FOOD AND BEVERAGE SERVICE OPERATIONS

MODULE 1
I. INTRODUCTION TO FOOD AND BEVERAGE OPERATIONS

II. Content Summary :

This module deals with the knowledge about food and beverage industry, its service and
operation. Organizational structure of large and small food and beverage establishment will be
discussed. Job duties or service personnel will be introduced to the students as well. Most
common terminologies used in food and beverage operation will be defined for better
understanding of the industry.

III. Learning Outcomes:

At the end of the module the student should be able to:
1. Discuss the nature of food and beverage industry.
2. Create organizational structure of a small restaurant / food and beverage
establishment.
3. Artiulate job duties of service personnel
4. Define common terminologies used in food and beverage operation.

IV. Lecture Notes:

Restaurant and Food Service Industry

Overview
The restaurant and food service industry is an $899 billion industry in the United States.
Restaurants and other food-service providers are so widespread that half of all adults have worked in
food service in one way or another at some point in their lives. The food service industry encompasses
any establishment that serves food to people outside their home. This includes restaurants, carryout
operations, cafeterias, university dining halls, catering and vending companies, hotels and inns, and
rehab and retirement centers.
 This industry is divided into two groups: Those that prepare and serve food and those that
produce and distribute food, equipment, and services needed by food providers. The most common
example of the first group is restaurants. Restaurants employ front of the house people and back of
the house people. The former includes bartenders, wait staff, hosts, and busboys. The latter includes
chefs, cooks, managers, and dishwashers. Fast food restaurants limit their staff to food preparation
people, managers, and cashiers. The trend of food trucks adds a mobile component to food service
and requires just a few people to drive the truck, cook the food, and serve it through a window.

Examples of the second group, producers and distributors of food, equipment, and services,
include equipment suppliers and food and beverage suppliers.
Equipment suppliers are an example of a segment of the food service
industry that does not deal directly with food. Salespeople inform
owners and managers of the latest supplies and appliances. Food
suppliers may represent a farm
or a food production
corporation. Their salespeople
try to convince restaurants to
use their products.
Representatives from wineries and liquor companies work with
restaurant chefs and bartenders to use their products in the
restaurant.

Americans' increasingly hectic lifestyles make cooking at home a

challenge, so the restaurant and food industry enjoys steady
growth. U.S. restaurants employ approximately 15.6 million
workers., and the National Restaurant Association projects that
1.6 million new restaurant jobs will be created by 2030. The
National Restaurant Association also expects industry sales of
more than $899 billion for 2020. These numbers suggests steady
employment for workers. However, the coronavirus pandemic
has disrupted current growth in the industry due to the forced
closing of restaurants and subsequent loss of sales and jobs. The
long-term outlook for restaurants and food services is yet to be
determined. It should also be noted that the food industry is tied to the economy. When the economy
drops, people tend to cut back on what they perceive as luxuries, which can include dining out. In
addition, this industry can be tumultuous, with restaurants opening and closing frequently.

https://www.vault.com/industries-professions/industries/restaurants-and-food-services

Food Service Industry in the Philippines

Market Overview
The Philippines foodservice market is expected to witness a CAGR of 4.67% during the forecast
period, 2021 - 2026.

After the advent of COVID-19, the foodservice sector was majorly hit by the strict lockdown
measures introduced in the Philippines to limit the spread of the virus. However, in June 2020,
eateries in the capital Manila that can meet government safety protocols were allowed to reopen at
30% of their seating capacity, with strict hygiene and social distancing measures being a must. These
measures were taken to improve the economy, which was foreseeing the downfall after the
imposition of strict lockdown measures in the country.
 The foodservice market in the Philippines is highly driven by the rise in value-conscious
consumers willing to try new restaurants with a wide range of menu options, including interesting
international and local cuisines, which also cater to increasingly busy lifestyles.

As per the data published by the United Nations, the average age of the population in the
Philippines in 2015 was 24.1 years, and in 2020, it was expected to be 25.2 years. The majority of its
population comprises millennials and they are known to be the biggest spenders. Due to this, most
foodservice players focus on attracting this consumer group in the country.

