Food and Beverage Operations Management

Introduction to Food And Beverage Management

For each and every firm operating in hospitality industry, it is compulsory to manage all activities which are related with food and beverages in a proper manner. Management has to show more concern on this aspect because it is the only thing through which they can satisfy their number of customers. Hence, it is the moral duty of an organisation to look on this aspect and take care about this factor. The present assignment is based on food, beverages and operation management of Valentine Park that wants to arrange a summer fair. This report includes all such factors which are helpful in arranging this event which includes various number of factors which can affect the menu card and different recipes according to users. Also, there is discussion on the way organisation can use their financial statement in this program so that they can manage each and every activity .

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Financial system used in operations of food and beverage

Financial management and control is an important aspect of every event or operation. Students involve in conducting the fair need to give proper consideration on various financial statements used. Following are the important statements which involve in a food and beverage event:

  • Price list of food and beverage items: This helps in deciding or calculating the price of food offered to people. This can be calculated by adding all cost involve in main the final dish and than add a percentage of profit in that. Price of food product is an important element as it helps in generating profit (Mok, Sparks and Kadampully, 2013) . Price should not be too high because customers or people come in the fair will not buy the product. In case of price is very low, in this situation students involved in conducting the fair will fail to generate profits.
  • Cost statements: This is another statement involved in food and beverage programme. In this all cost is divided in categories direct and indirect cost.
  • Sales record: This record contain important information about the customers for example their address, contact number, method they use top pay for the product etc.
  • Statements of various operations: This statement include other miscellaneous expenses occur while making the final food product.
  • Variance analysis: It helps in calculating the difference occur between standard budget and actual budget. This helps managers in managing and controlling the cost of future operations.
  • Students involve in conducting the activities of fair need to give consideration on following costs:
  • Food cost: This cost is associate with with making the final food products.
  • Beverage cost: It consists expenses involve in producing the drinks or beverages.
  • Overhead cost: This involve rent, lighting and cost of utilities.
  • Labour cost: Salary given to employees for making the product.

Main advantage of using financial statements is that it helps in calculating the profit of overall programme(Brotherton,ed., 2012) . This helps in providing useful information and provide useful information to management for taking effective and useful decisions. Students can use various financial statements this will help them in conducting activities with ease and they can generate larger number of profit.

Pricing and cost process

Process of purchasing

Purchasing is process of search, evaluate, select, purchase, store and use of a product or service. In food and beverage industry purchasing of product is not the only responsibility of buyer but his duties include receive, store and handling all issues by giving proper consideration on all factors.

Purchasing is a process of buying goods and service which is start from the demand of the customers in marketplace. It is an essential element of business organization which assist in balancing inventory (Vogel, Papathanassis and Wolber, 2012) . In every business it is required that a proper balance should be maintain between inventory in investment for which business control cycle will be used and the most important element in it is purchasing function. Inventory control is important which is implement in food and beverage operation. Purchasing process regarding the food and beverage it is important that supplier is more essential role to attain success in marketplace. It is simple to purchase a specific beverages rather then buying any food stuff. Brand name play crucial role in sale of beverage as they have fixed quality and quantity. In purchase process the whole information of the food and beverage is necessary include which show the product price, and quantity also. A best suppliers can easily mentioned the entire information of the food stuff which is easily buying by the customers. Specification of purchase process define the quality, size, weight and quantity of the product . To identify the process of purchasing of food and beverage define the supplier name, contact information and company name to maintain the systematic environment in company and marketplace to increase the profitability. Basically purchasing process is starts with need of the customers for the particular product. It include two parties to purchase the products which is buyer and suppliers. Purchasing process define some steps which show the whole process of buying and selling the product and service: Identifying need (product description and specification), Sourcing (supplier selection and pricing), Establishing sale contract (agreement on sale terms and conditions), Delivering (inspection and acceptance) and Requesting payment (issuance of commercial invoice). It can show the need of the product purchase and select the specific product according t0o the need of the customers. They appoint purchase team to maintain the process of the purchasing and make best plan to finalizing the list of the food and beverage product in appropriate manner. In purchasing process supplier is essential part to deliver the product in front of customers and get better satisfaction by them. Supplier should focus on providing good quality and correct goods and services so customers can get right product according to their need and wants.


Factors help in evaluating the success of programme

There are number of factors which help in evaluating the success of food event. Main elements of are customers satisfaction, planning and organisation of activities, quality standards, cost and time involve and many more.

Customer satisfaction

Customers are the end consumers of products or services produces by an enterprise. For achieving satisfaction of customers who take part in food festival it is very necessary to for students to deliver quality food products. Satisfy customers result in repeat purchase and help in creating positive image about any enterprise (Yeoman and, 2012) . It is costly for any organisation to attract new customers rather than keeping the old one.

Various recommendation for increasing customer satisfaction

  • Recommendations and feedback from customers should be collected on regular basis.
  • Excellent services should be provided to customers before, during and after an event.
  • Personal attention should be given on every single customer.
  • Not even a single customer should be neglected.

Observation of customers attitudes and behaviour during the process of purchase or consumption can be done.

Satisfy customers helps in increasing the sale of an organisation's product and helps in measuring the success of an event or programme.

Organisation and planning of business activities

Planning of future activities in advance help in make the programme more successful. In this students can decided way of making, storing, handling food equipments during the process of making making final food. All this help in decreasing the cost of food process. It helps in control the deliveries of food.

Recommendations for improving the planning and organisation of the event

  • By setting and maintaining standards of various activities.
  • Keeping hygiene and safety standards in every beverage and food department.
  • Proper communication should be take place with customers.

All these should be consider by students while planning and implementing all activities of food festival.

Assurance of quality and set standards: Maintaining quality of every food and beverage products is very in every food event. For keeping quality proper training should be given to employees (Wu and Pagell, 2011). Process and methods of doing the work should be taught to them so that accidents can be avoided and safety at workplace can be maintained.

Following recommendation can be given for ensuring quality of food products and services:

  • Food must be procured form a good supplier.
  • Proper training should be given to staff members.
  • Set standards of health and safety must be followed by workers.

All these will help students in maintaining quality of food products and help them in making the programme more successful.

Effectiveness of time and cost

Cost and time effectiveness helps in gaining maximum profit, manager should try to chive cost and time effectiveness. This will help manager in delivering quality services to customers.

Recommendations for increase effectiveness of time and cost

  • Negotiation among all suppliers and contracts.
  • Good relations with outside business persons can helps in this.

These can be done to achieve cost effectiveness in all operations of business.

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From all the information included in the report it can be concluded that today variety of food is served by various restaurants. Food plays and important role in everyone's life. Students of Montrose college can collect relevant information about different type of food and their characteristics to offer good quality of food in fair at valentine's park. Students can collect information about various factors affecting menus and other system and than can take decisions. Different type of food and beverage outlets can be choose by them to present food and beverages in food festival. It is very important for students to manage various financial system to control cost and process related with making different food items. For this, they can analyse purchasing process of customers. They can add different type of food products for different adults and children participate in food festival. An effective plan in this can help them in implementing the full plan and deliver services to customers with high quality and they can maintain proper health and safety of people at there.


  • Davis, B., and, 2013. Food and beverage management. Routledge.
  • Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge.
  • Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
  • Vogel, M., Papathanassis, A. and Wolber, B., 2012. The business and management of ocean cruises. CABI.
  • Yeoman, I., and, 2012. Festival and events management. Routledge.
  • Wu, Z. and Pagell, M., 2011. Balancing priorities: Decision-making in sustainable supply chain management. Journal of Operations Management.
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