Food and Beverage Operations Management

Term Paper, 2014

13 Pages, Grade: A


Table of contents

LO 1 Food and beverage production and service systems:
1.0 Introduction
1.1 The characteristics of food production and food and beverage service systems
1.2 Factors affecting menus and recipes for specific systems
1.3. Comparison of the cost and staffing implications for different systems.
1.4. Justification of the systems' suitability for specific food and beverage outlets

LO2, The financial controls employed in food and beverage operations
2.1 The use of financial statements in food and beverage operations.
2.2 Demonstration of the cost and pricing progress
2.3 Analyze the purchasing process

LO3 Devising menus for hospitality events
3.1 Compiling food and beverage menus for hospitality event
3.2 Justification of the selection and suitability of recipes for menus

LO 4 Being capable of providing food and beverage services for hospitality events.
4.1 Planning food and beverage service for a hospitality event having a budget
4.2 Implementation of the planned service standards of quality and health, safety and security
4.3 Evaluation of the factors determining the success of the service and recommendations for improvement
4.31 Recommendations

5.0 Conclusion

6.0 References

Food and Beverage Operations Management

LO 1 Food and beverage production and service systems:

1.0 Introduction

The paper presents the application of concepts learned in class on food and beverage services system. It discusses a case study of Mr. Brown. He is a client who has requested for food and beverage services from the hotel. The paper will show how the event is organized inclusive of the purchasing of the raw materials, preparation and conservation of food. In addition to that, the paper addresses the usage of the available resources and make profits. The development also includes a budget for the event. KCA limited provides the services to Mr. Brown and his colleagues, family, suppliers, and employees in celebration of 50 years in business.

1.1 The characteristics of food production and food and beverage service systems

Food production includes the planning of menu, purchasing and the reception of the raw materials, cleaning foods, preparing and storing. In addition to that, it is the department where orders are dropped and picked by the wait staff in a hotel. The purchasing of raw materials for food production is a complicated task that needs skilled personnel. Moreover, in food production and beverage services system, hospitality is highly emphasized. In hospitality, there are three things to pay attention to; one, taking a study of the supply markets. This includes the selection of the buying methods that match with the demand of the services at the hotel. Moreover, the evaluation of the value of products value and setting of prices. Two, the development of purchasing specs that are detailed with a primary aim of preventing purchasers from stealing purchasing money or cheating in the hotel. Three, the survey and selection of suppliers. That includes short-term and long-term providers of the raw materials to use in food production and beverage services system (Unklesbay, 1977).

According to Unklesbay (1977), offering food services has unique characteristics as compared to production of other products in the market. The demand for food occurs at some hour of the day, for instance, the breakfast, lunch and dinner time. Between the peak hours, order for food is slow. The demand for food also varies depending on the month of the year, production and competitive events that must be attended to accordingly. In addition to that, both skilled and unskilled personnel is required. Furthermore, food and the raw materials are perishable. Therefore, it requires proper handling before, during and after preparation. Lastly, the menus change on a daily basis, therefore, production changes daily too.

The menu selected for the celebration is party cake, coffee, soft drinks and liqueurs. The event will have 50 people attending. The budget allocated for the event is $ 153.00. The menu is suitable for the people that are attending the celebration because of the children and adults satisfaction. The cake can be designed to fit the theme of the celebration. Coffee and soft drinks are for both children attending and adults while the adults only take liqueurs in celebration. In addition to that, the room will be decorated according to the theme color of the event that is probably chosen by Mr. Brown.



Fish, rice and fresh salad $10, 00

Jack-potatoes with vegetables $14, 00

Chicken fillet, chips and salad $10, 00

Sausage, chips and fresh salad $20, 00


Orange juice $17, 50

Mineral water $10, 00

Coffee or tea $13, 50

Beer $17, 00


Apple cake $25, 00

Fruits salad $16, 00

1.2 Factors affecting menus and recipes for specific systems

There are several factors that affect the menu and recipes for Mr. Brown’s event to be held at KCA hotel. The factors consider the budget for the celebration event, the abilities of the kitchen, the preparation for the food and beverages, cooking time and the selection of complementary foods for the guests. Firstly the budget. The allocated for the foods and beverages to be taken at Mr. Brown’s celebration. The budget varies depending on the types of meals that the event organizer is planning. In addition to that, the menu also depends on the number of guests invited whether formal or informal. Another factor is the selection of the foods to be taken. According to Jack (2012), the food selecting process should be simple. For instance, the menu selected has chicken, fish, meat and chips. In addition to that, another significant factor is the availability of the resources used to make the menu list implemented. If some components in the food and beverage preparation are unavailable, an alternative can be selected for the item. For instance, considering the budget of the customer, the money may not afford both chicken and meat. Therefore, the meat can be canceled, and chicken remains.

