This introductory textbook provides a thorough guide to the management of food and beverage outlets, from their day-to-day running through to the wider concerns of the hospitality industry. It explores the broad range of subject areas that encompass the food and beverage market and its main sectors – fast food and casual dining, hotels and quality restaurants and event, industrial and welfare catering. It also looks at some of the important trends affecting the food and beverage industry, covering consum- ers, the environment and ethical concerns as well as developments in technology.
New to this edition:
● New chapter: Classifying food and drink service operations.
● New international case studies throughout covering the latest industry developments within a wide range of businesses.
● Enhanced coverage of financial aspects, including forecasting and menu pricing with respective examples of costings.
● New coverage of contemporary trends, including events management, use of technology, use of social media in marketing, customer management and environmental concerns, such as sourcing, sustain- ability and waste management.
● Updated companion website, including new case studies, PowerPoint slides, multiple choice ques- tions, revision notes, true or false questions, short answer questions and new video and web links per chapter.
It is illustrated in full colour and contains in-chapter activities as well as end-of-chapter summaries and revision questions to test the readers’ knowledge as they progress. Written by a team of authors with many years of industry practice and teaching experience, this book is the ideal guide to the subject for hospitality students and industry practitioners alike.
Bernard Davis wrote the first edition of this book and led its development through the second and third editions to become the best-selling text that it is today.
Andrew Lockwood is Forte Professor of Hospitality Management in the School of Hospitality and Tourism Management at the University of Surrey.
Peter Alcott retired from his post as Senior Tutor for Professional Training and SCEPTrE Fellow at the University of Surrey in September 2009, where he now teaches hospitality management modules on a part-time basis.
Ioannis S. Pantelidis is a Principal Lecturer in Hospitality Management at the University of Brighton.
Food and Beverage Management
Sixth edition
Bernard Davis, Andrew Lockwood,
Peter Alcott and Ioannis S. Pantelidis
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2018 Bernard Davis, Andrew Lockwood, Peter Alcott and Ioannis S. Pantelidis The right of Bernard Davis, Andrew Lockwood, Peter Alcott and Ioannis S.
Pantelidis to be identified as authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.
First edition published by Heinemann 1985
Second edition published by Butterworth-Heinemann 1991 Third edition published by Butterworth-Heinemann 1998
Fourth edition published by Elsevier Butterworth-Heinemann 2008 Fifth edition published by Routledge 2012
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data
Names: Davis, Bernard, author. | Lockwood, Andrew, author. | Alcott, Peter, author. | Pantelidis, Ioannis S., author.
Title: Food and beverage management / Bernard Davis, Andrew Lockwood, Peter Alcott and Ioannis Pantelidis.
Description: Sixth edition. | New York, NY : Routledge, 2018. | Includes bibliographical references and index.
Identifiers: LCCN 2017037175 (print) | LCCN 2017037638 (ebook) | ISBN 9781315563374 (Master ebook) | ISBN 9781317193876 (Web pdf) | ISBN 9781317193906 (epub3) | ISBN 9781317193937 (Mobipocket) | ISBN 9781138679306 (hbk : alk. paper) | ISBN 9781138679313 (pbk : alk. paper) | ISBN 9781315563374 (ebk)
Subjects: LCSH: Food service management.
Classification: LCC TX911.3.M27 (ebook) | LCC TX911.3.M27 D38 2018 (print) | DDC 647.95068—dc23
LC record available at https://lccn.loc.gov/2017037175 ISBN: 978-1-138-67930-6 (hbk)
ISBN: 978-1-138-67931-3 (pbk) ISBN: 978-1-315-56337-4 (ebk) Typeset in Iowan Old Style by Apex CoVantage, LLC
Visit the companion website: http://routledge.com/cw/davis
and from the food and drink service industry, all the managers in all the organizations that have employed, developed and encouraged them, and all the innovators and people of vision who have inspired both them and us. In addition,
thanks should go to all those that have worked hard and put in long hours to raise the level of professionalism in food and beverage management and
by doing so make the industry the exciting and vibrant one that it is.
List of figures xiii
List of tables xvii
Preface to the sixth edition xix
Acknowledgements xxi
1 Introducing food and beverage management 1
Chapter objectives 1
Introduction 1 Size and scope of food and beverage operations 2
Food and beverage management 9
Managing the meal experience 20
Summary 32
Review questions 32
Further reading 32
2 Classifying food and drink service operations 34
Chapter objectives 34
Introduction 34
Why classify? What is the problem? 35
Approaches to classification 36
Summary 44
Review questions 44
Further reading and references 44
3 Restaurants and events – the direct market 45
Chapter objectives 45
Introduction 45
Direct food and drink service operations 46
Hotel, bed and breakfast, hostels and membership clubs 54
Contents
Fast food 61 Summary 74
Further study options 74
Review questions 75
Further reading 75
4 Contract foodservice, travel and public sector catering – the indirect market 76
Chapter objectives 76
Introduction 76
Business and industry 77
Education 82 Travel 84
Hospitals, the services and prisons 91
Summary 92
Further study options 92
Review questions 93
Further reading 93
5 Developing the concept 94
Chapter objectives 94
Introduction 94
The concept 95
Feasibility study 96
The business plan 99
Financing the operation 103
Facility design and layout 108
Summary 109
Further study options 110
Review questions 118
Further reading 119
6 The menu 120
Chapter objectives 120
Introduction 120
Types of menu 121
Menu offering 126
Menu pricing 135
Menu knowledge 143
Nutrition 144
Beverage menus/lists 145
Menu merchandising 151
Summary 153
Further study options 153
Review questions 155
Further reading 156
7 Purchasing and storage 157
Chapter objectives 157
Introduction 157 Purchasing 158
The purchasing procedure 161
Price and quality performance 162
The purchasing of foods 163
The purchasing of beverages 168
Receiving of food 170
Storing and issuing food 171
Stocktaking of food and beverages 171
Receiving of beverages 173
Storing and issuing of beverages 173
Summary 175
Further study options 175
Study exercise 176
Review questions 176
Further reading 177
8 Production and service 178
Chapter objectives 178
Introduction 178
Hazard analysis and critical control point 179
The planning of food service facilities 179
Food production methods 184
Beverage production methods 194
