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Accommodation versus FoodServices OperationsHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Plan by focus on menuMenu impacts operational factorsMenu focus on guests’ wants,needs & preferences– layout / equipment– labor for production, service &clean-up– F&B products for purchaseMarketing concernsRepeat business important tofinancial successPlanning issuesSimilarities: Hotel & Restaurant FoodservicesAll foodservice operations mustassess financial status– Operating budget– income statement / balancesheet / cash flow statementNecessity for standardoperating procedures– Purchasing / receiving / storing/ issuing / pre-preparation /preparation / serving / serviceEmphasis on consumersFinancial concernsCost control proceduresHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Standard Operating Procedures: Cycle of F&B ProductControl Step 1: Purchasing Step 2: Receiving Step 3: StoringStep 4: Issuing Step 5: Pre-Preparation Step 6: PreparationStep 7: Serving Step 8: ServiceHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Cycle of F&B Product Control (continued…) Effective use of perpetual & physical inventory systemsControl of product qualitySecuring products from theftLocation of products within storage areas Step 4:Issuing Product rotation concernsMatching issues (issue & usage)Purchasing as inventory is depleted Development of receiving proceduresCompletion of necessary receiving reports (e.g.,addressing financial and security concerns) Develop purchase specificationSupplier selectionPurchasing correct quantitiesNo collusion between property and supplierEvaluation of purchasing process Step 1:PurchasingStep 2:ReceivingStep 3:StoringHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Step 8:ServiceCycle of F&B Product Control (continued…) Mise-en-placeMinimizing food waste / maximizing nutrient retention Use of standardized recipesUse of portion controlRequirements for food and employee safety Timing of incoming F&B ordersPortion controlRevenue management concerns Revenue control concernsServing alcoholic beverage responsiblySanitation and cleanlinessF&B server productivity Step 5:Pre-PreparationStep 6:PreparationStep 7:ServingHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Transferring some decision-makingresponsibility and power to front-lineemployeesEnhancing service to guests andincreasing profits for the organizationPersonnel Requirement Similarities:Hotel & Restaurant FoodservicesPractice of empowermentStaff must be trained in standardized procedures.Managers must provide clear direction to employees.Managers must provide necessary resources.To meet unanticipated guest needs effectivelyHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Profitability = Revenue – ExpensesProfitability Differences:Hotel & Restaurant FoodservicesHotel’s “bottom line” profit from F & B sales is likely to belower than a restaurant’s.Profit amounts generated by restaurant F & B is relativelyeasy to calculate.The process of allocating revenues and expensesapplicable to F & B services in a hotel is more difficult.Costs of F & B sales is generally higher in a restaurantthan in hotel.Payroll costs (or fixed labor costs) are higher than in arestaurant.Hotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Marketing-related Differences:Hotel & Restaurant FoodservicesRestaurants: locations easily accessibleto potential guestsHotels: locations most accessible to guestsdesiring lodging accommodationsRestaurants: locations easily accessibleto potential guestsHotels: locations most accessible to guestsdesiring lodging accommodationsFor hotels, F& B service is viewed as anamenity or secondary(sale of guestrooms is primary objective)Location withinthe communityLocation withina hotelMenuHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Room Service Operations:Profitability ConcernsWhy losemoney?Relatively few properties generate profits from room serviceVery high labor costsHigh expenses incurred for capital costs– delivery carts / warming devicesWhyoffered?How tooffset losses?High expenses incurred for capital costsOffer hospitality suite business – Delivery carts / warming devicesProvide hosted eventsService to guestsImpacts hotel rating– some guests select hotels based on room service availabilityHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Room Service Operations:Menu Planning FactorsQualityConcernsCrossSellingMenuLanguageAdvertising availability of other hotel services– dinner menu providing info about Sunday brunchLess likely to oversee room service food qualityMust offer products maintaining quality duringholding and transportation to guest room(example: problems with omelet & French fries)Language barriers for international guests– uses of pictures and multi-lingual menu descriptionsClearly state ordering-requirements– minimum order charges / mandatory tipping policiesHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Room