Muhammad Irfan Bin Mohammad Sukri Muhammad Aidil Shah Bin Abdul Latif Dinie Nabila Binti Mohd Zainudin Azhar Nurul Fadhilah Binti Abdullah Nor Nadira Binti Mohamad COMMERCIAL FOODSERVICE OPERATION DRAF Publisher
POLITEKNIK SULTAN IDRIS SHAH KEMENTERIAN PENGAJIAN TINGGI First Edition 2023 All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviewsand certain other non- commercial uses permitted by copyright law. ISBN: 978-967-2096-95-5 Published by: Polytechnic SultanIdris Shah Sungai Lang, 45100 Sungai Air Tawar Sabak Bernam, Selangor Phone Number 03 3280 6200 Fax Number 03 3280 6400 Web : https://psis.mypolycc.edu.my Printedby :
Preface Throughout the learning experience in the food and beverage service course, we took the opportunity to prepare the content of this book, to expose DHF students and also readers with the basic knowledge of commercial foodservice operation. It is a compilation of notes from us arranged in order for student reference in class. As the author, we believe that writing this book will help students in acquiring important knowledge in improving themselves to become good service personnel in restaurant operations with the skills, knowledge and attitudes required in the industry. Each chapter of the book is prepared specifically and writtenin an easy way for the reader to understand the knowledge from the book. This book was created through the support of many individuals and we are very grateful for their input. Thanking our superiors, colleagues and students who encourage us, teach us, give us experience, support us, and make us stronger every day. Finally, we would also like to thank our teachingstaff who inspired us towards the journey of completing this book. Muhammad Irfan Bin Mohammad Sukri Muhammad Aidil Shah Bin Abdul Latif Dinie Nabila Binti Mohd Zainudin Azhar Nurul Fadhilah Binti Abdullah Nor Nadira Binti Mohamad
\ Table of content Chapter 1 Organizes operation of fine dining restaurant.....................................1-5 Construct menu…………………………….………….…............................................6-15 Select concept of fine dining theme and pricing……............................16-25 Form a sales promotion….....…………………….……........................................26-29 Recognize the halal concept in procurement proses......……….……..…..30-32 Prepare food in safe and sanitary environment………………………….........33-37 Different types of service ………………………………………….............................38 a. American Service................................................................................39-41 b. Russian Service................................................................................... 42-44 c. French Service.................................................................................... 45-47 CHAPTER 2 Buffet........................................................................................................48 Organizes operation of a buffet service............................................…49-50 Construct menu ………………………………………………………................................51-53 Select theme for buffet operation and pricing …………………...……..........54-60 Form a sales promotion………………………………………...……......…..................61-63 Recognize the halal concept in procurement proses…..……….............64-67 Prepare food in safe and sanitary environment………….....………..…..... 68 a. Composting left over..........................................................................69-71 b. Reducing waste...................................................................................71-73 Malaysian buffet…………………………………….……………...................................74-75 International buffet…………………………………………………..…..........................76-77 CHAPTER 3 Outdoor catering.....................................................................................78 Organizes operations of outdoor catering………..………………………………...79 Construct menu………………………………………………………………………………..…....80-83 Select concept of outdoor catering theme and pricing.......................84-86 Form a sales promotion……………………………………………………….…………….... 87-89 Recognize the halal concept in procurement proses…………..…………... 90-91 Prepare food in safe and sanitary environment…………………………….....92-93 Outdoor catering operation ..................................................................94-97
CHAPTER 5 Organizes operation of a fast-food restaurant………………………......….…117 Construct menu……………………………………………………………………………..………..118-119 Select concept of fast food theme and pricing………………………….…….…120-121 Form a sales promotion………………………………………………………………..…….…122-123 Recognize the halal concept in procurement proses………………..……… 124 Prepare food in safe and sanitary environment ………………………..….... 125-126 Organize fast food restaurant operation.............................................127-128 REFERENCES........................................................................................ 129-132 CHAPTER 4 Organizes operation of a food court………………………………………………….....98 Construct menu………………………………………………………………………………………. 99 Select concept of food court theme and pricing….………………………………100-102 Form a sales promotion…………………………………………….…………………………….102-104 Recognize the halal concept in procurement proses…………………..…….105-108 Prepare food in safe and sanitary environment..................................109-114 Perform different types of service.........................................................115 Layout…………………………………………………………………………………………………………116
Fine dining is a restaurant experience that is typically more sophisticated, unique, and expensive than one would find in the average restaurant. Industry analysis, trends and opportunities for fine dining restaurants. Fine dining is an allencompassing experience that includes elegant and sophisticated services as well as the highest-quality food. The ability to produce a refreshing and distinct ambience that goes beyond the conventional conventions of restaurant design is vital. In a fine dining restaurant, there are normally more staff members, and the personnel have a higher degree of training and skill. Celebrity chefs, experienced waitstaff and bartenders, and occasionally sommeliers or other food and beverage professionals will assist you in making food and beverage selections. When compared to a casual dining restaurant, fine dining offers an experience that is of better quality and exclusivity. Since its ambience is more sophisticated, the cuisine is served more formally. 1.0 Definition Fine Dining 1
