Food And Beverage - IHM Notes

List of figuresFigure 7.19Figure 8.1Figure 8.2Figure 8.3Figure 8.4Figure 8.5Figure 8.6Figure 8.7Figure 8.8Figure 8.9Figure 8.10Figure 9.1Figure 9.2Figure 9.3Figure 9.4Figure 9.5Figure 9.6Figure 10.1Figure 10.2dispensing method,2002–2006Comparison ofperformance of differentsectors in the eating outmarket, 2001–2006Holistic food and beveragecontrol systemBudgetary control asan extension of basicpoliciesA typical example of theelements of costFixed, semi-fixed andvariable costsBreak-even chartRecipe managementsoftwareInventory control cycleThe Remanco seriesadvance systemExtract of an EPOS reportAn EPOS receipt and barand kitchen docketsService profit chainadapted from The ServiceProfit ChainStrategies to reduce staffturnoverA draconian view ofenhanced staff turnoverBasic contract ofemploymentReasons for a fairdismissal would includethe following mattersInverted pyramid ofbackground informationThe matching process ofmarketingThe food and beveragemarketing environmentFigure 10.3236Figure 10.4Figure 10.5239262Figure 10.6Figure 10.7270270Figure 10.8271275Figure 10.9279287Figure 10.10Figure 10.11292293Figure 10.12294Figure 10.13321Figure 11.1323Figure 11.2323Figure 11.3327Figure 11.4327332Figure 12.1Figure 12.2340Figure 12.3345Wagamama children’smenu (UK)Product life cycle andextending the PLCBombardier advertisment.Celebrating EnglishnesscampaignWebsite of the MagnoliaRestaurant in London, UKExtract of the Acorn HouseRestaurant newsletter(London, UK)Newspaper RestaurantadvertisingMcDonalds TVadvertising campaignsover the yearsBank Restaurants creditcard (UK)Wagamama (UK)MerchandiseExample of promotionalmaterials of DimitrisTaverna (GR)Example of a KFCpromotion, featuring ameal package (UK)The product/servicematrix373The quality managementcycleThe development ofapproaches to qualitymanagementThe Hospitality AssuredSchemeThe ‘s Baggers rail system‘s Baggers easy to useEPOSThe system in actiontransporting food 5392416416418ix

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List of tablesTable 1.1Table 1.2Table 1.3Table 1.4Table 1.5Table 1.6Table 1.7Table 2.1Table 2.2Table 2.3Table 3.1Table 3.2Table 3.3Table 3.4Table 3.5Table 3.6Table 3.7Table 3.8Table 3.9Size and scope of thehospitality industryUK Standard IndustrialClassification of EconomicActivities 2007Cross tabulation of maincategory areas bymanagement levelDanesfield House Hotelfood and beverage managerjob descriptionThe UK eating out marketby segment, 2002–2007Frequency of eating out, byvenues visited, March 2007Most popular eating outvenues visited, by genderand age, March 2007Restaurant sector forecast –UKFood and beverage as apercentage of hotelrevenueMarket size and forecastof branded coffee shopsUK contract catering marketsegments by number ofmeals servedNumber of stadia aroundthe worldTypes of food bought atleisure venues, 2007UK onboard cateringmarket, by sectorUK airline statistics, 2006Ocean cruise passengersworldwide, 2001–2004US rail F&B gross profit,2005Forecast of expenditureon vended products, bysectorForecast of the number ofvending machines,2004–2009Table 3.103Table 4.14Table 4.214Table 8.11929Table 8.230Table 8.331Table 8.4Table 8.550Table 8.653Table 8.771Table 8.877Table 9.183Table 9.2879091Table 9.3Table 9.493Table 9.596Table 9.6100Table 10.1Table 10.2103UK contract cateringmarket segments, bynumber of outletsExamples of mainrestaurant operations,by outlet numbersExample of a RestaurantSWOT analysisExample of a restaurantoperating a salesstatement with thesales budgetThe Endsleigh Restaurantoperating statementA weekly/monthly foodcost reportA daily food cost reportExample of a detailed dailyfood cost reportPurchasing, foodproduction and foodcontrol checklistsFood service, barprocedures and beveragecontrol checklistMenu engineeringworksheetNumbers employed in thetourism and hospitalityindustry by gender, 2005Total employed in coreoccupations, 2001 and2005Total employed by sectorand age, 2005Capacity scheduling atMcDonalds RestaurantsSales distribution atMcDonalds RestaurantsEssentials of effectivecommunicationPopulation estimates bysocial grade 2006Frequency of eating outby family 9330332347347