Food and beverage service methods 195
Food service methods 196
Beverage service methods 214
Summary 219
Further study options 219
Study exercise 221
Further reading 221
9 Controlling the operation 222
Chapter objectives 222
Introduction 222 Understanding the cost and profit structure of the business 223
The objectives of food and beverage control 234
The stages of control: pre-operational control – the planning phase 239 The stages of control: the operational phase 243 The stages of control: the post operational phase 255 Summary 269
Further study options 269
Review questions 269
Further reading 270
10 Staffing issues 275
Chapter objectives 275
Introduction 275
Employment in the hospitality industry 275
Recruitment and selection 278
Staff training 280
Staff scheduling 280
Supervision and communication 283
Staff turnover 286
Legal framework 288
Summary 292
Further study options 292
Study exercise 292
Review questions 294
Further reading 294
11 Food and beverage marketing 295
Chapter objectives 295
Introduction 295 Marketing 296 Advertising 310
Public relations 315
Merchandising 317
Sales promotion 318
Personal selling and up-selling 320
Digital marketing for restaurants 321
Summary 324
Further study options 324
Review questions 324
Further reading 325
12 Managing quality in food and drink service operations 326
Chapter objectives 326
What is quality? 326
Why is quality important? 331
Managing quality in food and drink service operations 332
A systematic approach to quality management 333
Developing approaches to quality management 338
Examples of quality management in practice 342
Conclusions 348
Review questions 348
References 348
Further reading 349
13 Trends and developments 350
Chapter objectives 350
Introduction 350
Consumer trends 350
Environmental trends 353
Ethical trends 357
Technology trends 362
References 365
Index
367
1.1 Comparison of industry sectors 4 1.2 Exploring the manager’s work in the hospitality industry 9
1.3 Main areas of management activity 11
1.4 Organization chart for a large hotel 14
1.5 Issues in the business environment 19
1.6 Frequency of eating out at a restaurant for casual/everyday and
special occasions, May 2016 22
2.1 Key operating elements of food and drink service operations 39
2.2 Our classification scheme 42
3.1 The Michelin guide website 46
3.2 Forbes Travel Guide 47
3.3 Zagat guide 48
3.4 MenuPix.com 49
3.5 Le Gavroche, London 50
3.6 Hotel revenue streams 55
3.7 Mosimann’s, London, UK 60
3.8 McDonald’s brand mission statement 61
3.9 Pret A Manger mission statement 62
3.10 Individual Restaurants website with online booking facility 66
3.11 Number of world stadia by capacity 72
4.1 Structure of Compass Group, the largest contract foodservice company in the UK 79 4.2 Types of leisure venues visited and use of catering, February 2016 81 4.3 Number of global ocean cruise passengers 2009–2017 87 4.4 Cruise ship dining featuring P&O Cruises Food Hero Marco Pierre White 88 4.5 The Ventura super liner by P&O in their new livery 88
5.1 Key restaurant concept considerations 96
5.2 The feasibility study 97
5.3 Elements of a restaurant business plan 100
5.4 Income statement and cash flow statement 104
Figures
5.5 Example of a balance sheet 105
5.6 AHR menus and packaging 111
5.7 AHR restaurant floor plan 112
5.8 AHR dinner menu 113
5.9 Extract from the lunch menu 114
5.10 Extract from the wine list 114
5.11 AHR wormery at work 115
5.12 Part of the AHR vegetable and herb garden 115
5.13 AHR mixed herb sticks 117
6.1 Kaspar’s Seafood Bar and Grill à la carte menu, Savoy Hotel London 122 6.2 Example of a set table d’hôte menu from Kaspar’s Seafood Bar
and Grill, Savoy Hotel London 124
6.3 A sample tasting menu from Guy Grossi’s Florentino in Melbourne 125
6.4 Wetherspoon online dietary filter 128
6.5 Wetherspoon gluten free menu also showing calories and other
dietary information 129
6.6 Special event menu for an exhibition at the British Museum 130 6.7 Traditional Afternoon Tea, Savoy Hotel, Thames Foyer 131 6.8 Menu layouts and how guests read a menu 133
6.9 to 6.11 Sales mix matrices 136
6.12 Example of menu with menu pricing designed for private members club 141 6.13 A sample wine list from Grazing Events 147 6.14 A sample drinks menu from Grazing Events 149
6.15 The Menu Museum 154
7.1 The purchasing function 159
7.2 The building blocks of competitive advantage 160
7.3 Purchasing objectives 161
7.4 An example of a classical product specification for catering a cut of beef 166
7.5 Supply chain planning and control 167
8.1 HACCP System based on a procedure developed by the Lakeside
Restaurant, University of Surrey 180
8.2 Extract from refrigeration temperature record book from
Lakeside Restaurant 181
8.3 The main division of activities in the conventional partie food
production method 186
8.4 The main division of activities in the cook-freeze food production method 189 8.5 The main division of activities in the cook-chill food production method 191 8.6 The possibilities of the sous vide process 192
9.1 Simple cost breakdown 223
9.2 Materials cost percentage by market segment 224 9.3 Payroll costs as a percentage of sales by market segment 225 9.4 Overhead costs as a percentage of sales by market segment 226 9.5 Overall cost structure as a percentage of sales by market segment 226 9.6 Uniform system of restaurant accounts: revenue, cost and
profit breakdown 228
9.7 Cost behaviour as sales change 231
9.8 Break-even chart: worked example 233
9.9 The stages of control 236
9.10 Budgetary control as an extension of basic policies 242 9.11 Examples of customer bills produced by an EPOS system 264
9.12 The menu engineering matrix 267
10.1 The service profit chain 279
10.2 Inverted pyramid of background information 284
10.3 Strategies to reduce labour turnover 287
10.4 A draconian view of enhanced staff turnover 287 10.5 Percentage of tourism workers who have private pension savings
overall, by sex, typical working hours and tourism industry 290
10.6 Basic contract of employment 291
10.7 Reasons for a fair dismissal would include the following matters 291
11.1 The matching process of marketing 296
11.2 The food and beverage marketing environment 300 11.3 Excerpt from the Strada children’s menu (UK) 301 11.4 Product life cycle and extending the PLC 307 11.5 Website of the Magnolia Restaurant in London, UK 310 11.6 Extract of the Acorn House Restaurant newsletter (London, UK) 313 11.7 McDonald’s UK advertising slogans over the years 315 11.8 Hard Rock merchandise website – the Rock Shop 317 11.9 Example of promotional material of Dimitris Taverna (Greece) 319 11.10 Example of a KFC promotion, featuring a meal package (UK) 319
12.1 The product/service matrix 328
12.2 The quality management cycle 334
12.3 The development of approaches to quality management 339
12.4 Hospitality Assured improvement cycle 343