1.1 Typical Characteristics of a Fine Dining Restaurant Traditionally the most expensive dining experience Typically multi-course Elegant a la carte or prix fixe menu options Popular during holidays or special occasions Fine Dining Service Rules Unlike casual restaurants, fine dining service rules are strict, as a high standard is expected. Fine dining establishments hire staff that can deliver elegance, experience, and knowledge to the dining experience. The Setup and Greeting Flatware and silverware is arranged from the outside in, starting with the first course. Tablecloths are clean and evenly placed. Any cutlery, plates, and napkins are removed for empty seats. When guests arrive, greet all members of the party warmly and formally. “Good evening, sir, ” is appropriate, while “How’s it going tonight?” would not be. 2
The Meal To avoid leaving fingerprint marks, glasses and silverware are held by the base. Servers never reach over a guest across the table. It’s best practice to take the plate from the closest point. Servers remove used plates and silverware at the end of every course. After the Meal Servers only clear a plate when everyone in the party is finished with the course. When clearing off the table, servers stack plates one at a time off of the table to avoid making noise. If the meal is not prix fixe, servers bring out dessert and drink menus before offering the check. Fine Dining Etiquette Attire Depending on how “fine” the fine dining restaurant is, there may be a dress code required for guests. Typically, any mandated dress code will be specified beforehand so as not to single out any patrons, but it is not uncommon for restaurants to turn guests away at the stand if they are not in the proper attire. 3
Proper attire should be observed. While not enforced in every fine dining restaurant, young children are traditionally expected to not be a part of the fine dining experience. Learn more about the pros and cons of child-free dining. Speaking loudly or making too much noise is discouraged and seen as disruptive. Since fine-dining is usually multi-course, expect to take your time at the venue. Guests should not expect to feel rushed in a fine dining restaurant, no matter how busy it is. Limit menu customizations. The menu has been painstakingly designed by an expert chef, so changes, substitutions, and/or special requests are usually not the norm. Behavior Guests at a fine dining restaurant are expected to uphold a certain level of civility at a fine dining restaurant. Some of the unspoken rules include, but are not limited to, the following: Fine Dining Restaurant Staff Staffing a fine dining restaurant is drastically different than many other restaurant types. Those who work in a fine dining restaurant often see it as their career high point. Thus, those looking to hire for a fine dining establishment should seek out those with years of experience in hospitality. 4
A la Carte A la carte menus in fine dining restaurants let guests build their main course plate from an extensive menu. For example, Davio’s steak entrees do not come with side orders included – the price reflects the main part of the meal. However, their menu has an extensive list of sides and appetizers – such as mashed potatoes and asparagus – available for separate purchase that the entire table can enjoy. Traditional Entree Menu Some fine dining restaurant stick with a more mainstream model of ordering, where entrees include side orders to be matched with the main part of the meal. For example, the filet might be paired with roasted potatoes and a side salad, while the New York strip might come with french fries and seasonal vegetables. In both the traditional and a la carte menu choices, additional courses like appetizers and desserts are optional. 5 Kitchen Manager F&B Manager Server Maitre'd/Host/Hostess Executive or Head Chef Sous Chef Line or Prep Cook Busser Bartender
Important of Menu You are a foodservice manager. What is the first thing that comes to mind when you hear the following: appetizers, entrees, desserts, daily specials, ethnic cuisine, fine or casual dining, pricing psychology, trends, cut food costs, reduce your staff, dietary guidelines, government regulations, sustainability, special diets, food delivery, marketing, equipment, customer demand? Each of the above words probably brought quite a few different thoughts to mind. One word, however, affects— and is affected by—every term on the list: THE MENU. The importance of the menu to a foodservice operation cannot be emphasized too often or too much. The fact that it is an early topic in this book underscores its importance for those studying the management of foodservice operations. The menu is also called “the driver” of a foodservice operation. This descriptive term indicates that every part of a foodservice operation is affected by the menu and stresses how the menu is a managerial tool for controlling many aspects of a foodservice operation. As you learn more about menus and menu planning, keep in mind menus from your favorite restaurants or your recent meals in other types of foodservice operations. 1.1.1 CONSTRUCT MENU 6
Types And Categories Of Menus Menus can be categorized in a variety of different ways and there are different types of menus, which are often associated with particular types of foodservice operations. A classic way to categorize menus is by how often they repeat. Static menus are those that basically stay the same every day and are most typically used in quick service to upscale casual restaurants. These types of menus may be presented on a menu board or in some type of printed format, sometimes laminated so it is easily cleaned, that is handed to the customer. Typical sections of a lunch or dinner static menu include appetizers, salads, entrees (often further divided), sides, desserts and beverages. Choices may be limited, as they are in some quick service, such as McDonalds or Five Guys, and quick casual restaurants, such as Panera and Chipotle, or choices may be extensive requiring a menu that resembles a small book, such as the Cheesecake Factory. Cycle menus are most often used in non-commercial foodservice operations that serve the same group of customers every day, such as corporate dining (business and industry), healthcare, schools, and long-term care or CCRCs. A cycle menu follows a particular pattern designed to meet the needs of the operations customers and repeats on a regular basis. The length of the cycle should be set with the customer in mind. For instance, a hospital can typically use a shorter cycle menu, perhaps five to seven days, for patients, since most do not stay in the facility for many days. However, a foodservice operation in a continuing care retirement community may need a cycle as long as six weeks since customers may be eating in the CCRC dining room on a daily basis. Cycle menus are often planned seasonally so an operation might have a spring, summer, and fall/winter cycle. 7