List of tablesTable 10.3Table 10.4Table 10.5Table 11.1 xiiACORN targetingclassificationTop restaurant groupsMain media advertisingexpenditure for selectedchains (UK)Key features of qualitycontrolTable 11.2348353356387Table 11.3Table 12.1Key features of qualityassuranceKey features of TQMA cynical view of menuterminology388389411

Preface to the fourth editionSince the publication of the third edition ofFood and Beverage Management nearly tenyears ago, the Hotel and Catering industryhas seen many changes and developments,not the least of which is a change of name tothe Hospitality Industry.Particular changes over this period havebeen in: New technologyHealth and environmental awarenessConsolidation and the growth of brandsCustomer expectations of our products andservicesThe growth in the value of the industry tothe economy at the local, regional and globallevelThis edition also sees some major changesto the presentation of the content of thebook without, we hope, affecting the qualityand the comprehensiveness of the coveragewe have Reorganised and condensed the sectorchapters to a standard format in the second and third chapters whilst extendingthe number of sectors covered.Added new chapters in developing a foodand beverage concept and trends andissues in the industry.Added learning activities and mini caseexamples to every chapter.Updated the content to reflect recentchanges in this fast moving industry.This has only been possible by welcoming two new experienced teachers onto theauthoring team. Peter Alcott who following a long career in the hospitality industryhas found teaching and developing our newyoung managers of the future a truly rewarding second career and Ioannis Pantelidis whofollowing a successful career in the management of restaurants and hotels discovered hismuse in teaching and consulting.AcknowledgementsThe first acknowledgement here must go toBernard Davis. It was Bernard who wrotethe first edition of this text and who led itsdevelopment over the second and third editions. Although taking a deserved back seatin the detailed development of the fourth edition, he has always been there with detailedcomments and criticisms encouraging us toimprove the book wherever possible and picking us up when his high standards have notbeen reached. It is a cliché, but true none theless, that this book would not have been possible without him. He has made such a significant contribution to hospitality educationand to the development of food and beveragemanagers around the world. Heartfelt thanksgo to him from all his previous students allover the world for his energy, his determination and his professionalism. Thank you.Acknowledgements are due to the manycolleagues and organizations who kindlycontributed to the first, second and thirdeditions, and now especially to those whohave given their time and assistance to thisfourth edition. In particular, we would like tothank:Anton Mossiman and Mosimann’s PrivateDinningArthur Potts Dawson and the Acorn HouseRestaurantBank RestaurantsBrian Miller and the Danesfield House HotelBritish Hospitality AssociationBurger King UKCACI LtdChristian Bayer and Chris Marsland ofDO & COCyrus Todiwala and Café Spice NamasteDimitris TavernGeac Computers Inc.Hospitality AssuredInstitute of Hospitality

Preface to the fourth editionJane Renton, General Manager of the JumeirahLowndes HotelKevan WallaceKeynote PublicationsKFC UKLakeside Restaurant and the University ofSurreyMagnolia RestaurantMenupixMichael Mack and s Baggers restaurantMichel Roux and Le GavrocheMicros LtdMintel Research Services LtdNational readership SurveyNational Statistics OfficeP&O CruisesPizza Hut UKRadisson Edwardian HotelsThe Compass Group and Scolarest xivThe London PaperThe Michelin GuideThe Mobil Travel GuideThe Northern Ireland Prison ServiceThe Zagat GuideTRI HospitalityWagamama RestaurantsWells and Youngs LtdWe would also like to thank all atButterworth-Heinemann for their continuedsupport, encouragement and, above all,patience.Andrew LockwoodPeter AlcottIoannis S PantelidisMarch 2008

