Food and Beverage Industry
A food and beverage business prepares, packages, serves, sells, or provides food for people to eat. This industry is a/k/a the Foodservice industry. These businesses range from small one person operations to huge businesses that provide 1000s of meals each day. Places of operation range from a pushcart of hotdogs on a street to a cruise ship with 1000s of passengers, a grocery store soup/salad bar to a high school cafeteria, an airline that provides snacks and meals to a baseball park that provides the same. With that said there are several main categories: Commercial and Institutional, and a hybrid of both.
Commercial food and beverage businesses compete for business. There are four categories: quick-service restaurants, full-service restaurants, catering and hotel/club foodservice.
- Quick-service restaurants (QSR) include:
- fast-food restaurants (over the counter service)
Example:
- cafeterias (serving line)
Example:
- buffet (food displayed on tables and customers serve themselves)
Example:
- carryout restaurants (food is prepared and ready to be taken to eat elsewhere)
Example:
- Full-service restaurants seat the customers at tables. The server takes the orders, and serves the prepared food to be eaten at the table. They range from Fine-Dining to Casual-Dining.
- Fine dining highest quality service, ingredients, and atmosphere. Service is lavish and prices are very high. Restaurants are small and have professional chefs on staff. Only 1% of Full-service restaurants are considered to be Fine-Dining.
Example:
- Casual dining – prices range from budget to expensive, from very casual to more formal, single-item to ethnic and family restaurants.
Examples:
Budget –
Formal –
Single-item –
Ethnic –
Family restaurant –
- Catering – provision of food and service for a special event. Usually feeding a large number of people at one time, ex. a wedding, a prom, a convention/conference.
There are two types: On-premise and off-premise are the two categories.
- Hotel and Club Foodservice- establishments like the Houston Airport Marriott provide a wide array of food and beverage services. From Bernie’s coffee stand to Allie’s restaurant; the coffee and snacks available in the gift shop to a large ballroom function involving a meal; room service and In-Flight, the bar, to CK’s Steakhouse. Clubs are private, members only facilities designed to meet the social needs of the members. They range from Golf Clubs to Country Clubs, Military Clubs to Yacht Clubs. Most clubs operate at least one dining room.
Institutional Food Serviceis provided to customers in an institution: prison, school, military, hospital, nursing home, factory or place of business. The foodservice can be In-House or Contract. In-House foodservice is run by the institution. Contract Foodservice is used by institutions that hire an outside foodservice company to run its foodservice. Ex. Aramark.
Foodservice within a Consumer Businessis a food and beverage business located in a consumer business such as a movie theater, sports arena, airport, zoo, shopping mall or museum. They are hybrid foodservice establishments that serve the recreation, retail and transportation industries.
Restaurant Concept is the whole idea of the restaurant or the restaurant chain. The concept includes the theme, target market (desired type of customers), location, décor, ambiance (overall feel of the place-fun, formal, loud & musical), and service style of the restaurant (buffet, seated, counter service). Ex. Hardrock Café, Margaritaville
Customer Feedback is vital to a foodservice business. It helps to make sure the customers’ needs and wants are being filled. Also it helps to identify any problems in the business and/or product. Feedback can be obtained by a variety of methods.
Functions in Food Service – each Foodservice business must perform the same functions. In a small business one person might perform them all! In a large business there are usually departments that perform each function.
- Menu Planning – select items that will make a profit
- Production – prepare the items in a safe manner ensuring nutrients are retained and it is wholesome and fresh
- Service – servers should be trained to properly serve the customers and meet their needs timely and with good customer service
- Purchasing and Receiving – buy the right quality and quantity of food at the best price, receive the shipments and properly inventory and store the items
- Food Safety and Sanitation – make sure all procedures are followed to ensure that all products are safe to eat
- Management – oversee all functions of the business
- Marketing and Sales – learn what the customers want, develop marketing plans, advertise, sell!!
- Human Resources – manage all employee issues: pay, hiring, firing, benefits, training
- Accounting - keep track of all money that flows into and out of the business, monitor costs
- Security – make sure the money handled is safe from theft, customers and employees are safe
- Safety and Emergency Procedures – plans are in place in case of emergencies; the workplace is safe and meets all government regulations
- Engineering and Maintenance – all equipment, plumbing, electricity, and building facilities are working properly. Everything is clean and sanitary as well.
Most restaurants are divided into two areas: Front of the House and Back of the House. Front of the House is the area in a hospitality establishment that guests view, entrance the dining room. The Back of the House is the area that guest usually do not view, all areas responsible for food quality and production, such as the kitchen and receiving, office, and storage areas. Understanding the operations in these areas is essential for any hospitality professional.
The General Manager (GM) is responsible for the overall management of the Front and Back of the House operations. GMs create weekly, monthly, and annual budgets based on predicted sales. They forecast the number of guests, or covers to be served and the amount of the average guest check. Based on these calculations, the GM determines the number of staff members needed for each shift at each station in the restaurant.