Daily (or single-use) menus change on a daily basis or may be planned for a special event with a one-time use. Daily menus are often used in fine dining or for foodservice operations that feature locally sourced products, which are available in the market on a given day. Alice Water’s Chez Panisse restaurant uses a daily menu to highlight seasonal and locally available foods with a “farm to table” approach. Single-use menus are planned for catered events like banquets or parties, and are also used in many operations for “daily specials.” Other ways to categorize menus Menus can also be categorized in a variety of other ways including any of the following: Function of the menu – such as a tasting menu, catering, hotel room service, dessert, or drinks Meal/Time Period – such as breakfast, lunch, happy hour, or dinner Style of service – such as American, French (table side cooking), or Russian (platter service) Pricing styles – such as a la carte (each item is individually priced), table d’hôte (a selection of complete meals offered at set prices), prix fixe (one price for the entire menu), and most commonly seen in U.S. restaurants, a combination of pricing styles to best cater to the target customer of the operation. Amount of selection – selective (customer has many choices typical of a family or casual restaurant), non-selective (no choice as with many tasting menus, hospital special diet menus, or sit-down banquets), or limited or semi-selective (typical of small operations, fine dining or themed restaurants) 8
These different categories overlap among each other and types of foodservice operations, both commercial and noncommercial, and offer both advantages and disadvantages to management and control. For example, static menus would be easiest for forecasting, purchasing and labor scheduling since they are the same every day, but cycle menus have those same advantages over daily menus. However, it can take restaurant chains a year or more to plan or make a change to a static menu. Daily menus are the most flexible and can be easily changed to adjust to product or market price changes. Static, and to an extent cycle menu, offer the customer a predictable dining experience, but daily menus offer a new dining adventure with every visit to the foodservice operation. Of course, foodservice operations often combine elements of these different types of menus to gain the advantages offered by each. For example: many restaurants using a static menu offer daily specials or features, which give some flexibility to offer menu items that are seasonal, or trendy, or use product that needs to be sold and not wasted. Advantages And Disadvantages Of Various Types Of Menus 9
Menu Planning Principles And Factors To Consider Menu planning principles include balance, nutritional quality, aesthetics, and variety, including color, texture, flavors, shapes and sizes of food. The equipment and personnel available to produce and serve the menu are also important considerations in planning the menu. Along with all of these considerations, the effective foodservice manager also has to consider costs, production and other management issues. Factors affecting menu planning can be organized into two main areas: customer satisfaction and management decisions. Both of these areas must be considered when menus are planned. Having a menu without customers is like having 1000 acres of land for sale—in Antarctica. At the same time, a menu with items that cannot be produced at an acceptable cost will simply put a foodservice operation out of business or drive a noncommercial operation into the red. Most foodservice directors know that this could mean the end of their job. Four factors related to customer satisfaction include sociocultural background, food habits and preferences, nutritional influence, and aesthetics. 10
The influence of nutrition and government regulations Increasingly, our knowledge of nutrition is influencing the way we eat. The U.S. government issues Dietary Guidelines with recommendations about how people should eat. Many nutrition trends, such as smaller portions, ethnic foods, and gluten-free diets also affect menu planning, Think about the new food products that have become available in your grocery store or your local restaurants in the last year. Many of these new items have some nutritional claim that has brought them to the store shelf or the plate. Noncommercial foodservice operations, particularly in schools and in health care settings, have a nutrition mandate from both the government and the customer. When it comes to feeding children and the elderly, many other different issues surface. Some of these issues involve foods and surroundings unfamiliar to kids, and the ability of older patients to chew and swallow. The list goes on. Sometimes customers may be misinformed about nutrition; then we have the bigger job of educating them, as well as trying to feed them a well-balanced, healthy diet. In some settings, the menu also serves as a nutrition education tool. 11 Customer satisfaction. Knowing your customers (and your potential customers) is obviously a key to planning and designing menus. Think about yourself as the customer. What are some of the reasons you like or dislike a menu? You probably have certain preferences— certain foods and combinations of foods—from your experiences growing up. Collecting some market research on our customers and studying food and menu trends can help menu planners to keep the menu fresh and satisfying for our customers. Always keep the sociocultural background and food habits and preferences of the customer in mind when planning menus.
