HTM10100 Food and Beverage Operations and Management Study Guide

Post Graduate Diploma in Hospitality and Tourism Management HTM 10100 Food and Beverage Operations and Management

2 | P a g e Table of Contents MODULE OBJECTIVES.................................................................................................................................... 3 INTRODUCTION ................................................................................................................................................ 4 CHAPTER 1 : FOOD AND BEVERAGE OPERATIONS AND MANAGEMENT ...................................... 5 1. INTRODUCTION TO F&B OPERATIONS AND MANAGEMENT ........................................................ 5 1.1 TYPES OF FOOD AND BEVERAGE OPERATIONS ................................................................. 6 1.2 TYPES OF SERVICE....................................................................................................................... 7 1.3 FOOD AND BEVERAGE PERSONNEL ..................................................................................... 12 1.4 CUSTOMER SERVICE ................................................................................................................. 19 CHAPTER 2 : MENU PLANNING AND DESIGN ........................................................................................ 21 2.1 PURPOSE OF THE MENU ........................................................................................................... 21 2.2 TYPES AND CATEGORIES OF MENU ..................................................................................... 22 2.3 MENU PLANNING PRINCIPLES AND FACTORS TO CONSIDER ..................................... 24 2.4 MENU DESIGN............................................................................................................................... 26 CHAPTER 3 : MENU ENGINEERING........................................................................................................... 36 3.1 MENU ENGINEERING ................................................................................................................. 36 3.2 MENU ENGINEERING CATEGORIES...................................................................................... 40 3.3 MENU ANALYSIS.......................................................................................................................... 43 CHAPTER 4: FOOD AND BEVERAGE PURCHASING AND SUPPLY ................................................... 45 4. 1 INTRODUCTION ........................................................................................................................... 45 4. 2 F&B PURCHASING AND SUPPLY............................................................................................. 45 4. 3 PURCHASING ................................................................................................................................ 46 4. 4 DEVELOPING PURCHASING PROCEDURES ........................................................................ 48 4. 5 FACTORS THAT IMPACT PRICES ........................................................................................... 59 CHAPTER 5: MANAGING QUALITY IN RESTAURANT OPERATIONS.............................................. 60 5.1 QUALITY IN THE CONTEXT OF RESTAURANT OPERATIONS....................................... 60 5.2 IMPORTANCE IN MANAGING QUALITY IN RESTAURANT OPERATIONS.................. 61 5.3 HANDLING COMPLAINTS ......................................................................................................... 62 5.4 DEALING WITH INCIDENTS DURING SERVICE ................................................................. 63 5.5 CUSTOMER RELATIONS............................................................................................................ 68 REFERENCES ................................................................................................................................................... 70 APPENDIX:........................................................................................................................................................ 71 BASIC TECHNICAL SKILLS ......................................................................................................................... 71 GLOSSARY ........................................................................................................................................................ 82

3 | P a g e Module Objectives Learning Outcomes Students will be able to: ✓ Assess front of the house supervision techniques ✓ Design and analyze menus for foodservice operations ✓ Develop procedures for the effective purchasing, receiving, storing and issuing of items used in the operations ✓ Plan management interventions required to generate positive experiences

4 | P a g e 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 multinational 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 subsectors are and therefore what should and should not be included. This book covers food and beverage operations, cost control and food and beverage management and provides updated industry trends, technology advancements, increased emphasis on the social responsibility of sustainability, and other recent developments in the industry.

5 | P a g e Chapter 1 : Food and Beverage Operations and Management Learning Objectives • Identify different types of food and beverage service operations. • Differentiate different types of service. • Identify and describe the various food and beverage service positions. • Discuss the qualities of good food service personnel and their responsibilities to the customer, management and fellow workers. • Defining the customer service of an operation. • Acknowledge the importance of customer service in food and beverage operations. 1. Introduction to F&B Operations and Management Food and beverage operations and management refer to the management of all aspects of the food and drink service in any establishment, whether it's a restaurant, hotel, catering company, or other food service providers. Food and beverage management encompasses all activities related to planning, organizing, staffing, controlling, and directing the activities of a food and beverage operation. This includes menu planning, food and drink preparation, kitchen management, customer service, inventory management, and budgeting. A successful food and beverage operation requires a combination of excellent customer service, quality food and drink offerings, effective cost control, and efficient operations management. In addition to providing a memorable dining experience for customers, food and beverage managers must also ensure compliance with health and safety regulations and maintain high standards of cleanliness and hygiene. Effective food and beverage management involves understanding consumer trends and preferences, maintaining supplier relationships, managing staff training and development, and implementing marketing strategies to attract new customers and retain existing ones. With the right combination of skills, knowledge, and experience, food and beverage managers can create a profitable and successful food and drink operation.