13.1 Frequency of take-away/home delivery usage, December 2016 352 13.2 The SRA’s 14 key areas of sustainability 353 13.3 J D Wetherspoon SRA Accreditation 2017 355
13.4 The BHA Code of Conduct on tipping 360
13.5 Wahaca’s policy on tipping 361
13.6 Food and beverage payment solutions by 3C 364
13.7 Food and beverage EPOS integration by 3C 364
1.1 Size and scope of the hospitality industry 2 1.2 UK Standard Industrial Classification of Economic Activities 2007 5 1.3 Cross tabulation of main activity areas by management level (%) 11 1.4 Food and beverage manager job description 14
1.5 The UK eating out market by segment 24
1.6 Frequency of eating out 25
1.7 Restaurants visited to eat in, 2013–2016 26 1.8 Restaurants visited for take-away/home delivery, 2013–2016 27 3.1 The total UK restaurants market by sales of food and drink by value
(£m and %), 2011–2015 53
3.2 Leeds full service hotel performance indicators 2016–2017 55 4.1 The total number of ocean cruise-holiday passengers worldwide
by region (million), 2009–2013 86
5.1 Top restaurant chains worldwide by number of outlets 2017 95 5.2 Example of a restaurant SWOT analysis 102 8.1 Number of vending machines by type, 2011–2016, AVA 202 9.1 Full schedule of sales and costs based on the Uniform System
of Accounts for Restaurants 229
9.2 Break-even chart: the worked data 232
9.3 Example of a hotel sales mix report 257
9.4 Simple weekly food cost report 259
9.5 Daily food cost report 261
9.6 Detailed daily food cost report 263
9.7 Example of an EPOS report 265
10.1 UK direct hospitality employment – sub-sectors 276 10.2 Regional direct hospitality employment, 2014 277 10.3 Sales distribution at McDonald’s restaurants through the day and week 282
10.4 Essentials of effective communication 284
11.1 Population estimates by social grade 2015 301
Tables
11.2 Frequency of eating out by family status 302
11.3 Acorn targeting classification 303
11.4 Top restaurant groups 2014 309
11.5 Main media advertising expenditure for selected chains 311
12.1 Key features of quality control 340
12.2 Key features of quality assurance 340
12.3 Key features of total quality management 342
The preface to the first edition published in 1985 explained that
This book has been written to explain the complexities of managing food and beverage outlets.
The purpose is to examine the wide range of subject areas that come within the orbit of opera- tional food and beverage management. [. . .]
The book has been planned to contribute to various first degree courses in Hotel and Catering Administration and Management; and in addition, the book has been written for practicing catering managers, food and beverage managers, food and beverage controllers and all their assistants who may wish to formalize and update their knowledge, in order to improve the profitability and productivity of their operations and to enhance their customers’ satisfac- tion. [. . .]
This book is based on our own practical experiences and from first-hand information obtained from practitioners, within both large and small companies and units, in the many segments of the industry, who so generously gave up their time to answer and discuss many of our questions while undertaking research for the book.
Given the pace with which the world has changed, it is in some ways surprising that, in the 32 years since that first publication, the main tenets of the book have not changed. We are still trying to explain the increasing complexity of food and drink service and to do so we have to cover an ever broader range of topics and terminology. We have still aimed the book at students studying for first or higher degrees in something which is now referred to as hos- pitality management, and hope that practicing managers can also find some useful additional knowledge here with the continuing objective of improving the profitability and productivity of their operations and, of course, enhancing the satisfaction of ever more discerning custom- ers. We hope that our own practical experience and the research we have conducted still make the book a relevant and useful tool.
Preface to the sixth edition
Our first acknowledgement must continue to go to Bernard Davis. It was Bernard who cre- ated the notion of Food and Beverage Management when he wrote the first edition of this text and he who led its development through the second and third editions. Although taking a deserved back seat in the detailed development of the fourth and fifth editions, he was always there with detailed comments and criticism, encouraging us to improve the book wherever possible and picking us up when his high standards had not been reached.
It is a cliché, but true none the less, that this book would not have been possible without him. He has made a hugely significant contribution to hospitality education and to the devel- opment of food and beverage managers around the world. Heartfelt thanks go to him from all his previous students and mentees now practicing all over the world for his energy, his determination and above all his professionalism. Thank you.
Acknowledgements are also due to the many colleagues and organizations who kindly con- tributed to the first five editions, and now especially to those who have given their time and assistance to this sixth edition.
In particular, we would like to thank:
Amy’s Baking Company Bakery Boutique and Bistro Anton Mosimann and Mosimann’s Private Dining Arthur Potts Dawson and the Acorn House Restaurant Bank Restaurants
British Hospitality Association Burger King UK
CACI Ltd
Christopher Fung, Crussh Clayton Barrows
Craig Borrett and 3C Payments
Acknowledgements
Cyrus Todiwala and Café Spice Namaste Daniela Ayala
Dimitris Tavern Geac Computers Inc
Guy Grossi, Grossi Restaurants Hard Rock Café
Hospitality Assured Institute of Hospitality iFood Design
Individual Restaurants Jack in the Box
James McComas, Hotel du Vin and Malmaison Hotels Jameson Robinson, J D Wetherspoon
Jane Renton Kevan Wallace Keynote Publications KFC UK
Lakeside Restaurant and the University of Surrey
Lee Kelly, Director of Food and Beverage at The Savoy, A Fairmont Managed Hotel Liz Rodriguez, Grossi Restaurants
Magnolia Restaurant McDonald’s
Menupix
Michel Roux and Le Gavroche Micros Ltd
Mintel Research Services Ltd National Readership Survey Office for National Statistics P&O Cruises
Pizza Hut UK Pret A Manger
Radisson Edwardian Hotels Sam Hurst, Grazing Catering The Compass Group and Scolarest The London Paper
The Marina Café at Admirals Cove, Florida, USA
The Michelin Guide The Mobil Travel Guide The Savoy Hotel, London
The Sustainable Restaurant Association The Zagat Guide
TRI Hospitality Wahaca
Wagamama Restaurants Wells and Youngs Ltd
We would also like to thank our team at Routledge for the publication of the book and for their continued support, encouragement, occasional nagging and, above all, patience.
