Food & Beverage Operations Management: A Premier Inn Hospitality Case

This assignment provides an overview of food and beverage operations management within the hospitality sector, focusing on food production systems, service systems, and hospitality zones. It discusses the evolution of food production systems, factors influencing menu and recipe choices, cost and staffing implications, and various food and beverage outlets. The report also delves into event management, costing procedures relevant to the hospitality sector, and the purchasing processes for food and services. It provides recommendations for improving services to enhance customer reliability and includes a budget plan for an event catering to 100 people, offering insights into costing, market demand, and service performance, with a case study of Premier Inn's operations in Birmingham, analyzing their buffet lunch services, cost-saving, and customer satisfaction strategies.

HOSPITALITY MANAGEMENT FOOD & BEVERAGE OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
P1.1..........................................................................................................................................................3
P1.2..........................................................................................................................................................5
P 1.3 (M1)................................................................................................................................................7
Task 2 (LO2):................................................................................................................................................8
P 2.1.........................................................................................................................................................8
P 2.2 (M2)................................................................................................................................................9
Task 3 (LO3)...............................................................................................................................................11
P 3.1.......................................................................................................................................................11
P 3.2 (M3)..............................................................................................................................................14
Task 4 (LO4):..............................................................................................................................................16
P 4.1.......................................................................................................................................................16
P 4.2.......................................................................................................................................................17
Conclusion.................................................................................................................................................18
Reference List............................................................................................................................................19
Appendix...................................................................................................................................................20

INTRODUCTION
Food production system, food and beverage system and hospitality zone are the main topics
which are discussed in this assignment. Nowadays, food production system has reached a new
level as well as service system and hospitality division. Factors that affect recipes and menu for
specific system, cost and staff implication, food and beverage outlets, cost and pricing control
are also discussed. Another focus will be on event management and costing procedure which is
related to hospitality sector. Purchasing process of food and services, recommendation for
improving their services to provide more reliability to their customers are also described very
well in this assignment. At the last, a budget of 100 people for an event is also made which is
under hospitality sector. It will give better idea of costing, demand on market and service
performance.
P1.1
Nowadays food production system has reached a new level as the demand of people is increasing
day by day as the population is growing high in the whole world. So, different techniques and
processes are used nowadays for producing more food and to make the food production system
smoother. There are different types of food production (BYJU’S, 2018). They are listed below,
• Traditional method: Traditional food method goes under different processes like
sterilization, pasteurization, blanching and microwaving.
Sterilization: Sterilization method is used in traditional food production system to destroy
all human pathogens and organisms. This process helps to ensure health of human being.

Pasteurization: This type of traditional method is used to mostly to destroy human
pathogens from food. Mostly this kind of method is used in dairy industries, where it is
used for milk preparation, cheese preparation, making yogurt, butter, ice cream and so on.
Blanching: It is mostly a thermal treatment which is used in frozen vegetables. It helps to
foods to maintain their colour, texture, flavour and nutritional value properly. This
process makes the packaging process easier also.
Microwaving: Small quantities of food such as frozen entrees are heated in this
traditional process. Electromagnetic radiation is coming out from the microwave which
stimulates water molecules from the vegetables. This process helps to maintain vegetable
quality for a long time.
• Cook chill method: Cook chill method is a very simple and cool method of advance food
processing system to provide more flexibility and reliability in food processing system.
This process helps of maintain food quality, flavour, texture and nutritional value
properly for a long time.
• Centralised Distribution: In this process deliveries from supplier are transported to a
central location, basically in full load quantities, rather than to each branch. After that
load is distributed from suppliers to the branches to make production process smoother.
• Sous-vide: Sous-vide is a different type of cooking method. In some quality restaurants
some chefs used this method of cooking. This method is also used to make sufficient
amount of food in a short time.
• Assembly: The food assembly brings together people to buy fresh food or vegetables
directly food makers and farmers. Selling through assembly method helps food makers
and specially farmers to gain more profit. This process is also helpful for better food
producing services.
• Cook-Freeze: Cook- freeze is a food preservation process. Food is prepared, cooked and
then frozen to -200 centigrade temperature in kitchen. This process of food preservation is
so useful that it can preserves food for nearly up to eight weeks (Elansari, A. and Bekhit,
2015).

