Food and Beverage

Management
fifth edition
Chapter 1
Food and Beverage Operations and
Management
© 2019 Cousins et al: Food and Beverage Management, 5th edition, Goodfellow Publishers
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
Interrelations
hip 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 © 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