Andrew Lockwood
Peter Alcott
Ioannis S. Pantelidis
June 2017
Chapter
Introducing food and beverage management
CHAPTER OBJECTIVES
After working through this chapter, you should be able to:
● Understand the complexity of the hospitality industry.
● Identify the size and scope of food and beverage operations.
● Distinguish between market and cost orientation.
● Identify the key responsibilities of food and beverage managers and the constraints that may be placed on them.
● Explain the factors affecting the nature of the meal experience and recognize the manager’s role in ensuring coherence.
Introduction
The provision of food and beverages away from home forms a substantial part of the activities of the hospitality industry and, indeed, of the economy as a whole. Like the industry of which it is a major part, food and beverage operations are characterized by their diversity. Outlets include private and public sector establishments and range from small, independently owned and operated units to large multi-national corporations managing global brands, and from prison catering to catering in the most luxurious hotels in the world.
It is, however, very difficult to get hold of consistent statistics about the hospitality industry and about food and beverage operations, as there is no one single definition of what the boundaries of the various industry sectors and sub-sectors are and therefore what should and should not be included.
1
Before you go any further with this chapter, write down eight different occasions when you might eat out of the home and attach a different example of business you might use to each occasion.
For example, taking my girl/boyfriend out to celebrate their birthday – The Ivy; popping into town at lunchtime for a sandwich and a coffee – Pret A Manger, and so on.
Size and scope of food and beverage operations
If the hospitality industry is considered to cover all undertakings concerned with the provision of food, drink and accommodation away from home, this will naturally include all food and beverage outlets.
In other words, food and beverage provision is simply one element of a broader hospitality industry. In conceptual terms, this raises few problems except possibly with take-away food establishments, where in some cases the food may be taken home for consumption even though it is prepared and provided away from home. In practice, however, there are a number of difficulties in considering the hospitality industry as embracing all food and beverage establishments and outlets. This arises because, following a number of official and commercial attempts at definition, the hospitality industry is often considered to have a much narrower scope. The official definitions have excluded many food and beverage outlets. For example, the Standard Industrial Classification (CSO, 1992) gives hospitality a reasonably broad coverage, as shown in Table 1.1, but even here parts of employee and welfare catering are either omitted or included in other sectors. This book adopts the broadest possible approach, aiming to consider all types of food and bever- age operation wherever they may appear.
A C T I V I T Y 1
Table 1.1 Size and scope of the hospitality industry
Number of enterprises 2010 2011 2012 2013 2014
Accommodation 15,075 15,159 15,205 15,365 15,513
Licensed restaurants 23,245 24,894 24,091 24,860 25,274
Unlicensed restaurants and cafés
11,208 11,711 12,424 13,759 14,824
Take-away food shops and
mobile food stands 26,934 27,107 27,945 28,525 28,781
Event catering and other food service activities
7,031 7,967 7,651 8,003 8,221
Beverage serving activities 44,351 43,498 41,515 40,810 39,369
Total number of enterprises 127,844 130,336 128,831 131,322 131,982
Total turnover (£million) 2010 2011 2012 2013 2014
Accommodation 17,650 18,566 19,822 20,222 22,918
Licensed restaurants 10,052 11,898 12,010 12,423 13,526
Unlicensed restaurants and cafés
6,893 8,222 8,283 10,025 10,347
Number of enterprises 2010 2011 2012 2013 2014 Take-away food shops and
mobile food stands 6,072 5,570 5,640 6,292 5,661
Event catering and other food service activities
7,971 8,553 8,925 8,269 9,139
Beverage serving activities 19,709 19,513 19,675 19,802 20,604
Total turnover 68,347 72,322 74,355 77,033 82,195
Total employment (thousands)
2010 2011 2012 2013 2014
Accommodation 377 407 409 416 418
Licensed restaurants 333 373 379 402 387
Unlicensed restaurants and
cafés 196 214 230 266 265
Take-away food shops and mobile food stands
156 178 174 192 181
Event catering and other food
service activities 253 212 249 222 261
Beverage serving activities 540 484 469 471 531
Total employment 1,855 1,868 1,910 1,969 2,043
Adapted from the Office for National Statistics, licensed under the Open Government Licence v.3.0.
Table 1.1 provides the latest figures from 2014 on the size and scope of the UK hospitality industry avail- able from UK government sources. The figures are based on the definitions in the Standard Industrial Classification 2007, shown in full in Table 1.2. The data show a pattern of fairly consistent growth across most sectors of the industry for the first five years of the decade from 2010.
In terms of the number of businesses, in the five years since 2010 the industry has grown by just over 3%.
However, this overall growth hides significant differences between sectors. The unlicensed restaurants and cafés sector, including coffee shops such as Starbucks, Costa and Pret A Manger, has grown by just under 25%, with event catering and other food service growing the number of enterprises by nearly 15%.
Licensed restaurants, take-away food shops and the accommodation sector have grown between 8% and 3%, but the beverage serving sector, including pubs and clubs, has seen the number of enterprises fall by over 12.5%. In particular, the number of wet-led pubs, where most of the revenue comes from alcoholic beverages, has seen a very high number of closures.
Looking at turnover provides a slightly different picture of the make-up of the total of over £82,000 mil- lion. Again, it is the unlicensed restaurant and cafés sector that has shown the most growth, with an increase of almost a third since 2010. The accommodation and licensed restaurant sectors have also performed well, seeing a rise of around a quarter, but it must be remembered that the revenue for the accommodation sector includes bedroom sales as well as food and drink sales, and this may well be where the majority of growth has come from. Event catering and other food service saw a 14.5% growth in the
number of enterprises but only a 13% growth in turnover. This could suggest a saturated market where more businesses are competing for a reasonably static market. While the pub sector saw a nearly 13%
growth in the number of enterprises, their revenue has grown by over 4%. This suggests either a consol- idation of the sector with a smaller number of larger businesses, or that each business, now more likely to be food-led, is showing much better sales performance. The reality is probably somewhere between the two. The only sector to see a decline in turnover is the take-away sector. This sector has been affected by the growth of eating at home and home delivery services, such as Deliveroo, which deliver from many high street brands as well as traditional take-aways.
