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Week 1: Food & Beverage Management
13 May 2021

05:03 PM

The Food Service Industry
Introduction
• Restaurants plays a significant role in our lifestyles
➢ Dining out is a social activity
➢ Successful restaurants offer a reasonable return on investment
➢ Restaurant concept determines talents required
➢ There is no substitute for experience
Why go into the Food & Beverage Business?
• Money
• The potential for a buy-out
• A place to socialize
• Love of a changing work environment
• Challenge
• Habit
• Too much time on your hands
• Opportunity to express yourself
Early History of Eating Out
• Long History
➢ 1700 B
...
E
...
C
...
Ancient Egypt public dining place
➢ 70 A
...
Herculaneum, Rome
▪ Eruption of Mt
...
Garlic, Thyme, Butter + Oil
175 to sizzle 2
...
Parsa's study:
➢ Highest failure rate during first year: 26%
➢ Second year: 19%
BHH 1073 Page 1

Buy/ Build/ Franchise/ Manage
Advantage & Disadvantages
Original
Investment
Needed

Experience Potential
Needed
Personal
Stress

Psychological Financial Potential
Cost of
Risk
Reward
Failure

Buy

Medium

High

High

High

High

High

Build

Highest

High

High

Highest

Highest

High

Franchis
e

Low to
Medium

Low

Medium

Medium

Medium Medium
to High

Manage

None

Medium to Medium
High

Medium

None

Medium

• Possibility of losing investments and investors
Franchis Low to
• Starting a restaurant involves high risk
e
Medium
• Results of Dr
...
g
...
Many are open for breakfast and serve full hot breakfast
• Some offer outdoor seating
Coffee shops
Characteristics:
• Long part of our culture and history
• Originally created based on Italian bars
• Modified to include wider variety of beverage
➢ Meet the tastes of consumers
• Chain or independent
Requirements:
• Good name and location, permits, coffee and espresso machine, limited kitchen equipment, tables and chairs and some decorations
Chef-owned Restaurants
Characteristics:
• Part of American tradition of family restaurants ( papa chef, mama hostess )
• Publicity is key in gaining attention
• Chef-owner should have a good backup person
➢ Share in management, food preparation and marketing
➢ Husband-and-wife teams are subject to divorce
• E
...
Per Se, New York City
Women Chef as Restaurant Owners
Characteristics:
• Typical restaurant manager of the future may be a woman
➢ Those with stamina and ambition may be better suited than men with similar backgrounds
• Are more concerned with details, sanitation and appearance
• More likely to be sensitive and empathetic toward customers
• E
...
Emeril Lagasse

Centralized Home Delivery Restaurants
Characteristics:
• Reduce costs of order-taking, food preparation and accounting
➢ Marketing costs may not decrease
• Home delivery centers verify and process credit card information
➢ Computers used to perform accounting
• Can be done at any location connected to the Internet, locally or internationally

BHH 1073 Page 6

Week 4&5: Food & Beverage Management
13 May 2021

05:08 PM

Fundamentals of Management
Hierarchy of Food & Beverage Department
Hierarchy: a systemin which members of an organization or society are ranked according to relative status or authority

Types of Restaurants
• Upscale ( High-Check Average )
• Casual Service ( Mid-Scale )
• Family Service
• Quick-Service
Kitchen Organization: Upscale Restaurant
• There is generally one assistance chef for each work shift and for each food preparation ( kitchen ) area within a multiple-kitchen property

Dining Room Organization: Upscale Restaurant
• The Captain is section ( area ) supervisor of approximately four guest tables
• The Sommelier is the wine steward
• The Chef du Trancheur serves desserts ( often from a dessert cart ) and other after-dinner items
• The Chef du Rang is the lead table server, Commis du Rang is his/her assistance

BHH 1073 Page 7

Organization of Large Mid-Scale Restaurant

Organization Chart for a Family-Service Buffet Restaurant

Organization Chat for a Family-Service Table service Operation

BHH 1073 Page 8

Organization Chat for a Single-Unit Quick-Service Restaurant

Advantages of Multi-Unit Restaurants:
• Brand recognition
• Help from the franchisor
• Opportunities to market/advertise in large regions
• Benefits of centralization of menu planning, purchasing and standardization
• Ability to obtain business loans
• Easier to sell restaurant
• Potentially easier employee recruitment