Front of the house operations focus on professionally servicing and satisfying the guest in a QSR or a fine-dining restaurant.
Front of the House Service
1. Initial impression – exterior appeal, cleanliness, parking and valet service
2. Greeting –welcome greeting and fulfilling seating preference
3. Taking and transmitting orders- introduction and presentation of specials, upselling, and confirmation of customer orders
4. Serving food- delivering meals, refilling beverages, and presenting dessert specials
5. Presenting bill – accepting payment, thanking the guest, and inviting the guest to return
6. Preparing for next guest – clearing table, resetting, and restocking
Which area of a restaurant requires more service from its staff????
Front of the House Positions
These employees are public figures that each contribute directly to the guests’ experiences
- Assistant Manager – assistant to the GM, oversees the day to day, may open and or close the restaurant
- Opening manager – unlocks the facility, checks cleanliness and overall sanitation. Ensure all systems electrical, refrigeration, and plumbing are working properly. Make sure the proper staff is available for each shift.
- Closing Manager – the last to leave the restaurant and checks security, sanitation and preparations for the next day’s service
- Cashier – handles the money and returning change to guests; reports receipts and prepares bank deposits
- Host and/or Hostess – stands near the entrance at a table or stand; provides the initial greeting to guests, seats guests, and takes phone reservations
- Server – discuss the menu, offer suggestions, deliver the orders, clears the table, and presents the guest check. Works as a team with the bussers
- Busser – assist servers and clears tables, pours water and helps to deliver food
- Bartender – assist with drinks orders
Back of the House Tasks
1. Plan the menu
2. Prepare the food and beverages
3. Determine product specifications
4. Develop purchase orders
5. Obtain bids or quotes
6. Select and contact vendors
7. Place orders and sign contracts
8. Receive and inspect deliveries or shipments
9. Store and issue products
10. Evaluate service and products
Depending upon the size of the restaurant, production is handled by a chef, head cook or food-production manager. In larger facilities, a team assists with meal production. Production is an assembly-line process by which food is prepare, plated, and expedited by teams at various food stations, such as salad, cooking line, prep, and dessert.
Back of the House - kitchen positions
The Legendary French chef, Escoffier, was the innovator of organized kitchen “brigades.” The kitchen staff is divided into groups with each group performing specific tasks of the food preparation.
- Executive chef – reports to the GM and oversees the daily operations of Back of the House. This chef is a trained professional cook who much also be a good manager. He hires, trains and supervises employees as well as sets meal prices
- Sous chef – (sauce chef) assists the executive chef in the daily operations. This chef is the second in command in the kitchen. He or she is involved in the daily food production, overseeing quality, consistency and presentation of all items
- Prep cook–works mis en place- French term that means preparing the workstation for the shit. He chops vegetables, restocks oils, butter, spices and wine, and organizes the workstation to allow the chefs to work efficiently
- Garde-manger- makes all garnishes that are used in preparation of food, makes platters and displays items for buffets and other special presentations
- Pastry chef– prepares sweets and cakes; works with baker
- Baker-make all breads and cakes
- Steward- oversees china, silverware, glassware, linen, and small items such as salt and pepper shakers, vases and candle holders
- Expediter– the link between the Front of the House and the Back of the House. He communicates an order to the kitchen staff. When the order has been prepared, the expediter makes sure it leaves the kitchen promptly
Production and Other Operations
Efficient production helps control portions, waste and costs.
Standardized recipes are created, followed and consistently provide portions, quality and tastes.
Purchasing – includes selection of foods and beverages
Must compare: brands, timeliness of suppliers, quality, price and consistency
Inventory – the most commonly used system is FIFO – first–in-first-out; older items to be used before more recently delivered items. New items are stocked behind older ones to ensure that the system is followed properly
PAR – the amount of each item that the restaurant wants to keep in stock; this helps to offset missed deliveries, defective and spoiled goods and unforeseen circumstances that can occur
ROI – Return on Investment - To generate more profit a GM can increase sales or reduce costs. ROI is a calculation used to determine the ability of a product to generate profits.
Increasing Profits
1. Increase the average check amount – raise prices, sell more items such as dessert, wine, appetizers
2. Increase the number of customers or covers, through better marketing & advertising campaigns
Costs
Costs of sales measures the cost of products consumed by the guest;the most common costs are: food costs and beverage/bar costs
To calculate food costs percentage
Food sales for the period $6000.00
- Starting inventory 2000.00
-Purchases 1000.00
= $3000.00
-spoiled items $200.00
-employee meals $300.00
-complimentary meals $500.00
-costs of goods sold $2,000.00
Formula:Cost of goods soldx 100 = Food-Cost Percentage
Sales
Example $2000.00 x 100 = 33.3%
$6000.00