Food and Beverage Management

Chapter 1
Food and Beverage Operations and Management
Chapter 1 covers:
 Food and beverage operations
 Service operations management
 The hospitality industry and its products:
 The experience economy
 Sectors and types of food service operations
 Reasons for customer choices
 Key influences on the food service industry
 The legal framework

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Food and beverage operations
 Food and beverage (or food service) operations
are concerned with the provision of food and
beverages within business

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Food and beverage management
 Management of:
 the service sequence (delivery)

 the customer process (experience)

 the survival of the business

 Requires skills in marketing, customer relations,

and operations, staff and financial management

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
The Food Service Cycle

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
The Food Service Cycle
 Framework to analyse and compare different food
service operations

 Helps to understand how an individual operation

works:
 Difficulties in one element of the cycle will cause
difficulties in the elements that follow
 Difficulties experienced in one element of the cycle
will have their causes in preceding elements

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Structure of the book

Based on the Food Service Cycle

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Food and beverages

 Food: includes a wide range of styles and cuisine

types

 Beverages: includes all alcoholic and non-alcoholic

drinks, cold and hot

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Systems approach
 Two dimensions:
 Systematic approach to the design, planning

and control of a food and beverage operation

 The management of the operating systems

within a food and beverage operation

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Traditional vs systems approaches

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Management of operations

 The management of:

 Materials

 Information

 People (customers)

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Four systems for food service

1. Food production
2. Beverage provision
3. Delivery or the service sequence
4. Customer management or the customer process

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Food and beverage operation

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Interrelationship
of the four
systems of a food
service operation

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Managing service operations

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Hospitality industry
 Provides food, drink and accommodation
 ‘Hospitality’ encompasses all aspects of the hotel and
catering (or food service) industries
 ‘Hospitality’ refers to the creation of experiences:
which is what people working in hospitality do

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
The experience economy
 Customers
 do not buy service delivery, they buy

experiences
 do not buy service quality, they buy memories

 do not buy food and drink, they buy meal

experiences
Pine and Gilmour (1999) and Hemmington (2007)

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Example comparison of roles

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
The four realms

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Four realms in food and beverage

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Five perspectives of hospitality
 Host/guest relationship - need to take responsibility
 Generosity - e.g. reducing the number of extras to be
paid for
 Theatre and performance - provide experiences that
are personal, memorable and add value to customers’ lives
 Creating lots of little surprises - include additional
items the customer is not expecting
 Safety and security - showing genuine concern
Hemmington (2007)

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Dimensions of the hospitality product
1. Intangibility
2. Perishability
3. Variability of output
4. Inseparability
5. Simultaneous production and consumption
6. Ease of duplication
7. Demand variation
8. Difficulty of comparison

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Sectors of the industry
 Hotels and other tourist accommodation
 Restaurants, popular catering, fast food, takeaway
 Retail stores
 Events/banqueting/conferencing/exhibitions
 Leisure attractions
 Motorway service stations
 Industrial catering (business and industry)
 Welfare catering
 Licensed trade
 Transport catering
 Event catering (off-premises catering)

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Variables in food service sectors
 Historical background
 Reasons for customer demand
 Size of sector
 Policies: financial, marketing, catering
 Interpretation of demand/catering concept
 Technological development
 Influences / State of sector development
 Primary/secondary activity
 Types of outlets
 Profit orientation/cost provision
 Public/private ownership

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Profit and cost markets

 Profit market - includes hotels, commercial

restaurants, pubs, fast food and leisure outlets

 Cost market - includes catering in business and

industry, education, healthcare and the armed forces

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Summary of food service sectors

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Food and restaurant styles
 Bistro
 Brasserie
 Caféteria
 Fine dining
 Coffee shop / café
 Country house hotel cooking
 Farmhouse cooking
 First class restaurant
 Fusion / Eclectic Cuisine
 Health food and vegetarian restaurants
 International destination restaurant
 International cuisine
© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Food and restaurant styles (cont’d)
 Molecular gastronomy
 New wave brasserie (Gastrodome)
 New/modern British/French
 Pop ups
 Popular catering and fast-food outlets
 Public houses / gastro pubs
 Restaurant
 Street food
 Take away and fast food
 Themed restaurant
 Wine bars
© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Types of market
 General market
 Non-captive: customers have a full choice

 Restricted market
 Captive: customers have no choice

 Semi-captive: customers have a choice before

choosing but then have little choice of food and drink

other than that on offer

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Customer is central
 To the process and an active participant within it

 Understanding the customer is critical to the

success of food service operations

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Different food service operations
 Designed for the:
 Needs people have at the time
 Rather than for the type of people they are
 The same customer can be:
 A business customer during the week
 A member of a family at the weekend
 Wanting a quick lunch or snack while travelling
 Organising a special event

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Main aim
 To achieve customer satisfaction
 By meeting the customers’ needs:
 Physiological
 Economic
 Social
 Psychological
 Convenience
 Customers may want to satisfy some or all of
these needs

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Reasons for a customer’s choice
 Often determine the customer’s satisfaction or
dissatisfaction

 Dissatisfaction can come from:

 Aspects of the food and beverage operation
 Aspects beyond the operation’s control
 Either way the operation has to deal with it