Duties and responsibilities of F&B Manager
• Ensuring that the required profit margins are achieved for each food & beverage service area, in each financial period
• Updating & compiling new wine lists according to availability of stock, current trends & customer needs
• Compiling, in liaison ( contact ) with the kitchen, menus for the various food service areas & for special occasions
• The purchasing of all materials, both food & drink
• Ensuring that the quality in relation to the price paid is maintained
• Determining portion size in relation to selling price
• Departmental training & promotions, plus the maintenance of the highest professional standards
• Employing & dismissing staff
• Holding regular meetings with section heads to ensure all areas are working effectively, efficiently & are well coordinated
Duties and responsibilities of Restaurant Manager
• Operating of dining rooms
• Helps in hiring, training, scheduling of staffs
• Maintain service standards
• Briefings
• Service supervision
• Helps in menu planning, cost control and sales
• Carries out management policies in the department
• Meets guest and handles problems and complaints
• Directs personnel, plans and forecasts
• Coordinate with executive chef, chief cashier, sales manager and the maintenance and security departments

Front of House vs Back of House Service
Traditional service staff and their duties and responsibilities
BHH 1073 Page 9

Traditional service staff and their duties and responsibilities
Front of House
• Is the area where diners sit
• Waiter, waitresses and hosts interact with guests
• These staff are said to be 'on the floor' since they are visible representatives of the restaurant
• Floor staff are supposed to be courteous, informative and neatly dressed, since their behavior determines whether or not guest enjoy
themselves
Front of House - Staff
Maitre d'Hotel
• The person responsible for the overall management of service at a fairly elaborate establishment
Head waiter
• Second-in-command
...
If no maitre d', the head waiter is
responsible for the overall management of service
Captain
• Responsible for running one 'service station' or section of a restaurant that typically includes 25-30 guests
...
Chooses and maintains the restaurant's stock of wines
...
Gives the finishes drinks to waiters for delivery to the tables or serves customers directly if they are waiting to be
seated
Coat Checker
Seasonal worker who checks customers' coats as they enter the restaurant

Back of House
• Is the staff area, where cooks and other support staff work to prepare food
• This area includes other staff areas such as a break room and changing area
• Cooks, expediters and dishwashers work in the back of house, usually largely unseen by the public
• In most kitchens, the back of house has a strict hierarchy, with each staff member performing a specific task
Back of House - Staff
Chef de Cuisine
• Has the vision and conceives the dishes for the restaurant
...
Responsible for hiring and firing staff, determining costs, revamping the menu, taking care of all administrative tasks,
interacting with dining room managers and overseeing the well-being of the restaurants
Sous-Chef
• Always in the kitchen
...
Serves as the liaison between the customers in the dining room and the line cooks
...
Traditionally, the pastry section has been assigned less status than the main kitchen
Line Cooks
• The people who cook the food
...
) or be type of food ( fish, meat, etc
...
Plates all the dishes that do not require heat and sometimes desserts, if there is no
assigned pastry chef on the line

Leading employees
Employee resources are the most valuable asset and competitive advantages
• We need to realize that leadership of employee resources is critical:
➢ We don't manage our employees, we lead them
• Being a leader is exciting:
➢ There are challenges, opportunities and rewards
• In the hospitality industry:
➢ Almost everything depends on the physical labor of many hourly ( or nonmanagerial ) workers
▪ People who cook, serve tables, mic drinks, wash dishes and mop floors
• How well employees produce:
➢ Depends largely on how well they are led
▪ Greatest challenge: employee motivation
• Leadership:
➢ Process by which a person with a vision is able to influence the activities and outcomes of others
▪ Begins with a vision, mission and goals
• Vision:
➢ Articulation of the mission in an appealing way that it vividly conveys the future
Instills a common purpose, self-esteem and a sense of membership

BHH 1073 Page 10

➢ Instills a common purpose, self-esteem and a sense of membership
• Mission statement:
➢ Describes the purpose of the organization
➢ Outlines activities performed for guests
Leaders and Associates
• Restaurants are dependent on large numbers of people to fill low-wage entry-level jobs
➢ Washing dishes, busing tables, hosting, etc
...


