Food and Beverage Management Dedication This book is dedicated to all the students we have encouraged to learn about and from the food and beverage industry, all the managers in all the organizations that have employed, developed and encouraged them, and all the innovators and people of vision who have inspired us. In addition thanks should go to all those that have worked hard and put in long hours to raise the level of professionalism in food and beverage management and by doing so make the industry the exciting and vibrant one that it is. Food and Beverage Management Fourth Edition Bernard Davis, BA, MIH Andrew Lockwood, PhD, BSc, CertEd, FIH Peter Alcott, DBA, MSc, FIH Ioannis S. Pantelidis, MSc, HMDip, FHEA, FIH AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD PARIS • SAN DIEGO • SAN FRANCISCO • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First published 1985 Reprinted 1988, 1989, 1990 Second edition 1991 Reprinted 1992, 1993 (twice), 1994, 1995, 1996 Third edition 1998 Reprinted 1999 (twice), 2001, 2002, 2003 (twice), 2004 Fourth edition 2008 Copyright © 1985, 1991 Bernard Davis and Sally Stone. All rights reserved Copyright © 1998 Bernard Davis, Andrew Lockwood and Sally Stone Copyright © 2008 Elsevier Ltd. All rights reserved No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP. Applications for the copyright holder ’ s written permission to reproduce any part of this publication should be addressed to the publisher Permissions may be sought directly from Elsevier ’ s Science & Technology Rights Department in Oxford, UK: phone (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: [email protected]. You may also complete your request on-line via the Elsevier homepage ( http://www.elsevier.com ), by selecting ‘ Customer Support ’ and then ‘ Obtaining Permissions ’ British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 13: 978-0-7506-6730-2 For information on all Elsevier Butterworth-Heinemann publications visit our website at www.bh.com Printed and bound in Slovenia 08 09 10 11 12 10 9 8 7 6 5 4 3 2 1 Contents List of fi gures v i i Menu knowledge 164 List of tables x i Beverage menus/lists 168 Preface to the fourth edition xiii Menu merchandising 173 Preface to the third edition x v Further reading 177 Preface to the second edition xvii Preface to the fi rst edition x i x 6 Food and beverage operations: Purchasing and storage 1 7 9 1 Introducing food and beverage Introduction 179 management 1 Purchasing 180 Introduction 1 The purchasing procedure 182 Size and scope of food and beverage Price and quality performance 184 operations 2 The purchasing of foods 185 Food and beverage management 1 1 The purchasing of beverages 190 Managing the meal experience 2 3 Receiving of food 192 Further reading 39 Storing and issuing food 193 Stocktaking of food 194 2 The restaurant sector 4 1 Receiving of beverages 196 Introduction 4 1 Storing and issuing of beverages 196 Full service restaurants and Further reading 202 licensed retail 4 2 Hotel restaurants and private clubs 5 2 7 Food and beverage operations: Fast food 6 1 Production and service 2 0 3 Further reading 73 Introduction 203 Food production methods 210 3 Contract, travel and public Beverage production methods 220 sector catering 7 5 Food and beverage service methods 222 Introduction 7 5 Further reading 256 Contract catering 7 6 Travel catering 8 8 8 Food and beverage control 2 5 9 Public sector 106 Introduction 259 Further reading 113 The objectives of food and beverage control 260 4 Developing the concept 1 1 5 Special problems of food and Introduction 1 1 5 beverage control 262 The concept 1 1 8 The fundamentals of control 263 Feasibility study 120 The reality of control 267 The business plan 123 Setting the budget and Financing the operation 127 break-even analysis 268 Facility design and layout 132 Basic concepts 276 Further reading 144 Methods of food control 281 Methods of beverage control 287 5 The menu: Food and beverage 1 4 5 EPOS reporting 291 Introduction 145 Food and beverage control checklists 295 Type of menus 146 Revenue control 299 Menu offering 150 Profi t sensitivity analysis and Menu pricing 156 menu engineering 300 Contents Systems of revenue control 303 11 Managing quality in food and Computerized systems 306 beverage operations 371 Forecasting 308 What is quality? 372 Operating ratios 309 Why is quality important? 