Service Operations: Operating IssuesAn inaccurate room service order cannot be corrected quickly.A minor problem in room service may impact guest’s perceptions about theentire lodging experience.CommunicationGuest placing order / order taker / room service productionservice staff / room service staffAbbreviations should be clearly understood by order takerand food production staffTechnologyImproving the accuracy of room service orders– electronic cash register (ECR) / point-of-sale terminal /remote printerUpsellingTechniqueOpportunities for upselling are overlookedUpselling increases guest check averageHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Training issues for room service attendantsRoom Service Operations: Within-Room ServicePresenting guest check and securing paymentOpening wine bottles (where applicable)Providing an attitude of genuine hospitalityExplaining procedures to retrieve room service itemsAsking guests where room service meal should be set upHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Well-planned banquets can be profitable!Banquet Operations: Profit OpportunitiesBanquet menu has higher contribution margin.– banquets frequently celebrate special eventsForecasting & planning production, service and labor arerelatively easy.– formal guarantee is made– less likelihood of overproduction of food with subsequent wasteBeverage sales from hosted or cash bars increase profit.– capable of increasing alcoholic beverage salesIncreasing market share of thecommunity’s banquet businessIncreasing property’sprofitabilityHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Factors / concerns for planning banquet menusBanquet Operations: Menu Planning Guest preferencesAbility to deliver desired quality products Availability of ingredients required to produce the menu Production / service staff with appropriate skillsEquipment / layout / facility design issuesNutrition issues Sanitation issues Peak volume production / operating concernsAbility to generate required profit levels Hotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Butler service Appetizers and pre-poured champagnes can be served byservice staff at a reception while guests stand.Banquet Operations: Service StylesBuffet service Quantities of food are pre-arranged on a self-service line;guests pass along the line and help themselvesFamily style(English style)Platters and bowls of food are filled in the kitchen andbrought to guests’ tablesFrench 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 itto the table to place individual portions on guests’ platesPlated service(American service)Production staff pre-portion food on plates in kitchen; servicestaff serve to guestsHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Individualdrink price Collecting cash or a ticket when each drink is soldBanquet Operations: Beverage FunctionsBottle charge Charging on a by-bottle basis for each bottle consumed /openedPer-personchargeCharging a specific price for beverages based on attendanceat the eventCharging the host a specific price for each hour of beverageserviceUsing hours of beverage service;charging number of drinks / hour X number of guestsVarious ways to charge for beverageHourly chargeSpecific perevent chargeHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Size TimingTwocriticalconcernsBanquet Operations: Banquet Room Set-UpDetermined by :number of expected guestslocal fire safety codes /ordinancestypes and sizes of tables,chairs, other equipmentnumber of seats per tablerequired space for aisles, dancefloors, band stands, otherentertainment, head tables, etc.reception / buffet tablesBecomes critical when:the same room to be usedsame day for differentfunctionswhen large evening eventprecedes following day’slarge breakfast event insame roomHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Last date that banquet space will be held without signed contractBanquet Operations:Banquet Contracts & Billing PoliciesTopics in banquet contractTime by when a guarantee of attendance must be receivedCancellation policiesGuarantee reduction policyBilling: amount & schedule for guest paymentInformation about service of alcoholic beveragesOther information applicable to specific eventHotel Operations Management, 1/e ©2004 Pearson EducationHayes/Ninemeier Pearson Prentice HallUpper Saddle River, NJ 07458Responsible service & consumption of alcoholic beverage is anintegral part of the responsibility of all F & B managers in alltypes of operations.Alcoholic Beverage Service in HotelsTrain for all staff in the hotel (i.e. including non-F&B positions,e.g. front desk, housekeeping, maintenance and/or securitystaff ) to recognize and respond to visible signs of guests’ (nonguests’) intoxication.Develop and implement ongoing training for responsible serviceof alcoholic beverages.Good training protects guests, public and hotelfrom tragedies and lawsuits

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