There are different types of services system available. They are listed below,
1. Table/plate services
2. Table d’hôte
3. Buffet/ counter services
4. Specialist food service system
5. Family service
6. Silver service
7. Beverages service system
These services are used in best quality hotels to provide their customers better and reliable food
production and service system. Premier Inn Hotel is renowned hotel for his better food services.
They used most of the services which are described above for providing better services to their
valuable customers.
P1.2
Premier Inn and their parent organisation, Whitbread operates not just in the United
Kingdom but also across the whole of Europe, parts of the Middle East, and Asia, including
India and China, thus serving a significant portion of the globe and a majority of its population.
This naturally means they have to adapt their operations to best suit the traditions and culture of
their respective locations. For the sake of this assignment, we will focus on their operations in
the United Kingdom and the factors affecting the choice of menu and recipes for certain
production and service systems (Premier Inn, 2018).
 Quality of product and price stability:
An establishment that can provide and maintain a high standard of services for a
reasonable price is greatly valued by customers. Thus, it is one the most fundamental
factors one considers when deciding the menu and recipes. The cooking staff must be

selected with great scrutiny so as to maintain the quality of their products over time. The
ingredients must be sourced from trusted partners and be checked regularly for any
discrepancies. While, maintaining quality is important, the prices they charge must also
be paid attention to; an establishment with greatly fluctuating prices can quickly turn
away valued customers (Malik and Kumar, 2012).
 Nutrient level:
One of the main reasons people turn away from cheap fast food joints is their precarious
neglect to their quality of food and the lack of nutritional value. Thus, it’s pertinent that
restaurants and hotels maintain a menu that is reasonably nutritional. Customers will
greatly appreciate an establishment that serves them food that is both healthy and
appetizing in nature.
 Monetary and Budget Issues:
Customers will appreciate an establishment to a great extent that is easy on their pocket.
Thus, effective strategies must be used while pricing their menu so that it gives them a
definitive edge over their competitors.
 Needs and demands of customers:
The very nature of the hospitality and hotel industry warrants that an organisation caters
to very specific and precise demands of their customer base. Some of their customers
might choose to live a lifestyle that demands a very specific diet; some may have dietary
restrictions put on them due to diseases such as diabetes, gout or celiac disease. Several
religions restrict the consumption of certain kinds of meats and beverages. Failing to
comply with any of these requirements might cost the organisation the loss of a large
amount of their targeted customer base.
 Seasonality:
Seasons certainly have an affect the availability of certain key ingredients for making
recipes. Further, the demand for some specific recipes and dishes skyrocket during a
certain season. The demand for season specific and holiday specific dishes are an
important aspect of the restaurant business model as it is during these times that their
business increases manifold. Thus, it is very vital for an organization in the hospitality

and hotel industry to pay attention to their customer’s varying demands throughout the
year and change and update their menus accordingly.
P 1.3 (M1)
For the purpose of this assignment, we have chosen an outlet of Premier Inn based in
Birmingham and analysed their buffet lunch services.
Food is produced for buffet servings in bulk, which saves time, is generally more
efficient and wastes fewer resources. Staff required to cook is also reduced in this model of food
production since a whole days’ worth of food can be made in a relatively short amount of time as
opposed to cooking every time an order comes in.
The food is served in a buffet, which has significant advantages over more traditional
serving methods (Wansink and Hanks, 2013). Customers are greeted with greater variety than
they can get with more traditional serving model. It is not practical nor cost efficient for
customers to order every dish they would like to taste in the menu; with this method, they can
taste whatever they want and choose to have the one they like the most. Since this method of
serving requires fewer staff members, restaurants can save a lot of money on staff and instead
improve their quality of food which will be greatly appreciated by customers. The buffet system
generally creates lower commotion and things tend to flow in a smoother and linear fashion. As a
result, the dining experience is generally more pleasant for both the customers and the staff. This
is highly advantageous for the establishment as a satisfied customer is more likely to return to
their establishment than a discontent one.
However, there a few caveats while dealing with the buffet model of food production and
serving. It is extremely difficult to predict the flow of customers on a certain day, a deficiency of
food on a day can lead to loss of valuable business and can lead to bad repute, whereas an over-
abundance of food on a day can lead to wastage, which not only results in loss but also wastes
precious resources (Freedman and Brochado, 2010). While, the restaurant can employ fewer staff

