Introduction to Food and Beverage

Management

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F&B industry
What's the main aim of the F&B Industry?

(brainstorm 3 word answer)

Achieve Customer Satisfaction.

The needs that customer might be seeking to satisfy are:

Physiological: the need of special food items

Economic: the need for good value for the price paid (value for
money)
Social: a friendly atmosphere

Convenience : the desire for someone else to do the work

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The food service operation/cycle (key)
(a) Consumer
and market
(h) Monitoring
(b) Formulation
of consumer
of policy
satisfaction

The foodservice cycle can be

(g) Control of used as a basis to analyze how (c)
costs and Interpretation
revenues
different foodservice of demand
operations work.

(d) Planning
(f) Production
and design of
and service
facilities

(e) Provisioning

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• Next, we will describe each phase of the food service operation cycle.
• Match each phase to a definition.
• Circle any new vocabulary (WS)

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 (a) Consumer and • (eg) Target the consumer needs and market potential.
market

• Knowledge of the operational and management requirements for the food

(b) Formulation of
production. Together with the management and staffing needs in order to meet the
policy requirement of the operation.

(c) Interpretation of
• ……….. required for the food and beverage operations and the plant and equipment
demand
required.

(d) Planning and • ……….. to continually check on the extent to which the operation is meeting
design of facilities customer needs and achieving customer satisfaction.

(e) Provisioning • ……….. for food and beverage and other purchasing requirements to meet the needs
of the food production, beverage provision and the service methods being used.

(f) Production and • ……….. and design of facilities required for the food and beverage operations and
service the plant, equipment required.

(g) Control of costs

and revenues • ……….. : guide the choice of operational methods that will be used.

(h) Monitoring of • ……….. such as labor and overheads, associated with the operation of food
consumer satisfaction production, beverage provision and other services, and the control or revenue.
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What are some sectors of the food
service industry? (WS)
(eg)

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Sectors of the food service industry
(key)

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 Sectors of the food service industry.
(WS)
Sector Description of the food service operation

1. Hotel, motel and (eg) Provision of food and drink together with
other tourist accommodation service
accommodation

2. Restaurants Provision of food and drink, generally at ….

including conventional price with …..levels of service
and specialist
operations
3. Popular catering Provision of food and drink generally at ……
including cafés, pizza,
grills and steak house

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 Sectors of the food service industry
(key)
Industry sector Description of the foodservice operation

1. Hotel, motel and Provision of food and drink together with

other tourist accommodation service
accommodation

2. Restaurants Provision of food and drink, generally at high price

including conventional with high levels of service
and specialist
operations
3. Popular catering Provision of food and drink generally at low/ medium
including cafés, pizza, price with limited levels of service and often high
grills and steak house customer throughput

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 Sectors of the foodservice industry.
(WS)
Industry sector Description of the foodservice operation

4. Fast food including Provision of and drink in a highly specialized

McDonalds and Burger …., characterized by …labor costs and vast
King, KFC etc. customer ….

5. Takeaway including ….. provision of food and drink

ethnic, snacks, fish and
chips, sandwich bars

6. Outdoor catering Provision of food and drink away …..;

(ODC) suppliers usually associated with …
(or ‘off-premises
catering’ or ‘event
catering’)
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 Sectors of the food service industry
(key)
Industry sector Description of the foodservice operation

4. Fast food including Provision of and drink in highly specialized

McDonalds and Burger environment, characterized by low labor costs
King, KFC etc. and vast customer throughput

5.Takeaway including Fast provision of food and drink

ethnic, snacks, fish and
chips, sandwich bars

6. Outdoor catering Provision of food and drink away from home /

(ODC) work; suppliers usually associated with a major
(or ‘off-premises event.
catering’ or ‘event
catering’)

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Classification of F&B Industry

• The size & scope of the industry creates a challenge when

attempting to organize & classify it.
• Therefore classification is extremely diverse & fragmented

Complete the classification diagram on the next slide (WS)

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Classification of food and beverage
operations (WS)

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Classification of food and beverage
operations (key)

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Ownership of F&B operations

Management
options

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Self-operated
• The owner or organization manages the operation
themselves.

Franchise agreement
• ‘With a franchise, the franchisee (the owner of the
facility) pays fees to the franchisor (or franchise
company) in exchange for the right to use the name,
building design, and business methods of the franchisor.
Furthermore, the franchisee must agree to maintain the
franchisor’s business & quality standards’.

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Management contracting
• When an owner or operator of an establishment employs or
contracts specialized hospitality or food & beverage service
company to manage the whole or part of the operation. This
could be in a non-commercial institution, for example a
university cafeteria or work canteen.

Outsourcing
• Increasingly, hotels are realizing that hotel-run restaurants are in
some cases unprofitable due to many residents opting to dine at
known branded outlets.
• Therefore, a new & emerging trend is where the hotel forms a
partnership with a restaurant/coffee chain/bar brand that would
operate from a designated area within the hotel.
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