1. © 2011 John Wiley and Sons, Inc. All Rights Reserved Selection and Procurement for the Hospitality Industry Purchasing ANDREW HALE FEINSTEIN AND JOHN M. STEFANELLI E i g h t h E d i t i o n

2. © 2011 John Wiley and Sons, Inc. All Rights Reserved CHAPTER Beverages 24

3. © 2011 John Wiley and Sons, Inc. All Rights Reserved YOU SHOULD BE ABLE TO: Identify management considerations surrounding the selection and procurement of beverage alcohols and nonalcoholic beverages. Differentiate a “control” state from a “license” state. Explain the selection factors for beverage alcohols and nonalcoholic beverages.

4. © 2011 John Wiley and Sons, Inc. All Rights Reserved YOU SHOULD BE ABLE TO (CONT): List popular types of beverage alcohols. Convert alcohol proof to alcohol percentage. Create product specifications for beverages. Describe the process of purchasing, receiving, storing, and issuing beverage alcohols and nonalcoholic beverages.

5. © 2011 John Wiley and Sons, Inc. All Rights Reserved PURCHASING BEVERAGES Beverage alcohols include wines, beers, and spirits Easiest items a buyer can purchase Customers tend to order “call brands” Numerous state regulations

6. © 2011 John Wiley and Sons, Inc. All Rights Reserved MANAGEMENT CONSIDERATIONS Should operation offer alcoholic beverages? High-profit area Dram Shop Laws – who is responsible for an accident Licensing requires time and expenses Additional expenses Which quality and brands to offer

7. © 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS Intended use Exact name Brand name Most fundamental selection factor Vintage Year in which wine was produced Essential wine selection criterion

8. © 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) Alcohol content Size of container (packages are standard) Type of container Cans Kegs Plastic or glass bottles Bag-in-the-box packages

9. © 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) Point of origin Important factor for wines – implies taste variations Preservation methods (refrigeration and low- light conditions) AP Price Supplier services

10. © 2011 John Wiley and Sons, Inc. All Rights Reserved PURCHASING BEVERAGE ALCOHOLS Research availability of products Determine how much to order Take post off opportunity?

11. © 2011 John Wiley and Sons, Inc. All Rights Reserved RECEIVING BEVERAGE ALCOHOLS Receiver is usually a supervisor or manager Operation may employ a sommelier or wine steward Check quantities and compare invoices against POs and labels Compute required deposits Complete government-required paperwork

12. © 2011 John Wiley and Sons, Inc. All Rights Reserved STORING BEVERAGE ALCOHOLS Use a well-secured, locked facility Give access to only a few Maintain perpetual inventory Distilled spirits Dry, cool area with no direct light

13. © 2011 John Wiley and Sons, Inc. All Rights Reserved STORING BEVERAGE ALCOHOLS (CONT.) Wines Red – cool area White – refrigerated Corked – stored on side (unless screw-top, synthetic-corked or fortified) Use dispensing unit or reseal bottle tightly and refrigerate if opened

14. © 2011 John Wiley and Sons, Inc. All Rights Reserved STORING BEVERAGE ALCOHOLS (CONT.) Beer Keg beer not pasteurized – store at 36°F to 38°F Keep kegs not more than two weeks Canned beer has four-month life if refrigerated Bottled beer has a shelf-life of six months if refrigerated

15. © 2011 John Wiley and Sons, Inc. All Rights Reserved ISSUING BEVERAGE ALCOHOLS Use stock requisitions May require an empty bottle for every full one requested Keep remote bar stock in locked liquor station Convert liquor use to theoretical sales and compare to cash register tickets

16. © 2011 John Wiley and Sons, Inc. All Rights Reserved IN-PROCESS INVENTORIES Main concern: controlling employee theft Most effective tool: employee supervision

17. © 2011 John Wiley and Sons, Inc. All Rights Reserved NONALCOHOLIC BEVERAGES Number of varieties Soft drinks in bottles? Cans? Vending machines? Coffee supplier

18. © 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS Intended use Beverage service Mixers Exact name U.S. Government grades Brand name Size of container

19. © 2011 John Wiley and Sons, Inc. All Rights Reserved SELECTION FACTORS (CONT.) Size of container Type of container Product form Preservation method AP price Supplier services

20. © 2011 John Wiley and Sons, Inc. All Rights Reserved PURCHASING NONALCOHOLIC BEVERAGES Routine process Delivery schedules set Main decision: how much to order May have minimum-order requirements Infrequent opportunity buys

21. © 2011 John Wiley and Sons, Inc. All Rights Reserved NONALCOHOLIC BEVERAGES Storing nonalcoholic beverages Issuing nonalcoholic beverages In-process inventories