Unit 9: Food & Beverage Operations Management, LSST


Food and beverages is one of the best alternate in the hospitality industry as it is an essential to earn more profits as well as generate revenues in better manner. This is a most important sector because it focusses on quality and excellence. There are number of organisations who deals in hospitality industry including hotels and restaurants. Their main focus on productions of quality food & beverages and their operations in an appropriate manner. The organisation selected for this assignment is “Thank God it’s Friday” , it is well known for its unique dining and bar side facilities. This report highlights the characteristics of range of food production systems as well as various factors that affects the service systems. There are certain roles and uses of financial statements as well as there are number of issues and options that is used in costing process. Food and beverage service plan will also be formulated by the organisation.

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Task 1

1.1 Discuss the characteristics of food production and food and beverage service systems

It is the nature of customers that they get attracted towards the organisation system that delivers high quality food products so that they get satisfied with the services provided by them. TGI Friday's is a well-established hospitality industry that supply quality food item to their people and hence manager have to inculcate certain feature of food production and beverage service system that are discussed below:

  • Cultivation process: It is the first step that involve carrying out the cropping process that is performed by farmer to supply raw materials to the market place.
  • Chopping and slicing step: In accordance to this stage input products are chopped in order to make final product or item. It is the responsibility of Chef to run this process.
  • Curing process: In this process important ingredients to the food stuff so that tasty food item could be produced (Davis and et. al, 2013).

After carrying out the initial step there is proper service system that has been discussed below:

  • Buffet service system: In this system food items are displayed on the table so that customers have choice to consume any food stuff of their choice and wish.
  • English service system: In this, the food stuffs are presented in distinctive and attractive manner to the customers so that they get attracted towards it and enjoy the services.
  • Cafeteria service system: This is considered as most traditional process of supplying food items to their customers in which several food items are displayed to the customers and they are free to select and consume in accordance to their need and availability.

1.2 Discuss factors affecting recipes and menu for specific systems

There are number of elements that are present which directly affect the recipes and menu of the hotel industry. Amongst all the purchasing capacity of the customers are considered the major factor that impact this system. It is directly linked with the price, if the hotel charges high price for the food items than the demand for the same will be diminished and vice versa. Some factors that impact the menu and instruction of specific systems are illustrated below:

  • Current demands of the customers: The consumers keep on changing their preferences in market place, therefore it become necessary for the TGI Friday to examine all the current factors in order to take the decisions effective and efficiently.
  • Economic conditions: There are some changes that take place in economic condition of the country that is directly linked with demand and supply concept that is prevailing in that situation (Mahalik and Nambiar, 2010). Hence, TGI Friday have to continuously study these conditions and work accordingly.
  • Size of the family: This factor has the huge impact on the recipe and menu system. There is different level of families that is present in the society that are small, nuclear and large family. As the demand for the food items is directly related to the size number of the family. For example, the order placed by the nuclear family will be different from the demand of food items by the large sized family. TGI Friday have to consider this aspect and make decisions accordingly.
  • Religious factors: Different people follow their distinctive belief or religion as it determines the feeding habits of the people. For example, TGI Friday also offer vegetarian food products along with non veg stuff.

1.3 Compare the cost and staffing implications for different systems

Nature of production Process


Cost system

Staff system

Batch system

In this two or more organisations who club together to produce batch products rather than one single company.

· Cost related to acquiring raw materials and other items.

· Labour

· Managers and leaders.

Proper structure must be formulated as per the needs and condition of the staff members.

One-Off Production system

In this, sample goods which are produced by the business organisation come into this category.

· Cost which is acquired in hiring talented and experienced individuals.

· Cost for acquiring basic necessity materials.

There is no requirement of the staffing function as the single member manages all the functions that has been carried out in effective manner.

Mass production system

In this all components of the single organisation system to produce product or service, this process is known as mass production.

· Labour cost

· office expenditures

· Other extra miscellaneous expenditures

· cost to acquire raw material and other input devices.

Effective staffing form is needed in order to carry out the whole work process in accordance to set plans and procedures. Proper management is drafted that determine all the functions in accurate manner.

