Hospitality Event: Food & Beverage Service, Budget & Standards

This report provides a detailed analysis of food and beverage operations within the hospitality sector, covering various aspects from production and service systems to financial controls and menu planning. It discusses the use of financial statements like dish costing sheets, cost statements, and variance analysis in managing food and beverage provisions. The report also demonstrates the importance of cost and pricing processes, including VAT and discounting, and analyzes the purchasing process within the hospitality industry. Furthermore, it compiles a food and beverage menu for a specific hospitality event, justifying the selection and suitability of recipes while considering factors like nutritional issues, dietary restrictions, and budget constraints. The report also includes planning, implementation, and evaluation of food and beverage service for the event, with recommendations for improvement, offering a comprehensive overview of the key elements involved in successful food and beverage operations. Desklib provides access to this and other solved assignments for students.

FOOD AND BEVERAGES
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Table of Contents
INTRODUCTION ..........................................................................................................................3
Task A: Different food and beverage production and service sysstems .........................................3
PPT...............................................................................................................................................3
Task B Financial controls used in food and beverage operations ...................................................3
2.1 Discuss the use of financial statements in food and beverage operations.............................3
2.2 Demonstrate the use of cost and pricing processes ...............................................................4
2.3 Analyse the purchasing process ............................................................................................5
3.1 Compile food and beverage menus for a hospitality event ...................................................6
3.2 Justify the selection and suitability of recipes for menus .....................................................7
Task C Review of recent development............................................................................................8
4.1 Plan a food and beverage service for a hospitality event within an agreed budget ..............8
4.2 Implement the planned service maintaining standards of quality and health, safety and
security.........................................................................................................................................9
4.3 Evaluate factors to determine the success of the service, making recommendations for
improvement .............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
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INTRODUCTION
Food and beverage operations play a major role in hospitality sector and businesses in
this sector are primarily engaged in preparing meals, snacks and beverages (Gomes and
Lobstein, 2011). This unit is going to explain day-to-day activities and procedures involved in
food and beverage operations. In this report, various food and beverage production and service
systems are going to be explained along with factors that are affecting recipes and menus for
specific systems. In addition, the cost and staffing implications of different system used for
particular food and beverage outlets are discussed. The importance of financial processes
including purchasing options, costing of raw materials and commodities, different selling price
models etc. are also explained. Food and Beverage menu is designed while suggesting an
appropriate serving style. This report provides sufficient knowledge of planning, implementation
and evaluation of food and beverage service for a hospitality event. At last, factors determining
the success of food and beverage services are discussed along with making recommendations for
the improvement.
Task A: Different food and beverage production and service sysstems
PPT
Task B Financial controls used in food and beverage operations
2.1 Discuss the use of financial statements in food and beverage operations
Financial statements are useful in portraying the financial health of business. Such
financial reports also represent the information of income and expenses of business. Following
points display the various financial statements that are used in food and beverage provisions:
Dish costing sheet: The mentioned financial statement is used for calculating the selling
price or menu price. Dish costing is further used to figure out the cost of each portion or
ingredient that is used to prepare the dishes. It is also helpful in the selection of menu for a party
(Kickbusch, 2010).
Cost statements: The cost statement is used to breakdown all the costs that have been
incurred in the process of preparing food and beverages. There are majorly two types of cost i.e.
direct and indirect that are included in cost statements.
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Operating statements: The operational statement includes the final cost of preparing
food and beverage. This statement includes the information related to cost of procuring material,
cost of transporting material into finished goods etc. However, it could be said that operation
statement includes all the cost incurred, from preparing foods to make it available for customers
(Mensah and Julien, 2011).
Variance analysis: The difference between budgeted and actual figures is known as
variance analysis. In respect with the food and beverages section, the variation among planned
amount and the actual amount of dishes/beverages sold, is called as variance analysis and the
respective financial statement provides the information of difference among expected and actual
cost. It helps in controlling future costs of the business. At the time of preparing budget, the
company has to keep eye on major four costs such as Food cost (associated with producing the
menu items), Beverage costs (costs of ingredients to produce drinks), Labour costs and Overhead
costs (utilities, rent, and linen) (Tansey and Worsley, 2014).