A “textbook” approach to menu planning is not enough. As a foodservice or dietetic professional, you have to recognize those unique factors that significantly affect each individual consumer. You must design your menus to ensure a balanced, nutritious diet that reflects more of the recipient’s values than your own. The introduction of unusual or unfamiliar foods may cause a customer to lose interest in eating altogether. A noncommercial foodservice menu can be used to help a consumer adjust to a new, unfamiliar regimen. But this educational function usually requires an increased menu variety with a greater food production effort and perhaps higher costs. A few key points to remember for the non-commercial sector: 12
Aesthetics Not to be forgotten is the issue of aesthetics. You’ve heard it many times before: we do eat with our eyes. How our food is presented, along with texture, consistency, color, shape, and the preparation method, influences how we feel and what we think about a menu. It can even influence our appetite and our interest in eating. Management Decisions Food cost and budgetary goals of the foodservice operation Production capability, including available equipment and personnel Type of service and food delivery system Availability of foods The philosophy of the business and foodservice operation When the menu is thought of as a management tool, a number of other factors related to menu planning enter the picture. To plan a good menu you need to consider the following factors: 13
Menu Psychology Placing menu items where the customer’s eyes tend to go first or last (see the URL links below), Using graphics such as boxes and borders to draw attention to menu items, Displaying prices in a way to encourage customer spending, or Not using dollar signs, leader dots, or column pricing (where all prices are lined up), which can cause guests to spend less, and Using descriptive terms for menu items to encourage sales. Once the menu is planned, it is typically published in one form or another. This can be anything from a simple menu board or a printed sheet of paper that is easily changed to a lengthy, multiple page laminated “book” that might be used for 18-24 months before any changes are made. Menus are often published on an operation’s website, shared on social media, and reviewed by customers on user-generated content websites, such as TripAdvisor and Yelp. When menus are published, operators have the opportunity to use “menu psychology” in their menu design to try to influence customer choices and purchases. Increasing sales by raising the average check of a restaurant or overall participation or promoting healthier choices for an onsite foodservice operation are typically the overall goals of using menu psychology. Menu psychology involves using a variety of techniques typically based on research about how people read a menu and make choices about spending money. Some examples of menu psychology in menu design include: 14
Truth In Menu Best Practices quantity quality price brand names production identification points of origin merchandizing terms food preparation verbal and visual presentation, and dietary & nutritional concerns Menu writers and foodservice operators often use detailed merchandising terms to describe menu items in the hopes of increasing sales of those menu items or commanding higher prices. Using these expressive sales tactics is fine, as long as the terms and descriptions used are true. “Truth in Menu” also referred to as “accuracy in menus” is a best practice in planning and sharing menus. Though there is no federal law regarding accuracy in menus, in general, there are regulations addressing this issue in various states around the country. Accuracy in menus addresses any and all of the following: 15
1.1.2 Concept of Fine Dining Theme and Pricing Definition of Restaurant A restaurant is a service establishment whose objective is to prepare and sell food and drinks to satisfy customers. Also, a restaurant is responsible for offering other amenities to customers, such as table service, home delivery service, optimal payment methods, and more. Of course, that is a rather narrow definition, as it leaves out other aspects of the restaurant that I can easily delve into when defining the concept of a restaurant. 16
Definition Concept of Restaurant The culinary style (for example, fusion cuisine, Asian cuisine, etc.) defines the equipment you will need, the ingredients used, the flavor of the food, the plating, the cutlery, the pairing, and even the napkins. The style of service defines the training of your servers, the type of customers the restaurant is aimed at, the treatment they receive, and even if your restaurant receives tips or not. The decoration and physical layout of your restaurant define the lighting, colors, atmosphere, the number of customers you can serve, the dress code, and more. And more key elements of your restaurant, such as the point of sale, the organization of your kitchen, the number of employees, etc. The concept of a restaurant is all that it is, all the experience that it offers.This is not only limited to culinary style and service style. Rather, it is about the numerous details that are defined based on those elements. For example: That is why the concept of your restaurant is the compendium of actions, decisions, techniques used in your restaurant to satisfy your customers. Also, at a basic level, everything that affects your customers and the experience you offer is part of your concept regardless of whether it affects them on purpose or not. 17
Theme Of The Restaurant The theme of a restaurant is similar to the concept. However, a theme works in reverse, since the theme is sometimes chosen before defining the concept in its entirety. A theme can be anything. A Caribbean beach-themed restaurant works to deliver a Caribbean dining experience — that's the theme. The concept of that restaurant would be defined by different details of the kitchen, the style of service, and other convenient details to offer that experience. For example, drinks served in coconuts, imported silverware and cutlery, culinary styles and traditional cooking techniques, exotic ingredients, and more. Those might sound like clichés, but that's actually part of the joke of a themed restaurant. The theme of a restaurant is closely related to its concept — it could be said that all restaurants have both. 18 That doesn't sound all that complex, but it gets tricky when you realize that it means that even restaurants that don't seem to have a concept actually do have one. It is more difficult to define what the concept of a restaurant is due to the variety of techniques and practices that can be called as such.In addition, the concept also has weight in many aspects of your restaurant, such as marketing, the strategies that you apply, the reputation of the restaurant, the type of clients that you attract — that is why it is complex to know where to start to create the concept of your restaurant from scratch.