6 | P a g e 1.1 Types of Food and Beverage Operations Food and beverage operations include various types of restaurant, cafes, takeaways, room service operations for hotel guests, home delivery and etc. Type of Operation Description Bistro A bistro is a type of small, casual restaurant that serves simple and traditional French cuisine, typically featuring dishes such as soups, salads, sandwiches, and simple hearty entrees. Bistros often have a cosy and intimate atmosphere, with small tables and a bar, and they are usually frequented by locals and regulars. The term "bistro" originally comes from the Russian word "bystro", which means "quickly", and it was popularized in France in the late 19th century to describe small restaurants that served quick and affordable meals. Today, bistro-style restaurants can be found all over the world, often serving a variety of international cuisine in addition to French dishes. Fine Dining Fine dining is a type of upscale dining experience that typically involves high-quality food, elegant presentation and attentive service. Often, it has a more formal atmosphere and dress code than casual dining establishments. The food served in fine dining restaurants is usually prepared using high-quality ingredients and sophisticated cooking techniques. The menu and the dishes may be carefully crafted and presented in an aesthetically pleasing way. Fine dining restaurants often have a higher price point than casual dining restaurants due to the quality of the food, service, and overall experience. The dining experience is often seen as a special occasion or a luxurious treat. Restaurant A restaurant is a business establishment that serves food and drinks to customers for consumption on the premises. The food and drinks are typically prepared and served by trained professionals, such as chefs and waiters, and the menu may offer a variety of options for breakfast, lunch, and dinner, as well as appetizers, desserts, and beverages. Restaurants may be independently owned and operated or part of a chain, and they may specialize in different types of cuisine or dining experiences. Some restaurants may also offer take-out or delivery options in addition to dine-in service. Coffee Shop A coffee shop in Singapore typically refers to a casual dining establishment that serves a variety of local and other dishes, snacks and beverages including coffee and tea. In Singapore, coffee shops are also known as kopitiams.

7 | P a g e 1. 2 Types of Service 1. FRENCH SERVICE French service is a formal type of service originated for European nobility and currently enjoyed by the few who can afford the time and expense of meals served in this manner. This type of service is used in upscale restaurants, elegant hotel dining rooms, cruise ships, resorts, and casinos. In French service, the food is either cooked or completed at a side table in front of the guests. The food is brought from the kitchen to the dining room on heavy silver platters and placed on a cart called a guéridon. A small spirit stove called a réchaud is used to keep the food warm. The food is completed by cooking, deboning, slicing, and garnishing as necessary and served to the guests on heated plates. Only those foods that can be cooked, assembled, or completed in a reasonably short time are prepared in front of the guests. Typical specialties that may be served in the French style are La Salade César (Caesar salad), Le Tournedos au Poivre (pepper steak), and Les Crêpes Suzettes (crêpes in orange sauce). These coffee shops usually feature a mix of communal seating and individual tables, and they are often frequented by locals for their affordable prices, casual atmosphere, and convenience. Some coffee shops in Singapore are also known for their hawker stalls, which offer a wide range of traditional and contemporary dishes from different cultures, such as Chinese, Malay, Indian, and Western. Buffet A buffet is a type of meal service where a variety of food items are placed on a table or counters, and guests serve themselves. Buffet can be found in restaurants, hotels, catered events and homes. The word "buffet" also refers to the table or area where the food is displayed, as well as the style of eating. Buffets may offer a wide range of dishes, including hot and cold items, appetizers, main courses, and desserts. The buffet format allows guests to sample a variety of dishes and choose what they want to eat. Cafe A cafe is a type of restaurant or coffeehouse that typically serves coffee, tea, and other beverages, as well as light meals, snacks, and desserts. Cafes often have a cosy and inviting atmosphere, with comfortable seating, and are popular places for socializing, reading, or working on laptops. Catering Catering refers to the business of providing food and beverage services for events or occasions, either on-site or off-site. This can include anything from providing snacks for a business meeting to preparing a full meal for a wedding reception. Catering services can be provided by individuals or businesses, and can range from small-scale operations to large companies that handle events with hundreds or even thousands of guests. Catering can also involve a wide range of cuisines and dietary restrictions, depending on the needs and preferences of the clients.