In employment terms, the industry now employs over two million people, a growth of almost 10% in the last five years. Despite the decline in numbers of pubs, this sector still employs more people than any other at just over half a million. The second largest sector is accommodation, but again, this carries the warning that it also includes employees outside the scope of the food and drink departments. Once again, the highest growth has been in the coffee shop sector, which has added around 26% more employees in five years.
From the previous discussion and Table 1.1, which sector of the industry do you consider to be the most important and why?
Consider the comparison presented in Figure 1.1. Does this change your opinion?
A C T I V I T Y 2
15,513, 418, 22,918
25,274, 387, 13,526
14,824, 265, 10,347
28,781, 181, 5,661 8,221, 261, 9,139
39,369, 531, 20,604
0 100 200 300 400 500 600 700
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
Number of employees (thousands)
Number of units
Standard industrial classifica on: Number of units v employees v revenue £M
Take-away food shops and mobile food stands Unlicensed restaurants and cafés
Event catering and other food service ac vi es Accommoda on
Licensed restaurants
Beverage serving ac vi es
Figure 1.1 Comparison of industry sectors
Adapted from data from the Office for National Statistics, licensed under the Open Government Licence v.3.0
Standard industrial classification
The figures given above come from the UK government and are based on the Standard Industrial Clas- sification, 2007. For analytical purposes, economically similar activities may be grouped together into
‘industries’, for example into agriculture, motor vehicle manufacture, retail distribution, catering and national government service. A system used to group activities in this way is described as an ‘industrial classification’. Such a classification usually starts with a small number of broad groups of activities that are then subdivided into progressively narrower groups so that the classification can be used with varying amounts of detail for different purposes.
The first comprehensive Standard Industrial Classification (SIC) for the United Kingdom was issued in 1948. The classification has been revised on many occasions, and in order to comply with EU data stan- dards, the SIC was redrawn in 2007 and the new classification scheme came into effect at the beginning of 2008. While the old SIC had only four main groups – hotels and other accommodation; restaurants, cafés and take-aways; pubs bars and clubs; and canteens and contract catering – the new scheme as shown in Table 1.2 is much more comprehensive. There is a lot of information here, but it is worth looking at the various headings in some detail to understand the differences between the different classifications.
Table 1.2 UK Standard Industrial Classification of Economic Activities 2007
SECTION I ACCOMMODATION AND FOOD SERVICE ACTIVITIES
This section includes the provision of short-stay accommodation for visitors and other travellers and the provision of complete meals and drinks fit for immediate consumption. The amount and type of supplementary services provided within this section can vary widely.
This section excludes the provision of long-term accommodation as primary residences, which is clas- sified in real estate activities (section L). Also excluded is the preparation of food or drinks that are either not fit for immediate consumption or that are sold through independent distribution channels, i.e. through wholesale or retail trade activities. The preparation of these foods is classified in manufac- turing (section C).
55 ACCOMMODATION
This division includes the provision of short-stay accommodation for visitors and other travellers. Also included is the provision of longer term accommodation for students, workers and similar individuals.
Some units may provide only accommodation while others provide a combination of accommodation, meals and/or recreational facilities.
This division excludes activities related to the provision of long-term primary residences in facilities such as apartments typically leased on a monthly or annual basis classified in Real Estate (section L).
55.1 Hotels and similar accommodation
This class includes the provision of accommodation, typically on a daily or weekly basis, principally for short stays by visitors. This includes the provision of furnished accommodation in guest rooms and suites. Services include daily cleaning and bed-making. A range of additional services may be provided such as food and beverage services, parking, laundry services, swimming pools and exercise rooms, recreational facilities as well as conference and convention facilities.
This class includes accommodation provided by: hotels, resort hotels, suite/apartment hotels, motels.
This class excludes: provision of homes and furnished or unfurnished flats or apartments for more per- manent use, typically on a monthly or annual basis; see division 68.
continued
55.2 Holiday and other short-stay accommodation
This class includes the provision of accommodation, typically on a daily or weekly basis, principally for short stays by visitors, in self-contained space consisting of complete furnished rooms or areas for living/dining and sleeping, with cooking facilities or fully equipped kitchens. This may take the form of apartments or flats in small free-standing multi-storey buildings or clusters of buildings, or single storey bungalows, chalets, cottages and cabins. Very minimal complementary services, if any, are provided.
This class includes accommodation provided by: children’s and other holiday homes, visitor flats and bungalows, cottages and cabins without housekeeping services, youth hostels, mountain refuges.
This class excludes: provision of furnished short-stay accommodation with daily cleaning, bed-making, food and beverage services; see 55.10 provision of homes and furnished or unfurnished flats or apart- ments for more permanent use, typically on a monthly or annual basis; see division 68.
55.20/1 Holiday centres and villages
This subclass includes: provision of holiday and other collective accommodation in holiday centres and holiday villages.
55.20/2 Youth hostels
This subclass includes: mountain refuges.
This subclass excludes: protective shelters or plain bivouac facilities for placing tents and/or sleeping bags; see 55.30.
55.20/9 Other holiday and other short-stay accommodation (not including holiday centres and villages or youth hostels) not elsewhere classified (n.e.c.)
This subclass includes: provision of holiday and other collective accommodation other than that pro- vided in holiday centres and holiday villages or in youth hostels.
55.3 Camping grounds, recreational vehicle parks and trailer parks
This class includes: provision of accommodation in campgrounds, trailer parks, recreational camps and fishing and hunting camps for short-stay visitors; provision of space and facilities for recreational vehi- cles. This class also includes accommodation provided by: protective shelters or plain bivouac facilities for placing tents and/or sleeping bags.
This class excludes: mountain refuges, cabins and hostels; see 55.20.
55.9 Other accommodation
This class includes the provision of temporary or longer-term accommodation in single or shared rooms or dormitories for students, migrant (seasonal) workers and other individuals. This class includes: student residences, school dormitories, workers’ hostels, rooming and boarding houses, railway sleeping cars.