376 Further reading 316 Managing quality in food and beverage operations 378 9 Staffi ng issues 317 A systematic approach to quality Introduction 317 management 380 Structure of UK labour 318 Developing approaches to Recruitment 318 quality management 385 Staff turnover 321 Examples of quality management Staff training 325 in practice 390 Legal framework 326 Further reading 398 Staff scheduling 328 Supervision and communication 330 12 Trends and developments 4 0 1 Further reading 336 Introduction 401 10 Food and beverage marketing 3 3 9 Consumer trends 402 Marketing 340 Environmental issues 405 Advertising 355 Financing the operation 408 Public relations 361 Ethical issues 409 Merchandising 363 High tech food 413 Sales promotion 364 Further reading 419 Personal selling and upselling 367 Further reading 370 Index 421 •• vi List of fi gures Figure 1.1 A classifi cation of food 400,000 employees and and beverage operations 9 annual revenue of Figure 1.2 Exploring the manager ’ s approximately £11 work in the hospitality billion 77 industry 12 Figure 3.2 Number of world stadia Figure 1.3 Main areas of management per capacity 8 3 activity 14 Figure 3.3 Trends in the UK Leisure Figure 1.4 Danesfi eld House Hotel Venue Catering market, and Spa Organization 2001–2011 (in million Chart 18 pounds) 86 Figure 1.5 A representation of Figure 3.4 DO & CO at the British issues in the business Museum 88 environment 2 3 Figure 3.5 UK Airline passengers, Figure 2.1 The Michelin guide 2000–2008 89 website 43 Figure 3.6 Cruise ship dining. Photo Figure 2.2 The Mobil travel guide courtesy of P & O 94 website (US) 44 Figure 3.7 The new Ventura super Figure 2.3 The Zagat guide website liner by P & O Launching (US, UK, FR) 44 April 2008, this cruise liner Figure 2.4 Menupix website 4 5 is 115,000 tons with a Figure 2.5 Le Gavroche (UK, capacity of 3,600 passengers, London) 46 1,200 crew, 1,546 cabins Figure 2.6 Micros POS terminal 49 (880 balcony cabins), Figure 2.7 Departmental revenue 11 restaurants, 12 bars, mix by city 54 5 places to shop, 3 places Figure 2.8 Radisson Edwardian to dance, 5 places for live Ascots Restaurant – music, 2-tier theatre, London UK 55 2 show lounges, Figure 2.9 Mosimann ’ s private a nightclub, 5 pools and dining – London UK 6 0 6 Jacuzzis 9 5 Figure 2.10 McDonald ’ s brand Figure 3.8 UK percentage change in mission 61 value of the UK onboard Figure 2.11 Burger King website 6 2 catering market, by sector 9 6 Figure 2.12 Pret mission statement 6 3 Figure 3.9 UK cars, 1999–2004 98 Figure 2.13 The KFC Bucket 65 Figure 3.10 UK transport by mode Figure 2.14 Bank Restaurant website 1999–2003 98 showing online booking Figure 3.11 University catering. Photo facility 68 courtesy of Scolarest 109 Figure 3.1 Structure of Compass Figure 3.12 Prison catering. Photo Group the largest courtesy of Northen catering company in Ireland Prison Service 1 1 1 the UK. Compass Group Figure 4.1 Key restaurant concept employs 90,000 employees considerations 118 and has 8,500 sites in the Figure 4.2 The feasibility study 120 UK alone. Worldwide the Figure 4.3 Elements of a restaurant compass group employees business plan 124 List of figures Figure 4.4 Example of an income Figure 7.1 Based on an HACCP statement and a cash procedure developed by fl ow statement 1 2 8 the Lakeside Restaurant Figure 4.5 Example of a balance University of Surrey 205 sheet 128 Figure 7.2 Extract from refrigeration Figure 4.6 The Lakeside Restaurant temperature record book layout 132 Lakeside Restaurant 206 Figure 4.7 AHR menus and Figure 7.3 Hotels ’ look to increase packaging 136 revenue from food and Figure 4.8 AHR Restaurant fl oor beverage 207 plan 137 Figure 7.4 The main division of Figure 4.9 AHR dinner menu 138 activities in the Figure 4.10 Extract from the lunch conventional Partie food menu 139 production method 2 1 1 Figure 4.11 Extract from the wine list 139 Figure 7.5 An example of Sunday Figure 4.12 AHR wormery at work 140 lunch menu using cook- Figure 4.13 Part of the AHR vegetable chill production system 212 and herb garden 140 Figure 7.6 Reverse side of menu Figure 4.14 AHR mixed herb sticks 142 (Figure 7.5) where patient Figure 5.1 Example of a table d ’ hôte enters meal information 213 menu 147 Figure 7.7 The main division of Figure 5.2 Extract of an à la carte activities in the cook- restaurant 149 freeze food production Figure 5.3 New menu concepts can method 215 rejuvenate a restaurant 152 Figure 7.8 The main division of Figure 5.4 The Compleat Angler, activities in the cook-chill Marlow, Buckinghamshire food production website: www.deantimpson.