8 | P a g e French service employs two servers working together to serve the meal and may include a captain to seat guests and a wine steward to serve wine. The principal server is the chef de rang (or experienced server), who seats the guests when a captain is not present, takes the order, serves the drinks, prepares some of the food with flourish at the guests’ table, and presents the check for payment. The assistant is the commis de rang, who takes the order from the chef de rang to the kitchen, picks up the food and carries it to the dining room, serves the plates as dished up by the chef de rang, clears the dishes, and stands ready to assist whenever necessary. All food is served and cleared from the right of the guests except for butter, bread, and salad, which should be placed to the left side of the guests. Advantages Disadvantages The advantages of French service are that guests receive a great deal of attention Not be suitable for all types of cuisine or dining experiences. Service is elegant and refined dining experience More expensive than other styles of service, as it requires more staff and resources to prepare and serve the food. It is more efficient and streamlined than other styles of service Requires a higher level of training and skill for the waitstaff, as they must be knowledgeable about the menu, able to present and describe the food, and skilled in portioning and serving the food tableside. There is less disruption and distraction in the dining room, allowing guests to focus on their meal and their company Can also be slower than other styles of service, as the waitstaff must bring out each dish and portion it tableside. Process of portioning and serving the food tableside can add an element of theatre to the dining experience, which can be enjoyable for guests. 2. RUSSIAN SERVICE Russian service is similar to French service in many respects. It is very formal and elegant, and the guest is given considerable personal attention. It employs the use of heavy silver service ware, and the table setting is identical to the French setup. The two major differences are that only one server is needed, and that food is fully prepared and attractively arranged on silver platters in the kitchen. To serve, the server places a heated plate before each guest from the right side, going around the table clockwise. Then the server brings the platters of food to the dining room from the kitchen and presents them to the guests at the table. Standing to the left of each guest and holding the platter of food in the left hand, the server shows each guest the food and then, using a large spoon and fork in the right hand, dishes up the desired portion on the guest’s plate. The server continues serving counter clockwise around the table and then returns the remaining food to the kitchen. As in French service, finger bowls and napkins are served with the meal, and soiled dishes are cleared when all guests have completed the meal.

9 | P a g e Advantages Disadvantages The advantages of Russian service are that only one server is needed and that this service is as elegant as French service, yet faster and less expensive. No extra space is needed for special equipment, such as the guéridon. Requires a larger staff than other styles of service, as there must be enough servers to present and serve each dish to each guest individually. Provide a more personalized and attentive dining experience, as the waiter or waitress can tailor the service to each guest's preferences and needs. Another disadvantage is that the last guest served at the table must be served from the less welldisplayed food remaining. Chef can ensure that each dish is consistent in quality and presentation, which can lead to a more satisfying dining experience for guests. Russian service can be more expensive than other styles of service, as it requires more staff and resources to prepare and serve the food. Adapted to many different types of cuisine and dining experiences, from formal fine dining to more casual family-style service 3. ENGLISH SERVICE English service is used occasionally for a special dinner served in a private dining room of a restaurant, but it is more typical of a meal served by servants in a private home. The food on platters and the heated plates are brought from the kitchen and placed before the host at the head of the table. The host or one of the servers carves the meat, if necessary, and dishes up the entr´ee and vegetable on individual plates. He or she hands the plates to the server standing to the left, who serves the guest of honor and all other guests. Dessert may also be served in this manner. All sauces and side dishes and, in some cases, vegetables are placed on the table to be passed by the guests. Advantages Disadvantages The advantage of English service is that it involves a great deal of showmanship for a special occasion. The disadvantages are that the host may be required to do a lot of the work by dishing up some of the food, and with only one person serving the meal, the service can be very timeconsuming. Often associated with a high level of professionalism, including well-trained staff, attention to detail, and a focus on customer satisfaction. English-style service often involves following set procedures and rules, which can lead to a lack of personalization or individual attention for customers. Often involves clear communication between staff and customers, including using simple and direct language English-style service may not be appropriate in all cultures or countries, as different cultures may have different expectations for service and communication styles.

