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Food and beverage management in hotel management 代写

     
     
     
     
     
     
     
     
     
     
    Food and beverage management in hotel management
     Food and beverage management in hotel management  代写
     
     
     
     
     
     
     
     
     
    Table of contents
    1.0 Introduction. 2
    2.0 The “all you can eat strategy” and its likely effect 2
    2.1 The effect of the “all you can eat strategy” on the “Food Average Spend”. 2
    2.2 The likely effect of the “all you can eat strategy” on the restaurant’s food cost percentage. 2
    3.0 Ways to measure the food cost and a potential food cost report 3
    3.1 ways to measure the food cost 3
    3.2 Potential food cost report 3
    4.0 Some key information to be monitored over the next few weeks to measure the results of this strategy  4
    4.1 The effect on the labor cost 4
    4.2 The different contribution margins (buffet vs. a la carte) 4
    4.3 The overall effect on the food cost and therefore profitability. 4
    4.4 The amount of food prepared daily for the buffet and how to deal with leftovers and waste.
    5.0 Recommendations and conclusions 5
    6.0 Reference. 5
     
     
     
     
     
     
    1.0 Introduction
    Food and beverage management is essential to modern hotel management. What’s more, the food and beverage management has a lot of responsibilities. First, managers should be concerned with the planning process: to set up goals, decide on the directions to lead the organization towards, and therefore make the roles and policies. Secondly, managers will consider how to realize these goals, and who are going to be assigned to realize these goals. After this, manager should think about ways to motivate the staff to as to lead the organization towards the set direction and to realize the goals. Besides, managers should also take control of staff performance to ensure that they behave in coordination with the organization direction and goals (Davis et al, 2008).
    In this essay, it focused on a case study of an Italian, a la carte restaurant. In this case, the manager She decides to introduce an “all you can eat” buffet concept on Monday, Tuesday and Wednesday evenings at $ 27.90 per person, with children at $ 13.50 each, due to the bad business, while The Monthly Food Reports show the food cost to be 28%.
    Therefore, in this essay, we are going to discuss about the strategy of “all you can eat”, about how to measure the food cost, and about some other key information for measuring the results of this strategy.
    2.0 The “all you can eat strategy” and its likely effect
    2.1 The effect of the “all you can eat strategy” on the “Food Average Spend”
    The “all you can eat strategy” is the so called buffet. Previously, the Italian a la carte restaurant indicates an average food spend to be $ 34.15. However, the new “all you can eat strategy” will enable an adult spend of $ 27.90 per person, with children at $ 13.50 each. Judging from this figure, we can know that the “all you can eat strategy” on Monday, Tuesday, and Wednesday lower the “Food Average Spend” for the week.
    2.2 The likely effect of the “all you can eat strategy” on the restaurants food cost percentage
    Food cost percentage stands for the ratio of food sales that is spent on food expenses. To be simple, the food cost percentage is basically food cost divided by food sales (Douglas, 2003). Before the introduction of the “all you can eat strategy”, the average food spend was $34.15, and the average beverage spend was $16.80. Under this condition, the restaurant’s food cost percentage was 28%. However, as has already been analyzed, the “Food Average Spend” will be lower after the introduction of the “all you can eat strategy”. What’s more, since the restaurant promises to have more customers on Monday, Tuesday, and Wednesday, it will need more staff, which will add on the labor cost. Besides, as there will be more customers for the buffet, there will be more wastes, which will add to the food cost. Therefore, the food cost percentage in this restaurant will rise after the introduction of the “all you can eat strategy”.
    3.0 Ways to measure the food cost and a potential food cost report
    3.1 ways to measure the food cost
    In fact, there are a lot of factors to be taken into consideration in the measuring of food cost, for instance, the cost of food sold to consumers, cost of food lost through bad purchasing practices, cost of food lost in inventory, cost of food lost in production, and cost of food lost by the front desk.
    The cost of food sold to customers is the same as that of the potential cost. Purchasing is an important part in food and beverage. Its goal is to provide sufficient raw material for the food and beverage needed in the restaurant (Clement, 2009). However, food cost may incur when purchasers perform poor purchasing, and some of the products ordered cannot be used or consumed. In this case, the restaurant will make a loss due to the waste and misuse. Still, food cost may incur in inventory. In receiving and storing the products purchased, all these practices should follow strict processes. It should make a record of the products coming into and getting out of the stock, and tries to extend the value of the products in stock. Another reason why food cost may be out of expectation is because of the food production process itself (Lea & David, 2010). A study has shown that between 22 and 25 percent of food cost variance is due to food lost in the production process in the kitchen. Therefore, in the measuring of food cost in this case, the food cost lost in the production process must be considered. Last but not least, some food cost incurs when the front desk misunderstands the customers’ orders and place them wrong. However, in this case, there is no need to pay attention to this part, since that this is a new strategy of the buffet, and customers will place the same order.
    3.2 Potential food cost report
    Potential food cost is the theoretical food cost. It is the lowest food cost that can be achieved, because it is based on the assumption that there will be no wastes and leftovers. See table 3.2 below:
      Potential food cost report date
      This week Period to date
      potential potential
      sales % cost sales % cost
    breakfast 3,352 31.55 1,024 12,001 33.60 4,032
    Launch and dinner 13,208 38.61 5,099 61,759 38.85 23,985
    functions 4,305 32.98 1,420 15.439 39.98 6,172
    TOTAL SALES 20,865     89,199    
    Potential cost   36.15 7,543   38.33 34,189
    Actual cost   41.16 8,589   41.14 36,694
    Over/under   5.01 1,044   2.81 2,505
     