Preface to the third editionSince the publication of the first edition ofFood and Beverage Management in 1985 andthe second edition in 1991, the Hotel andCatering industry has seen many changesand developments, these being a result of natural progression within the industry, researchand development and as a result of outsidepressures and government legislation.Some general trends that were identifiableduring the past twelve years, and are continuing, include: A continuing increase in food, beverageand energy costs.A continuing increase in labour costs and adifficulty in obtaining an adequate numberof highly skilled staff.An increasingly more knowledgeable customer, demanding more exciting menus, awide range of ‘healthy eating’ dishes, a cleansmoke-free environment and a high standard of hygiene practices from the industry.A continuing concern by the EC and UKGovernment about all aspects of food hygiene,this being evident with new legislation.A much wider acceptance of the use ofcomputers throughout the industry.An increasing awareness of the importanceof managing quality in all areas of foodand beverage operations.This third edition offers the reader twonew chapters, together with a total updateof the remaining chapters, with many beingenlarged. Over forty new menus are included,together with numerous new tables and figures. This edition is particularly strengthenedwith the addition of Andrew Lockwood as aco-author of many publications.Food and Beverage Management continuesto be an established source of reading andreference material, not only to students, butto practicing food and beverage managers,controllers and their assistants. The book hasbeen widely accepted by universities andcolleges for their degree courses in the UKand overseas, by the HCIMA as a standardtextbook for the Professional Certificate,Diploma and Distant Learning, and for theHigher National Diploma. In addition, thebook has been found to be a good referencesource for advanced GNVQ courses.Acknowledgements to the many colleaguesand organizations who kindly contributed tothe first and second editions, and to those whohave given their time and assistance to the thirdedition. In particular, we would like to thank.Army catering CorpsAutomatic Minibar Systems LtdAutomatic Vending Association of BritainAvon Data Systems LtdBritish AirwaysBritish Hospitality AssociationBrown’s Restaurant and BarCACI Information ServicesCaledonian Hotel, EdinburghCatere and HotelkeeperCentral Statistical OfficeCerco Health ServicesCompass CateringConran RestaurantsCopthorne London Tara HotelDepartment of Health and Social SecurityDorchester HotelElectrolux LtdFDS LtdGallup OrganizationGirovend Holdings LtdGreenalls Group PLCGuy’s and St Thomas’ HopitalsHicks and DonHouse of CommonsInnkeepers Fayre (Bass PLC)Institute of DirectorsKeynote PublicationsLandmark HotelLangham HiltonLeith’s Events and PartiesLeith’s ManagementLetheby and ChristopherMarketpower LtdMintel Research Services LtdNational Health Services

Preface to the third editionPizza ExpressSt Peter ’s Hospital, ChertseySurrey Commercial ServicesSurrey County CouncilTGI Friday’sToby Restaurants (Bass PLC)Virgin Atlantic xviWe would also like to thank all at ButterworthHeinemann for their continued support andencouragement.Bernard Davis,Andrew Lockwood andSally Stone

Preface to the second editionSince the publication of the first edition of Foodand Beverage Management, the hotel and catering industry has come to the end of the 1980sand has already begun its progress throughthe 1990s. In such a relatively short period oftime changes have occurred within the industry, both through its own natural progression,research and development and as a result ofoutside pressures and government legislation.Some general trends that were identifiableduring the past decade and are continuinginclude: A continuing increase in food, beverageand energy costs.A continuing increase in labour costs, adecline in the young labour force available for the industry and an increase in thenumber of part-time employees.An increasing interest in healthy eating bythe general public with more prominence ofvegetarian dishes and menus. Also a requirement by the public for non-smoking areas tobe a standard for all types of catering outlets.An increasing demand and awareness by thegeneral public for higher hygiene standardsfor all catering outlets. This demand beingas a result of the general awareness throughthe media of new food legislation and ofthe out-breaks of food poisoning in the UK.The continuing monitoring of the above willhave significant importance to the success ofany catering operation in the 1990s.This second edition offers the reader six newchapters and a total update of all previouschapters with many being enlarged, reflecting the growing importance of their subjectareas. The new chapters are The meal experience; The marketing of food and beverages;Advertising, public relations, merchandising andsales promotion; Financial aspects; Food and beverage management in school catering; and Foodand beverage management in hospital catering.Food and Beverage Management continues tobe a source of reading material and reference tomany practicing catering managers, food andbeverage managers, controllers and their assistants both within the UK and overseas. Thisedition sets out to also cover the new examination requirements for the various degreecourses in hotel and catering management,the diploma and certificates of the Businessand Technical Education council and for theHotel and Catering Institutional ManagementAssociation.In addition, the book has been selected bythe English Language Book Society since 1988for inclusion in its hotel catering and tourismlist. The English Language Book Society isfunded by the Overseas Development Administration of the British Government to makeavailable significant textbooks of British publishers to students in developing countriesthroughout the world.Acknowledgements go to the many colleagues and organizations who kindly contributed to the first edition and who haveagain given their time and assistance to thesecond. Additionally, we would like to thankthe following for their assistance:AJ’s RestaurantsBeefeater Steak HousesBMRB; Boca Raton Resort and ClubCaterer and HotelkeeperDome Café BarElectrolux Leisure AppliancesFAST International LtdFranchise Development Services LtdGallupGirovend Cashless Systems (UK) LtdHarvester RestaurantsHCTCHillingdon Borough CouncilHorwath & HorwathHotel Britannia Inter-continentalLondon; King Edward’s Hospital FundLiberty Street RestaurantsLondon Tara HotelMarket-PowerMedia Expenditure Analysis LtdMintelNorth West Surrey Health Authority