10 | P a g e 4. AMERICAN SERVICE American service is less formal than French, Russian, or English service. It is the most prevalent style of service in restaurants in the United States. In American service, food is dished up on plates in the kitchen. Except for the salad and the bread and butter, most of the food is placed on the dinner plate. Usually, only one server presents the meal. Food is served from the right of the guest, beverages are served from the right, and soiled dishes are cleared from the right. Advantages Disadvantages American service can be simple and casual or complex and elegant. It can be used to serve the guest who wants a quick, filling meal at a casual restaurant with simple service. American-style service can be perceived as too informal or unprofessional in some situations, which may not be suitable for all customers or industries. it can be used at a counter, diner, or family-style restaurant, where casual tableware and placemats are the norm, and where self-serve bars such as salad bars are common. American-style service can vary widely depending on the individual staff member, which can lead to inconsistencies in service quality and customer experience. American service can also be used to serve the guest who intends to be entertained for the evening at a five-star establishment. It can be used to present food elegantly in distinguished gourmet restaurants with formal table settings and the use of complex serving skills and showmanship. American-style service can be perceived as overfamiliar or intrusive by some customers, which may make them uncomfortable or feel as if their personal space is being invaded. 5. BANQUET SERVICE Banquet service involves serving a meal to a group of people who are celebrating, gathering for a special occasion, or honoring special guests. The menu, number of guests, and time of service are predetermined, and the banquet is well organized in advance. Banquet service is offered in hotels, resorts, country clubs, casinos, and restaurants that have conference rooms for holding meetings. The server generally sets the tables with American settings modified according to the particular menu. For example, soup spoons or steak knives may be part of the initial cover if soup or steak is to be served. Occasionally, French, Russian, or buffet service is used at a banquet, and the table is set accordingly. If a cold course is planned, such as a salad, it is placed on the table just before the guests are seated. Also at this time, ice water is poured, butter pats are placed on the bread and butter plates, and baskets of hot rolls are arranged on the tables. The food is put on plates in the kitchen and served to the guests in the usual American serving style or in French, Russian, or buffet style, as predetermined. The head table is served first, then the rest of the tables. Water and coffee are replenished periodically. If the guests will remain seated for entertainment or a speaker after dinner, be sure the tables are cleared and tidy at the completion of the meal. Because the banquet is paid for in advance, the server does not need to present a check or collect payment. The tip is often included in the contract made by the catering manager and the client arranging the banquet.

11 | P a g e Advantages Disadvantages The advantage of banquet service is that the menu and serving time are predetermined, which makes service a simple routine, accomplished by fewer servers than needed for other types of serving. A disadvantage of banquet service is that guests receive very little personal attention. They are usually seated in close quarters, which make proper service difficult. Banquet service is suitable for serving a large number of guests at once, making it ideal for events such as weddings, conferences, or corporate events. Banquet service can be complex and requires careful planning and coordination to ensure that all aspects of the event run smoothly. Banquet service often involves well-trained staff who have experience in serving large events and can provide a high level of professionalism. Banquet service can be time-consuming, particularly if the event involves multiple courses or requires specialized preparation. Banquet service can generate significant revenue for businesses that specialize in providing this service, particularly if they are able to secure contracts for large, recurring events Banquet service requires a large number of staff to be present during the event, which can present staffing challenges, particularly during peak event seasons. 6. BUFFETS With buffet service, guests select their meals from an attractive arrangement of food on long serving tables. The guests either help themselves or are served by chefs standing behind the buffet tables. The service usually combines both methods—the guests select relishes, salads, and vegetables themselves, and the meat is carved and served to the guests by chefs. Silverware and napkins may be conveniently located on the buffet table for the guests to pick up with their meals, or a complete cover (usually American), including rolls, butter, and condiments, may be pre-set at the dining tables. A smorgasbord is a buffet featuring a large selection of food with Scandinavian selections, such as cheese and herring. In some places, it is a set-price, self-service buffet of any kind of food. Usually, guests may come back to the smorgasbord table and get more food as often as they desire. The job of the server varies, depending on the design of the buffet. The servers may serve only beverages and dessert, or they may serve several courses, such as the appetizer and soup, at the guests’ tables. To maintain the sanitary condition of the buffet foods, remove soiled tableware and notify guests that they are to use clean plates each time they return to the buffet. Advantages Disadvantages One advantage to buffet service is that food can be displayed in a very attractive manner However, this can quickly become a disadvantage if care is not taken to keep the food selections fresh and complete Another advantage is that servers can attend to many guests at one time, but guests receive less personal attention than with table service. Buffet service poses a risk of cross-contamination if guests use the same serving utensils for different dishes, particularly if there are guests with dietary restrictions or allergies. Buffet service can be a time-saving option for events with large numbers of guests as it requires fewer servers and less time to set up and serve compared to plated service. Buffet service can result in food waste if guests take more food than they can eat, or if dishes are not replenished in a timely manner. Buffet service is generally more cost-effective than plated service as it requires fewer servers and less equipment. Buffet service can be slow if guests are not familiar with the layout of the buffet tables or if they take a long time to choose their dishes