Communicating
• Communicating is important - imparts an impression of the restaurant to guests
• Interpersonal communications:
➢ Verbal, nonverbal, body language and intonation ( the rise and fall of the voice in speaking )
➢ Active listening: really hearing and understanding what is being said
Organizing
Purpose is to get a job done efficiently and effectively by completing these tasks:
• Divide work into specific jobs and departments
• Assign tasks and responsibilities
• Coordinate diverse organizational tasks
• Cluster jobs into units
• Establish relationships among individuals, groups and departments
• Establish formal lines of authority
• Allocate and deploy organizational resources
Decision-making
Process:
• Identification and definition of problem
• Identification of decision criteria
• Allocation of weights to criteria
• Development of alternatives
• Selection of alternative
• Implementation of alternative
• Evaluation of decision effectiveness
Types of decision:
• Programmed decision:
➢ Relates to decisions that occur on a regular basis
➢ E
...
What to do when the stock goes below par
• Non programmed decision:
➢ Rarely happens so it is handled differently
➢ E
...
Which supplier to use
Motivating
What makes people tick:
• Needs, desires, fears and aspirations within people that make them behave as they do
➢ Energizer that makes people take action
➢ The why of human behavior
➢ Goes hand in hand with productivity
➢ Must come from within
➢ A complicated business
Performance Management
• Forms the heart of the job description
➢ Describe what's, how-to's and how-wells of a job
• Each performance standard has three things about each unit of the job:
➢ What the employee is to do
➢ How well it is to be done
➢ To what extent it is to be done

Control and Management Issues
• Keeping track of cost, inventory, percentages and other factors
• There are many restaurant management issues
Sexual Harassment
• EEOC Title VII of the 1964 Civil Rights Act:
➢ Guidelines on sexual harassment
▪ Indicated that it is a form of gender discrimination
• Types of sexual harassment:
➢ Quid pro quo
➢ Environmental sexual harassment
➢ Third-party sexual harassment
• Guidelines:
➢ Be familiar with the company's policy
➢ Educate employees on how to recognize and report sexual harassment
➢ Investigate reported situations promptly
➢ When you witness sexual harassment, follow your policy and take appropriate action
➢ Provide follow-up after instances of sexual harassment
➢ Prevent it by being visible
Conflict Management:
Application of strategies to settle opposing ideas, goals and/or objectives
Steps:
Analyze what is at the conflict center

BHH 1073 Page 12

• Analyze what is at the conflict center
• Determine the strategy that will be used
➢ Collaboration, compromise, competition, accommodation and avoidance
• Start pre-negotiations
• Re-assess the situation
• Start the negotiations phase
• Implement negotiations
Conflict Resolution: How to Handle Conflict
Guiding principles:
• Preserve dignity and respect
• Listen with empathy and be fully present and identify the issues
• Find a common ground without forcing change and agree on the issues
• Discuss solutions
• Honor diversity, including your own perspective
• Agree on the solutions and follow up
Analyze -> Strategy -> Pre-negotiate -> Negotiate -> Implement
Alternative Dispute Resolution
• Problem-solving and grievance resolution approaches:
➢ Addresses employee relations and disputes outside the courtroom
• Purpose:
➢ Provide employers and employees with a fair and private forum to settle workplace disputes
• Process:
➢ Open Door Policy -> Third Party Investigation -> Fact Finding -> Peer Review -> Mediation -> Arbitration

BHH 1073 Page 13

Week 7: Food & Beverage Management
13 May 2021

05:35 PM

Marketing
• 'finding out what guests want and providing it at a fair price that leaves a reasonable profit'
• Marketing implies determining who will patronize a restaurant ( the market or markets ) and what they want in it - its design, atmosphere,
menu and service
1
...
Set Goals

➢ Concept, menu, décor
➢ Guest Satisfaction
➢ Number of guests
➢ Average check ( how much per person e
...
RM20 )
3
...
Evaluate and Monitor
➢ Budget vs actual performance
➢ Investigate variance
➢ Take corrective action
Marketing & Sales
• Marketing focuses on the needs of the buyer, Sales focuses on the needs of the seller
Differences Between Marketing and Sales
• Marketing
➢ Broad concept
➢ Includes sales and merchandising
➢ Determines who will patronize the restaurant and what they want in it
➢ Ongoing effort
➢ Gets into psyche of present and potential patrons
➢ About solving guest problems
• Sales
➢ Part of marketing
➢ Focuses on seller needs
➢ Activities that stimulate the patron to want what the restaurant offers
➢ Sales mentality exists when seller thinks about only of his or her needs
▪ Pushes an item on a customer
➢ Closely related to advertising, promotion and public relations
Marketing Planning and Strategy
Marketing Plans
• Must have realistic goals while leaving a reasonable profit margin
➢ Guest satisfaction, market share, sales and costs
• Translate ongoing marketing research into strategies and tactics
• Main key:
➢ In writing
➢ Understandable
➢ Realistic yet challenging
• SWOT analysis
➢ Strength, Weaknesses, opportunities and threats
▪ Strength and weaknesses: internal factors and can, over time, be controlled by management
▪ Opportunities and threats: external factors
➢ Strength: provides an area to list everything done right either individually or as an organization and external strengths, such as client
relationships
➢ Weaknesses: are aspects of your business that detract from the value you offer or place you at a competitive disadvantage
...
Such as being able to expand a franchise into a new
city, while some may fell into your lap such as another country opening up its market to foreign business
➢ Threats include external factors beyond your control that could place your strategy, or the business itself, at risk
...
g
...
)
Marketing Mix : The Four Ps
Every marketing plan must have realistic goals
• While leaving a reasonable profit margin
Cornerstones of marketing:
• Place ( location )
➢ One of the most crucial factors in a restaurant's success
➢ Ingredients for success
▪ Good visibility
▪ Easy access
▪ Convenience
▪ Curbside appeal
▪ Parking
• Product
➢ Main ingredient: excellent food

