FOOD AND BEVERAGE MANAGEMENTInteractions, Ratios and Contract Services

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Operational InteractionsF & B division and other units are mutually

dependent.There should be direct interaction between:

Front desk and F & B - specific guest requestsSales department and banquet unit – banquet and

conventions bookingsF & B and Front Office – announce new menu or

special activityGuest relations unit and F & B – feedback on

utilization rate of F & B outlets

Operational InteractionsF & B manager must know who the

customers are, what they like and how many customers to expect with the input from other departments and units.

Every hotel employee should be trained to refer / recommend F & B services to guests.

Operating Ratios - importantFood and Beverage Sales per Available Room

total food and beverage sales = $? per room no. of rooms available

Food and Beverage Occupancynumber of covers = ? turnsnumber of seats

Sales per Available Seattotal food and beverage sales = $ per seat no. of seats available

Average Checktotal food and beverage sales = $AC no. of covers

Ratio of Beverage Sales to Food SalesBeverage sales x 100% = ? % Food Sales

Food Cost PercentageCost of food x 100% = ? %Food sales

Labor Cost PercentageF&B Labor Cost x 100% = ? % F&B sales

Director of Food and BeverageObjectives:

Meet and exceed guests’ needs and expectations by ensuring proper service standards, providing quality food and beverages, managing all aspects of operations.

Provide all guests with the highest quality F&B experience by working as a team with all F&B outlets, ensuring prompt, polite and professional services, resulting in increasing employee morale, decreasing turnover rates and lowering service times.

Director of Food and BeverageObjectives:

Seek profitability in the F&B department by decreasing all costs, maximizing sales in all outlets, achieving budget and profit guidelines, meeting and / or exceeding long / short range goals.

Director of Food and BeverageSpecific Operations Functions:

Provide the highest quality in food, beverage and service in all outlets.

At least one daily walk through of all F&B areasMaintain existing programs and develop new programsDaily talks with all staffs and managersMaintain high quality image through effective

housekeeping and sanitationMaintain physical security for all outlets and inventoriesKnow local competition and industry trendsChange menus based on seasonality

and product availability

Director of Food and BeverageSpecific Management Functions:

Directs and coordinates all activities of personnel and departmental responsibilities

Daily contacts with staff and performance reviewsMarketing of each F&B outletAchieve budgeted sales and maximum profitabilityMaintain fair wage and salary administration

Strategic Alliance betweenHotels and Restaurants

Four key questionsWhat are the hotel customers’ F&B needs and

expectations?Which F&B concept best aligns with the positioning

of the hotel?Would converting the restaurant to a brand name

restaurant improve the hotel’s bottom line?Would turning to a brand name F&B operation give

the hotel a competitive advantage?

Strategic Alliance betweenHotels and Restaurants

Reasons for alliance between brand name hotel and restaurants:Create financial benefits Provide guests with greater valueImprove the hotel’s overall imageStrengthen the hotel’s competitive advantageCreate operational advantage

Strategic Alliance betweenHotels and Restaurants

Types of restaurants:Quick Service

KFCLotteriaPho 24

Casual / FamilyAl FrescoPizza HutNgon

Upscale◦ Yeebo◦ Au Lac Do Brazil◦ Li Bai @ Sheraton

Theme◦ Hard Rock Café

Restaurant FranchiseAdvantages

Helps to reposition hotelMay increase revenues, occupancy, profitsFranchiser is continually assessing and improving

menuFranchiser is knowledgeable about restaurant business

DisadvantagesFranchise feeHigh initial investmentRequires a certain volume to warrant using a franchise

brand

Restaurant FranchiseFactors to consider1.Desired hotel position and customer perception

you want to create for your hotel.2.Assess the revenue and costs, profitability of

having a franchised brand restaurant3.Select a restaurant company that has the same

corporate culture and shares the same operational goals

4.Consider the menu offered, restaurant décor, training support and management support from franchiser, and ability to handle room service

Contract Relationships4 types of relationships between hotel and F&B outletsInternally developed restaurant brandFranchised restaurant brandStraight leaseManagement contract

Contract RelationshipsInternally developed restaurant brandHotel develops own restaurant with little

outside help.The restaurant is a unit belonging to the hotel

controlled by F&B director. Advantages:

Hotel has total control over all the operations.No need to pay any fees to outside parties, hotel

keeps all profits

Contract RelationshipsDisadvantages:

Hotel may not have the expertise to successfully run a restaurant business

Developing the restaurant into a famous brand takes a longer process

Contract RelationshipsFranchised restaurant brandHotel buys a franchise from a famous

restaurant franchisor.Franchisee (hotel) operates the restaurant

according to the guidelines laid down by franchisor including:MenuDécorFood preparation Service processes

Contract RelationshipsAdvantages:

Franchisor has the expertise and know-how Franchisor can provide training to the

personnel in the restaurantThe franchisor’s brand is already a recognized

brand with a ready customer base.Disadvantages:

High franchise feesHotel has less control in the operations

Contract RelationshipsStraight leaseHotel rents out the space inside the hotel to

an outside restaurant company.Hotel only collects rent; it has no say in the

operations of the restaurantAdvantages:

Guaranteed revenue from rentalDisadvantages:

Little control over the operationsRestaurant may be a mismatch with the

hotel’s positioning

Contract RelationshipsManagement ContractHotel lets an outside company manage its

restaurant.Hotel pays the company a management fee Management company is responsible for

recruitment, selection and training, as well as all day-to-day operations

Personnel may or may not be under the payroll of hotel.

Contract RelationshipsAdvantages:

Management company has the expertise and know-how

Disadvantages: Management fees and possibly profit sharingHotel has little control in the operations

Hotel CateringRefers to providing food and beverage

service outside of a restaurant / bar / café setting.

May be done in a meeting room / ballroom / courtyard / garden or other locations.

The F&B division is in charge of not only food preparation but also decorations, such as table settings and lighting.

A huge revenue generator for the hotelHigh visibility and can create an image

for the hotel

Hotel Catering - PersonnelDirector of catering (reports to director of

F&B)Oversees all catering functionsWorks closely with Director of Sales and

MarketingCatering managers (reports to director of

catering)Maintain client contacts, plan menus, themes,

room set up, décor, negotiate with clients

Hotel Catering - PersonnelBanquet Manager (reports to director of

catering)Supervises maitre d’, room captains, servers,

bartenders.Acts on director of catering’s requestsSupervises table settings and décor

Scheduler (in a big catering operation) Plans the rooms, reception area and time scheduleKeeps records to avoid overbooking or

double booking

Hotel Catering - PersonnelMaitre d’

Supervises all service personnel including captains, servers & all aspects of guest service

CaptainManages a section or a specific roomSupervises the servers in the section or room

ServerServes either food or beverage

BartenderServes alcoholic drinks

Hotel Catering - PersonnelSteward / Housemen

Set up the equipment, tables , chairs, glassware,

crockery and cutlery Engineering department personnel

Provides necessary utilities such as air-conditioning, electrical wiring, audio visual equipment, banners