12 | P a g e 1.3 Food and Beverage Personnel Food and beverage personnel are individuals who work in the hospitality industry, specifically in restaurants, hotels, and other establishments that offer food and drink services. They can be servers, bartenders, chefs, cooks, dishwashers, and other staff members who contribute to the preparation, delivery, and service of food and beverages to customers. Food and beverage personnel play a critical role in ensuring that customers have a positive dining experience. They are responsible for taking orders, preparing food and drinks, serving customers, and maintaining the cleanliness and organization of the dining area. They must be knowledgeable about the menu items and able to answer questions about ingredients and preparation methods. They also need to be attentive to customers' needs and be able to provide prompt and courteous service. In addition to their primary duties, food and beverage personnel may also be responsible for managing inventory, ordering supplies, and maintaining equipment. They must adhere to health and safety regulations, including proper food handling and sanitation practices, to ensure that customers are not exposed to any foodborne illnesses. Overall, food and beverage personnel play an essential role in the hospitality industry and are vital to the success of any food and beverage establishment. Staff Organisation In F&B department there are many personnel to carry out the administrative and operational functions. Staff organization is basically concerned with matters such as: • Identify, divide, distribute and group the tasks to be done. • Delegate authority and responsibility for decision making to accomplish the tasks. • To establish and determine working relationships among persons and groups for efficient implementation of hotel policies and to provide quality services to the guest. An example of the organizational hierarchy of the F&B department is shown in below:

13 | P a g e Figure 1.1 Organisation Hierarchy of a Small Hotel Food and Beverage Manager Depending on the size of the establishment , the food and beverage manager is either responsible for the implementation of agreed policies or for contributing to the setting up of the food and beverage policies. The larger the organization the less likely the manager is to be involved in policy setting. In general, food and beverage managers are responsible for: • Ensuring that the required profit margins are achieved for each food and beverage service area in each financial period. • Updating and compiling new wine list according to availability of stock, current trends and customer needs. • Compiling, in liaison with the kitchen, menus for the various food service areas and for special occasions. • Purchasing of all materials both food and drink. • Ensuring that quality in relation to the price paid is maintained. • Determining portion size in relation to selling price. • Ensuring staff training, sales promotions and the maintenance of the highest professional standards. • Employing and dismissing staff. • Holding regular meetings with section heads to ensure all areas are working effectively efficiently and are well co- ordinated.

14 | P a g e Restaurant Manager The restaurant manager has overall responsibility for the organization and administration of food and beverage service areas. These may include the lounges, room service (in hotels), restaurants and possibly some of the private function suites. It is the restaurant manager who sets the standard for service and is responsible for any staff training that may be required, either on or off the job. They may make out duty rotas, holiday lists and hours on and off duty and contribute to operational duties so that all the service areas run efficiently and smoothly. Reception Head Waiter/ Receptionist The reception head waiter or receptionist is responsible for accepting booking and for keeping the booking diary up to date. They will take reservation and work with the head waiter to allocate these reservations to particular stations. The reception head waiter or receptionist greets customers on arrival and takes them to the table and seat them. Head Waiter/ Maitre De Hotel The head waiter has overall charge of the staff team and is responsible for seeing that all the preparation duties necessary for service are efficiently carried out. The head waiter will aid the reception head waiter during the service and will possibly take some orders if the station waiter is busy. The head waiter also helps with the compilation of duty rotas and holiday lists and may relieve the restaurant manager or reception head waiter on their days off. Station Head Waiter/ Section Supervisor/ Service Captain For larger establishments the restaurant area is broken down into sections. The station head waiter has overall responsibility for a team of staff serving a number of stations within a section of the restaurant area. Each of the set sets of tables (which may be anything from four to eight in number) within the section of the restaurant area is called a station. The station head waiter will also assist in taking food and beverage orders and assist with service if required. Station Waiter/ Chef De Rang The chef de rang or station waiter provides service to one set of tables (between four and eight) known as a station within the restaurant area. The station waiter will take the food and beverage orders and carry out service at the table with the help of the demi chef de rang. Assistant Station Waiter/ Demi Chef De Rang The assistant station waiter or demi chef de rang is the person next in seniority to the station waiter and assists as directed by the station waiter.