Important of Concept Menu Naming the dishes to reflect the restaurant concept Choosing the nuances and décor of the dining room for your concept and target audience of guests. Source foods for your concept, such as choosing farmdirect suppliers, low-cost processed foods, organic ingredients, or high-end meats and produce. Use electronic signs, dining room art, and physical signs to keep your concept going. Training your staff to provide the right level of service, such as teaching waiters about fine dining wines. Give the restaurant a name to indicate your concept. The concept of your restaurant is vital because it is basically the limitation that you put on your restaurant in terms of profitability, target customers, and more details related to finances. It is also important to define your concept along with your business plan. If you change your concept, you will need to start the planning process all over again and make changes to absolutely everything so it’s in line with the experience you want to deliver with your concept. The areas you should plan to coordinate with your concept are: 19
Satisfy customer expectations, such as implementing a dress code for fine dining establishments. Develop the menu as your central document so that you can refer to it when making other decisions. It offers a constant experience in each visit. Plan special events that harmonize with the concept. The most important thing is to design your menu to attract customers looking for the experience you offer. Other important management considerations for promoting your concept include: Some restaurants offer separate dining experiences in different parts of the restaurant. For example, bars often present a different concept than the rest of the business. However, you should tie these differences together with a common conceptual thread, such as ingredients from similar or common origins, offering the same service quality, and more. Menu Pricing Deciding your menu costs, better known by the term “Menu Pricing” is the process of calculating the price at which you want to sell different dishes at your restaurant. When you decide your menu cost, you calculate the cost to prepare the dish along with other overhead expenses that go into making the dish. This is when you arrive at the final price at which you sell your dish. This selling price covers your costs as well as brings profits. For accurate restaurant menu pricing, you must look at various factors which influence menu costs and then decide on a menu pricing strategy. 20
Factors That Affect Restaurant Menu Pricing There are various factors that will affect your menu prices. In any restaurant worldwide, the factors influencing menu costs don’t change, but the magnitude of influence keeps shifting.That is true even within the same country and the same state. The factors affecting menu costs on the West Coast will be different, in scale and magnitude, when compared to those on the East Coast. Thus, you must account for each of these carefully before going on to deciding your tentative price, calculating your food cost percentage or gross profit percentage, or even considering which menu pricing strategy to use. The factors which affect menu prices are:- The cost at which the ingredients are brought. Your direct costs do not include the cost of transporting the raw material or the cost of labor to procure the raw material; it is strictly the price of the raw material which forms your restaurant inventory only. Cost related to food waste. You must account for the cost of wasted food as a direct cost as it still forms a part of your inventory and has a direct impact on the inventory levels. Cost related to portion sizes. The variance which occurs while portioning your food and managing your yield is to be added to the direct cost of your raw materials. (i) Direct Costs Direct costs are the cost of raw material. For a restaurant, there are three branches to direct costs. 21
(ii) Indirect Costs These are the costs which you encounter to prepare a dish excluding the cost of raw material. In simpler terms, indirect costs are the cost of adding value and quality to your food and dining experience at your restaurant. These include things like the cost of tableware, cutlery, ambiance, lighting, water supply, etc. Labor expenses are an exclusive part of your indirect costs. The labor that goes into making and serving dishes must be included as salaries. Even when you prepare your Profit & Loss Statement, your labor costs will come under the heading of salaries credited, but following the definition of indirect costs, the salaries and wages which you pay to your staff members to prepare and serve the meals, and to run the restaurant, are a part of your indirect costs and must be considered while pricing the menu. 22 The higher your direct costs are, the more your menu price will be for a given profit margin. Similarly, the higher your direct costs are, the lesser your profit margin will be at a given menu price.