Nutritional value and ethnicity are important in ensuring that the dishes produced are nutritious i.e. with vitamins, proteins, and carbohydrates. The customer is likely going to be satisfied but if the items do not match the ethnicity and nutritional value of the customer, it becomes difficult to satisfy them (John, David, & Cailein, 2002).

The kitchen medium is enough as the guests are 50. The ingredients used are easily available with three waitresses adequate for the service.

In accordance to Unklesbay (1977), the buffet service is associated with advantages such as serving a large number of people, giving the guests time to choose, the guests play a role in the service, the service staff need less skills and there are few complaints due to the personal service decision making.

1.3. Comparison of the cost and staffing implications for different systems.

Staffs have a special influence on the success of the food service process. The selection of staff is given high consideration weight because of the knowledge, requirements, experience and the skill required for the personnel. In addition to that, the running of the food production and beverage services depends on the efficiency or the skills of the staff in offering the services to the customers. Moreover, the behavior of the staff and how they communicate with the customers in a polite way attracts the customers (Todd, 2006). A perfect staff with good communication skills enhances the service operation. The recommendation of items helps in the improvisation of the sales and raising the levels of customer satisfaction.

Good management of staff in food production and beverage service systems maximizes the potential of the staff and the available resources. The management invests in staff through teaching them the skills requires and the educational qualifications to satisfy customers and offer high-quality services in the industry (Todd, 2006). The hotel will assign three experienced waitresses to serve Mr. Browns guests. In addition to that the staff will answer any questions asked by the customers.

Every staff in the catering cycle must understand his or her duties, responsibilities and skills that they have been trained to perform in the industry.

According to A (2008), the training of staff makes the operations expand their profits through the reduction of equipment and materials that are required in production and selling. Staff training increases the staff efficiency improves the performance standards required in the industry, improves the capability of the staff, encourages staff willingness to work and make responsibilities clear to the staff.

1.4. Justification of the systems' suitability for specific food and beverage outlets

My choice is to justify the suitability of the buffet service. It is a method of food service that involves purely self-service. The method presents the food attractively on a series of tables; hence, the presentation is vital in the industry. A buffet includes putting together hot and cold foods and beverages. The service is usually suitable for conferences, events, restaurants, hotels, and parties and banqueting. I would firmly recommend it for Mr. Brown’s party.

Mr. Brown will have to pay a fixed price for the buffet. In addition to that, the buffet services enable feeding of a large number of people at a given time with less staff needed for the exercise. The buffet method has several advantages that out do the disadvantages. The guests attending the celebration have choice of varieties of foods and beverages; the staff needed is less with fewer skills required for the process and also it involves the customers in the process. However, buffet cost is higher than any other foodservice, and some people do not like queuing.

LO2, The financial controls employed in food and beverage operations

2.1 The use of financial statements in food and beverage operations.

The food and beverage production and services system has important financial statements that include the operating statements, sales records, variance, cost statements and dish costing sheet. The dish costing sheet is by the chefs to calculate the value of each ingredient used in the preparation of food. The total decides the selling price printed on the menu. The sales record shows the information the company has on the customers, but has a limitation of what they purchase, mode of payments and their contacts. Another statement is the cost statement that includes all the costs incurred directly or indirectly (Lea & David, 2011).

The variance analysis indicates the distinguishing characteristics between a budget, the standard amount and the actual or real amount of the foods and beverages sold. The analysis aids the management to get a clear understanding of current costs of food and beverages then plan the future (Lea & David, 2011).

Every food service manager must be concerned with the cost of foods including the cost related to the preparation, cost of labor that is the cost of all employees responsible for the running of the business, the overhead costs that include rent, linen and utilities and the cost of beverages (cost of all ingredients).

The main role of financial statements is to keep the record of all financial statements that assist managers to manage the business. Financial statements include cash flow statements, balance sheets, statement of retained earnings and the income statement (Lea & David, 2011).

2.2 Demonstration of the cost and pricing progress

Costing and pricing in a food production and beverages service operations include, menu, dishes and beverages, sales, gross and net profit, cost of elements, discounting, Value Added tax (VAT), variable, indirect and fixed cost.


Excerpt out of 13 pages


Food and Beverage Operations Management
Supply Chain Management
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ISBN (Book)
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food, beverage, operations, management
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Joseph Wambua (Author), 2014, Food and Beverage Operations Management, Munich, GRIN Verlag,


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