Montrose College: Food and Beverage Operations Management Report

This report provides a comprehensive analysis of food and beverage operations management, specifically within the context of a summer fair at Valentine Park. It delves into the essential aspects of financial systems utilized in food and beverage operations, including price lists, cost statements, sales records, and variance analysis, while also examining the purchasing process, from need recognition to post-purchase decisions. The report further explores factors crucial for evaluating the success of such an event, such as customer satisfaction, effective planning and organization of activities, maintenance of quality standards, and the importance of cost and time efficiency. The objective is to provide Montrose college students with insights into managing various financial systems to control costs, analyze purchasing processes, and ensure the delivery of high-quality services while maintaining health and safety standards. The report concludes that effective planning, financial management, and a focus on customer satisfaction are paramount to the success of any food and beverage event.

Food and Beverage
Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Financial system used in operations of food and beverage...................................................1
2.2 Pricing and cost process........................................................................................................2
Covered in PPT...........................................................................................................................2
2.3 Process of purchasing............................................................................................................2
TASK 3............................................................................................................................................3
Covered in PPT...........................................................................................................................3
TASK 4............................................................................................................................................3
4.1 &4.2 ......................................................................................................................................3
Covered in PPT...........................................................................................................................3
4.3 Factors help in evaluating the success of programme...........................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
For each and every firm operating in hospitality industry, it is compulsory to manage all
activities which are related with food and beverages in a proper manner. Management has to
show more concern on this aspect because it is the only thing through which they can satisfy
their number of customers (Davis,and et.al., 2013) . Hence, it is the moral duty of an
organisation to look on this aspect and take care about this factor. The present assignment is
based on food, beverages and operation management of Valentine Park that wants to arrange a
summer fair. This report includes all such factors which are helpful in arranging this event which
includes various number of factors which can affect the menu card and different recipes
according to users. Also, there is discussion on the way organisation can use their financial
statement in this program so that they can manage each and every activity .
TASK 1
Covered in PPT
TASK 2
2.1 Financial system used in operations of food and beverage
Financial management and control is an important aspect of every event or operation.
Students involve in conducting the fair need to give proper consideration on various financial
statements used. Following are the important statements which involve in a food and beverage
event: Price list of food and beverage items: This helps in deciding or calculating the price of
food offered to people. This can be calculated by adding all cost involve in main the final
dish and than add a percentage of profit in that. Price of food product is an important
element as it helps in generating profit (Mok, Sparks and Kadampully, 2013) . Price
should not be too high because customers or people come in the fair will not buy the
product. In case of price is very low, in this situation students involved in conducting the
fair will fail to generate profits. Cost statements: This is another statement involved in food and beverage programme. In
this all cost is divided in categories direct and indirect cost. Sales record: This record contain important information about the customers for example
their address, contact number, method they use top pay for the product etc.
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 Statements of various operations: This statement include other miscellaneous expenses
occur while making the final food product.
 Variance analysis: It helps in calculating the difference occur between standard budget
and actual budget. This helps managers in managing and controlling the cost of future
operations.
Students involve in conducting the activities of fair need to give consideration on following
costs: Food cost: This cost is associate with with making the final food products. Beverage cost: It consists expenses involve in producing the drinks or beverages. Overhead cost: This involve rent, lighting and cost of utilities.
 Labour cost: Salary given to employees for making the product.
Main advantage of using financial statements is that it helps in calculating the profit of
overall programme(Brotherton,ed., 2012) . This helps in providing useful information and
provide useful information to management for taking effective and useful decisions. Students can
use various financial statements this will help them in conducting activities with ease and they
can generate larger number of profit.
Following are the main financial systems which can be used in an hospitality event:
 Dish costing system: This include all the costs involve in making the final food item. By
calculating this students can set the price for the product and can do efforts for minimise
the cost.
 Cost statement: It includes all the cost involve in organising the event. Cost statements
include all costs.
 Income statement : This is opposite from cost statement under this all income generated
from various activities of event are involved. It helps in evaluating the success of event.
 Operating statement: Operating statement help in comparing the cost of event with all the
income generated. This testament can be used by the students of college to evaluate the
effectiveness of event and its activities.
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2.2 Pricing and cost process
Covered in PPT
2.3 Process of purchasing
Purchasing is process of search, evaluate, select, purchase, store and use of a product or
service. In food and beverage industry purchasing of product is not the only responsibility of
buyer but his duties include receive, store and handling all issues by giving proper consideration
on all factors.