(iii) Overhead Expenses These are the expenses you encounter in running your restaurant. These are different from indirect costs as overhead expenses include expenditures that will impact the restaurant directly. For example, the marketing budget of the restaurant or the renovation cost of the restaurant is an overhead expense.You must factor in your overhead expenses while deciding your menu pricing strategy as the only way in which your restaurant can earn is through the food it sells. No matter what the source of the cost or the expense, in the end, if it is made to push the restaurant and the restaurant’s food, it must be considered in a while deciding the menu cost. 23
(iv) Seasonal Costs These are the costs that are volatile and change according to the season. They are accommodated within direct costs, indirect costs, and overhead expenses while calculating your menu price and food costs. But that does not mean that you must not pay attention to the fact that some of your costs will face seasonal ups and downs. This is because the menu you create needs to be balanced. Every dish must have some ingredients which are cheap, easy to acquire and have relatively stable prices. At the same time, the menu must be a mix of different types of dishes being sold at different price levels. The reason you consider your seasonal costs is not just to find the right price for a dish but to find the right balance of dishes within the menu, and the right balance of ingredients within a dish. Your seasonal costs will mostly include what you pay for ingredients like meat, fruits, and vegetables as the prices of these items can fluctuate depending upon the season. (iv) Service Costs Service costs can have a direct impact on your restaurant menu prices and can raise or lower them. If you run a fastcasual or a self-service restaurant in the U.S, your service costs will be much lower than what they would have been for a fine dining restaurant. Don’t over-price here as the quality of service must do justice to the prices or else you will lose your customers. 24
(vii) Customer Psychology The psychology of your target audience is not something you can factor in your menu prices using a formula, yet while deciding the menu cost, you must consider the psychology of your target audience. Your prices must not reflect negatively on the restaurant’s image, but at the same time must entice your customers and feel worth the experience. Price your dishes too high, and you may lose some customers, as they might not find the food worth the cost. At the same time, price all your dishes too low and the customers may get an impression that your food is not that good. (v) Competitor Pricing The price that your competitors are charging for the same dish has a significant impact on your menu pricing strategy. You cannot charge more than your competitors unless you are giving exceptional value for the extra charge. At the same time, pricing lower than the industry rates may also have a significant impact on your profits even if it attracts customers. Thus, knowing what the competitors are charging will let you have a rough idea regarding the price bracket in which your menu costs should ideally lie. 25
1.1.3 Sales Promotion Sales Promotion Definition A sales promotion is a marketing strategy in which a business uses a temporary campaign or offer to increase interest or demand in its product or service. There are many reasons why a business may choose to use a sales promotion (or ‘promo’), but the primary reason is to boost sales. Sales boosts may be needed to reach a quota as a deadline approaches, or to raise awareness of a new product. Let’s take a closer look at different types of sales promotions, as well as the pros and cons of using any type of promotion. 26
Types of Sales Promotion 1. Competitions and challenges: Competitions or challenges usually take place on social media, and serve to increase customer engagement as fans try to win a discounted or free product. They usually also result in a large amount of free publicity if the competition or challenge involves sharing the brand on a customer’s personal social media account. 2. Product bundles: Product bundles offer a collection of products for an overall discounted rate, as opposed to buying the products individually. Product bundles give customers a reason to buy a larger variety of products, which makes it more likely they will find a product they like and want to buy again. 3. Flash sales: Flash sales are extremely short sales that offer extreme discounts for a limited amount of time. These sales work through creating a sense of urgency and need around your sale. 4. Free trials: Free trials or demos are one of the most common sales promotions and one of the most promising strategies to grow a customer base. Businesses can offer either a limited time with the product or a limited quantity of the product to a first-time buyer at no charge to see if they like it. 5. Free shipping and/or transfers: Free shipping promotions attempt to curb the 70% of customers who abandon their carts when they see the shipping costs. The small loss in shipping fees is usually made up for in happy customer purchases. 27
28 6. Free products: Free product promotions work by offering a small free product with the purchase of a larger, mainstream product. This boosts mainstream sales without costing the company too much inventory or revenue. 7. Early-bird or first-purchaser specials: These specials offer discounts to first-time purchasers as a way of welcoming them as customers. Customers are more likely to buy at a discount and because the discount only works once, the company doesn’t lose a great deal of revenue. 8. BOGO specials: BOGO, or “buy one, get one free” promotions are primarily used to spread product awareness. Customers can give their extra product to a friend or family member and build a customer base through word of mouth. 9. Coupons and vouchers: Coupons and vouchers reward current customers for their brand loyalty and encourage future purchases. This is especially effective in companies who use punch cards which incentivize customers to make multiple purchases to earn a free product. 10. Upsell specials: Upsell promotions are not as common as the others, but they can still be extremely effective. Upsells give first-time customers a less expensive version of a product to try, and then over time, the sales department works to convince them to purchase the more expensive and more effective option.