56 FOOD AND BEVERAGE SERVICE ACTIVITIES
This division includes food and beverage serving activities providing complete meals or drinks fit for immediate consumption, whether in traditional restaurants, self-service or take-away restaurants, whether as permanent or temporary stands with or without seating. The fact that meals fit for immedi- ate consumption are offered is the decisive factor rather than the kind of facility providing them.
This division excludes the production of meals not fit for immediate consumption or not planned to be consumed immediately or of prepared food which is not considered to be a meal (see divisions 10: manufacture of food products and 11: manufacture of beverages). Also excluded is the sale of not self-manufactured food that is not considered to be a meal or of meals that are not fit for immediate consumption (see section G: wholesale and retail trade).
continued
56.1 Restaurants and mobile food service activities 56.10/1 Licensed restaurants
This subclass includes the provision of food services to customers, whether they are served while seated or serve themselves from a display of items. The meals provided are generally for consumption on the premises and alcoholic drinks to accompany the meal are available. This subclass includes:
restaurants, cafeterias, fast-food restaurants. The subclass also includes restaurant and bar activities connected to transportation, when carried out by separate units.
This subclass excludes: concession operation of eating facilities; see 56.29.
56.10/2 Unlicensed restaurants and cafés
This subclass includes the provision of food services to customers, whether they are served while seat- ed or serve themselves from a display of items. The meals provided are generally for consumption on the premises and only non-alcoholic drinks are served.
This subclass includes: restaurants, cafeterias, fast-food restaurants. The subclass also includes restau- rant and bar activities connected to transportation, when carried out by separate units.
This subclass excludes: concession operation of eating facilities; see 56.29.
56.10/3 Take-away food shops and mobile food stands
This subclass includes the provision of food services to customers to take-away or to have delivered.
This includes the preparation and serving of meals for immediate consumption from motorized vehi- cles or non-motorized carts. This subclass includes: take-out eating places, ice cream truck vendors, mobile food carts, food preparation in market stalls.
This subclass excludes: retail sale of food through vending machines; see 47.99; concession operation of eating facilities; see 56.29.
56.2 Event catering and other food service activities
This group includes catering activities for individual events or for a specified period of time and the operation of food concessions, such as at sports or similar facilities.
56.21 Event catering activities
This class includes the provision of food services based on contractual arrangements with the custom- er, at the location specified by the customer, for a specific event.
This class excludes: manufacture of perishable food items for resale; see 10.89; retail sale of perishable food items; see division 47.
56.29 Other food service activities
This class includes industrial catering, i.e. the provision of food services based on contractual arrangements with the customer, for a specific period of time. Also included is the operation of food concessions at sports and similar facilities. The food is usually prepared in a central unit. This class includes: activities of food service contractors (e.g. for transportation companies), operation of food concessions at sports and similar facilities, operation of canteens or cafeterias (e.g. for factories, offices, hospitals or schools) on a concession basis.
This class excludes: manufacture of perishable food items for resale; see 10.89; retail sale of perishable food items; see division 47.
56.3 BEVERAGE SERVING ACTIVITIES
This group includes the preparation and serving of beverages for immediate consumption on the premises.
continued
56.30/1 Licensed clubs
This subclass includes the preparation and serving of beverages for immediate consumption on the premises by: nightclubs, social clubs.
This subclass excludes: reselling packaged/prepared beverages; see 47; retail sale of beverages through vending machines; see 47.99.
56.30/2 Public houses and bars
This subclass includes the preparation and serving of beverages for immediate consumption on the premises by: bars, taverns, cocktail lounges, discotheques licensed to sell alcohol (with beverage serv- ing predominant), beer parlours.
This subclass excludes: reselling packaged/prepared beverages; see 47; retail sale of beverages through vending machines; see 47.99; operation of discotheques and dance floors without beverage serving; see 93.29.
Source: UK Standard Industrial Classification of Economic Activities 2007 (SIC, 2007): Structure and explanatory notes, London: Office for National Statistics
Table 1.2 continued
In reading through the current classification, there are a number of interesting issues for note.
● First, the very detailed nature of the descriptions and the very precise nature of the language used, including specifying types of activity that are included and also types of activity that are excluded. The activities excluded will appear in the national statistics under a different heading.
● Second, the definition of food and drink service operations as activities providing complete meals or drinks fit for immediate consumption. The emphasis here is on ready to eat food and drink and not on the manufacture or retail of food that needs reheating or reconstitution. This may cause some problems for supermarkets, who sell large amounts of sandwiches – for immediate consumption – but also large amounts of ready meals to take home and prepare for dinner. Where would a rotisserie chicken fit into this description?
● Third, the inclusion of mobile food stands, being specifically mentioned in the classification for the first time.
● Fourth, the introduction of the category of event catering, which has seen substantial growth over the last few years, but perhaps strangely the inclusion of industrial or contract foodservice as part of this category. This ‘other food services’ category now also includes travel catering and catering at sports grounds, as well as at factories, offices, hospitals or schools, but only on a contract or concession basis and so still excludes the majority of public sector catering.
● Fifth, what is a beer parlour? The classification scheme is actually much more detailed than can be presented here but does contain some interesting types of business. A detailed list can be found on our companion website.
Take your eight occasions and businesses identified earlier and try to fit them into the categories described above. Why are some easy to categorize and some more difficult? Are there any that you cannot find an appropriate category for?
A C T I V I T Y 3
Food and beverage management
What do managers do?
There has been substantial interest in the nature and definition of the work of the manager over many years. Figure 1.2 presents a model which has been developed to synthesize much of this work for the hospitality industry (Li, Buhalis and Gray, 2006).
Hospitality managers have explicit and implicit goals, or responsibilities, which are concerned with ensur- ing the organization’s continued success and survival, as well as their own personal interests, such as career progression. For hospitality firms, there are three main types of objectives that management must be concerned with, which are to ensure that the guest feels welcome, that facilities work for the guest and that the operation will continue to provide service while also making a profit (Powers and Barrows, 2003).
The goals that are set are shaped by factors which include the organizational structure and culture, the economic situation, national culture, available resources, cognitive and moral rules and their own per- sonal attributes. Managers in the hospitality industry face a more uncertain and complex work environ- ment than in many other industries due to its unique service characteristics. This complexity is then coupled with the cultural differences of different business climates and environments and the managers’
personal values.
