with help of variance analysis. The actual prices of products is the price by
which the products that is been sold to customers by hotel or resort. The preset cost will be
understood by manger by using this analysis and the future cost can also be controlled by using
this.
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Cost and pricing process of the event
For the success of the event they need to plan for it and decide the appropriate budget.
They should follow different types of pricing and cost strategies and approaches which helps to
manage and handle the event effectively. By applying the strategies of pricing they can easily
know the customer preferences about the particular event. Client feedback is essential to set the
price of the product and services. They should follows the challenging based pricing which help
to set appropriate price for the specific clients. For the effective planning the event they ned to
follow the advanced strategies of pricing and also creates the budget plan for the event
(Manzouri and et.al., 2013). The various elements such as beverages, dishes , price of
menu ,sales mix , net and gross profits, direct and indirect taxes etc are included in the process of
cost and pricing. In order to purchase the products and services the pricing is related with amount
of money. The time ,money , efforts, labour cost that are used at time of preparation of menus,
recipes and events are included in the cost . As per the case that is been given according to
nature of guest the menu need to be decided of various recipes. In a more effective and efficient
way the budget of money need to be decided in order to make this event more enjoyable and
memorable one. The cost and pricing process is being used fort his purpose. The cost of
ingredients is direct cost and also in direct cost included the materials that is been used to
prepare food and beverages for the event. In preparation of food the indirect cost is the cost
which is not included. But using the process of food preparation they area the most essential part
.For example in order to cook food the required elements that is oil. To the ingredient of food
and beverages the variable cost is related and it changes with time as cost of ingredients also
changes with time. The fix cost is the next cost which remains invariant and the fices cost
remains constant even at the growth stage of business (Manzouri and et.al., 2013)..
2 Analyse the purchasing process
There are different types of steps which helps to identify the customer needs and based
on their needs they can easily decide the produce and services in the event. Management has a
responsibility to apply different and innovative strategies to increase their overall performance in
the world. For the Christmas party, they produce an appropriate plan and manage the budget for
the event. It helps to increase the efficiency of the particular work. In purchasing process it
includes different steps such as need identification, proposal solicitation etc. these all are the step
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helps to increase the efficiency of the event. To manage the event they need to create appropriate
plan for the event and schedule the budget to get desired target and objective in the world
(Pizzuti and et.al., 2014).
They need to decide appropriate and effective supplier which give good quality products
and services to the customers. Supplier selection is most essential part to organize the event or
party. Another part is more important to conduct the event is order routine specification. It
includes different types of factors such as technical specification, quality of the product, quantity,
time duration of delivery etc. These factors must be well organized to conduct good event in the
world. To organize successful event, they need to fix budget and create appropriate plan for the
event. They should also give effective training and development to the employee so that they will
easily plan and schedule the activity of the event (Stritto and Schiraldi, 2013).
In the hospitality industries the purchasing power plays an essential role. In order to
prepare food and beverages the purchasing power is related to buying the equipments and tools
that are required. In order to prepare the final dish it included the raw materials. In respect to
food and beverages production and services system to make a party or event successful it
included the raw materials such as utensils that need for food and beverages , tables and chairs
etc. The manager should be able to control the inventory level. The stocks of prepared food can
be maintained if the purchasing process is accurate and also the demands and needs of guest will
also be fulfilled. Here are some steps that is included in purchasing power
Purchasing of food and beverages- The requirements of raw materials for preparation of food and
beverage need to find out by the manger of this event. The manager can determine the need by
using previous sales record and statements.
Suitable suppliers- The required material that will be needed list will make and for that
appropriate supplier will be selected who will sell the materials in less price in comparison with
other suppliers. In order to have a long term contract they can make use of tender option.
Placing order – Once the suppliers are requisitioned it is now time to place the order that are
needed in preparation of food (Kopanos, Puigjaner and Georgiadis, 2012).
Order receive – It is important to check the quantity and quality of raw materials after receiving
the order as the taste of the food can be affected due to damage things.
Storing facility – In the data ware house the raw materials need to be stored after the process of
checking .This will keep the raw material safe and fresh.
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The main objective of purchasing proves is to store good and lease the good appropriately .The
competitive position of organization to be strengthened.
3 Evaluation factors to identify the success of the services and recommendations for
improvement
There are different types of factors that help for the event success. They also ned to plan
the budget and create effective schedule for the event activities. By creating the plan for the
event they can easily get higher performance and get desired target or objective. Main objective
to organize an event is to provide appropriate and good quality products to the customers.
Communication with the consumers must be good enough because if they have good
communication skills then only they can communicate with them. By communication with the
client they can easily know their preferences and behaviour. Based on the consumer needs they
should provide appropriate and good quality product. For the Christmas party, they should give
healthy and good quality products for the child (Sisson and Adams, 2013).
Further, cost estimation also important to conduct the event. The cost must be sufficient
for the person to mange the event. If they have good budget then only can organize the
successful event. To arrange the event for the client they can also know the competitors
strategies and approaches what they are currently following. Further, they should provide
innovative and good quality food and beverage to the customer to increase their performance and
also they will be able to get desired goal. Time management skills is most important to organize
the effective event. They must have these skills that will help to manage and schedule al the
activities related to the event. Management need to provide appropriate and efficient training
sessions and programs which helps to manage the event activities. Particular demand of the
client is most important in the specific event. Based on the client needs they should set the food
and beverages in an event that will definitely helpful to satisfy the consumer needs (Slining,
Mathias and Popkin, 2013).
