UNIT 1

FOOD & BEVERAGE MANAGEMENT INTRODUCTION

The operations and management principles and procedures involved in an effective food and
beverage control system are conveyed fully in this module. It provides an in-depth insight
into the operating budget, menu management, menu pricing, purchasing and supplier
selection, cost-volume profit analysis, labour cost-control, computer applications and the
successful management of service quality standardisation. This module is considerably
supported by the Industrial Placement Stage.

AIMS To provide students with a full understanding and appreciation of : -

How to analyse and apply the controls needed to manage a successful food and beverages
operation - National and international food and beverage management developments - The
key factors involved in food and beverage preparation including health and hygiene issues -
Legislation regarding the preparation, storage and sale of food and beverages - The
importance of budget standards in planning and control, and apply costs volume-profit
analysis to food and beverage operations - The principles and procedures in controlling the
purchasing and receiving process and recognise the particular requirement for quality in all
stages - The importance of the menu as both a control tool and a marketing tool - The use of
computer applications which manage and control the food and beverage operations

BEVERAGE MANAGEMENT DEFINED

In short, beverage management addresses the proper management of beverages within a

hospitality operation, and its goal is to optimize revenue through proper purchasing and
inventory processes, and to enhance the operation through menu development and product
selection.

What is Beverage Management?

The role of a beverage manager is to do inventory and handle the purchasing of supplies and
ingredients for making each drink on the restaurant’s menu. They will likely also handle the
changing and updating of the drink menu when trends fade and new ones are popularized.
This job has taken on a more important role within the industry with the growth of specialty
beverages.
With more drink offerings than sodas, coffee, and fruit juices, you will need many more
ingredients in your inventory to account for specialty drinks. Things like flavored or blended
coffee drinks, herbal teas and lattes, and unique cocktails could all be new additions to your
drink menu that are cause for more ingredients.

A beverage manager’s job will be to ensure that the restaurant does not run out of any of the
top-selling drink ingredients and ensure that customers have the options that they’re looking
for. They will also make special drink pairings for certain dishes that will complement the
flavors of the beverage.

THE HOSPITALITY INDUSTRY AND INVENTORY:-

The hospitality industry is a broad category of fields within the service industry that
includes lodging, food and drink service, event planning, theme parks, travel and
tourism. It includes hotels, tourism agencies, restaurants and bars.

For many, the hospitality industry holds a certain glamour and sophistication. This is partly
due to the image most hotels choose, refine, and project to the public. Much of this image is
created through architecture and design. Yet a building is really only bricks, mortar, steel,
glass and furnishing. The property‘s architecture and style may be important in setting the
theme, but other factors are also important in differentiating one hotel from another. These
factors can include the property location, variety and quality of food service, special features
and amenities, and perhaps most important, a staff that puts all of this together with service to
create the overall image and competitive position.

The hospitality industry is part of a larger enterprise known as the travel and tourism
industry. The travel and tourism industry is vast group of businesses with one goal in
common: providing necessary or desired products and services to travelers. Hospitality can
be termed as a deliberate, planned and sustained effort to establish and maintain mutual
understanding between an organization and the public i.e., the business of making and
keeping friends, and promoting an atmosphere of better understanding. As per the Oxford
Dictionary Hospitality is defined as: ‗Reception and entertainment of guest, visitors or
strangers with liberality and goodwill.‘ The word hospitality is derived from the Latin word
―Hospitalitias‖ The travel and tourism industry can be segregated into five main parts and
further it shows the various sub components of each part. The hospitality industry consist of
 lodging and food and beverage operations – plus institutional food and beverage services
which do not cater to the traveling public. Lodging operations stand apart from other travel
and tourism businesses since they offer overnight accommodations to their guests. Many
lodging properties provide food and beverage service, recreational activities and more

HOSPITALITY INDUSTRY PRODUCTS:-

There are four segments of the hospitality industry: Food and beverages, Travel and Tourism,
lodging, and recreation.

 Food and Beverages. The food and beverage sector which is professionally known by its
initials as F&B is the largest segment of the hospitality industry. ...
 Travel and Tourism. ...
 Lodging. ...
 Recreation.

FOOD & BEVERAGE:-

The food and beverages industry is all companies involved in processing raw food materials,
packaging, and distributing them. This includes fresh, prepared foods as well as packaged
foods, and alcoholic and nonalcoholic beverages.

TRAVEL AND TOURISM::-

Although travel and tourism are two words that are always used together, each of these words
has specific meanings. Travel refers to the activity of going on a long journey. Tourism also
refers to travel, but there is a specific purpose in tourism. It refers to traveling to a place for
pleasure

Tourism is travel for pleasure or business; also the theory and practice of touring,

the business of attracting, accommodating, and entertaining tourists, and the business of
operating tours.[2] The World Tourism Organization defines tourism more generally, in terms
which go "beyond the common perception of tourism as being limited to holiday activity
only", as people "traveling to and staying in places outside their usual environment for not
more than one consecutive year for leisure and not less than 24 hours, business and other
purposes".Tourism can be domestic (within the traveller's own country) or international, and
international tourism has both incoming and outgoing implications on a country's balance of
payments.

LODGING:-

Lodging refers to the use of a short-term dwelling, usually by renting the living space or

sometimes through some other arrangement. People who travel and stay away from home for
more than a day need lodging for sleep, rest, food, safety, shelter from cold temperatures or
rain, storage of luggage and access to common household functions.[1] Lodging is a form of
the sharing economy.
Lodging is done in a hotel, motel, hostel, inn or hostal, a private home (commercial, i.e. a bed
and breakfast, a guest house, a vacation rental, or non-commercially, as in
certain homestays or in the home of friends), in a tent, caravan/campervan (often on
a campsite). Lodgings may be self-catering, whereby no food is provided, but cooking
facilities are available.
Lodging is offered by an owner of real property or a leasehold estate, including the hotel
industry, hospitality industry, real estate investment trusts, and owner-occupancy houses.

RECREATION:-

Recreation is an activity of leisure, leisure being discretionary time. The "need to do

something for recreation" is an essential element of human biology and psychology.
Recreational activities are often done for enjoyment, amusement, or pleasure and are
considered to be "fun"