15 | P a g e Waiter/Steward/Food and Beverage Associate Waiter, waiting staff, wait staff, are the persons who are assigned to serve food and beverages to the customer or supply the guest with food and drink as requested—promptly and pleasantly. In America a waiter is known as a steward and in French Commis-deRang. A female wait staff is known as waitress and stewardess. To accomplish this job a waiter must know various skills, attributes and have a positive attitude. Duties of a Waiter • Reports to Senior Captain/Captain to receive necessary instructions for the shift and for any changes in the menu. • Attends briefing taken by Senior Captain or Maitre d’ hotel. • Sets the assigned tables and ensures that the sideboard and back area is well stocked with linen, silverware, glassware, chinaware and other required items. • Greets guests and assists the host/hostess in seating the guest. • Order taking and recording. • Recommends dishes from the menu. • Observes the guests in order to anticipate any additional request and to perceive when the meal has been completed. • Clear the table after the meal is over and reset the table for the next guest. • Maintaining good guest and staff relations. • Performs other tasks as directed by the supervisor. • Sometimes a waiter is also required to perform other duties such as singing birthday songs to customers. • Ensures that guests enjoy their meal and leave the restaurant fully satisfied by the food and service provided to them. Attributes of a Food and Beverage Service Personnel Service industry, especially hotels and food and beverage establishments require their staff to possess certain attributes that are prerequisites to perform well. Food & beverages professionals are expected to build upon the following attributes. Professional and hygiene appearance: Food and beverage personnel must be groomed and have a professional appearance as they reflect the image of the hotel. Grooming is important as food and beverage personnel works in front of the guest and handles food and beverages. Service should be done in a clean way to protect guests against food contamination and other food-borne diseases. Unhygienic appearance makes the dining experience unpleasant as well as unhealthy.

16 | P a g e Important points to be considered for maintaining personal hygiene by every F&B professional are: • Bath every day before coming to the shift. • Hair must be trimmed and free of dandruff. • Hair must not come over the forehead. • Hair must not be greasy or oily. • Males should shave every day, before coming to shift. • Moustache, if kept must be neatly trimmed. • Strong perfume and deodorant should be avoided as some guests may have allergy related to this. Light talcum powder and perfume are preferred. • Waitress should wear light make up. • They should have a hair bun. • Excessive jewellery should be avoided. • Use mouth freshener after smoking while coming to the shift. • Wash hands with soap, before shift. • Nails should be short, clean and well-trimmed. • Uniforms should be clean, laundered and ironed. • Always carry a neat handkerchief. • Shoes must be black and oxford. • Ring should be avoided but a wedding ring can be allowed. • Cuts and burns should not be open but covered. Body language is of great advantage while dealing with guests. Body language involves many body postures, gestures and movements, and each one having different meanings. Good posture when standing or seated indicates that we are in control and have confidence in yourself. Some postures expected inside the restaurant are as follows: • A firm handshake. • Smile. • Eye contact. • No physical gestures while speaking to the guest. • Standing erect. • Slight leaning towards guest while hearing the guest. Knowledge of food and beverage and technical ability: Staff must have sufficient knowledge of all the items on the menu and wine and drink lists in order to advise and offer suggestions to customers. In addition, they must know how to serve correctly each dish on the menu, what its accompaniments are, the correct cover and the make of the dish and its garnish. For beverage service staff should know how to serve various types of wine and drink, in the correct containers and the right temperature. Punctuality: Punctuality is all important. If staff are continually late on duty it shows lack of interest in their work and lack of respect for the management and customers.

17 | P a g e Local knowledge: In the interest of customers the staff should have some knowledge of the area in which they work so they may be able to advise customers on the various forms of entertainment offered, the best means of transport to places of interest and so on. Personality: Staff must be tactful , courteous , good humored and of an even temper. They must converse with the customer in a pleasing and well-spoken manner and the ability to smile at the right time pays dividends. Attitude to customers: The correct approach to the customer is of the utmost importance. Staff must provide service but should be able to anticipate the customers’ needs and wishes. A careful watch should be kept on customers during the service to check the progress of the meal. Be always attentive but not intrusive during the service sequence. Cultural awareness: The cultural diversity of customers is increasing and this is reflected in factors such as language, dress and traditions as well as dietary. Members of service staff need to be open minded, non-judgmental and flexible and able to appreciate and communicate respect for other people’s value and beliefs. Memory: A good memory is an asset to food and beverage service staff. It may help them in various ways in their work if they know the likes and dislikes of customers, where they like to sit in the food service area what their favourites drinks are and so on. Honesty: Trust and respect the triangle of staff, customer and management relationship lead to an atmosphere at work that encourages efficiency and a good team spirit among the food and beverage service operators. Loyalty: Staff obligation and loyalty are first to the establishment in which they are employed and its management. Staff therefore need to commit mentally to the ethos of the establishment and be fully aware of their departments aim and objectives. Conduct: Staff conduct should be always impeccable, especially in front of customers. The rules and regulations of an establishment must be followed, and respect shown to all senior members of the staff. This also applies when staff are off duty but may still be in uniform as they represent the establishments values and attitudes. Sales ability: All members of staff reflect the image of the establishment. They are sales people and must therefore have a complete knowledge of all forms of food and drink and their correct service and so able to contribute to personal selling and merchandising.

