Introduction to Hospitality, Lodging
and Food Services Operations
John R. Walker
Food and Beverage Operations
Chapter 4
Chapter Contents
• Introducing the Foodservices Industry
• Decribe the duties and responsibilities of a food
and beverage director and other key department
heads
• Describe a typical food and beverage director’s
day
• State the functions and responsibilities of the
food and beverage departments
• Perform computations using key food and
beverage operating ratios
The Foodservice Industry
Foodservice operations commonly are categorized as either
commercial or onsite foodservices.
Commercial
Foodservice
Foodservice
Operations
Onsite
Foodservice
• The commercial segment includes foodservices in which selling food
for profit is the primary activity of the business
• The onsite (noncommercial or institutional) segment provides
foodservice as a secondary activity for the business in which the
foodservice is located
Commercial Foodservice
Limited-Service, Limited-Menu Restaurants
Full-Service Restaurants
Airport Restaurants
Cruise Ship Dining
Zoos
Museums
Sports Events
Convenience Stores
Commercial Foodservice
• The commercial foodservice segment includes
a broad range of restaurants (from limited-service
to fine dining), lodging, food and beverage,
recreation and sports, and convenience
stores.
• Limited-service, limited-menu restaurants
(sometimes referred to as quick-service or fast-food)
were designed to provide a limited number of
food items to a customer in a relatively short
period of time.
Commercial Foodservice
Limited-service, limited-menu restaurants
• Often the customer orders food at a counter and pays
for it before eating.
• These restaurants are targeting working professionals
and parents who want to have a meal served quickly at
a low price.
• Full-service restaurants provide waited table
service for customers.
• Guests are greeted and seated by a host/hostess and
orders taken and delivered by waitstaff.
• Payment occurs after the meal is completed and tip is
typically given for the service provided by the waitstaff
member.
Commercial Foodservice
• Airport restaurants: Airlines are decreasing onboard
foodservice by serving snacks such as pretzels and
peanuts and cans of cold beverages and cups of hot
coffee.
• Each airport operates differently - operators either bid on
their own or enter into a franchising arrangement with a
major concession operator.
• Restaurants rely on the airlines to attract people to their
concourse (crowd).
• Most airports require foodservice providers to cover all
day, from early morning to late at night, and offer a
takeout option primarily for airline crews.
Commercial Foodservice
•Cruise Ship Dining: Cruise ships have a
reputation for service of excellent food.
• No limit is set on what you choose or how much
you eat - the cost of the food is included in the
price of the cruise.
• Some ships have theme restaurants, such as
Italian, Chinese, Japanese, or Southwestern, in
addition to the main dining area.
Full-Service Restaurants
Casual Dining
Full-Service
Restaurants
Fine Dining
Full-Service Restaurants
• The style and ambiance of full-service
restaurants varies greatly from casual to
fine dining.
• Casual dining restaurants are designed to
attract middle-income individuals who enjoy
dining out but do not want the formal
atmosphere and high price found in a fine
dining restaurant.
• The atmosphere is casual, the mood relaxed,
and the price midrange at these restaurants.
Full-Service Restaurants
• Fine dining restaurants, often referred to as
“white tablecloth” restaurants, are characterized
by a high level of attentive table service,
expensive-looking furnishings and décor, and
fine cuisine.
• Staff members in these restaurants work to create a
memorable dining experience that communicates
elegance and attention to every need of the guest.
• Fine dining restaurants also include:
• Hotel and motel restaurants
• Country club restaurants
Convenience Stores
Convenience
Stores
Onsite Foodservice
Hospitals
Schools
Colleges & Universities
Child Care
Senior Care
Military
Correctional Facilities
Employee Feeding
Senior Care
Independent
Living
Congregate
Care
Intermediate
Care
Skilled
Nursing
Assisted
Living
A Foodservice Systems Model
Inputs of the Foodservice System
Inputs of the
Foodservice
System
• Human: labor and skills
• Materials: food and supplies
• Facilities: space and equipment
Foodservice Industry Operating Practices
Self-Operation
Contracting
Operating
Practices
Multidepartment
Management
Partnering
Franchising
Outputs of the Foodservice System
meals in proper quantity and quality
customer and employee satisfaction and
financial accountability
Meal Quantity
& Quality
Financial
Accountability
Financial accountability is an output
applicable to either a for-profit or not-forprofit foodservice organizat
Customer
& Employee
Satisfaction
assisting employees in achieving and
coordinating personal and
organizational objectives
Advantages & Disadvantages of Different
Forms of Small Business Ownership in Foodservices
Environmental Threats for Foodservices Business
Food and Beverage Management
• In the hospitality industry the food and
beverage division is led by the director of
food and beverage
• The director of food and beverage reports
to the general manager and is responsible
for the efficient and effective operation of the
following departments:
– Kitchen/catering/banquet
– Restaurants/room service/minibars
– Lounges/bars/stewarding
Food and Beverage Management
• The skills needed by a food and beverage
director:
– Exceeding guests’ expectations in food and beverage
offerings and service
– Leadership
– Identifying trends
– Finding and keeping outstanding employees
– Training
– Motivation
– Budgeting
– Cost control
– Finding profit from all outlets
– Having a detailed working knowledge of the front-ofthe-house operations
Food & Beverage Organization Chart
Kitchen
• A hotel kitchen is under the charge of the
executive chef, or chef in smaller and mediumsized properties
• Some executive chefs are called kitchen
managers
• Controlling costs is an essential part of
operations; as labor costs represent the most
significant variable costs, staffing becomes an
important factor
• Financial results are generally expressed in
ratios, such as food cost percentage and labor
cost percentage
Kitchen
• Labor cost benchmarks are measured by
covers-per-person-hour or how many
covers one person can produce/handle in
one hour
• Food cost percentage is expressed by
dividing the food cost by food sales
• Labor cost is measured by dividing the
cost of labor by food sales.