1.4 Justify the suitability of systems for particular food and beverage outlets

Business environment is dynamic in nature which keeps on changing with time and hence TGI Friday have to consider all these modifications and alterations in order to full fill all the demands and wants of the customers in the market place. This is the duty of the organisation to carry out the process of examining the external environment that affect the whole organisation system in different ways (Massoud and et. al, 2010). There is requirement to study various issues and aspects in order to design the service system for the available outlets and stores, that are discussed below:

  • Delivering services to the high class people of the society: It is the behaviour and nature that keeps on changing in market place. High class people always focuses on maintaining their quality life and living standard. Therefore, it is necessary for the business organisation in order to maintain their status. Basically, Buffet service system is used for offering food services to the high class people in order to maintain their living standards.
  • Middle Class Family: The family which belong to middle class level of family have less demand and requirement as compared to higher level and therefore they adjust this services and goods also. They are happy with high class as well as normal facilities such as; Buffet service system, English service system and Cafeteria service system are used by company for these kind of people.
  • Lower level of society: It refers to the group of people that belong to the weaker section of society in which individuals do not have any problem regarding these aspects. Basically, these members are low class people due to which they are not feel comfortable with high class services.

From the discussion, it has been find out that TGI Friday have to examine all the preferences, nature, attitude of the customers in the market place and thus, take decisions accordingly. It is very necessary for the company to determine purchasing power, income level of their target customers so that final decisions can be made in considering all these statuses.

Task 2

2.1 Discuss the use of financial statements in food and beverage operations

Every organisation system make uses of financial statements in order to calculate the profitability and financial position. It is required to maintain the overall cost and expenditures in effective manner so that stock options must be managed properly and accurately. There are several important financial statements that are adopted by TGI Friday to manage the financial system in discussed below:

  • Cash Flow statement: It is the statement that is prepared by the organisation to record various inflows and outflows of that cash that take place in set time period. There are number of activities that are carried out which results in either inflow and outflow the cash from the business (Slack, Chambers and Johnston, 2010). For example, TGI Friday have to make purchase of raw materials in the form of food items that is utilised in making of several dishes. On the other hand, any income is termed as the cash inflow for the hotel.
  • Income statement: This type of financial statement records all income and expenditures that take place in the business organisation system. After making proper record off all the items it is easy to calculate the overall gains or losses for the company which is necessary to showcase the financial position. The formula to find out the income is Revenue-Expenses + Gains-Losses=Income.
  • Balance Sheet: It is developed by the business organisation in order to calculate the assets and liabilities that is present in the business. It is determined to calculate profits and losses for the financial year. Its formula is Assets- Liabilities= Net Worth.
  • Budgets: It is calculated to estimate all the expenses that may take place in the business organisation system. TGI Friday involve the cost which is related tro labour and food expenditures.

2.2 Demonstrate the use of cost and pricing processes

It is very necessary for the TGI Friday to evaluate all components and elements that involve the pricing strategies involve in preparation of recipes and dishes. There are number of cost system of different nature that is adopted by the business organisation that are mentioned below:

  • Fixed cost: This is the cost which remains fixed with the passage of items and do not get change with the alterations in input factors. For example, cost of land remain fixed throughout the business life.
  • Variable cost: This type of cost varies with the quality of goods and stocks and organisation have to properly execute it in proper order so that cost effectiveness could be achieved in set period of time (Rao and McClements, 2012).
  • Direct Cost: This type of cost impact the functioning of the business organisation directly and the impact for the same have to be faced by the TGI Friday.
  • Indirect Cost. There are certain costs that poses indirect impact on the overall functioning of the system. It includes tax rates, rents and many others which have to be incurred by TGI Friday.

There are certain criteria which have to be met by introducing cost and prici9ng system in the TGI Friday and that can be carried out in distinctive manner which is described below:

  • Proper and effective calculation of the food cost before determining the final price.
  • Proper and healthy recipe can be determined in order to full fill the demands of the customers in the market (Taj and Morosan, 2011).
  • FIFO method can be adopted in determining the final price by the restaurant.
  • Economic Order Quantity must be calculated in order to find out the minimum stock quantity.

2.3 Analyse the purchasing process

Operating procedure that has been carried but by food and beverage industry involve storage, issuing preparation process and purchase function and many other. The purchasing -process is performed by the management in effective and efficient manner so that optimum utilisation of the overall system could take place. The buying process in this industry is taken up in the following steps that are discussed below:

  • Firstly, the TGI Friday have to analyse the needs and demands that are prevailing in the market and is generated by the customers.
  • After analysing the actual requirements of the people next step involve checking the actual position of the stock materials and proper place so that buying amount can be calculated in effective way (Speers, Harris and Schwartz, 2011).
  • Nest step involve choosing the best provider party and make comparisons among the rate between these and selecting the best possible manufacturer that will yield them high outcomes and gains.