Sales records: Each and every company has to keep proper records of sales, production
and even purchase. Sales records of organization include the information of sales made by the
customers like as: what they purchased, how much they had paid, contact information and mode
of payment. Sales records are the important sources of getting information for marketing.
2.2 Demonstrate the use of cost and pricing processes
Cost and pricing are the most crucial elements of food and beverages operations. It
includes dishes, beverages, menu prices, VAT, discounting, net and gross profits, sales mix,
fixed and variables expenses, direct and indirect cost etc. However, pricing and cost are two
different items but cost is the part of pricing on which basis pricing decisions are to be taken.
There are two major elements of cost such as VAT and Discounting. Direct cost is imposed on
goods and services in the different stages of production, starting from raw materials to final
production. VAT tax is a part of cost that is included to make decision for pricing of products
and services. Currently, VAT rate stands at 20%. Discounting is the process of making products
available to the customers at discounted price (percentage taken off from market price) (Food &
Beverage. 2013). To decide on the menu designing and making specific pricing to the menu
items, it is needed to understand the concepts of cost and pricing. Direct and indirect are two
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types of cost that are included in the preparation of food and beverages. Direct cost is one which
is directly associated with the preparation of final goods. On the other hand, indirect cost is one
which does not form the part of product but only helps in smoothing the production process.
However, cost of food and beverages operations includes fixed as well as variable cost. Fixed
cost is one which remains constant over a point of time or production level, whereas, variable
cost is one which changes as per the production volume. Profit of business is the difference
between incomes and expenses of it (O'Fallon and Rutherford, 2010).
Menu pricing is to be done while considering basic policies and profit targets of business.
At the time of deciding menu pricing, foods cost can be considered. As per a general aspect, food
cost should be around 30-35%. The menu cost is decided while considering that guests do not
only pay for money but they also pay for preparing food, serving food and cleaning up after the
food. The food and beverages serving companies must be clear with the point that price is seen
as a valuable selling tool which further aids in achieving the desired sales volume (Ferreira and
et. al. 2012). In addition to that, methods of pricing can be taken after deciding the departmental
profit and taking different profit margins into consideration. Here is the costing formula used for
the business:
Cost of product/0.35= menu price
However, formula for selling price is = Selling price= marked price- discount
2.3 Analyse the purchasing process
Within hospitality industry, purchasing process is considered as an important activity. It
is also reflected as a function of search, mixture, buy, receipt, storage and final use of goods as
per the catering policy of the establishment. In this regard, it could be said that business
production manager in hospitality sector is not only responsible for purchasing foods and
beverages but also responsible for receiving, storing and allocating goods. Further, it could be
said that purchasing function is a crucial element of business control cycle that assists business in
balancing inventory against investment (Food Systems Introduction, 2016). The right level of
purchasing keeps adequate levels of stock for meeting the needs of customer service. For a food
and beverage handling department, different categories of products are necessary to be handled
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to meet the requirement of customers. Within the food and beverage operations, the most
required thing is that requisition and inventory control must be implemented.
Production manager can easily select suppliers for the equipment of food stuffs.
However, it is required to make a visit of potential supplier along with own capabilities such as
full range and models of products, conditions of storage facilities and effectiveness of
management team. At the time of seeking for new supplier, hospitality organization must have
exercised and detailed inquiry (Gomes and Lobstein, 2011). At the time of production process
that company must ensure about the purchase specification area or a concise description in
writing of quality, size, weight, quantity. In the purchase specification, information should be
included such as what was ordered, who ordered it and at what price. Company must use general
principles of control i.e.
 Checking delivery note.
 Examine goods/raw materials to determinate purchase order and specification.
 Accept materials by signing the delivery note.
 Store and deliver items at the right places (Davis and et.al., 2012).
