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Food and Beverage Management
Chapter 1
Learning Objectives
• Identify the major factors affecting the growth of the restaurant industry.
• Identify the common denominators of restaurants.
• Identify the reasons that restaurants fail.
• Identify the major reasons contributing to the financial success of a restaurant.
• Identify the skills necessary to manage a restaurant.
Trends
• INDUSTRY TRENDS – Food Trends
– Table Service Trends
Food Trends
• Waistlines and Wallets
• Innovative menu items
• Ethnic foods
• Vegetarianism
• Organic items
Waistlines
Waistlines
Innovative menu items
Ethical Dining, Slow Food,Vegetarianism
Vegetarianism
Organic
Status of Foodservice Today
• Global (NRA,2009)Trends on Foodservice– Family value marketing
– Multiple Branding
– Cook/chill method
– Upscale menus
Status of Foodservice Today• Trends on Foodservice
– Home meal replacements/Meal solutions
– Display cooking
– Contract foodservice/Outsourcing
Some more Trends…
• TV Chefs: Role of Media
• East meets West • What are you cooking
with, not just How? • Healthy and Flavorful • Nibbling
Some startling facts regarding the reasons restaurants lose customers:
• Customer dies 1%• Moved away 3%• Influenced by friends 5%• Lured away by the competition 9%• Dissatisfied with product 14%• Turned away by an attitude of indifference on the part
of a company employee 68%
Service Trends• Winning customer loyalty
• Growing focus on Service Quality
• Better F&B people today,.
• Service minded not servant minded.
Michelin Rating
• Just like Hotels, there is star ratings for restaurant.
• Done by company called Michelin
COMMON DENOMINATORS AND ITS
CLASSIFICATION
• Utility versus Pleasure
• Service and Menu Price
• Food Preparation Method
• Menu Development
Utility versus Pleasure
• Utility: Usefulness, Practical way, easiness.
• Pleasure: enjoyment, happiness and satisfaction
Utility versus Pleasure
High utility/low pleasure
Vending machinesFast-food operations CafeteriasCoffee shops Family restaurants Dinner houses Luxury Dinner houses
High pleasure/low utility
High Utility and Low Pleasure
High Pleasure and Low Utility
Types of Restaurants
Restaurants
Upscale(High-Check
Average)
CasualService(Mid-Scale)
FamilyService
Quick-Service
OH – 1.7
Service and Menu Price
• Level of Service– Counter Service, Tray
Service, Room Service, Self Service,
• Type of Menu– Fixed, Table d’hote, Ala
Carte etc.
Food Preparation Method
• Fresh versus Processed
• Depending on how much the restaurant is processing.– Ex: Making
Mayonnaise
Menu Development
• Frequency of Change
• Type of Menu• Size of Menu
Why RESTAURANTS Fail?
• Financial Loss = Failure
• Financial Loss– Fail to increase sales– Fail to cut cost– Break law/contracts– Failure to manage resources (Staff,
Materials..)
Failure to Increase Sales
– Same Concept – Restaurants have a life cycle. – Lack of Creativity
Failure to Control Costs
• Productivity
• Cost Cutting versus Cost Control– The focus often is on cutting costs when it
should be on increasing sales.
THE SUCCESS FACTORS OF RESTAURANTS
• Right Concept
• Execution
• Service
• Meeting Customer Expectations
THE SUCCESS FACTORS YOUR EVENT.
• Right Concept
• Execution
• Service
• Meeting Customer Expectations
How to create a concept?
Idea/Concept can be good, but poor execution will fail the concept.
SOPs/ Service plan to Ensuring Service Quality
Knowing what Customer is expecting, Try to exceed?
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
1. Cost control and financial management:
monitoring, controlling, and reporting the profitability indicators for the store
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
2. Supervision of shift operations:
running each shift efficiently, effectively, and in accordance
with procedures
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
3. Organizing and planning shift operations:
making preparations for each shift so that operations run smoothly and efficiently
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
4. Unit Coordination and Control: communicating and coordinating among store managers and their supervisors and others in the organization
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
5. Customer relations:
improving customers dining experiences
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
6. Motivating employee performance:
monitoring, enhancing, and controlling employee
performance
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
7. Employment and development of crew members: recruiting, selecting, developing, and retaining crew members
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
8. Communication with outside sources: communicating with management, marketing, and community resources
outside the store
MANAGEMENT SKILLS:
9 BASIC FUNCTIONAL AREAS
9. Monitoring and maintaining facility and equipment:
keeping all physical assets operational and in good repair