FOOD AND BEVERAGE MANAGEMENT Interactions, Ratios and Contract Services

1. FOOD AND BEVERAGE MANAGEMENTInteractions, Ratios and Contract Services

2. Operational Interactions • F & B division and other units are mutually dependent. • There should be direct interaction between: • Front desk and F & B - specific guest requests • Sales department and banquet unit – banquet and conventions bookings • F & B and Front Office – announce new menu or special activity • Guest relations unit and F & B – feedback on utilization rate of F & B outlets

3. Operational Interactions • F & 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.

4. Operating Ratios - important • Food and Beverage Sales per Available Room total food and beverage sales = $? per room no. of rooms available • Food and Beverage Occupancy number of covers = ? turns number of seats • Sales per Available Seat total food and beverage sales = $ per seat no. of seats available

5. Average Check total food and beverage sales = $AC no. of covers • Ratio of Beverage Sales to Food Sales Beverage sales x 100% = ? % Food Sales • Food Cost Percentage Cost of food x 100% = ? % Food sales • Labor Cost Percentage F&B Labor Cost x 100% = ? % F&B sales

6. Director of Food and Beverage • Objectives: • 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.

7. Director of Food and Beverage • Objectives: • 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.

8. Director of Food and Beverage • Specific Operations Functions: • Provide the highest quality in food, beverage and service in all outlets. • At least one daily walk through of all F&B areas • Maintain existing programs and develop new programs • Daily talks with all staffs and managers • Maintain high quality image through effective housekeeping and sanitation • Maintain physical security for all outlets and inventories • Know local competition and industry trends • Change menus based on seasonality and product availability

9. Director of Food and Beverage • Specific Management Functions: • Directs and coordinates all activities of personnel and departmental responsibilities • Daily contacts with staff and performance reviews • Marketing of each F&B outlet • Achieve budgeted sales and maximum profitability • Maintain fair wage and salary administration

10. Strategic Alliance betweenHotels and Restaurants • Four key questions • What 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?

11. Strategic Alliance betweenHotels and Restaurants • Reasons for alliance between brand name hotel and restaurants: • Create financial benefits • Provide guests with greater value • Improve the hotel’s overall image • Strengthen the hotel’s competitive advantage • Create operational advantage

12. Strategic Alliance betweenHotels and Restaurants • Upscale • Yeebo • Au Lac Do Brazil • Li Bai @ Sheraton • Theme • Hard Rock Café Types of restaurants: • Quick Service • KFC • Lotteria • Pho 24 • Casual / Family • Al Fresco • Pizza Hut • Ngon

13. Restaurant Franchise • Advantages • Helps to reposition hotel • May increase revenues, occupancy, profits • Franchiser is continually assessing and improving menu • Franchiser is knowledgeable about restaurant business • Disadvantages • Franchise fee • High initial investment • Requires a certain volume to warrant using a franchise brand

14. Restaurant Franchise Factors to consider • Desired hotel position and customer perception you want to create for your hotel. • Assess the revenue and costs, profitability of having a franchised brand restaurant • Select a restaurant company that has the same corporate culture and shares the same operational goals • Consider the menu offered, restaurant décor, training support and management support from franchiser, and ability to handle room service

15. Contract Relationships 4 types of relationships between hotel and F&B outlets Internally developed restaurant brand Franchised restaurant brand Straight lease Management contract

16. Contract Relationships Internally developed restaurant brand • Hotel 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

17. Contract Relationships • Disadvantages: • Hotel may not have the expertise to successfully run a restaurant business • Developing the restaurant into a famous brand takes a longer process

18. Contract Relationships Franchised restaurant brand • Hotel buys a franchise from a famous restaurant franchisor. • Franchisee (hotel) operates the restaurant according to the guidelines laid down by franchisor including: • Menu • Décor • Food preparation • Service processes

19. Contract Relationships • Advantages: • Franchisor has the expertise and know-how • Franchisor can provide training to the personnel in the restaurant • The franchisor’s brand is already a recognized brand with a ready customer base. • Disadvantages: • High franchise fees • Hotel has less control in the operations

20. Contract Relationships Straight lease • Hotel 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 restaurant • Advantages: • Guaranteed revenue from rental • Disadvantages: • Little control over the operations • Restaurant may be a mismatch with the hotel’s positioning

21. Contract Relationships Management Contract Hotel 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.

22. Contract Relationships • Advantages: • Management company has the expertise and know-how • Disadvantages: • Management fees and possibly profit sharing • Hotel has little control in the operations

23. Hotel Catering • Refers 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 hotel • High visibility and can create an image for the hotel

24. Hotel Catering - Personnel • Director of catering (reports to director of F&B) • Oversees all catering functions • Works closely with Director of Sales and Marketing • Catering managers (reports to director of catering) • Maintain client contacts, plan menus, themes, room set up, décor, negotiate with clients

25. Hotel Catering - Personnel • Banquet Manager (reports to director of catering) • Supervises maitre d’, room captains, servers, bartenders. • Acts on director of catering’s requests • Supervises table settings and décor • Scheduler (in a big catering operation) • Plans the rooms, reception area and time schedule • Keeps records to avoid overbooking or double booking

26. Hotel Catering - Personnel • Maitre d’ • Supervises all service personnel including captains, servers & all aspects of guest service • Captain • Manages a section or a specific room • Supervises the servers in the section or room • Server • Serves either food or beverage • Bartender • Serves alcoholic drinks

27. Hotel Catering - Personnel • Steward / 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