There are certain criteria that must be kept in mind while carrying out the purchasing process in the TGI Friday so that no losses can be incurred. Some key pints are discussed below:

  • Proper examination of the overall cost fluctuations: This is one of the major factor that must be consider by the company in order to prevent any undesirable losses. There are several unfavourable situations and conditions that happen in business environment which is related to fluctuations and changes that have to be properly managed by them in effective way (Powell and et. al, 2013).
  • Proper Selection of Supplier: According to this factor, TGI Friday have to maintain the consistency and reputation so that proper selection of the supplier can be made. The main element that is consider in this component is that proper formulation of terms and conditions should be well known between the producer and supplier.


By going through the different financial accounts it can be analysed that how customer is responding to variety of food products. Through same it can be identified that how by going through the various accounts trend in market can be indented so that accordingly decisions regarding menu can be taken. The purchasing trends gets effected when there is some new product launched in the market by other competitor as clients gets easily fascinated.

Task 3

3.1 Compile food and beverage menu for a hospitality event

Every food and beverage industry have to formulate proper menu system that contains all the information related to food items and prices offered by the hotel (Chriqui, Pickel and Story, 2014). Similarly, TGI Friday have to maintain their menu card in proper manner so that during the time of any event and function the client do not face much problems regarding the information of food offerings made by them. Thus, an outstanding menu is going to design for “Small conference of local professional association: is discussed as follows:-


Name of Items

Cost Price

Cost Per Unit

Total cost

Ginger Breads




Green Chillies




Sea Salt




mustard Oil









1kg 500g











Frozen Meat
















Under this, the menu for an event is mention below as above:


· Roasted chicken

· Honey potatoes

· Crab cakes

· Dips and Spreads

· Ginger Breads

Main course

· Frozen meat

· Spinach

· Artichoke Risotto with Capocollo and Pecorino

· Southern Thai Rice Salad with Shrimp (Khao Yam)


Desserts and Drinks

· Chocolate mousse

· Double chocolate brownie

· Ice cream

· Soft drinks

3.2 Justify the selection and suitability of recipes for menu

The menu which has been selected has been taken into consideration on the basis of certain criteria as there are number of reason behind it. For instance, customers that prefer vegetarian as well as non-vegetarian food items must be included in the menu list. Other than this, proper attention is made on the health issues that no high intake of calories must be included in the food items that may cause health issues to the customers (Thorndike and et. al, 2012). The major element that include is aspects related to recipe of the food items which adopts other criteria too:

  • use of Current seasonal ingredients.
  • Storage and suitability criteria
  • Availability of sustainable amount of ingredients.

There are certain nutritional factors that must also be included in the recipe and food items that are been offered by the hotel.


As the structured menu contains all the required information regarding the food products and its cost it can be said that it is an appropriate one. The dish selected is in very much demand hence can be used to increase the total sales volume. Every detail of the ingredients is given which shows that detail study has been done. Customers can take their buying decision on the basis of same hence shows that it is effectively communicated to clients.

Task 4

4.1 Plan a food and beverage service for a hospitality event within an agreed budget

TGI Friday is planning to organise the business events and hence have to draft the budget plans in order to carry out the plan in effective manner. The estimated amount for the hotel is 90000 pound in this proper allotment must be made therefore, the proper budget plan must be launched for the business event which is described below:







hot/cold coffee






Food Products







Continental Food



Italian Food



Hot Garlic bread



Mexican Food




vanilla Ice Cream



Chocolate Ice Cream



There are certain methods and services that are introduced by the organisation that are discussed below:

  • Self Services: According to this, guests are allowed to adopt the services by themselves. There are different types of food stuffs that can be taken up by them.
  • Table services: There are number of table habits that has to be consider in which proper menu lists is provided to the customers demands could be fulfilled (Powell and Nguyen, 2013).
  • Specialised services: In this TGI Friday hotel sometimes serves specialised services to their customers so that they remain happy and contented.