11. Subscriptions: Subscriptions are not always considered sales promotion, since they tend to be long-term purchases, but having different amounts of a product available at a different price point is a sales promotion tactic. With a subscription, a customer pays a larger fee upfront for a large amount of product that eventually comes out to less than what they would pay for buying smaller amounts of product individually. 12. Donations: Donations are an excellent way for a company to build credibility and goodwill within the customer base. Most donations work when the company contributes a portion of each sale during a given period to a charitable cause. 29
1.1.4 Halal Concept In Procurement Process The concept of halal encompasses adhering to Shariah law in all respects, including handling, packing, warehousing, inventory management, and the procurement and delivery processes as well as the ingredients or origin of the products. 30
Purchase controls have been in question for decades because inefficient processes and procedures implementing a purchasing function created disparities and inequitable penalties (Kakwezi & Nyeko, 2010). The procurement department must be part of the company’s organisation for a smoothly functioning supply chain. Procurement services are essential for industries because they have to acquire raw materials and help to use them and plan and supply. Because of the recent acquisition and quality control influx, this department has additional control and activities. Businesses need to determine the total acquisition and maintenance costs and indirect costs associated with acquiring and retaining a customer life (Ibrahim et al., 2020). The procurement process was studied by Bratt et al. (2012) as including tasks such as defining essential requirements. In terms of marketing, assessing the market, purchasing, and negotiating with vendors, it has a complete mix of activities. It is crucial in purchases, plans for acquisitions,policies, and processes. Based on their research, Nor et al. (2016) concluded that purchasing is necessary to establish and manage the upstream supply chain, assess and process sources, manage vendors, and verify suppliers and distribution. Halal purchasing is a recent academic topic of study initiated by Tieman and Ghazali (2013). They discuss how halal affects the procurement strategy and procurement process (Tieman et al., 2020). Rasi et al. (2017) defined halal procurement as the buying practises that foster the preservation of halal integrity throughout the supply chain. A thorough understanding of the various stages of the halal supply chain is needed to make sure food items do not become anything that is forbidden under Islamic law. Halal depends on every part of the supply chain. 31
Accordingly, a business must conduct rigorous supply chain validation to protect its halal legitimacy from the view of its clients (Muhamed et al., 2020). There are various ways to increase productivity and efficacy, as stated by Shahbaz et al. (2018). 32
1.1.5 FOOD IN A SAFE AND SANITARY ENVIRONMENT 33
One of the worst nightmares for guests has been experience of food poisoning after eating in a restaurant or some other hospitality facility. The price you pay for not taking care of hygiene and cleanliness in your hospitality facility is very expensive. To avoid such an “accidents” and to show your guests clear signs that your facility is really clean and tidy, it would be wise to make certain preventive actions. At the entrance of your restaurant put the certificate from medical & sanitary inspection service for the current year. This is the first sign that is safe to eat in that restaurant. Employees and persons who are working with food should look neat and clean. Attention should be paid to cleanliness and length of nails. Long nails are the ideal home for bacteria. Employees should wear protective gloves and hairnets or hats. Restaurateurs who care about cleanliness and food safety insist that their employees carry these minimal precautions. Toilet must have been always clean, and water pipes need to work perfectly without a dripping and the clogging. All staff should wash their hands with antibacterial soap and hot water. You could put signs to remind employees to wash their hands after visiting the toilet. Farrowed walls, floors as every object in restaurant need to be clean. In clean objects, there should not be even minimum of dust or grease which can be good environment for germs. Presence of cockroaches, flies, rats and other scavengers are sure signs of an unhealthy environment. 34
Food remains and dirt on the floor from previous guest is the last thing that your new guest wants to see when coming in a restaurant. After each guest floor must be clean up. Water and food in the kitchen may not be present and effused on the floor. I your staff respect working rules and have enough working space in the kitchen you have a good basis for cleanliness and hygiene. Raw food, especially meat and greens should be adequately separated. Cross-contamination of these food products usually happen when raw meat comes in contact with food which is eaten fresh, such as salads. Only healthy employees can work with food! The area around the object should be clean. Place for trash (cans, containers) should be with orderly stored waste. In the case that rats or similar scavengers shows up, you should immediately take necessary measures to remove them. One of the good hygienic practises is disinfection of tables and furniture with disinfectant. With these actions, you will minimize possibility of food poisoning caused by the lack of cleanliness and hygiene. Be a part of the team of clean restaurants from where guest only come out with a smile on his face. 35