▪ People will always seek out excellent food - Especially when good service, value and ambiance 气氛 accompany it
➢ Three levels of restaurant product
▪ Core product: function part for the customer - Relaxing and memorable evening
▪ Formal product: tangible part of product - Physical aspects, décor and a certain level of service
▪ Augmented 增强 product: other service - Valet parking, table reservations, etc
...
of calories
per gram of
nutrients

Good Sources of Nutrients

Carbohydrates

Oxidized ( 'burned' ) for energy and warmth; excess stored as
glycogen ( a storage form of glucose which is a sugar ) and fat

4

Plant sources including cereal grains,
legumes ( for example, peas and beans )
and starch ( roots/tubers such as
potatoes )

Proteins

Build/rebuild cells, tissues, bones, and muscles
...
Many fruits and vegetables are also good sources
...
Milk is usually
fortified ( supplemented ) with Vitamin D
...


Vitamin E

Helps protect the body against harmful internal reactions
and maintains cell membranes

Commonly found in many foods

Vitamin K

Helps in the blood clotting process

Leafy green vegetables and milk

Water-Soluble Vitamins
Vitamin

Functions in Body

Good Sources

Vitamin B - Thiamine

Provides energy to cells

Cereal grains, organ and lean meats, legumes, seeds, nuts,
fruits and vegetables

Vitamin B - Riboflavin Active in body reactions which release energy; helps to
maintain healthy skin

Milk and milk products, meats, eggs, fish, poultry and leafy
green vegetables
...
Many ready-to-eat
cereals are fortified with niacin

Vitamin B - Biotin

Involved in reactions involving amino acids, proteins,
carbohydrates and fats and is essential to produce energy

Organ meats, chicken, yeast, eggs, milk, most fresh
vegetables and some fruits

Vitamin B Pantothenic Acid

Helps convert carbohydrates to energy; involved in the
production of cholesterol, chlorine, some fatty acids and red
blood cells

Organ meats, whole grain cereals, egg yolks and milk

Vitamin B6

Active in protein metabolism

Meats and meat products; chicken, fish, avocados and eggs
...
Involved with nerve transfer, muscle
contraction/relaxation and helps control the amount of fluid in the body

Cured meats, cheese, pickles,
sauerkraut and a wide variety of
snack and other foods

Magnesium

Plays a role in a wide range of body processes

Nuts, legumes, seafood and unmilled
grains

Trace Minerals
Minor Minerals Functions in Body

Good Sources

Iron

Used to make blood cells

Meats, eggs, vegetables, legumes, organ meats and
fortified/enriched cereals

Zinc

Involved in the release of energy and helps with some enzyme
functions

Meats and cereals

Iodine

Helps prevent certain types of mental retardation and
enlargement of the thyroid gland ( which manufacturers
thyroxine )

Seafood and salt fortified with iodine

Selenium

Helps prevent cell structure damage

Seafoods, some organ meats and some other meats

Copper

Assists in production of blood; helps the body utilize Vitamin C;
Clams, oysters, cereals, nuts, legumes, liver and shellfish
influences the cardiovascular and normal body immune functions

Manganese

Helps release energy and release amino acids from food; used to
manufacture cholesterol, bile and fatty acids

Whole-grain cereals, nuts, organ meats, legumes, coffee, cocoa
and tea

Flourine

Helps strengthen bones/teeth

Tea and fish such as sardines which are consumed with the
bones
...
g
...
1'C )
➢ Refrigerated storage - Less than 41'F ( 5'C )
➢ Frozen storage - Below 0'F ( -17
...
g
...
g
...
g
...
50

$10
...
0%

$ 7
...
00

$18
...
8%

$10
...
50

$26
...
2%

$14

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