18 | P a g e Sense of urgency: In order for the establishment to generate the maximum amount of business over the service period, with as high as a net profit as possible, staff must develop a sense of urgency in their work. This should be promoted by management by displaying a do as I do attitude, leading by examples. Complaints: Staff should have a pleasant manner and demonstrate courteous and tact, an even temper and good humor. They should never show their displeasure even during a difficult situation. Staff should never argue with a customer if they are unable to solve situation. It should be referred to senior staff who will be able to reassure the customer and put right any fault. Contribution to the team: Above all staff should be able to work as part of team within and between departments. Being a team member means communicating, co-operating and being reliable so that as a team each member contributes to enable a successful service to be delivered every session. Etiquette and Mannerism The restaurant staff is the frontline staff who are expected / required to have an ability to communicate effectively coupled with certain manners and the etiquette associated with gentleness. The etiquette that a waiter exhibits in a restaurant should comprise the following: 1. Wish guests according to the time of the day and welcome them to the restaurant. 2. Smile and attend to guests promptly as they enter the restaurant. 3. Preferably address them by their name which requires remembering them. 4. Assist the guests to remove coats and help put them on when they leave. 5. Be polite to the guest. 6. Help to seat ladies. 7. Provide extra cushions or special chairs for children. 8. When speaking to guest do not interrupt him if he is speaking to another guest 9. Do not overhear conversation. 10. Avoid mannerism such as touching hair, scratching, nose picking etc. 11. Stand straight at all times, A gentle bow at the time of service is permissible. Never slouch or lean. 12. Remember the preferences of guests such as the favourite dish and remind them that you know ascertain whether he/she would like to order it again. 13. Be attentive to guests calls answer them within in three rings. 14. Talk softly. 15. Offer to light a cigarette for a guest. 16. Avoid arguments with guests or staff in the restaurant. 17. Always carry pens in the pocket and not clipped in the Jacket or behind the ear. 18. Present the bill/check to the host discreetly in order to avoid embarrassing him. 19. Never talk to colleagues unnecessarily or group around the sideboards. 20. Avoid soliciting for tips.

19 | P a g e 1.4 Customer Service Good customer service is the provision of high-quality assistance and support to customers before, during, and after a purchase or interaction with a business. It involves building positive relationships with customers by meeting their needs and expectations in a timely and efficient manner. Good customer service is often characterized by: • Meeting/exceeding customer expectations. • Knowing the benefits/features of the service and products on offer. • Being able to listen actively. • Being friendly and polite. • Being able to adapt methods of communication to meet the individual needs of a range of customers, for example those with language difficulties, health and dietary requirements, different age groups and cultural differences. • Forming professional relationships with customers. • Good interpersonal skills of the staff. • Paying attention to issues that affect customer service issues. • Achieving customer satisfaction. Customer Service of an Operation To meet the customer’s expectations and to enhance their meal experience, a food service operation will determine the level of customer service that the customer should expect within that operation. Customer service in food service operations is a combination of five characteristics: 1. Service Level – the intensity of or limitations in the personal attention given to customers. 2. Service Availability – the opening times and variations in the menu and beverage list offer. 3. Level of Standards – the quality of the food and beverage items provided, decorations, stand of equipment used and level of staffing professionalism. 4. Service Reliability – the extent to which the product is intended to be consistent and its consistency in practice. 5. Service Flexibility – the extent to which alternatives are available, and to which there can be variations in the standard products that are offered. Customer Service Specification The level of food service operations may be define as follows: • Technical specification Refers to the food and beverage items on offer, the portion size or measure, the cooking method, the method of presentation and etc. • Service specification Refers to two aspects. First, the procedures for service and second, the way in which the procedures are carried out. Procedures include meeting and greeting, order taking,

20 | P a g e seeking customer comments, dealing with complaints, payment and the special needs of customers. The method in which the service is carried out includes paying attention to the level of staff attentiveness, their tone of voice, body language, etc. Level of Service and Standards of Service Level of service can range from being limited to complex, with high levels of personal attention. Standards of service are a measure of the ability of the operation to deliver the service level. For examples, an operation may offer a high level of service, such as a full service, but may do so with low standards; an operation may offer low level of service, such as a fast-food restaurant, but may do this at a very high standards.

