Chapter 11 Food and Beverage

Hotel Operations Management
3rd Edition
Chapter 11
Food and Beverage
Copyright © 2017 2007, 2004 Pearson Education, Inc. All Rights Reserved
Overview of Hotel F&B Operations
• F&B = Food and Beverage
– Profitability
 How a GM assigns (allocates) revenues and expenses to a
department will dictate, in large measure, the profit levels in
that department.
– Profit Formula
 Revenue – Expense = Profit
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
Overview of Hotel F&B Operations:
Similarities (1 of 3)
• Commercial Food-Service Operation
–Food services offered in hotels, restaurants, and other
organizations whose primary purpose involves generation
of profits from the sale of food and beverage products.
• Noncommercial Food-Service Operation
–Those food services provided by healthcare educational,
military, religious, and numerous other organizations
whose primary purpose is not to generate a profit from
the sale of food/beverage products but rather is to
support another organizational purpose.
• Operational Similarities
– Planning Issues
– Financial Concerns
– Emphasis on the Guest
– Cost-Control Procedures
– Personnel Requirement Similarities
• In addition to its Director, the F&B department
employs staff in numerous positions:
– Culinarians
– Restaurant and Dining Room Managers
– Catering Managers
– Beverage Managers and Bartenders
– Kitchen Stewarding Staff
– Service Staff
Differences (1 of 2)
• Marketing-related Differences
– Location within the Community
– Location within a Hotel
– Menu
– Marketing to Hotel Guests
• Other Differences
– The “Contract-Out” Option
– The Package Pricing Possibilities
Differences (2 of 2)
• Package Pricing Example
– Package Charge
 Guest room $99.00 Excludes taxes
 Champagne $10.00; In room Chocolates $7.00
 In room Roses $8.00 2 long stem flowers in room
 Dinner $60.00 $30/meal for 2 persons
 Cocktails/Wine $24.00 2 cocktails/person for 2 persons @
$6.00 each Service charge $11.00 For dinner and cocktails
(13.2%)
 Breakfast $20.00 $10.00/person for 2 persons Service
charge $2.00 For breakfast (10%)
 $241.00 Rounded down to $239.99 for package price
Organization of Hotel Food and Beverage
Services (1 of 3)
• Smaller Hotels Organization of F&B Management
Positions
– Hotel General Manager
– Food and Beverage Manager
 Head Cook
 Restaurant and Banquet Manager
 Head Bartender
Services (2 of 3)
• Lager Hotels Organization of F&B Management Positions
– Hotel General Manager
– Director of F&B Operations
 Restaurant Manager
 Room Service Manager
 Catering Manager
 Banquet Manager
 Catering Manager
 Executive Chef
– Sous Chef
– Banquet Chef
 Beverage Manager
– Head Bartender
Services (3 of 3)
• Larger Hotels: Staff Specialists
– Human Resources
– Centralized Purchasing
– Sales and Marketing
– Accounting/Financial Management
Hotel À la carte Dining Operations:
Menu Planning (1 of 2)
• À la carte food services allow guests in a hotel’s
restaurant to order and pay for the specific menu
items they desire.
• Menu Planning
– The process of determining which food and beverage
items will most please the guests while meeting
established cost and profitability objectives.
• Guest Concerns
– Menu planning factors include:
 Purpose of Visit, Value, Demographic Factors, Other Factors
Menu Planning (2 of 2)
• Menu Impacts
– Food Service Operation
 Menu
 Successful F&B Operation
 Production Volumes
 Equipment Availability
 Layout/ Design
 Personnel Needs
 Product Purchases
– Quantity, Quality, Cost, Availability
À la carte Service
• À la carte food dining can be divided into two
activities:
– 1. Moving food and beverage products from production
personnel to the food and beverage servers who serve
them to guests
– 2. Moving food beverage products from service staff to
guests
Other Hotel Food and Beverage Services:
Room-Service Operations (1 of 2)
• Profitability Concerns
– “With these high prices, hotels must make a lot of profit
on room service.”
– Why is room service unprofitable?
 Labor
 Product Quality Issues
• Menu Planning Factors

– Quality control
– Minimum order
– Mandatory service charges
– Language barriers
Room-Service Operations (2 of 2)
• Operating Issues
– Communications issues (ordering)
– Communication errors are not easily corrected
– Communication between room-service food production and
service staff is critical
• Within Guest Room-Service Issues