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Potential dissatisfactions

 Controllable by the establishment

e.g. scruffy, unhelpful staff, cramped conditions

 Uncontrollable
e.g. behaviour of other customers, the weather,
transport problems

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Product augmentation
 Core of the product
 The food and drink provision
 Tangible elements of the product
 The methods of delivery
 Augmentation of the product
 Takes into account the complete package
 Competition mostly takes place at the augmented level

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Reasons for eating out
 Convenience
 Variety
 Labour
 Status
 Culture / tradition
 Impulse
 No choice

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Meal experience factors

 Food and drink on offer

 Level of service
 Level of cleanliness and hygiene
 Perceived value for money and price
 Atmosphere of the establishment

The meal experience is covered in more detail within Chapter 3

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Key influences on the industry

P Political
E Economic
S Socio-cultural
T Technological
L Legal
E Ecological or environmental

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Key influences include:
 Social trends/lifestyle
 Amount of disposable income
 Inflation/stagnation
 Available credit
 Cultural factors
 Regulation – taxation, VAT, tourism
 Media – television, advertising, magazines,
celebrity chefs

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
PESTLE is not perfect
 Used badly it can lead to:
 Data overload.
 Failure to try to assess the potential impact of an
environmental change, however unlikely it may
initially seem.
 Failure to recognise the combined impact of a number
of influences

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Look inwards at the organisation
 Ask questions such as:
 Why are we, or how can we be successful?
 Is there a growing market and will it growing?
 Will customers still buy our products?
 What changes of policy or price are we vulnerable to?
 How can the product life cycle be extended?

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Sources of information
 Trade magazines (and their associated websites)
 Various news media
 Textbooks, journals, and on-line data bases
 Government websites
 Business Link
 People 1st
 Hospitality Guild
 Professional trade reports
 Trade bodes
 Professional bodies

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Legal framework includes:
 Health, safety and security
 Licensing framework
 Selling goods by weights and measures
 Contracts
 Selling good by description
 Avoiding discrimination
 Providing services
 Customer property and customer debt
 Data protection

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Important of compliance
 Penalties for non-compliance can be severe, both
for the business and for the management and staff

 Essential for all members of staff to contribute to

ensuring compliance

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Health, safety and security
 Duty to care for all staff and lawful visitors, and
must not:
 Sell (or keep for sale) food and beverages that are
unfit for people to eat
 Cause food or beverages to be dangerous to health
 Sell food or beverages that are not what the
customer is entitled to expect, in terms of content or
quality
 Describe or present food in a way that is false or
misleading

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Health, safety and security
 Operation must be able to demonstrate that steps
have been taken to ensure good food hygiene (due
diligence)

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Licensing framework
 Four key objectives:
1. Prevention of crime and disorder
2. Public safety
3. Prevention of public nuisance
4. Protection of children from harm

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Requirements include:
 Display of a summary of the premises licence
 Display of drinks price lists
 Restrictions on under-aged persons being served
alcohol and employed to serve alcohol
 Need for an authorised person (or the personal
licence holder) to be on site at all times

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Other types of licences include:
 Music (live or pre-recorded)
 Dancing
 Gambling
 Theatrical performance and television display
 Supervisor and the staff need to ensure
compliance with licence terms

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Weights and measures
 Generally requires:
 Display of the prices and measures used for all alcohol
served
 Food and beverage items for sale to be of the quantity
and quality demanded by the customer
 The use of officially stamped measures

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Contract
 Made when one party agrees to the terms of an
offer made by another party; this can be written or
verbal
 All food service establishments should be clear
on:
 circumstances where the operation may seek
compensation from the customer
 taking care when dealing with minors (persons under
18)

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Selling goods by description
 All food, beverages and other services provided
must be:
 fit for purpose and of satisfactory quality in relation to
price and description
 accurately described in terms of size, quality,
composition, production, quantity and standard

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
And:
 All statements of price must be clear and accurate
 Food, beverages and other services must correspond
to their description
 Times, dates, locations and nature of service are as
promised
 Billing is fair, transparent and reflects the prices
quoted

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
To ensure compliance
 Take care when:
 wording menus and wine lists

 describing items to customers

 stating if prices include local and/or

government taxes
 describing conditions such as cover charges,

service charges or extras

 describing the service provision

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Avoiding discrimination
 Covers behaviour relating to discrimination on
grounds of ethnic origin, race, creed, sex or
disability
 Three types of discrimination:
 Direct discrimination
 Indirect discrimination
 Discrimination through victimisation

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Providing services
 Generally no specific requirement to serve anyone
 Important to be aware of:
 Circumstances where there may be a mandatory
requirement to provide services
 Valid reasons for refusal 

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Customer property and debt
 Good practice to ensure:
 Care is taken of customers’ property in order to
minimise potential loss or damage
 Clear guidance on the procedures to follow if the
customer is unable or unwilling to pay

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
Data protection
 Customers’ have the right to expect that data about
them is:
 kept secure
 only used for the published business purposes
 Operations must ensure data is:
 kept up to date, fairly, lawfully and securely
 not passed on to third parties without prior consent
 and, that staff are aware of required procedures

© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers