Abu Bakar Ismail -PJK

FOOD AND BEVERAGE (F&B)

INDIVIDUAL ASSIGNMENT
Table Of Contents
1.
2.
3.
4.
5.
6.

Question 1_______________________________pg2
Question 2_______________________________pg5
Question 3_______________________________pg8
Question 4_______________________________pg10
Question5_______________________________pg13
Question6_______________________________pg

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Q1. What are 3 basic types of commercial food servive operations?

There are generally 3 types of Commercial Food Service Operations;
1.) Independents;
An independent operations is owned by an owner or owner who have one or
more properties that have no chain relationship- menus may not be identical
among properties, food purchase specifications may differ, operating

procedures are varried.

New entrepreneurs are further encouraged because many restaurant often
require little capital to get started. Land facilities and equipment can be leased,

and the minimal amount of inventory needed to open a restaurant.

Entrepreneurs who can spot a market whose wants and needs are not currently
being met may be able to capture that market and prosper if they provide
value and good service to guests.

2.) Chain Restaurants;

Chain stores are retail outlets that share a brand and central management, and
usually have standardized business methods and practices. These
characteristics also apply to chain restaurants and some service-oriented chain
businesses.

The displacement of independent businesses by chains has generated

controversy in many countries, and has sparked increased collaboration among
independent businesses and communities to prevent chain proliferation. Such
efforts occur within national trade groups.

Large Chain can readily acquire cash, credit and long term leases on land and
buildings. This is not as feasible for many independent properties. Chain can
afford to make more mistakes than independent operator can. Related to this is
the ability of a chain to experiment with different menus, themes, designs and
operating procedures.

Chains can afford staff specialists who are experts in Finance, Construction,
Operations and Recipe Development. Other advantages would include they are

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also able to generate internal financial information that can be used as a basis
of comparison among properties.

A restaurant operating many properties within a certain geographic area can

more easily generate information that can be used to set sales goals, as well as
identify problems in specific properties.

The disadvantages would include difficulty in keeping up to changing markets

and economic conditions. As chains grow, a bureaucracy involving large
amount of paperwork, rules and procedures can slow them down.

3) Franchises;

A special type of chain operation in which a facility owner (the franchisee)

pays fees to a franchisor in exchange for the right to use the name, building
design and business methods of the franchisor. Further, franchisee must agree
to maintain the franchisors business and quality standards.

The franchisee is usually responsible for generating funds to start the business.
In addition to initial franchise fees, the franchisee may be required to pay
royalty fees assessed on the basis of a specified percentage of revenue or other
factors as well as advertising costs, sign rental fees, and other costs such as
stationary and food products.

Some of the benefits of owning or managing a food service franchise typically

include;
a) Start-up assistance
b) Company-sponsored training programs for management staff and
training resource materials for employees.
c) National contributions toward local advertising campaigns.
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d) Higher revenues because of more extensive advertising, greater name

recognition of the franchise chain, and the consistency of products and
services among chain properties (guests know what to expect).
e) Lower food cost due to the volume purchasing by the chain.
f) Tested operating procedures that specify how things should be done.

There are certain disadvantage to owning or managing a food service

franchise. The contract is often very restrictive. The Franchise has little choice
about the style of operation, the product served, services offered, and even
methods of operation. The menu might be set, along with the dcor, required
furnishings, and productions equipment

Since the Franchise agreement is drawn up by the Franchisor, the document

generally favors the Franchisor. This might cause a disagreement between both
the parties.

Q2. How you promote your new hotel operations in a new business area?

The most important ingredient in a successful guest-relations effort is Top Level

Commitment. Food Service Managers who are committed to marketing;

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Use strategies that focus on what is best for the guest.

Talk about service routinely.
Use guest- friendly systems.
Exemplify all aspects of excellent guest relations as they interact with guests.
Balance high-tech with high-touch; that is, they temper systems and methods with the
personal factor.
Market service to their guests.
Measure service and make the result available to their employees.

Feasibility Study
1.

Identifying Market Area Characteristics

This would include demographic information on potential guests in the general

area of the proposed site, and it also analyses the positive and negative trends that
may affect demand for the proposed facility.

Examples include types of guests, demographics, income, number of children.

2. Evaluating The Proposed Site

The site of a proposed food service facility is one of the most important variables
determining the eventual success (or failure) of the operation.
The feasibility study evaluated the project site and area by researching the number
of people
i) In the surrounding metropolitan area.
ii) Living or working within walking distance
iii) Within easy driving distance.

3. Analyzing the competition

The competition analysis helps establish pre-opening marketing strategies for the
proposed food service facility. For example, the results of a feasibility study can
help determine;
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a) The type and volume of demand for food and beverage service.
b) The adequacy with which the competition satisfies the current demand.
c) The strengths and limitations of the competition.
d)

4.

The points of difference that must be established between the proposed

facility and the competition.

Estimating Demand

Making an estimate of Food & Beverage demand begins with an analysis of the
market areas restaurant and bar sales.

5. Projecting Operating Results

Most feasibility studies project financial results for the first, second and third year
of the operation.

6. Staying Current

Feasibility studies are usually conducted long before construction actually takes
place (for newly constructed facilities) or a new operation is opened in an existing
building.

Restaurants should first identify which major markets their operations already appeals to by;
a) Guest Surveys- A questionnaire completed by guests and used by Food
Service
Managers to define current markets and to improve the operation.

Abu Bakar Ismail -PJK

b) Guest Comment Cards- A short questionnaire completed by guests and used by

Food Service Managers to define current markets and to
improve the current markets.

Marketing strategy
For the best results, marketing objectives should be;
a) In writing. Everyone has the same information when objectives are put in writing.
b) Understandable. Objectives will not be reached unless managers and employees can
understand them.
c)

Realistic yet challenging. Objectives should not be set so high that personnel give up
before they start; conversely, objectives should not be set so low that they present no
challenge.

d) Specific and measurable. Objectives must be as specific and measurable as possible.

Once the marketing objectives have been set, action plans with target dates must be
created to reach them and employees should be encouraged to contribute ideas to
action plan.

The major tools used to implement the marketing plan and reach marketing objectives are
sales, advertising and public relations and publicity (radio, television,direct mail,
newspaper & internet)

Q3. List down and explain types of restaurants found in a hotel. Please include
relevant example.

1. Popular Price Restaurant

Abu Bakar Ismail -PJK

Caters for people on the move.

Service emphasizes on speed and simplicity.
Concept of Buffet service started here.
Also known as All Day Dining restaurant.
Menus varies from set to ala carte and the pricing is not very high.
Dishes are usually a combination between local and western.
Atmosphere is less formal.

2. Fine Dining Restaurant

o A very formal dining house.

o Dishes served are mostly authentic western cuisine and the employees are usually
very skilled.
o Table side service is the highlight of the dining house.
o The menu design is formal and exclusive.
o Food are consumed in sequence.
o Food presentation and menu design are very exclusive.
o Some restaurants also have specific dress codes.
3. Specialty Restaurant

A restaurant that has a theme tied to it.

Usually serves one particular type of cuisine.
The set up of the restaurant and staffs uniforms would follow the theme.
Usually the concept follows the Casual Diner House.
Examples of the restaurants would include Chinese Restaurant and Italian
Restaurant.

4. Banquet Department

Also known as the Catering Department.

Caters for special Functions, Meetings, Seminars and Conventions.
Uses set menus.
Non skilled employees are employed.
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Less permanent workers instead employ more casual employees.

Has several function or meeting rooms and one large function room known as the
Ballroom.