Purchasing is a process of buying goods and service which is start from the demand of
the customers in marketplace. It is an essential element of business organization which assist in
balancing inventory (Vogel, Papathanassis and Wolber, 2012) . In every business it is required
that a proper balance should be maintain between inventory in investment for which business
control cycle will be used and the most important element in it is purchasing function. Inventory
control is important which is implement in food and beverage operation. Purchasing process
regarding the food and beverage it is important that supplier is more essential role to attain
success in marketplace. It is simple to purchase a specific beverages rather then buying any food
stuff. Brand name play crucial role in sale of beverage as they have fixed quality and quantity. In
purchase process the whole information of the food and beverage is necessary include which
show the product price, and quantity also. A best suppliers can easily mentioned the entire
information of the food stuff which is easily buying by the customers. Specification of purchase
process define the quality, size, weight and quantity of the product . To identify the process of
purchasing of food and beverage define the supplier name, contact information and company
name to maintain the systematic environment in company and marketplace to increase the
profitability. Basically purchasing process is starts with need of the customers for the particular
product. It include two parties to purchase the products which is buyer and suppliers. Purchasing
process define some steps which show the whole process of buying and selling the product and
service: Identifying need (product description and specification), Sourcing (supplier selection
and pricing), Establishing sale contract (agreement on sale terms and conditions), Delivering
(inspection and acceptance) and Requesting payment (issuance of commercial invoice). It can
show the need of the product purchase and select the specific product according t0o the need of
the customers. They appoint purchase team to maintain the process of the purchasing and make
best plan to finalizing the list of the food and beverage product in appropriate manner. In
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purchasing process supplier is essential part to deliver the product in front of customers and get
better satisfaction by them. Supplier should focus on providing good quality and correct goods
and services so customers can get right product according to their need and wants.
Process of purchasing involve the following steps:
 Need recognition: This is the first step involve in the process of purchase. Under this an
individual felt or identify his or her unmet need or demand.
 Identify alternatives: After identification has been done by the individual, he or she starts
looking for alternatives for satisfying his needs or want.
 Evaluate alternatives: Evaluation is done to find and purchase the best from all
alternatives.
 Purchase decision: Finally in this, individual purchase the product or service for
satisfying his need.
 Post purchase decision: Positive experience influence individual for repeat purchase
whether negative experience influence individual to find other alternative.
TASK 3
Covered in PPT
TASK 4
4.1 &4.2
Covered in PPT
4.3 Factors help in evaluating the success of programme
There are number of factors which help in evaluating the success of food event. Main
elements of are customers satisfaction, planning and organisation of activities, quality standards,
cost and time involve and many more.
 Customer satisfaction: Customers are the end consumers of products or services
produces by an enterprise. For achieving satisfaction of customers who take part in food
festival it is very necessary to for students to deliver quality food products. Satisfy
customers result in repeat purchase and help in creating positive image about any
enterprise (Yeoman and et.al., 2012) . It is costly for any organisation to attract new
customers rather than keeping the old one.
Various recommendation for increasing customer satisfaction:
 Recommendations and feedback from customers should be collected on regular basis.
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 Excellent services should be provided to customers before, during and after an event.
 Personal attention should be given on every single customer.
 Not even a single customer should be neglected.
 Observation of customers attitudes and behaviour during the process of purchase or
consumption can be done.
Satisfy customers helps in increasing the sale of an organisation's product and helps in
measuring the success of an event or programme.
 Organisation and planning of business activities: Planning of future activities in
advance help in make the programme more successful. In this students can decided way
of making, storing, handling food equipments during the process of making making final
food. All this help in decreasing the cost of food process. It helps in control the deliveries
of food.
Recommendations for improving the planning and organisation of the event:
 By setting and maintaining standards of various activities.
 Keeping hygiene and safety standards in every beverage and food department.
 Proper communication should be take place with customers.
All these should be consider by students while planning and implementing all activities
of food festival.
 Assurance of quality and set standards: Maintaining quality of every food and beverage
products is very in every food event. For keeping quality proper training should be given
to employees (Wu and Pagell, 2011). Process and methods of doing the work should be
taught to them so that accidents can be avoided and safety at workplace can be
maintained.
Following recommendation can be given for ensuring quality of food products and
services:
 Food must be procured form a good supplier.
 Proper training should be given to staff members.
 Set standards of health and safety must be followed by workers.
All these will help students in maintaining quality of food products and help them in
making the programme more successful.
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 Effectiveness of time and cost: Cost and time effectiveness helps in gaining maximum
profit, manager should try to chive cost and time effectiveness. This will help manager in
delivering quality services to customers.
Recommendations for increase effectiveness of time and cost:
 Negotiation among all suppliers and contracts.
 Good relations with outside business persons can helps in this.
These can be done to achieve cost effectiveness in all operations of business.
CONCLUSION
From all the information included in the report it can be concluded that today variety of
food is served by various restaurants. Food plays and important role in everyone's life. Students
of Montrose college can collect relevant information about different type of food and their
characteristics to offer good quality of food in fair at valentine's park. Students can collect
information about various factors affecting menus and other system and than can take decisions.
Different type of food and beverage outlets can be choose by them to present food and beverages
in food festival. It is very important for students to manage various financial system to control
cost and process related with making different food items. For this, they can analyse purchasing
process of customers. They can add different type of food products for different adults and
children participate in food festival. An effective plan in this can help them in implementing the
full plan and deliver services to customers with high quality and they can maintain proper health
and safety of people at there.
REFERENCES
Books and journals
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