Food Operations
• Restaurant managers are generally
responsible for the followings:
– Exceeding guest service expectations
– Hiring, training, and developing employees
– Setting and maintaining quality standards
– Marketing
– Banquets
– Coffee service
– In-room dining, minibars, or the cocktail lounge
– Presenting annual, monthly, and weekly forecasts
and budgets to the food and beverage director
Food Operations
• The number (house count) and type of hotel
guest (e.g., the number of conference attendees who
may have separate dining arrangements) should also
be considered in estimating the number of
expected restaurant guests for any meal.
• This figure is known as the capture rate
– When coupled with historic and banquet activity
and hotel occupancy, will be the restaurant’s
basis for forecasting the number of expected
guests.
Bars
• The profit percentage on beverages is higher
than it is on food items, making bars an
important revenue source
• The responsibilities of a bar manager include :
– Supervising the ordering process and storage of
wines
– Preparing a wine list
– Overseeing the staff
– Maintaining cost control
– Assisting guests with their wine selection
– Proper service of wine
– Knowledge of beers and liquors and their service
Bars
• Bar efficiency is measured by the pour/cost
percentage
• Pour cost is obtained by dividing the cost of depleted
inventory by sales over a period of time
– Food and beverage directors expect a pour cost between
16–24%
• Hotel bars are susceptible to the same problems
as other bars
– All beverage service staff should receive training in
responsible alcoholic beverage service
– Another risk bars encounter is pilferage (steal)
– The best way to prevent these occurrences is to have a
good control system—which should include shoppers
Bars
• In a large hotel there are several kinds of bars:
– Lobby bars
– Restaurant bar
– Service bar
– Pool bars
– Minibars
– Night clubs
– Sports bars
– Casino bars
– Catering and banquet bar
Stewarding Department
• Responsibilities of Chief Steward:
– Cleanliness of back of house
– Cleanliness of glassware, china, and cutlery
– Maintaining strict inventory control and
monthly stock check
– Maintenance of dishwashing machines
– Inventory of chemical stock
– Sanitation
– Pest control
– Forecasting labor and cleaning supply needs
Catering Department
• Catering:
– Includes a variety of occasions when
people may eat at varying times
• Banquets:
– Refers to groups of people who eat
together at one time and in one place
• Terms are used interchangeably
Organization Chart for the Catering Department
Catering Department
• The director of catering (DOC) reports to
the food and beverage director, and is
responsible for selling, servicing, catering,
banquets, meetings, and exhibitions
• The director of catering must be able to:
– Sell conventions, banquets, and
functions.
– Lead a team of employees.
– Make up departmental goals and
objectives.
Catering Department
– Set individual and department sales and
cost budgets.
– Set service standards.
– Ensure that the catering department is
properly maintained.
– Be creative and knowledgeable about
food, wine, and service.
– Be very well versed in the likes, dislikes,
and dietary restrictions of various ethnic
groups.
Catering Department
• For meetings, a variety of room setups
are available depending on a client’s
needs
• the most frequently selected meeting
room setups are:
– Theater style
– Classroom style
– Horseshoe style
Seating Styles
Catering Event Order
• Also know as the banquet event order
– Prepared for each function to inform the
client and hotel personnel about
essential information to ensure a
successful event
– Prepared based on correspondence
with the client and notes taken during
the property visits
Catering Event Order
• The Catering Event Order also mentions the
guaranteed-number policy.
• This is the number of guests the hotel will
prepare to serve and will charge accordingly.
• The guaranteed number is given about
seven days prior to the event.
• The hotel will usually prepare about 3 – 5%
additional meals to cover extra attendees
Catering Coordinator
• Manages the office and controlling the
function diary (now on the computer)
• Must see that the contracts are correctly
prepared and checks on numerous lastminute details
• Operates web-enabled technology tools,
such as Newmarket International’s Delphi
System
Catering Services Manager (CSM)
• Duties include:
– Directing the service of all functions
– Supervising the catering house persons
– Scheduling the banquet captains and
approving staffing
– Cooperating with the banquet chef to
check menus and service arrangements
– Checking that the client is satisfied
Catering Services Manager (CSM)
– Checking last-minute details
– Making out client bills immediately after
the function
– Adhering to all hotel policies and
procedures
– Calculating and distributing the gratuity
and service charges
– Coordinating the special requirements
with the DOC and catering coordinator
Room Service / In-Room Dining
• 56 % of all properties offer room service and 75
% of airport properties provide room service
• Generally, the larger the hotel and higher the
room rate, the more likely they will offer room
service
• Challenges include:
– Delivering orders on time - especially breakfast
– Making room service profitable/forecasting demand
– Avoiding complaints of excessive charges
– Having well-trained and competent employees
Sustainability
Ecologically
Sound
Economically
Viable
Socially
Acceptable
Sustainable Food and Beverage Operations
• Practicing sustainable food and beverage
operations can and does lead to a better bottom
line.
• When operators save water and electricity,
recycle, and purchase local produce, they help
lessen the footprint of the operation.
• Guests are increasingly aware of the importance
of sustainable operations of a food and
Sustainability Efforts in Foodservice Operations
Trends
• The use of branded restaurants instead of hotels
operating their own restaurants
• Hotels opting not to offer food and beverage outlets
• Making outlets more casual
• Using themes for a restaurant
• Standardized menus
• Converting one beverage outlet into a sports-themed bar
• Technology being used to enhance guest services and
control costs
• More low-fat, low-carb menu items
The End