2. In Room Dining (Room Service)

o Service provided to the guests in the guests room
o Requires skilled employees, and orders are recorded by a order taker who
needs to have sound product knowledge.
o Menu is similar to the ones served in the Hotel especially the All Day Dining.
o Also manages the mini bar consumption in the Guests Room.
o Responsible to provide Butler service in case if there is a VIP in house.

Q4. Explain what is a feasibility study and the steps involved in conducting it.
DEFINITION
Defined as a form of market research that analyzes the possible site, relevant demographic
statistics, probable competitors and projected financial success of a proposed Food Service
operation.
A feasibility studies main goal is to assess the economic viability of the proposed business.
The feasibility study needs to answer the question: Does the idea make economic sense?
The study should provide a thorough analysis of the business opportunity, including a look at
all the possible roadblocks that may stand in the way of the cooperatives success. The
outcome of the feasibility study will indicate whether or not to proceed with the proposed
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venture. If the results of the feasibility study are positive, then the cooperative can proceed to
develop a business plan.
If the results show that the project is not a sound business idea, then the project should not be
pursued. Although it is difficult to accept a feasibility study that shows these results, it is
much better to find this out sooner rather than later, when more time and money would have
been invested and lost.
It is tempting to overlook the need for a feasibility study. Often, the steering committee may
face resistance from potential members on the need to do a feasibility study. Many people
will feel that they know the proposed venture is a good idea, so why carry out a costly study
just to prove what they already know?

There are several steps involved in the Feasibility Study

1.

Identifying Market Area Characteristics

This would include demographic information on potential guests in the general area of
the proposed site, and it also analyses the positive and negative trends that may affect
demand for the proposed facility.

Examples include types of guests, demographics, income, number of children.

2. Evaluating The Proposed Site

The site of a proposed food service facility is one of the most important variables
determining the eventual success (or failure) of the operation.
The feasibility study evaluated the project site and area by researching the number of
people
iv)
v)
vi)

In the surrounding metropolitan area.

Living or working within walking distance
Within easy driving distance.

3. Analyzing the competition

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The competition analysis section of a feasibility study presents an inventory of all

competing food and beverage facilities in the projects market area.

Competition may consist of not only freestanding establishments, but also restaurants
and meeting rooms located in office building, private clubs, and social fraternal
organizations.

A feasibility study generally analyze each competitors;

a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)

4.

Location (proximity of competitors to the proposed site).

Type of restaurant
Source and volume of business
Days and hours of operation
Menu prices
Guest check average
Type of service
Number of seats
Availability of liquor service
Entertainment
Promotional efforts
Chain affiliation.

The competition analysis helps establish pre-opening marketing

strategies for the proposed food service facility. For example, the results of a
feasibility study can help determine;
a)

The type and volume of demand for food and beverage service.

b)

The adequacy with which the competition satisfies the current demand.

c)

The strengths and limitations of the competition.

d)

The points of difference that must be established between the proposed facility
and the competition.

The results of competition analysis can also be useful in guiding the design of the
proposed facility, planning the menu and the type of service, establishing prices,
determining hours of operation, and developing advertising and promotion strategies.

Estimating Demand

Making an estimate of Food & Beverage demand begins with an analysis of the
market areas restaurant and bar sales.

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Surveying can be accomplished through personal interviews or direct main

questionnaires.

Potential guests are asked about their food preferences; how often they dine out, how
far they are willing to travel when dining out; how much time they spend on
breakfast, lunch, and dinner; and how much money they are willing to spend for each
meal period.

5. Projecting Operating Results

Most feasibility studies project financial results for the first, second and third year of
the operation.

6. Staying Current

Feasibility studies are usually conducted long before construction actually takes place
(for newly constructed facilities) or a new operation is opened in an existing building.

The fact that feasibility study becomes out dated so quickly, the Food Service facility
needs to conduct on going market research.

Q5. What are the security concern during purchasing food?

SECURITY CONCERNS DURING PURCHASING

Avoid kickbacks- something that occurs when the companys purchaser works
in collusion with the supplier.

Setting up a fictitious company enables a purchaser to steal by submitting

invoices from the company and collecting money for products never received

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Abu Bakar Ismail -PJK

1. Buy the right product

The menu dictates what products must be purchased and it is important the exact
description as mentioned in the menu is served with no compromise.

Purchase Specification- is a detailed description setting forth the quality, size,

weight, and other factors desired for a particular items. Once developed, this
document should be given to the supplies in order for them to have a better idea
of the companys requirements.

2. Obtain the right quantity

Since cash flow is adversely affected by the inventory levels, it is important to

maintain an inventory that is adequate at all times and avoid over or under
stocking.

A Par Level- the minimum amount of a product that should always be in

inventory- is established for most products in inventory. Par level equals the leadtime quantity plus the safety stock level of any given products.

3. Pay the right Price

Perhaps the most important purchasing objective is to obtain products and

services at the right price. Often with bargain prices there is a gamble that the
product may not be delivered or may not be of the proper quality.

Here are some techniques that can be used to reduce purchasing costs;
a) Negotiate with the seller
b) Consider purchasing lower-quality products
c) Evaluate the need for the product
d)Discontinue some supplier service
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a) Combine Orders
Product prices are also affected by the method of payment. If the supplier
offers a discount for prompt payment, this option should be studies. Generally
payment terms should be negotiated after an agreement is reached on the
price.
4. Deal with the right supplier.
Experienced purchasers realize that factors other than price should be considered
when a supplier is selected. These factors include;
a) Suppliers Location
b) Suppliers Facilities
c) Financial Stability

Q6. What are speciality menus?

Everything starts with the menu. The menu dedicates much about how your operation
will be organized and managed, the extent to which it will meet its goals, and even
how the building itself- certainly the interior- should be designed and constructed.For
guests, the menu is much more than just a list of available foods. The menu also
communicates the operations image and contributes to the overall dining experience
by helping to set a mood and build interest and excitement
Below are the speciality menus:
1. CHILDREN
A menu for children featuring familiar simple and nutritious food served in small
portions.
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Childrens menu are usually designed to entertain; they may fold into hats or
masks, be shaped like animals, or have word games, stories or mazes printed on
them.

2. SENIOR CITIZENS
A menu that seeks to accommodate seniors and their special health needs by
offering lower-priced items that are low in calories, sodium, fat or cholesterol.
3.

ALCOHOLIC BEVERAGE
A menu that lists cocktails, wines and other alcoholic beverages an operation
offers to guests.
Alcoholic beverages can be listed on a separate menu or included on the regular
menu.
Restaurants with a large selection of wines may have a separate wine list.
Many beverage menus also include no or low- alcohol drinks.

4. DESSERT

A separate menu designed to remind guests of the operations Dessert items.

It may list Desserts not listed on the regular menu and include Dessert specials.
Upscale restaurants may include appropriate after-dinner alcoholic drinks on their
dessert menu.

5. ROOM SERVICE

A menu offered by lodging properties that serve food to guests in their

guestrooms, suites, cabin and so on.

Room Service menu usually offers a limited number of items because it is

difficult to maintain good quality while transferring food to the room.

There is one type of menu that is very popular in the Room Service Dept known
as Doorknob Menu
Door Knob Menu

A type of menu that is placed in the room usually by the Housekeeping Staff.
Lists a number of limited items and the time the items can be served.
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The guests can select what food they want and the time they want the food to be
delivered, than hang the menu outside the door on the doorknob.

The menus are collected overnight and the orders are prepared and sent to the
room at the indicated time.

6. TAKE OUT MENU

A menu that offers food to guests who want to pick up their food at the restaurant
and consume it elsewhere.

7. BANQUET MENUS

Usually a table dhotel menu- a set menu with few, if any, choices. Banquet meals
tend to be elaborate.

Managers who plan Banquet Menus must be careful to select food that can be
produced in quantity and still hold its quality.

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