3.1 Compile food and beverage menus for a hospitality event
According to the given information, a local-community pub is going to host a party
where the client’s classmates, their spouses and children are invited. The name of event is “end
of term” for which a local community pub is booked. Total 60 guests will present in this event
among which 50 are adults and 10 are children. Afterwards, among them, 10 guests are
vegetarians and 4 guests are suffered from diabetes. Therefore, it is necessary to consider a
suitable Food & Beverages menu to satisfy everyone’s need. The total budget is £1000 for the
Food and Beverages including serving staff. In order to make a party more enjoyable and
memorable, needs of guests will be taken into consideration. Children will be provided with
exciting options to eat and drink. It will be wise to have a selection of dessert/sweets to comfort
everyone in the party. In addition to that, Buffet or Counter service system will be used to serve
the foods and drinks. Guests can themselves choose their meal from the counter where staff will
present to serve them. The following table represents the menu for “end of term” party:
Table 1: Food and beverages menus for “end of term” party
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Adults
Sausage, chips and fresh salad
Apple cake
Spicy and sweet cocktail
Meatballs
Beer
Total £200
Vegetarians `
Mushroom and stilton starters
Fruit salad
Courgette fritters
Fired and spicy potatoes
Coffee
Total £250
Diabetes
Sugar free pineapple cake
Fish and rice
Fresh salad
Sugar free ice tea
Tea/ coffee
Total £150
Children
Strawberry smoothie
Snacks
Organic mango juice
Chocolate ice cream with cake
Battered chicken fillet with
chips and salad
Total £250
Note: £150 will be used for Buffet or Counter service system.
3.2 Justify the selection and suitability of recipes for menus
To successfully organize the food and beverages operation of “end to term” party, I have
to make appropriate selection and suitability of recipes for menus. First of all, when I will
compile the menu, I will consider the following elements such as nutritional issues, balance diet,
colour- combination of dishes, health and safety, hygiene etc. As I know some of my guests are
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vegetarian, so I will offer them only veg food and keep the non-veg away from them. I will also
consider that some guests have the problem of diabetes and some are children. I will choose
fresh salad and Sausage, chips for adults as the dishes can be easily prepared and do not require
specific skills. For adults, I am offering Spicy and sweet cocktail as they like it most.
Vegetarians guests will be offered with dishes full of nutritional and balance of colour. On the
other hand, for diabetics section, I will choose fish, rice and fresh salad as such dishes contain
low fat, carbohydrate and vitamins which is good for their health. The battered chicken fillet
with chip's and salad, which is chosen for children, has nutritional value and full of protein as
well as vitamins. It would be good for their growth and health. Strawberry smoothie, Snacks,
Organic mango juice and Chocolate ice cream with cake are the most liked dishes by kids;
therefore I have included them in menu. Beverages have been selected while considering
everyone's choice. The most important thing that I have considered is of budget which is £1000.
All the dishes are prepared within this budget including staffing. In beverages section, beer is
offered to adults, while, rest juice is offered to the children. Tea or coffee is offered to diabetics
as per their preference. I will prefer to have counter service style/Buffet system because it needs
less staff and not at all requires to have qualified and high skilled staff. However, guests can also
have food of their own choice and food can be served quickly.
Task C Review of recent development
4.1 Plan a food and beverage service for a hospitality event within an agreed budget
Table 2: Plan a food and beverages menu for an event
Menu Items Cost
Food Sausage £50.00
Chips £50.00
Fired and spicy potatoes £35.00
Fish and rice £25.00
Snacks £10.00
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Fruit salad £10.00
Fresh salad £10.00
Courgette fritters £15.00
Beverages
Spicy and sweet cocktail
meatballs
£40.00
Beer £10.00
Coffee / tea £30.00
Sugar free ice tea £50.00
Organic mango juice £50.00
Desert
Apple cake £80.00
Sugar free pineapple cake £80.00
Strawberry smoothie £80.00
Chocolate ice cream with cake £75.00
4.2 Implement the planned service maintaining standards of quality and health, safety and
security
Customers of today's era, are looking for quality instead of quantity. Within hospitality
events like as ‘end of the term’, it is the most required to maintain quality standards and aspects
of health, safety and security. Quality standards include production and service planning,
preparation of food and beverage, cookery and demonstration of food items as well as system
setting. To maintain quality standard is the most required elements of business entities. Quality is
the most crucial aspect of business success as it has been argued from a long run that success
depends on quality (Gomes and Lobstein, 2011). For a hospitality event, quality standards mean
providing effective services to guests by the service staff and rendering them better quality of
food. This is the most important to purchase food from the suppliers who focus on quality
standards and to store food at the right place. For the preservation of food and beverages,
required temperature should be maintained. This is also required to prepare, handle and cook
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food with the use of specified procedures. Equipment and utensils must be washed cleanly so as
to avoid food illness (Davis and et.al., 2012).