Independent restaurants in the Philippines foodservice

market are rapidly growing, which is expected to increase the
number of foodservice establishments. The Philippines foodservice
market has a strong preference for US food chain brands. Chained
restaurants are expanding their presence in developing countries
like the Philippines to gain higher margins.

Scope of the Report

Foodservice defines those businesses, institutions, and companies responsible for any meal
prepared outside the home. The Philippines foodservice market is segmented by type and structure.
By type, the market is segmented into full-service restaurants, self-service restaurants, quick-service
restaurants, street stalls and kiosks, cafes and bars, and 100% home delivery restaurants. By structure,
the market is segmented into independent and chained. For each segment, the market sizing and
forecasts have been done on the basis of value (in USD million).

Full-service Restaurants
Self-service Restaurants
By Type
Quick-service Restaurants
Street Stalls and Kiosks
Cafes and Bars
100% Home Delivery Restaurants

Structure
Chained Restaurants
Independent Restaurants
https://www.mordorintelligence.com/industry-reports/philippines-foodservice-market

Food and Beverage Department Personnel and their Duties

Introduction:

The success of a food and beverage service operation depends on the way it is organized to
achieve its goals.
Organization of the Food and Beverage Department

Food and beverage service among hotels, restaurants and food outlets are handled by the
Food and Beverage Department, under the command responsibility of the Food and Beverage
Manager. When there are voluminous and complex operations, there may be a need for further
division of labor that require a creation of sub-units which will be supervised by supervisors or section
heads. Among the sub-units are:

1. Bars - headed by the Bar supervisor or bar captain

2. Food Outlets - supervised by outlet supervisors
3. Room Service - under the responsibility of the room service
supervisor or captain
4. Banquet service - (both for in house function and catering) –
under the Supervision of the Banquet supervisor.

An organization then establishes a structure. An organization structure is a framework that

establishes the relationship between job positions as well as establishes the channel of
communication. Such structures are explained graphically in an organizational chart.

The flow of authority and chain of command is usually illustrated as follows:

ORGANIZATIONAL CHART –Food and Beverage Department

Food and
Beverage
Director or
Manager

Outlet Room Bar Banquet

Manager Service Manager Manager
or Manager/S or
Superviso upervisor Supervisorr

Captain Room Bar Captain Banquet

Waiter Service Captain
Captain

Waiters Room Bartender Banquet

Service Waiters
Order
Taker

Busboys Room Bar Banquet

Service Attendants Receptioni
Waiter sts/attend
ants

Bar Boys
For smaller, less complex establishment, a division of labor is simpler

Food and Beverage

Manager or Supervisor

Captain Waiter Bar Captain

Waiter Bartender

Food Attendant Barboy

Busboy

Food Attendant

The organizational set-up of the Food and Beverage Department varies depending on
the size of the food outlets, the seating capacity as well as the complexity of the operation.
An organization then establishes a structure. An organization structure is a framework that
establishes the relationship between job positions as well as establishes the channel of
communication. Such structures are explained graphically in an organizational chart.

FOOD AND BEVERAGE MANAGER

- oversees food and beverage operations in his assigned outlet; ensures that service is
carried out in accordance with prescribed standards and policies.
STATION/CAPTAIN WAITER
- oversees the set-up and delivery of service in his/her area.
RECEPTIONIST
- welcomes and greets customers at the entrance and escorts them to their tables.

WAITER
- takes and serves food and beverage order according
to prescribed standards of service.

BUSBOY
- dining room helper and runner.
BARTENDER
- prepares alcohol and cocktail drink orders according
to prescribed standards.
BARISTA
- is someone who makes and/or serves coffee and coffee-based beverages. These can
include espresso and drinks made from espresso such as lattes, cappuccino and iced coffee
beverages.

OUTLET CASHIER
- prepares and attends to settlement of customer’s bill.

- CBLM 1

Learning Activities:
1. After reading and understanding this module, answer Quiz 1 in your LMS.
2. Answer the assignment and submit it thru LMS on the given deadline.
3. Work with your project and present it to your teacher on the given date. (with
documentation)
Resources :
CBLM
https://www.vault.com/industries-professions/industries/restaurants-and-food-services
https://www.mordorintelligence.com/industry-reports/philippines-foodservice-market