Presentation on theme: "FOOD AND BEVERAGE MANAGEMENT Interactions, Ratios and Contract Services Entrepreneurship- BIS 301."— Presentation transcript:
1 FOOD AND BEVERAGE MANAGEMENT Interactions, Ratios and Contract Services Entrepreneurship- BIS 301
2 Operational Interactions F & B division and other units are mutually dependent.There should be direct interaction between:Front desk and F & B - specific guest requestsSales department and banquet unit – banquet and conventions bookingsF & B and Front Office – announce new menu or special activityGuest relations unit and F & B – feedback on utilization rate of F & B outlets
3 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.
4 Operating Ratios - important Food and Beverage Sales per Available Roomtotal food and beverage sales = $? per roomno. of rooms availableFood and Beverage Occupancynumber of covers = ? turnsnumber of seatsSales per Available Seattotal food and beverage sales = $ per seatno. of seats available
5 Average Checktotal food and beverage sales = $ACno. of coversRatio of Beverage Sales to Food SalesBeverage sales x 100% = ? %Food SalesFood Cost PercentageCost of food x 100% = ? %Food salesLabor Cost PercentageF&B Labor Cost x 100% = ? %F&B sales
6 Director of Food and Beverage Objectives: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.
7 Director of Food and Beverage Objectives: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.
8 Director of Food and Beverage Specific Operations Functions:Provide the highest quality in food, beverage and service in all outlets.At least one daily walk through of all F&B areasMaintain existing programs and develop new programsDaily talks with all staffs and managersMaintain high quality image through effective housekeeping and sanitationMaintain physical security for all outlets and inventoriesKnow local competition and industry trendsChange menus based on seasonalityand product availability
9 Director of Food and Beverage Specific Management Functions:Directs and coordinates all activities of personnel and departmental responsibilitiesDaily contacts with staff and performance reviewsMarketing of each F&B outletAchieve budgeted sales and maximum profitabilityMaintain fair wage and salary administration
10 Strategic Alliance between Hotels and Restaurants Four key questionsWhat 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?
11 Strategic Alliance between Hotels and Restaurants Reasons for alliance between brand name hotel and restaurants:Create financial benefitsProvide guests with greater valueImprove the hotel’s overall imageStrengthen the hotel’s competitive advantageCreate operational advantage
12 Strategic Alliance between Hotels and Restaurants Types of restaurants:Quick ServiceKFCLotteriaPho 24Casual / FamilyAl FrescoPizza HutNgonUpscaleYeeboAu Lac Do BrazilLi SheratonThemeHard Rock Café
13 Restaurant Franchise Advantages Disadvantages Helps to reposition hotelMay increase revenues, occupancy, profitsFranchiser is continually assessing and improving menuFranchiser is knowledgeable about restaurant businessDisadvantagesFranchise feeHigh initial investmentRequires a certain volume to warrant using a franchise brand
14 Restaurant Franchise Factors to consider Desired hotel position and customer perception you want to create for your hotel.Assess the revenue and costs, profitability of having a franchised brand restaurantSelect a restaurant company that has the same corporate culture and shares the same operational goalsConsider the menu offered, restaurant décor, training support and management support from franchiser, and ability to handle room service
15 Contract Relationships 4 types of relationships between hotel and F&B outletsInternally developed restaurant brandFranchised restaurant brandStraight leaseManagement contract
16 Contract Relationships Internally developed restaurant brandHotel 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
17 Contract Relationships Disadvantages:Hotel may not have the expertise to successfully run a restaurant businessDeveloping the restaurant into a famous brand takes a longer process
18 Contract Relationships Franchised restaurant brandHotel buys a franchise from a famous restaurant franchisor.Franchisee (hotel) operates the restaurant according to the guidelines laid down by franchisor including:MenuDécorFood preparationService processes
19 Contract Relationships Advantages:Franchisor has the expertise and know-howFranchisor can provide training to the personnel in the restaurantThe franchisor’s brand is already a recognized brand with a ready customer base.Disadvantages:High franchise feesHotel has less control in the operations
20 Contract Relationships Straight leaseHotel 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 restaurantAdvantages:Guaranteed revenue from rentalDisadvantages:Little control over the operationsRestaurant may be a mismatch with thehotel’s positioning
21 Contract Relationships Management ContractHotel lets an outside company manage its restaurant.Hotel pays the company a management feeManagement company is responsible for recruitment, selection and training, as well as all day-to-day operationsPersonnel may or may not beunder the payroll of hotel.
22 Contract Relationships Advantages:Management company has the expertise and know-howDisadvantages:Management fees and possibly profit sharingHotel has little control in the operations
23 Hotel CateringRefers 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 hotelHigh visibility and can create an imagefor the hotel
24 Hotel Catering - Personnel Director of catering (reports to director of F&B)Oversees all catering functionsWorks closely with Director of Sales and MarketingCatering managers (reports to director of catering)Maintain client contacts, plan menus, themes, room set up, décor, negotiate with clients
25 Hotel Catering - Personnel Banquet Manager (reports to director of catering)Supervises maitre d’, room captains, servers, bartenders.Acts on director of catering’s requestsSupervises table settings and décorScheduler (in a big catering operation)Plans the rooms, reception area and time scheduleKeeps records to avoid overbooking ordouble booking
26 Hotel Catering - Personnel Maitre d’Supervises all service personnel including captains, servers & all aspects of guest serviceCaptainManages a section or a specific roomSupervises the servers in the section or roomServerServes either food or beverageBartenderServes alcoholic drinks
27 Hotel Catering - Personnel Steward / HousemenSet up the equipment, tables , chairs, glassware,crockery and cutleryEngineering department personnelProvides necessary utilities such as air-conditioning, electrical wiring, audio visual equipment, banners