Food and Beverage
Managing Food & Beverage
Operations in a Hotel
Food Service outlets include:
 Restaurants
 Lounges
 Banquet and catering
 Room service
Managing Food & beverage
Operations in a hotel
 A large hotel should ensure that F&B units in the
same hotel do not compete directly with each
 Units must be diverse to give different segments of
the market a choice.
 F&B services should be treated as important
revenue generator for the hotel.
 However, some hotels may decide not to have any
F&B operations but lease out spaces to outside
companies to run F&B services.
Food service personnel
 An executive chef is responsible for management
related to the food production activities.
 In a large hotel, he may actually perform little in
the line of food production.
 In a small restaurant, he may be part owner and
performs most of the food related function.
 Other position in the kitchen:
Sous chef
Pastry chef
Banquet chef
Assistant chef
Dining Room personnel
 Depending on the complexity, the positions
may be:
 Maitre d (host / hostess)
 Greets and supervises waitering staff
 Captains
 Servers (waiter / waitress)
 Cashiers
 Bartenders
 Cocktail servers
Similarities: Hotel & Restaurant Foodservices
Planning issues
Plan by focus on menu
Menu focus on guests’ wants,
needs & preferences
Menu impacts operational factors
- layout / equipment
- labor for production, service &
- F&B products for purchase
Emphasis on consumers
Marketing concerns
Repeat business important to
financial success
Financial concerns
All foodservice operations must
assess financial status
- Operating budget
- income statement / balance
sheet / cash flow statement
Cost control procedures
Necessity for standard
operating procedures
- Purchasing / receiving / storing
/ issuing / pre-preparation /
preparation / serving / service
Standard Operating Procedures: Cycle of F&B Product
Step 1: Purchasing
Step 2: Receiving
Step 3: Storing
Step 4: Issuing
Step 5: Pre-Preparation
Step 6: Preparation
Step 7: Serving
Step 8: Service
Cycle of F&B Product Control (continued…)
Step 1:
Step 2:
Develop purchase specification
Supplier selection
Purchasing correct quantities
No collusion between property and supplier
Evaluation of purchasing process
Development of receiving procedures
Completion of necessary receiving reports (e.g.,
addressing financial and security concerns)
Step 3:
Effective use of perpetual & physical inventory systems
Control of product quality
Securing products from theft
Location of products within storage areas
Step 4:
Product rotation concerns
Matching issues (issue & usage)
Purchasing as inventory is depleted
Cycle of F&B Product Control (continued…)
Step 5:
Step 6:
Minimizing food waste / maximizing nutrient retention
Use of standardized recipes
Use of portion control
Requirements for food and employee safety
Step 7:
Timing of incoming F&B orders
Portion control
Revenue management concerns
Step 8:
Revenue control concerns
Serving alcoholic beverage responsibly
Sanitation and cleanliness
F&B server productivity
Personnel Requirement Similarities:
Hotel & Restaurant Foodservices
Practice of empowerment
Transferring some decision-making
responsibility and power to front-line
Enhancing service to guests and
increasing profits for the organization
To meet unanticipated guest needs effectively
Staff must be trained in standardized procedures.
Managers must provide clear direction to employees.
Managers must provide necessary resources.
Profitability Differences:
Hotel & Restaurant Foodservices
Profitability = Revenue - Expenses
Profit amounts generated by restaurant F & B is relatively
easy to calculate.
The process of allocating revenues and expenses
applicable to F & B services in a hotel is more difficult.
Costs of F & B sales is generally higher in a restaurant
than in hotel.
Hotel’s “bottom line” profit from F & B sales is likely to be
lower than a restaurant’s.
Payroll costs (or fixed labor costs) are higher than in a
Marketing-related Differences:
Hotel & Restaurant Foodservices
Location within
the community
Restaurants: locations easily accessible
to potential guests
Hotels: locations most accessible to guests
desiring lodging accommodations
Location within
a hotel
Restaurants: locations easily accessible
to potential guests
Hotels: locations most accessible to guests
desiring lodging accommodations
For hotels, F& B service is viewed as an
amenity or secondary
(sale of guestrooms is primary objective)
Room Service Operations:
Profitability Concerns
Relatively few properties generate profits from room service
Why lose
How to
offset losses?