4.2 Implement the planned service maintaining standards of quality and health, safety and security

TGI Friday concentrates on maintaining the standard of quality of food products and that is how they could able to satisfy the demands of the customers in effective manner. They also focus on safety and security of their clients which is very much necessary to retain maximum number of people as their regular customers. Every consumer demands for high quality products and food items that has to be maintained by them so that sustainable image could be established in the market place (Jung and Yoon, 2012). There are certain laws and regulations that has to be contained by TGI Friday that are discussed below:

  • Health and Safety: it is the duty of the hotel to maintain the safety of their people whether employees or their customers so that they remain protected in the area. For example proper instructions must be given to the staff members of the hotel how to use the tools and equipments so that no misshapen could take place.
  • To maintain the standard quality of food products: It is the responsibility of the hotel to maintain the quality of the food products so that customers remain satisfied with their services.
  • Safety Aspects: Proper security system must be introduced by the TGI Friday so that their customers feel safe and secure while they are in the hotel area. It is directly linked with the establishment of conducive and proper relations with the customers and retain them for longer period of time (Davis and et. al, 2013).

From the above discussion it has been clear that hotels have to maintain number of aspects related to health, safety and security of the individual associated with the hotel.

4.3 Evaluate factors to determine the success of the service, making recommendation for improvement

There are number of factors that are present in the business organisation system that determine the success of the services that are offered by the TGI Friday hotel as well as there are some recommendations that are drafted which are discussed below:

  • Factor related to customer satisfaction: Every company aims to satisfy the demands and needs of the customers. Therefore, it is necessary to carry out the overall work process in proper and innovative way so that they could deliver effective services and products to the people present in the market place.
  • Advertisement strategies: It is very important for TGI Friday to make proper advertisements in front of the customers and clients in order to deliver the relevant information and data to increase awareness and knowledge in the customer's mind (GalbraithEmami and Lobstein, 2013).
  • Effective controlling of the cost: This is one of the major factor that determine the success of the restaurant. It involve setting up of overall prices and rates in accordance to the requirements and situation of the current market. There are number of cost effective techniques and tools so that extra cost can be controlled in effective way.
  • Product Differentiation factor: As it is important for TGI Friday to produce foods and beverage factors in unique manner so that customers could able to get attracted towards it. It is very necessary for the hotel to introduce new and advanced techniques to become famous among the customers.
  • Conducting planning and organisation process: This factor involve carrying out the management function in effective way so that overall functions and steps can be conducted in proper way so that final outcomes and results must be accomplished in set time period (Slining, Mathias and Popkin, 2013).


Responsibility will be divided among the distinct departments which will further help in launching the event in most appropriate manner. The placement of food products will be done in a manner that no one finds it difficult to serves themselves. Supervisors will be there who will ensure that everting goes as per the planning.


In order to complete the project on time and supported with high quality it is important that ideas which are suggested by others are implemented. This way the work done is more effective and has high degree of acceptance. When collective recommendations are used the investments of resources has higher chances of giving more effective returns.

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As per the above prepared report it has been concluded that food and beverage industry play an important role while delivering hospitality services to thee customers in the market place. There are number of issues and challenges that are faced by this industry is that they have continuously introduce new and innovative methods to improve the quality of the food products to satisfy the customer's needs and demands in effective manner. “Thank God Its Friday” hotel have to evaluate number of pricing and cost procedures as well as have to determine the factors that will affect the recipe for the system.


  • Davis, B., and et. al., 2013. Food and beverage management. Routledge.
  • Mahalik, N. P. and Nambiar, A. N., 2010. Trends in food packaging and manufacturing systems and technology. Trends in food science & technology. 21(3). pp.117-128.
  • Massoud, M. A., and et. al., 2010. Drivers, barriers and incentives to implementing environmental management systems in the food industry: A case of Lebanon. Journal of Cleaner Production. 18(3). pp.200-209.
  • Slack, N., Chambers, S. and Johnston, R., 2010. Operations management. Pearson education.
  • Taj, S. and Morosan, C., 2011. The impact of lean operations on the Chinese manufacturing performance. Journal of manufacturing technology management. 22(2). pp.223-240.
  • Powell, L. M. and et. al., 2013. Assessing the potential effectiveness of food and beverage taxes and subsidies for improving public health: a systematic review of prices, demand and body weight outcomes. Obesity reviews. 14(2). pp.110-128.
  • Thorndike, A. N. and et. al., 2012. A 2-phase labeling and choice architecture intervention to improve healthy food and beverage choices. American Journal of Public Health. 102(3). pp.527-533.
  • Powell, L. M. and Nguyen, B. T., 2013. Fast-food and full-service restaurant consumption among children and adolescents: effect on energy, beverage, and nutrient intake. JAMA pediatrics. 167(1). pp.14-20.
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