Work agenda (goals and responsibilities)
Specific activities (roles and behaviours) Job’s demands,
choices and constraints
Degree of progress on purposes of activities
Performance and agenda
revision Variability, variety, volatility
Skills
Knowledge base Organizational
structure, culture and
strategy
Resources, cognitive rules and moral rules
Manager’s personal concerns and
values, and their influences
onmanagers’
behaviours
Figure 1.2 Exploring the manager’s work in the hospitality industry Adapted from Li, Buhalis and Gray (2006)
To reach the goals that have been set, managers in hospitality firms carry out various tasks and activities, covering the standard managerial roles such as planning, organizing, commanding, co-ordinating and controlling, sometimes called POC3. They often act in a seemingly ad hoc way, constantly responding to the unexpected resulting from the changing environment. While managers undertake a diversity of managerial activities, what they do and/or what they choose to do are, to some extent, unpredictable and changeable. The way that managers choose to perform the tasks is not always consistent either. Hence, the hospitality manager’s work can be characterized by variability, variety and volatility, which represent the informal element of the hospitality manager’s work.
However, each managerial activity is often associated with a certain management function. In other words, the purpose of a managerial behaviour can be linked to one of the key functions of management. For exam- ple, a restaurant manager may choose to speak to the customers to find out how they view the service offered. S/he will then be able to report on customer satisfaction. The manager may also recognize some weaknesses in service and, consequently, introduce appropriate training activities for staff. Since man- agers, including those in the hospitality industry, are responsible for the success of their organizations or organizational units, they also need to carry out these functional duties. This constitutes the formal nature of the hospitality manager’s work.
While the performance of managers is reflected by the degree of progress in achieving their goals, the effectiveness of the manager’s performance is underpinned by their competencies including personal attributes, knowledge and skills. In the case of a food and drink business, managers must have sufficient knowledge in order to manage daily operations and direct the business strategically. They must be com- petent in relating to employees and guests, accomplishing operational goals within financial constraints and responding to customers’ requirements immediately so that the quality of real-time service can be delivered. Within an international work environment, hospitality managers must be also competent in appreciating cultural differences and dealing with various situations appropriately.
While this model sets the background to what managers should be doing, research conducted on behalf of the Institute of Hospitality (called the HCIMA at the time) by the University of Surrey (Gamble, Lockwood and Messenger, 1994) was designed to identify the types of management activities that could be seen to be typical of different sectors of the hospitality industry across Europe. Using a critical incident methodology, the research collected situations in which managers felt that their contributions or actions had made a significant difference to the outcome of a situation; some where the manager’s skills and knowledge were used well, and some where the respondents felt their skills and knowledge were lacking. These incidents were then categorized into the four key areas of managing operations, managing the business, managing people and personal skills. Each of these areas was then divided into categories. These fifteen categories represent the key areas of skills and knowledge that any manager in the hospitality industry needs in order to be effective. The areas and subcategories are illustrated in Figure 1.3.
Analysing the incidents against the main category areas by level of management provides the data shown in Table 1.3. To allow for the differences in the titles and roles between industry sectors, the following management levels were used:
● Department head/junior management – managing a section within an operating unit. This would equate to the coffee shop manager in a hotel operation or the assistant manager of a fast-food operation.
● Unit manager/section manager – managing a complete unit or a section within a larger unit. This would equate to a unit catering manager working for a contract catering company, an executive chef or the food and beverage manager of a small hotel.
● General manager – overall control of one large unit composed of a number of sections or a collec- tion of smaller units. This would equate to the food and beverage manager of a large hotel with
•Making presentaons / training
•Interpersonal skills
•Using technology
•Professional development
•Managing performance
•Managing projects
•Managing strategic decisions
•Managing legal complexity
•Managing individuals
•Managing teams
•Managing external contacts
•Managing personnel administraon
•Day-to-day operaons
•Specialist technical areas
•Managing a crisis
Managing
operaons Managing people
Personal professional and
skills Managing
the business
Figure 1.3 Main areas of management activity Source: author’s personal research
Table 1.3 Cross tabulation of main activity areas by management level (%)
Junior Unit General Area Director Owner Total %
Managing operations 40.3 30.2 20.9 13.4 17.8 29.3 28.9
Managing the business 11.8 23.0 32.6 41.2 41.1 32.0 25.2
Managing people 10.7 16.4 15.9 19.6 12.3 9.5 14.4
Personal skills 37.2 30.4 30.6 25.8 28.8 29.3 31.5
Total % 23.2 36.5 19.6 6.3 4.8 9.6 100.0
Source: author’s personal research
extensive restaurant, conference and banqueting facilities, or the manager of a small number of cater- ing contracts.
● Area manager – overall responsibility for a number of separate large units or geographic areas.
● Director – responsibility for the operation and management of a complete organization.
● Owner/proprietor/partner.
Managing operations recorded the second highest number of incidents across the three subcategories of managing day-to-day operations, specialist/technical areas and managing crises. The analysis by manage- rial level, shown above, shows a heavy emphasis in this area for the junior managers. This was strongest in day-to-day operations and specialist knowledge, but when it came to a crisis the junior managers were more likely to call in their unit or general manager. Owners also get heavily involved in sorting out
the crises that may occur within their businesses. Sector comparisons show that hotels and restaurants reported the heaviest emphasis on managing operations, while employee catering had the lowest.
The area of managing the business included aspects of managing business performance, managing proj- ects, managing strategic decisions and managing legal complexity. Across the whole sample, this area was in third place behind personal skills and managing operations. More detailed analysis by managerial level reveals some significant differences. Although general managers, regional managers and directors show significantly more incidents in this area, junior managers and unit managers show a low emphasis. This suggests that managers as a whole may be becoming more business oriented but only when they have reached a position of some seniority with an organization. Comparisons across the sectors of the industry reflect this emphasis, with hotels, restaurants and popular catering, sectors with large numbers of junior managers, showing a low emphasis on this area, but other sectors, especially contract catering and local authority services, featuring positively.
The managing people area covered managing individuals, managing teams, managing external contacts and managing personnel administration. It was therefore surprising that, given the labour intensity of many sectors of the industry and the natural importance given to this area, there were relatively few reported incidents in this area. One explanation for this anomaly is that the interpersonal skills involved in managing people are not included in this section but are categorized as more generic personal skills.
