FOOD AND BEVERAGE MANAGEMENT
Interactions, Ratios and Contract Services
1
Operational Interactions
F & B division and other units are mutually
dependent.
 There should be direct interaction between:
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Front desk and F & B - specific guest requests
Sales department and banquet unit – banquet and
conventions bookings
F & B and Front Office – announce new menu or
special activity
Guest relations unit and F & B – feedback on
utilization rate of F & B outlets
Operational Interactions
F & B manager must know who the
customers are, what they like and how
many customers to expect with the input
from other departments and units.
 Every hotel employee should be trained to
refer / recommend F & B services to
guests.
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Operating Ratios - important
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Food and Beverage Sales per Available Room
total food and beverage sales = $? per room
no. of rooms available
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Food and Beverage Occupancy
number of covers = ? turns
number of seats
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Sales per Available Seat
total food and beverage sales = $ per seat
no. of seats available
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Average Check
total food and beverage sales = $AC
no. of covers
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Ratio of Beverage Sales to Food Sales
Beverage sales x 100% = ? %
Food Sales
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Food Cost Percentage
Cost of food x 100% = ? %
Food sales
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Labor Cost Percentage
F&B Labor Cost x 100% = ? %
F&B sales
Director of Food and Beverage
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Objectives:
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Meet and exceed guests’ needs and expectations
by ensuring proper service standards, providing
quality food and beverages, managing all aspects
of operations.
Provide all guests with the highest quality F&B
experience by working as a team with all F&B
outlets, ensuring prompt, polite and professional
services, resulting in increasing employee morale,
decreasing turnover rates and lowering service
times.
Director of Food and Beverage
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Objectives:
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Seek profitability in the F&B department by
decreasing all costs, maximizing sales in all
outlets, achieving budget and profit guidelines,
meeting and / or exceeding long / short range
goals.
Director of Food and Beverage
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Specific Operations Functions:
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Provide the highest quality in food, beverage and
service in all outlets.
At least one daily walk through of all F&B areas
Maintain existing programs and develop new programs
Daily talks with all staffs and managers
Maintain high quality image through effective
housekeeping and sanitation
Maintain physical security for all outlets and inventories
Know local competition and industry trends
Change menus based on seasonality
and product availability
Director of Food and Beverage
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Specific Management Functions:
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Directs and coordinates all activities of personnel
and departmental responsibilities
Daily contacts with staff and performance reviews
Marketing of each F&B outlet
Achieve budgeted sales and maximum profitability
Maintain fair wage and salary administration
Strategic Alliance between
Hotels and Restaurants
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Four key questions
What are the hotel customers’ F&B needs and
expectations?
 Which F&B concept best aligns with the positioning
of the hotel?
 Would converting the restaurant to a brand name
restaurant improve the hotel’s bottom line?
 Would turning to a brand name F&B operation give
the hotel a competitive advantage?
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Strategic Alliance between
Hotels and Restaurants
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Reasons for alliance between brand name
hotel and restaurants:
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Create financial benefits
Provide guests with greater value
Improve the hotel’s overall image
Strengthen the hotel’s competitive advantage
Create operational advantage
Strategic Alliance between
Hotels and Restaurants
Types of restaurants:
 Quick Service
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◦ Yeebo
◦ Au Lac Do Brazil
◦ Li Bai @ Sheraton
 KFC
 Lotteria
 Pho
24
 Casual
 Al
/ Family
Fresco
 Pizza Hut
 Ngon
Upscale
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Theme
◦ Hard Rock Café
Restaurant Franchise
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Advantages
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Helps to reposition hotel
May increase revenues, occupancy, profits
Franchiser is continually assessing and improving
menu
Franchiser is knowledgeable about restaurant business
Disadvantages
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Franchise fee
High initial investment
Requires a certain volume to warrant using a franchise
brand
Restaurant Franchise
Factors to consider
1. Desired hotel position and customer perception
you want to create for your hotel.
2. Assess the revenue and costs, profitability of
having a franchised brand restaurant
3. Select a restaurant company that has the same
corporate culture and shares the same
operational goals
4. Consider the menu offered, restaurant décor,
training support and management support from
franchiser, and ability to handle room service
Contract Relationships
4 types of relationships between hotel and
F&B outlets
 Internally developed restaurant brand
 Franchised restaurant brand
 Straight lease
 Management contract
Contract Relationships
Internally developed restaurant brand
 Hotel develops own restaurant with little
outside help.
 The restaurant is a unit belonging to the hotel
controlled by F&B director.
 Advantages:
 Hotel
has total control over all the operations.
 No need to pay any fees to outside parties, hotel
keeps all profits
Contract Relationships
 Disadvantages:
 Hotel
may not have the expertise to
successfully run a restaurant business
 Developing the restaurant into a famous brand
takes a longer process
Contract Relationships
Franchised restaurant brand
 Hotel buys a franchise from a famous
restaurant franchisor.
 Franchisee (hotel) operates the restaurant
according to the guidelines laid down by
franchisor including:
 Menu
 Décor
 Food
preparation
 Service processes
Contract Relationships
 Advantages:
 Franchisor
has the expertise and know-how
 Franchisor can provide training to the
personnel in the restaurant
 The franchisor’s brand is already a recognized
brand with a ready customer base.
 Disadvantages:
 High
franchise fees
 Hotel has less control in the operations
Contract Relationships
Straight lease
 Hotel rents out the space inside the hotel to
an outside restaurant company.
 Hotel only collects rent; it has no say in the
operations of the restaurant
 Advantages:
 Guaranteed
revenue from rental
 Disadvantages:
 Little
control over the operations
 Restaurant may be a mismatch with the
hotel’s positioning
Contract Relationships
Management Contract
 Hotel lets an outside company manage its
restaurant.
 Hotel pays the company a management fee
 Management company is responsible for
recruitment, selection and training, as well as
all day-to-day operations
 Personnel may or may not be
under the payroll of hotel.
Contract Relationships
 Advantages:
 Management
company has the expertise and
know-how
 Disadvantages:
 Management
fees and possibly profit sharing
 Hotel has little control in the operations
Hotel Catering
 Refers
to providing food and beverage
service outside of a restaurant / bar / café
setting.
 May be done in a meeting room / ballroom /
courtyard / garden or other locations.
 The F&B division is in charge of not only food
preparation but also decorations, such as
table settings and lighting.
 A huge revenue generator for the hotel
 High visibility and can create an image
for the hotel
Hotel Catering - Personnel
 Director
of catering (reports to director of
F&B)
 Oversees
all catering functions
 Works closely with Director of Sales and
Marketing
 Catering
managers (reports to director of
catering)
 Maintain
client contacts, plan menus, themes,
room set up, décor, negotiate with clients
Hotel Catering - Personnel
 Banquet
Manager (reports to director of
catering)
 Supervises
maitre d’, room captains, servers,
bartenders.
 Acts on director of catering’s requests
 Supervises table settings and décor
 Scheduler
 Plans
(in a big catering operation)
the rooms, reception area and time schedule
 Keeps records to avoid overbooking or
double booking
Hotel Catering - Personnel
 Maitre
d’
 Supervises
all service personnel including captains,
servers & all aspects of guest service
 Captain
 Manages
a section or a specific room
 Supervises the servers in the section or room
 Server
 Serves
either food or beverage
 Bartender
 Serves
alcoholic drinks
Hotel Catering - Personnel
 Steward
/ Housemen
 Set
up the equipment, tables , chairs, glassware,
crockery and cutlery
 Engineering
 Provides
department personnel
necessary utilities such as airconditioning, electrical wiring, audio visual
equipment, banners