members, unusually high amount of traffic on a certain day can easily overwhelm an
understaffed workforce. The staff might have a hard time managing so many customers at once
and maintain the same quality of service expected of them. A loss in the quality of service will
lead to bad reputation that can severely affect the business. Thus, it is pertinent that all these
factors are considered and a well thought out strategy is used when operating the establishment.
Task 2 (LO2):
P 2.1
The event being held is a conference for the Birmingham Chapter of the National
Association of Professional Women, being coordinated with Premier Inn as the preferred event
partner. The head count is expected to be around fifty; and a budget of £2500 is allocated. Since
we are dealing with financial transactions of such a scale, it is pertinent to keep a detailed and
precise financial record to account for all the expenses and payments. This ensures that there is
no confusion and misunderstanding amongst the management and members of the organization,
and that all the funds are used efficiently. This further ensures transparency and just allocation of
funds.
Financial statements are comprehensive records of all financial transactions and other
dealings in a neat and arranged manner (Friedland, 2010). They are thus a very important tool
used for planning events such as these as they not only reflect the current state of monetary
affairs but can also be used to trace back an organization’s financial history and purchase
records.
To prepare the food and beverage menu, the budget allocated is divided into sections that
would fund various aspects of the event. For the purpose of this assignment, arrangement of the
food and beverage is drawn attention to. The most important aspect of planning for an event of
this nature is planning the food and beverage menu and arranging the same efficiently and
without any hitches (Davis, et al., 2013). To efficiently keep track of all expenses, it is pertinent
to use keep a financial statement. The financial manager is the one responsible for keeping the
records and is also responsible for allocating and spending any leftover funds, if any. This

ensures proper use of monetary resources. Further, these records can be used in the future while
planning future events to plan their budget more efficiently.
The food and beverage managers are thus required to have a fair idea about the cost of
raw ingredients, cost of labour, the cost for preparing items and ground staff that would
ultimately serve the guests.
Cost can be defined as the expenses that hospitality establishments incur while providing
goods and services. Using proper costing techniques are pertinent to the decision-making process
in the hospitality and hotel industry, as these ensure effective costing for the organization (Dalci,
et al., 2010). The pricing decision made by the organization is dependent upon the exact situation
and tailored approaches might be used to ensure the prices attract maximum number of
customers and optimized amount of sales. The different approaches that are used by the food and
beverage industry can broadly be classified under:
 Value based pricing: This is a strategy where the real cost of making a product is not
considered, but rather the pricing is based on the customer’s perception of the value of
the product. The pricing is greatly dependent upon feedback the establishment receives
from its customers (Liozu, et al., 2012).
 Competition based pricing: This strategy is mostly used by companies when there are
multiple companies offering the same or similar product. Customers are almost always
inclined to go to the company offering their product or services at the cheapest rate while
still maintaining quality. Thus, in this strategy, the price being offered by their
competitors are considered while setting their own prices to gain an edge over their
competitors (Nagle, et al., 2016).
P 2.2 (M2)
One of the most critical tasks a food and beverage service manager has to perform while
arranging an event is the purchasing of required materials and stocking it in advance for the
event. A failure in this process can collapse the entirety of the event, since without the proper