CUSTOMER PERSPECTIVE Consumers can make or break a restaurant. If an establishment fails to meet expectations, the restaurant may lose patronage a or worse, the unsatisfied customer may leave a bad online review, thus tarnishing the overall image of the business. Additionally, with growing awareness about food safety, end-users have developed many expectations from restaurants in terms of quality. Everything is taken into account from preparation to serving the food to the environment it is being served at. The last thing your restaurant needs is a case of food-borne illnesses caused by Salmonella, Campylobacter, Listeria, and E. coli a the health risks can be as severe as brain damage, food poisoning, meningitis, arthritis, kidney failure or even death. Restaurants are well aware of how dangerous these contaminations can be, and they must set in place practices and procedures to keep their guests safe from harm. In April 2019 a Grant Park Packing in Illinois rightfully recalled 53000 pounds of ground beef due to the presence of E.coli. As expensive as that decision may have been, it was the right thing to do. Remember, every restaurant is just one careless mistake away from an outbreak, or a foodborne incident, that could put its patrons at severe risk. 36
Food Safety Checklist for the Hospitality Industry All equipment should be well maintained and kept clean Separate equipment and utensils should be used for raw items, i.e., meat and the final product Wash hands thoroughly before preparing food and when switching to cook something new Train your staff to avoid cross-contamination Discard expired food items Do not buy items that are nearing expiry or have expired Frozen food should always be stored at a specific temperature; ensure that it is also delivered in a freezer Ensure that your refrigerator is running on the correct temperature Make sure that the staff involved in cooking and handling food always wear gloves and hairnets A restaurant should adhere to proper food safety and health standards, as well as ensure staff members are following these guidelines without fail 37
Food and Beverage Services is related to all the activities pertaining to preparing for service and serving food and beverages. This tutorial introduces you to various types of services, table settings, various equipment used in service, types of menus, types of service operations, food garnishes and accompaniments, and various standard operating procedures followed by food and beverage service business. This tutorial teaches basic terms used in food and beverage service domain. After going through this tutorial, you will find yourself at a moderate level of expertise of tourism basics from where you can take yourself to next levels. 38 1.1.6 Types of Services
American Services American service is a simple and informal form of service. It is also known as a Plated service. In this American service style, dishes are neatly plated in the kitchen by the kitchen staff and placed on the guest’s cover from the right-hand side. It is a very easy food service style. In this service, dishes are placed nicely in the kitchen. And the server moves clockwise when the food plates are present. Here dishes are served like Prawn cocktails, Salads, Masala dosa, Vada sambar, Burgers, Ice creams, etc. This service is followed in busy areas or when its service needs to be very fast. Service skill is not required. Low labor cost. Needs fewer waiters. Quick service. High seat turnover as service is fast. The kitchen staff has the scope to demonstrate their plating skills. No personalized service. Chances of plate wastage. Skilled writers do not have the scope to show their service skills. Food may become cold. More kitchen time and labor. These are the advantages of American service: These are the disadvantages of American service: 39
American Service Table Setup 1. The waiter should be able to carry at least three dishes out of full plates to speed up the service. For a group of more than three guests, the waiter and the assistant waiter work as a team to place the plates. Using trays for transporting plates is not recommended. 2. Trays are used to carry dished-out cups and bowls. Cups are placed on the saucers and bowls on quarter plates with the appropriate spoons. 3. On reaching the table, standing to the right of the guest, the waiter needs to place the bowls of minestrone soup on a tray. 4. On reaching the table, standing to the right of the guest, the waiter places the bowl on a quarter plate, positions the soup spoon on the plate, and keeps it at the guest’s cover from the right-hand side in such a way that the spoon is to the right of the guest. He/she moves to the next guest and repeats the same. 5. The server moves clockwise while placing plated food. Dishes such as prawncocktails, salads, soups, masala dosa, vada sambar, sandwiches, burgers, ice creams, and so on, are served in this way. 6. This American service style is followed in restaurants located in busy areas where service needs to be very quick. Like, Coffee shops, fast food outlets, casual dining restaurants, and restaurants located in busy areas follow this style of service. 40
Points to remember while Table Setup for American Service All plated food is served from the right-hand side to the guest. Beverages are served from the right. Clearance is done from the right-hand side. The tray is used to carry cups, bowls, saucers, and underplates. The tray should not be used to carry full and half plates. Move clockwise when you work from the right-hand side and counter-clockwise when you work from the left hand 1. 2. 3. 4. 5. 6. 41
Russian Services Russian Service is a very elaborate service and this Russian service is also known as the Sideboard service. In this service style, large joints, roast poultry, whole fish, and so on, that have elaborate garnish, are neatly arranged on a platter, presented to the host, taken back to the sideboard, carved, portioned, and served to the guests with service spoon and fork. After service, dishes are kept on a hot plate on the sideboard to keep them warm. Each course is served from the sideboard. Now russian service is not practiced much in recent times. But this service is widely followed in institutional and industrial cateringestablishments. High level of guest satisfaction. Personalized service. Waiters have the scope to exhibit carving, portioning, and service skills. Good presentation. Calls for highly skilled staff, hence higher labor cost. More wait staff is required. Low seat turnover, like time taken for service, is more. Russian Service Advantages Russian Service Disadvantages 42