Preface to the second editionPacino’s RestaurantQueen Elizabeth II HospitalRemanco Systems IncRobobar LtdSouth West Thames Regional HealthAuthority xviiiSt Peter ’s Hospital, ChertseySurrey County CouncilWest Dorset General HospitalBernard Davis and Sally Stone1991

Preface to the first editionThis book has been written to explain the complexities of managing food and beverage outlets. The purpose is to examine the wide rangeof subject areas that come within the orbit ofoperational food and beverage managementand to relate these to the applications appliedwithin five broad sections of the cateringindustry (i.e. fast-food and popular catering,hotels and quality restaurants, function catering, industrial catering and welfare catering).The book has been planned to cover theexamination requirements for the various degree courses in Hotel and CateringAdministration and Management; the Hoteland Catering Institutional Management Association; and diplomas and certificates of theBusiness and Technician Education Council.In addition, the book has written for practicing catering managers, food and beveragemanagers, food and beverage controllers andall their assistants who may wish to formalize and update their knowledge, in order toimprove the profitability and productivity oftheir operations and to enhance their customers’ satisfaction.This book is based on our own practicalexperiences and from first-hand informationobtained from practitioners, within both largeand small companies and units, in the manysegments of the industry, who so generouslygave up their time to answer and discussmany of our questions while undertakingresearch for the book. We are also gratefulto the many companies who kindly gavepermission for samples of their menus to bereproduced within the book.In particular the authors would like toexpress a special debt of gratitude to thosepeople whose assistance to us has been invaluable. To Prof. S. Medlik who gave valuableadvice in the structuring of this book and forcommenting on the early drafts of some of thechapters, and to Brain Cheeseman (PrincipalLecturer, Westminster College) and BarryWare-Lane (Operations Systems Director,United Biscuits Restaurants), both of whommade invaluable constructive comments tothe final draft of the book. Also to David Airy(Lecturer, University of Surrey) for his helpand advice with the first two chapters.Acknowledgements also go to the followingorganizations for their help and assistance:The Peninsula Hotel, Hong KongThe Inter Continental, LondonHilton International, LondonHyatt Carlton Tower, LondonBritish AirwaysSweda InternationalBerni RestaurantsPizza Express, New YorkNew York RestaurantUnited Biscuits Restaurants LtdThe Mandarin Hotel, Hong KongThe Broadmoor Hotel, ColoradoThe Oriental Hotel, BangkokThe Castle Hotel, TauntonGrosvenor House, LondonSutcliffe Catering Company: DerbyshireCounty CouncilThe Department of Health and socialSecurityThe Home OfficeThe Automatic Vending Association ofBritainMultimetRegethermicThe Hotel, Catering and InstitutionalManagement AssociationBernard Davis and Sally Stone1985

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C H A P T E R 1Introducing foodand beveragemanagementIntroductionThe provision of food and beverages away fromhome forms a substantial part of the activities of thehospitality industry and, indeed, of the economy asa whole. Like the industry of which it is a major part,food and beverage operations are characterized bytheir diversity. Outlets include private and publicsector establishments and range from small independently owned and operated units to large multinational corporations managing global brands andfrom prison catering to catering in the most luxurioushotels in the world.It is however very difficult to get hold of consistentstatistics about the hospitality industry and aboutfood and beverage operations as there is no onesingle definition of what the boundaries of the variousindustry sectors and subsectors are and thereforewhat should and should not be included.Activity 1Before you go any further with this chapter, writedown 10 different occasions when you might eat outof the home and attach a different business to eachoccasion. For example, taking my girl/boyfriend out tocelebrate their birthday – The Ivy, popping into townat lunchtime for a sandwich and a coffee – Pret AManger, and so on.

Food and Beverage ManagementChapter objectivesAfter working through this chapter you should be able to: Understand the complexity of the hospitality industry.Identify the size and scope of food and beverage

Purchasing and storage 1 7 9 Introduction 179 Purchasing 180 The purchasing procedure 182 . The purchasing of beverages 190 Receiving of food 192 Storing and issuing food 193 Stocktaking of food 194 Receiving of beverages 196 Storing and issuing of beverages 196 Further eading r 202 7 Food and beverage operations: Production and service 2 0 3 .