inventory to prepare meals and beverages, the total food and beverage is impossible. Thus, the
F&B manager must take special precaution to ensure the smooth operation of this process.
The purchasing process for the event transpired as follows:
 A trusted source for supplying the materials was selected that was unanimously agreed
upon.
 The ordering was done electronically via the vendor’s website.
 Once delivered, the goods were checked for quality and the delivery invoices were
checked against the actual delivered goods to check for any discrepancies.
 Critical factors such as the temperature of the goods delivered were checked and noted
down.
 The packaging was checked to see if anything was in bad shape.
 The goods were stored in the storage cellars designed to stock the goods.
As we can see in the above points, the process for purchasing goods for a food and beverage
service event is quite peculiar and a food and beverage manager must pay particular attention to
every step of the process to ensure its success. The issues that can arise when dealing with the
purchasing process of this magnitude are:
 Supplier issues: It is difficult to find trusted sources that maintain the highest
standards of quality while still maintaining a stable supply. The biggest concern for a
buyer is that the products being supplied might turn out to be sub-standard, and that
could lead to terrible consequences for the company.
 Lowering costs without compromising quality: The primary goal of any business is to
gain the maximum profit possible and as a manager serving the organization, it
becomes their goal as well. But this must not come at the cost of diminishing the
quality of the product they are serving. Thus, it is always the top priority for a
manager to minimize the costs while still maintaining the quality of their service.

 Damaged Goods: The goods once delivered must always be scrutinized very
carefully to ensure they are in optimal condition and fit for use. Any goods found in
damaged state cannot be used in the event, and a replacement order must be placed. If
this is delayed, the event might be in jeopardy.
 Rushed or sub-par job: The food and beverage service industry, by its very nature is a
fast-paced industry. Thus, most often suppliers have to work in a time crunch, it is
very important to maintain this constant flow of goods while still maintaining a
standard of quality expected of them. If a supplier rushes a job without taking all the
proper precautions and checks, it is very likely that the goods supplied will be sub-
par. This could be abysmal for the whole supply chain and can ruin the event.
Task 3 (LO3)
P 3.1
The menu is a fundamental aspect of any food and beverage service event. It provides the
customer with information about the organisation and it communicates everything about the
event. It is representative of the overall image and theme of the event and it can be used to sell
one organisations’ uniqueness.
The event being organized is a conference for the Birmingham Chapter of the National
Association of Professional Women, which is being coordinated with Premier Inn as the event
partner. The menu is chosen from the buffet lunch menu provided by the Birmingham outlet of
Premier Inn, keeping in mind the intended customer base and the guest list. The factors
considered when compiling the menu are:
 The budget allocated by the client: The budget is carefully analysed and broken down to
finance the different aspects of organizing the event. The funds allocated for the food and
beverage service is then observed and an appropriate menu is chosen from the options
provided by the catering partner.
 The expected guest list: The food and beverages to be served are chosen with careful
consideration to the required client base and their tastes and preferences. Special

consideration has been taken for guests suffering from diabetes and for guests preferring
an alternative diet like vegetarianism or veganism.
 Seasonality: The food being chosen is made to be season specific. This enables us to use
fresh and hygienic produce and change the menu after regular intervals. This keeps the
menu interesting by mixing things up every so often, which is surely appreciated by the
customers.
 Quantity of the food to be served: Careful consideration is taken to determine the optimal
amount of food to be served for each dish, so as to minimize wastage as well as reduce
redundancy.
 Food production and serving methods: The food to be produced for this event will be
made in bulk and will be served in a buffet, thus, the chosen dishes should be compatible
with the aforementioned methods of preparation and serving.
Chosen food and beverage menu
Refreshments and savouries (available all day)
 Tea, biscuits and coffee
 Unlimited still & sparkling water
 Mushroom and gruyere
 British chipolata sausage ciabatta
Main Course
 Spinach garlic chicken
 Bacon and butter Chicken served with house fries
 Beef Chilli Served with Rice Salmon steaks with garlic and parsley potatoes