Issue of health and safety is witnessed as the most sensitive problem of hospitality
industry. Premises and equipment should be kept safe for preventing any accidents. Health of
staff members must be kept far from hazards or risks. For this aspect, they need to be provided
with effective training that how accidents can be dealt with and how hazards can be prevented.
This is to be ensured that guests will be protected by taking health and safety procedure action.
These actions taken by business entity in this respect will defiantly lead to enhance the guest’s
trust and satisfaction. However, it also reduces insurance cost (Food Systems Introduction,
2016).
In addition to that, security issues associated with business must be overcome through
applying security measures. To adhere security issues are the major criteria of gaining success in
the event. In case of event, guests always look for their safety and better security helps in
enhancing the satisfaction level of them. However, it can be said that a safe and secure
environment is the key aspect of event success. Furthermore, it also provides marketing
advantage and reduces the penalty cost.
4.3 Evaluate factors to determine the success of the service, making recommendations for
improvement
Success of a hospitality organization as well as service depends on various factors such as
planning and organizing, customer satisfaction, quality assurance and setting standards, cost and
time effectiveness etc. Following points represent the factors that determine the success of
service:
Planning and organising: Success of an organization depends on that how the event is
planned and organized. If, an event is planned in a well specified manner, it will be fruitful for
the event organization. Services provided by the event management companies must be planned
so as to make guests satisfied. The best style of food serving is to be selected while choosing the
best style of cooking, controlling, delivering and storing of food and beverages (Tansey and
Worsley, 2014). In order to improve the level of planning and organizing, there must be proper
communication with customers to assess their requirements. However, various quality standards
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of food and service systems are to be maintained. In addition, proper hygiene and safety
standards must be considered by food and beverage department.
Customer satisfaction: The mentioned factor is the most crucial aspect of determining
the success of services which are provided by the organization. However, this is also determined
as the most important task to achieve the success of service. Satisfied customers become loyal, it
means company can expect repetitive business from them. It further leads to positive company
image as well as high quality of customer referrals. Nonetheless, for hospitality companies, it is
difficult as well as costlier to get new customers rather than keeping old customers (Mensah, and
Julien, 2011). Hospitality companies are recommended to provide excellent customer service to
their guests so that customer sanctification can be improved. Each and individual customers must
be given personal attention and not even a single customer is to be negated. During the service
encounter, staff must transmit a positive attitude.
Quality assurance and setting standard: The cited factor determines the success of
organization; therefore companies in hospitality event should be ensured for quality service
standards in food and beverage sections. This is to be said that health and safety procedures and
staff involvement play a specific role in the success of event. To improve the quality assurance
and set standard, event organizations are recommended for purchasing food from a good
supplier (Wagner and Meyr, 2015). Effective training must be provided to staff members and
business has to follow health and safety standards.
Cost and time effectiveness: These are equally important factors to assess the success of
business as well as to gain the maximum profit. Customers of hospitality industry always want to
have the best value for their money. To improve the cost and time effectiveness, business entity
must negotiate with all the suppliers and has to divide activities. Furthermore, good relationships
with the local business operators must be managed (O'Fallon and Rutherford, 2010).
CONCLUSION
The above report has described that there is huge importance of food and beverages
operations in the hospitality sector. It has also presented a Food and Beverage menu within
limited budget while suggesting counter service system as an appropriate serving style. It can be
said that sufficient knowledge of planning, implementation and evaluation of food and beverage
service are the important elements for a hospitality event. There are various factors such as safe
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and secure environment, health and safety, effective services to guests, hygiene etc. which are
the key aspects of event success. However, these all provide marketing advantage and cost
reduction benefits to a hospitality company. The report concluded that success of a hospitality
organization depends on planning and organizing, customer satisfaction, quality assurance,
setting standards, cost and time effectiveness etc.
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