Analysis across managerial level shows unit managers having the highest score in this area, with junior managers and owners having low scores.
The area of personal skills includes a range of generic or transferable skills that cover making verbal or written presentations, training, interpersonal skills, using computers in management and self-develop- ment. There were more incidents reported in this area than any other and most of these were in the inter- personal skills area, followed by making presentations and training. Using computers in business showed comparatively few incidents, and incidents to do with self-development were sadly, for an industry that seemingly values training highly, very sparse. All levels of manager reported large numbers of incidents in the area of interpersonal skills, especially the junior managers, who would be new to having to handle these situations. Again, there was an even spread across all sectors of the industry but a heavier than expected emphasis in popular catering or fast food. This is perhaps a reflection of the time managers spend dealing with interpersonal issues when the technological issues have been removed from consider- ation through systematized service delivery systems.
The responsibilities of food and beverage management
The research described above highlights the areas of activity that all managers are involved in but does not look at the specific responsibilities of the food and beverage manager. The significant contribution food and beverage sales can make towards total sales is evident, but food and beverage costs can make equally significant inroads into sales. This necessitates the development of an effective system of control for all areas concerned with the food and beverage function. The development of such a total control system begins with the basic policy decisions described previously – the determination of the financial, marketing and catering policies. Working within these three broad policies of the establishment, the food and bever- age department is then able to detail its objectives.
Definitions of management are numerous, with writers using different words and phrases to describe the same activity, but if allowance is made for this there is some broad agreement about managers’ functions.
First, they are involved in the planning process – setting objectives, making decisions about which direc- tion the organization should take, that is, formulating policies. Second, managers decide how these objec- tives should be achieved and by whom. This involves analysing tasks and assigning them to individuals
or groups. Third, managers are involved in staff motivation in such a way as to move the organization through them in the direction formulated at the planning stage to achieve the stated objectives. Fourth, managers have a controlling function, including the comparison of actual performance to that forecast at the initial planning stage and taking any necessary steps to correct any deviation from agreed objectives.
The controlling may be done by observation, by analysis of accounting records and reports or by analysis of recorded statistical data.
These four management functions – planning, organizing, motivating and controlling – can be translated into the functions of the food and beverage manager. In a food and beverage department, the planning pro- cess involves the setting of several basic policies: a financial policy dealing with envisaged profitability or cost constraints of the establishment; a marketing policy defining the market to be catered for; and a cater- ing policy defining the main objectives of operating the food and beverage facilities and the methods by which such objectives are to be achieved. Such policies would be decided at a senior level of management.
The tasks needed to achieve these objectives would then be assigned to individuals who should receive job descriptions detailing the purpose of their tasks, the responsibilities of the individuals, who they are responsible to, etc. Here food and beverage managers work in conjunction with the personnel department in producing job descriptions and appointing on-the-job trainers to help train new staff.
The motivation of the staff of the food and beverage department is an important function of food and beverage managers. This may be undertaken in several ways – for example, by helping individuals who are undertaking common tasks to form into groups so that a ‘team spirit’ may develop, by encouraging staff-management committee meetings or, at a more basic level, to see that full training is given so that job anxieties are reduced for employees from the beginning.
Finally, there is the element of control in the food and beverage department. This involves the checking of actual performance against expectations or forecasts, and in the case of any wide deviations, to locate the problem area and rectify it, and to take whatever steps are possible to prevent the problem occurring again.
The functions of food and beverage managers in co-ordinating the food and beverage department are therefore numerous, and it is important that they should use all the tools of management available to them. An organization chart should be produced showing the position of the food and beverage depart- ment within the context of the total establishment. An organization chart presents graphically the basic groupings and relationships of positions, and a general picture of the formal organization structure.
In larger units, departmentalization becomes more apparent. Figure 1.4 shows the organization of a food and beverage department in a large prestigious hotel.
In this example, the food and beverage manager has six subordinate managers acting as departmental heads and then further levels of assistant managers and the operational teams themselves. The food and beverage department can be seen to represent a major part of the hotel’s total organization structure but is clearly supported by other departments.
Some units are, of course, too small to adopt anything like this type of organization structure. Indeed, in a small privately owned restaurant, it is often the owner who is ‘manager’ of all departments. In this instance, the proprietor would also operate as the control department, monitoring all incoming and out- going revenues and costs, but overall the same main activities still have to be covered.
It is also important to supplement the organization chart with a job description. A job description is an organized list of duties and responsibilities assigned to a specific position. It may be thought of as an extension of the formal organization chart in that it shows activities and job relationships for the positions identified on the formal organization chart. An example of a food and beverage manager’s job description may be seen in Table 1.4. Some organizations also produce work schedules; these are outlines of work to be
PA to Managing
Director Managing
Director
Director of Engineering
Director of Human Resources
Director of Food and Beverage
Director of
Retail Simpson’s-in- the-Strand
Grand Divan and Knights Bar
Manager Assistant Manager
Master Cook
Director of Beverage
American Bar Manager
Beaufort Bar Manager
Execuve Chef
Execuve Sous Chef
BOH Manager Assistant Director of Food
and Beverage Thames Foyer
Manager Restaurant
Manager Kaspar’s Butlers and In-
Room Dining Manager Director of
Finance Director of Sales and Markeng
Director of Revenue Opmizaon Director of
Operaons
Figure 1.4 Organization chart for a large hotel Source: Savoy Hotel, London
Table 1.4 Food and beverage manager job description
JOB DESCRIPTION MALMAISON HOTELS Position: Food & Beverage Manager
Relationships: Reports directly to the General Manager Mission
To be successful by doing the simple things well with care, consistency and passion. To demonstrate these advantages to our customers allowing Malmaison to achieve the desired profits which will allow us to grow.
Objective
To ensure the smooth running of the Food & Beverage Operation, by driving department managers to adhere to standards, procedures and policies. To coach and mentor all members of the team when necessary. To assist, support and action decisions from the General Manager and accept responsibility for the operation in his absence.
Duties and Responsibilities Profit
● To ensure F&B operations meet budgeted targets.
● To maximize average spends, by driving up-selling techniques through department managers and supervisors.
● To understand the construction of budget and how to influence profit and loss results.
continued