     
    4.0 Some key information to be monitored over the next few weeks to measure the results of this strategy
    4.1 The effect on the labor cost
    Labor cost refers to the cost of all staff members who are essential to operating the business. What’s more, the amount of taxes and other payments incurred from the staff members are also referred to as labor cost (Lea & David, 2010). In the case of the licensed Italian restaurant, the labor cost promises to witness a rise on Monday, Tuesday, and Wednesday after the introduction of the “all you can eat strategy”. For one thing, staff may more than before on these three days, and they deserve more for their wages. For another, the accounting department may have to pay more taxes due to a rise in staff’s wages, which will add to the labor cost.
    Food and beverage management in hotel management  代写
    4.2 The different contribution margins (buffet vs. a la carte)
    Contribution margin refers to the amount that is left after the food cost of the items on the menu is deducted from the items’ selling price. In other words, contribution margin is the amount that a menu item contributes to paying for all the expenses including labor costs and thus making a profit. For example, if an item is sold at a price of $ 7.35, and the food cost of this item is $2.83, then the contribution margin should be calculated as the following: selling price-food cost =contribution margin, or $ 7.35-$2.83=$ 4.52
    As we have already analyzed in the previous parts of this essay that the “Food Average Spend” will be lower and that the food cost percentage of the “all you can eat strategy” will be higher than the a la carte restaurant. Therefore, the contribution margins of the buffet may probably be fewer than those of the a la carte.
    Food and beverage management in hotel management  代写
    4.3 The overall effect on the food cost and therefore profitability
    Since there will be more customers in the restaurant on Monday, Tuesday, and Wednesday, the food cost must be higher than before. And according to the analysis in the previous part, the contribution margins of the buffet will be fewer than those of the a la carte. However, the “all you can eat strategy” promises to bring more customers into the restaurant on weekends and there will be more consumption on food and beverage then. Therefore, the overall profitability may probably see a rise in the future.
    4.4 The amount of food prepared daily for the buffet and how to deal with leftovers and waste.
    At the beginning of the introduction of buffet, the restaurant does not need to prepare a lot of foods. Rather, it can make some just like trials, and if it succeeds, it can add later. And for the waste and leftovers, the traditional way in the past was to throw them away. However, nowadays, consumers are encouraged to recycle and reuse them (Deborah, 2010). For example, they can put the food waste and leftovers into a separate can in order that it can be collected. 
    5.0 Recommendations and conclusions
    Food and beverage management in hotel management  代写
    This essay mainly talks about the introduction of the “all you can eat strategy” in a licensed, a la carte restaurant, and due to its previously bad business performance. With the introduction of the new strategy, food cost percentage will go up and labor cost will also go up. However, it may introduce more consumers on weekends. Therefore, the restaurant may well see a rise in profitability in the future.
    However, the strategy in this essay mainly concentrates on the performance and profitability of the restaurant. In the future, there may be more environmental factors should be considered in the food and beverage industry. Especially in this case, a lot of waste and leftovers will incur as a result of the “all you can eat strategy”.
    6.0 Reference
    Food and beverage management in hotel management  代写
    Clement, O. M.(2009). Practical Food & Beverage Cost Control. DELMAR CENGAGE Learning.vol. 145, no. 23, pp. 56-75.
    Davis, B., Lockwood, A., Pantelidis, I., & Alcott. P. M. (2008), Food and Beverage Management. London: Eprints, brighton.ac.uk.
    Deborah, C.M. (2010). Food Waste. New York: Rosen Publishing Group Inc.
    Douglas, R.B.M. (2003). Controlling Restaurant and Food Service Food Costs. New York: Atlantic Publishing Group. Inc.
     Food and beverage management in hotel management  代写
    Lea, R.D, & David.K.H.M. (2010). Food and Beverage Cost Control. New York: John Wiley & Sons, Inc.