In order to find out the success of hospitality event there are number of factors that can
help. Some of these factors are as follows-:
Planning and organization of event
The most essential part of any hospitality event is planning. Thee success of any event
can be determined from the plan made for that particular event. In the given scenario the
defective plaining and organizing will develop a satisfaction among guest who will for that
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event. In the planing process the menu is designed as per the needs of guest who have varied
taste. Some guest are vegetarian while other are suffering from diabetes. In the party list the
children are also included (Kopanos, Puigjaner and Georgiadis, 2012) .In order to address the
needs of guest the planing need to be done and the health ,safety and security of guest need to be
taken care while planning for the event.
Maintenance of quality standards – In the success of hospitality event in the given scenario the
another factors that plays an essential role is the maintenance of quality standards. With cooking
and preparation as well as their presentation these standards are associated. This factors is taken
into consideration in the given case in order to deliver high quality of food and beverages. In
order to prevent contamination of food items it had to be made sure that prime importance is
given to cleanness and hygiene. To maintain the quality of food components the storage of food
items and beverage is done very cautious. In the storage the staff of this event need to be well
trained (Sisson and Adams, 2013). .
Customer satisfaction – The sauces of hospitality event also get affect due to this factor. As per
the give scenarios keeping in mind the taste and preference of customers the menu is been made.
In order to satisfy needs of respective guest the food and beverage menu consist of vegetarian
food, low fat food and sugar-free receipts.
Recommendation
 To improve the standards of quality it is very essential to train the staff about food and
safety as well as health safety acts.
 The section of food suppliers need to be done wisely in order to make sure that quality of
food products remain enact (Govindan and et.al., 2016).
 On the regular basis the cooking equipments need to be checked
CONCLUSION
In the food and beverage two things must be coherent one is food and second one is
services. The services and a food must have good and appropriate quality that will help to satisfy
the client needs. For the successful event they need to decide the budget and crate effective plan
to schedule the activities of the event. They organize the Christmas party and set the appropriate
and good quality foods for the customers. Based on the client needs they provide the food in the
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party. During the preparation of menu they need to consider the consumer preferences. There are
various factors that affects the food and beverage system. Cost of the event must be appropriate
to organize the event that will help for success of the event.
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REFERENCES
Books and journals
Asaolu, T. O., Agorzie, C. J. and Unam, J. M., 2012. materials management: an effective tool for
optimizing profitability in the Nigerian food and beverage manufacturing industry.
Journal of Emerging Trends in Economics and Management Sciences. 3(1). p.25.
Bujisic, M., Hutchinson, J. and Bilgihan, A., 2014. The application of revenue management in
beverage operations. ournal of foodservice business research. 17(4). pp.336-352.
Govindan, K. and et.al., 2016. Accelerating the transition towards sustainability dynamics into
supply chain relationship management and governance structures. Journal of cleaner
production. 112. pp.1813-1823.
Grekova, K. and et.al., 2014. Extending environmental management beyond the firm boundaries:
An empirical study of Dutch food and beverage firms. International Journal of
Production Economics. 152. pp.174-187.
Grekova, K. and et.al., 2016. How environmental collaboration with suppliers and customers
influences firm performance: evidence from Dutch food and beverage processors.
Journal of Cleaner Production. 112. pp.1861-1871.
Kopanos, G. M., Puigjaner, L. and Georgiadis, M. C., 2012. Simultaneous production and
logistics operations planning in semicontinuous food industries. Omega. 40(5). pp.634-
650.
Lao, S. I. and et.al., 2012. A real-time food safety management system for receiving operations
in distribution centers. Expert Systems with Applications. 39(3) pp.2532-2548.
Lehtinen, U., 2012. Sustainability and local food procurement: a case study of Finnish public
catering. British Food Journal. 114(8). pp.1053-1071.
Manzouri, M. and et.al., 2013. Lean supply chain practices in the Halal food. International
Journal of Lean Six Sigma. 4(4). pp.389-408.
Pizzuti, T. and et.al., 2014. Food Track & Trace ontology for helping the food traceability
control. Journal of Food Engineering. 120. pp.17-30.
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Sisson, L. G. and Adams, A. R., 2013. Essential hospitality management competencies: The
importance of soft skills. Journal of Hospitality & Tourism Education. 25(3). pp.131-
145.
Slining, M. M., Mathias, K. C. and Popkin, B. M., 2013. Trends in food and beverage sources
among US children and adolescents: 1989-2010. Journal of the Academy of Nutrition
and Dietetics. 113(12). pp.1683-1694.
Stritto, G. D. and Schiraldi, M. M., 2013. A strategy oriented framework for food and beverage
E-supply chain management. International Journal of Engineering Business
Management. 5. pp.50.
Walker, H. and Jones, N., 2012. Sustainable supply chain management across the UK private
sector. Supply Chain Management: An International Journal. 17(1). pp.15-28.
Wang, Y. F. and et.al., 2013. Developing green management standards for restaurants: An
application of green supply chain management. International Journal of Hospitality
Management. 34. pp.263-273.
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