Very high labor costs
High expenses incurred for capital costs
- delivery carts / warming devices
Service to guests
- some guests select hotels based on room service availability
Impacts hotel rating
High expenses incurred for capital costs
- Delivery
/ warming devices
Offer hospitality
Provide hosted events
Room Service Operations:
Menu Planning Factors
Less likely to oversee room service food quality
Must offer products maintaining quality during
holding and transportation to guest room
(example: problems with omelet & French fries)
Advertising availability of other hotel services
- dinner menu providing info about Sunday brunch
Language barriers for international guests
- uses of pictures and multi-lingual menu descriptions
Clearly state ordering-requirements
- minimum order charges / mandatory tipping policies
Room Service Operations: Operating Issues
An inaccurate room service order cannot be corrected quickly.
A minor problem in room service may impact guest’s perceptions about the
entire lodging experience.
Guest placing order / order taker / room service productionservice staff / room service staff
Abbreviations should be clearly understood by order taker
and food production staff
Improving the accuracy of room service orders
- electronic cash register (ECR) / point-of-sale terminal /
remote printer
Opportunities for upselling are overlooked
Upselling increases guest check average
Room Service Operations: Within-Room Service
Training issues for room service attendants
Explaining procedures to retrieve room service items
Asking guests where room service meal should be set up
Presenting guest check and securing payment
Opening wine bottles (where applicable)
Providing an attitude of genuine hospitality
Banquet Operations: Profit Opportunities
Well-planned banquets can be profitable!
Banquet menu has higher contribution margin.
- banquets frequently celebrate special events
Forecasting & planning production, service and labor are
relatively easy.
- formal guarantee is made
- less likelihood of overproduction of food with subsequent waste
Beverage sales from hosted or cash bars increase profit.
- capable of increasing alcoholic beverage sales
Increasing market share of the
community’s banquet business
Increasing property’s
Banquet Operations: Menu Planning
Factors / concerns for planning banquet menus
Guest preferences
Ability to deliver desired quality products
Availability of ingredients required to produce the menu
Production / service staff with appropriate skills
Equipment / layout / facility design issues
Nutrition issues
Sanitation issues
Peak volume production / operating concerns
Ability to generate required profit levels
Banquet Operations: Service Styles
Butler service
Appetizers and pre-poured champagnes can be served by
service staff at a reception while guests stand.
Buffet service
Quantities of food are pre-arranged on a self-service line;
guests pass along the line and help themselves
Family style
(English style)
Platters and bowls of food are filled in the kitchen and
brought to guests’ tables
French service
Meals are prepared or finished at tableside by service staff:
(e.g., tossing Caesar salad / flambéing entrée)
Platter service
Production staff plate food in the kitchen; service staff bring it
to the table to place individual portions on guests’ plates
Plated service
(American service)
Production staff pre-portion food on plates in kitchen; service
staff serve to guests
Banquet Operations: Beverage Functions
Various ways to charge for beverage
drink price
Bottle charge
Collecting cash or a ticket when each drink is sold
Charging on a by-bottle basis for each bottle consumed /
Charging a specific price for beverages based on attendance
at the event
Hourly charge
Charging the host a specific price for each hour of beverage
Specific perevent charge
Using hours of beverage service;
charging number of drinks / hour X number of guests
Alcoholic Beverage Service in Hotels
Good training protects guests, public and hotel
from tragedies and lawsuits
Responsible service & consumption of alcoholic beverage is an
integral part of the responsibility of all F & B managers in all
types of operations.
Train for all staff in the hotel (i.e. including non-F&B positions,
e.g. front desk, housekeeping, maintenance and/or security
staff ) to recognize and respond to visible signs of guests’ (nonguests’) intoxication.
Develop and implement ongoing training for responsible service
of alcoholic beverages.

Chapter 8: The Food and Beverage Department