– Asking guests where the room-service meal should be set up.
– Explaining procedures for retrieval of room-service items.
– Presenting the guest check and securing payment.
– Opening bottles of wine, if applicable.
– Providing an attitude of genuine hospitality (as opposed to being
rushed to return to the kitchen for another room-service delivery).
Banquet Operations (1 of 8)
• Planning a single banquet for a group is similar to planning
a banquet for a convention or more extensive group
meeting, but there are some differences, including:
– The need for coffee and refreshment breaks for attendees during
inter-missions in business meetings.
– The potential need for hospitality suites and other functions within
guest rooms.
– The potential set-up of receptions, breaks, and even dinner/buffet
food services in public spaces within the hotel that may not
normally be used for these purposes.
• Contribution Margin Formula
– Selling price – Product cost = Contribution margin
• Profit Opportunities
• Hosted Bar
– A beverage-service alternative in which the function
host pays for beverages during all or part of the
banquet event.
– Also called an “open” bar.
• Cash Bars
– A beverage-service alternative where guests desiring
beverages during a banquet function pay for them
personally.
• Menu Planning
– Banquet menus must be very carefully planned to
ensure the hotel has the resources including
management and employee experience to execute
them.
– Many hotels develop pre-established banquet menus.
– Successful catering is a matter of paying attention to
numerous details.
• Butler Service: Appetizers and pre-poured champagne can be
served by service staff at a reception.
• Buffet Service: Quantities of food are prearranged on a self-
service line; guests pass along the line and help themselves.
• Family Style (English Style): Platters and bowls of food are
filled in the kitchen and brought to guests’ tables.
• French Service: Meals are prepared or finished at tableside by
service staff.
• Platter Service (Russian Service): Pre-plated food trays are
brought to the table where the server places individual portions
on guest plates that have been preset.
• Plated Service (American Service): Pre-portioning of food on
plates are brought to the table for service to the guests.
• Beverage Functions
– Types of alcoholic beverages
 Call brands
 Premium brands
 House brands (well brands)
– Types of beverage charges:
 Individual Drink Price
 Bottle Charge
 Per-Person Charge
 Hourly Charge
• Labor and Other Charges
– Bartenders and barbacks
– Beverage servers
– Beverage cashiers
– Security personnel
– Valet (parking) staff
– Coat room employees
• Corkage Fee
– The charge levied when guests brings their own bottle
of alcoholic beverage to a hotel for consumption at a
banquet function or in the hotel’s dining room.
• Size is determined by:
– Number of guests expected
– Local fire safety codes and ordinances
– Size and type tables
– Number of seats per table
– Required space for aisles, dance floors, bandstands, other
entertainment, head tables, reception/buffet tables
• Timing is critical when:

– The same space is to be used for different functions
throughout the same day
– A very large evening event precedes a very large breakfast
event in the same space on the following day
• Banquet Contracts and Billing Policies
– Guest contact information
– Agreed-upon charges and prices
– Specific function room assignment
– Last date that function space will be held without a signed
con-tract
– Time by when a guarantee of attendance must be received
– Cancellation policies
– Guarantee reduction policy
– Billing
– Service of alcoholic beverages (if applicable)
– Other information applicable to the specific event
VIP Club Floors and Lounges
• VIP club floors and lounges can provide F&B
amenities including:
– Alcoholic beverage service with bartender and server
or may be offered as “pour yourself” in many locations
– Food offerings ranging from simple menu items to
extensive offerings
– Hot breakfast buffet
– “To-go” meals at check-out
Alcoholic Beverage Operations in Hotels (1
of 2)
• Third-Party Liability (Dram Shop)
– A legal concept that holds the second party (the hotel
serving alcohol) responsible for acts caused by the first
party (the alcohol consumer), if the drinker
subsequently causes harm to a third party (the
accident victim). This is often referred to as dram shop
liability.
• Alcohol Awareness Training is Important!
– Hotel personnel in non-F&B positions can be trained to
recognize and respond to obvious and visible signs of
guests’ and non-guests’ intoxication and report these
incidents to their managers.
Alcoholic Beverage Operations in Hotels (2
of 2)
– Any employee may observe guests consuming alcohol
within the hotel but in locations where such
consumption is not allowed.
– Front-desk, housekeeping, maintenance, and/or
security staff may observe guests appearing to be
underage bringing alcoholic beverages on to the
property and into guest rooms.
– Employees of any department may observe guests
who are legally able to consume alcohol supplying that
alcohol to underage guests.
Trends in Hotel Food and Beverage
Operations
• Changing Employee Expectations
• Increased Use of and Reliance on Technology
• Recruiting the Best Leadership Talent
• Food Safety Concerns
• Environmental Concerns
• Food Planning and Purchasing Concerns
– Organic foods, Locally sourced foods
• Emphasis on Guests’ Health
• Expanded F&B Offerings in Select-Service Properties
– Lobby bars; Lobby pantries; Grab and Go
• Large hotels renting lobby or other prime real estate spaces to well-
known restaurant brands
• Large hotels seeking to regain their roles as “the places to dine” within
their communities

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Hotel Operations Management

• Menu Planning Factors

• Within Guest Room-Service Issues

• Timing is critical when:

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