21 | P a g e Chapter 2 : Menu Planning and Design Learning Objectives • Describe categories and characteristics of different types of menus. • List advantages and disadvantages of different types of menus. • Describe effective menu planning principles • Identify various factors to consider when planning menus for customers in a foodservice operation’s target market • Order the steps in menu planning from start to finish • Recognize examples of menu psychology common in the industry • Recall “truth in menu” and menu labelling guidelines for writing menus 2.1 Purpose of the Menu The concept of a menu, which is a list of food and drink items available for purchase at a restaurant or other food service establishment, has been around for centuries. The word "menu" itself comes from the French word for "small" or "minute," and originally referred to a detailed list of dishes served at a formal banquet. The first menus were handwritten, and often included a variety of exotic and expensive ingredients such as game meats, rare spices, and imported fruits and vegetables. As printing technology became more advanced in the 18th and 19th centuries, restaurants began to produce menus on a larger scale, which helped to standardize prices and offerings. Today, menus are an essential part of the restaurant experience, and are often designed to reflect the style and atmosphere of the establishment. They may be printed on paper, displayed on electronic screens, or even presented in the form of a digital tablet. The menu is primarily a selling aid. The design of the menu should be appealing and interesting to the customer, so it encourages them to view its contents. Clear information that is easily found and followed will make the customer feel more at home and will assist in selling the menu. Design considerations of the menu include: • Size and shape • Artwork/color • Ease of handling • Logical flow of information Other considerations are: • Providing a clear and accurate description of the dishes • Clear indication of pricing • Stating whether a service charge is included or not • The inclusion of dietary information

22 | P a g e Menus can be presented in a variety ways. These include: • Single laminated cards • Fold out cards with inserts from the size of A5 and above • iPads • Chalk boards • White Boards • Printed signs, sometimes illuminated from behind • Projections onto tabletops Figure 2.1 Menu Presentation 2.2 Types and Categories of Menu 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 favourite restaurants or your recent meals in other types of foodservice operations. 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

23 | P a g e be limited, as they are in some quick service, such as McDonalds or Five Guys, and quick casual restaurants, such as Astons, 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. 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. 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. 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, wine 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). Advantages and Disadvantages of Various Types of Menu These different categories overlap among each other and types of foodservice operations, both commercial and non-commercial, and offer both advantages and disadvantages to management and control. For example, static menus would be easiest for forecasting, purchasing and labour 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

24 | P a g e 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. 2.3 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. 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. Many of us only like the way mom makes spaghetti sauce or the way dad grills the steaks; or we think that grandma’s sugar cookies are definitely the best. We almost can’t eat tomato soup without grilled cheese sandwiches or meatloaf without mashed potatoes AND gravy. 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. 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

25 | P a g e 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. 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 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: • 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 Each one of us has probably had at least one experience in our lives when the menu planner failed to consider all of the above factors. One common to many may be Thanksgiving dinner—either at home or in your foodservice operation—and production capability. The oven(s) is full of roasting turkey and perhaps the bread stuffing has been squeezed into the side. Now, what will we do with the baked sweet potatoes, the baked corn, and the green bean casserole, plus the pies and rolls that need to be baked? The experienced and wise menu planner considers production capability and adjusts the menu accordingly. Perhaps the sweet potatoes, corn, and green beans can all be steamed instead of baked, and the pies and rolls can be baked ahead of the turkey. Another effective menu planning principle to consider is called cross-utilization. This “best practice” involves using one food product in multiple ways. Let’s consider a standard chicken breast as an example. A teriyaki-glazed chicken breast could be a center of the plate item, while a home-style chicken noodle soup, a Napa almond chicken salad, and buffalo chicken pizza could also be menu offerings. This allows the operation to purchase just one product, saving time and reducing costs, while offering a large variety of different dishes. More expensive and more perishable food items, such as fresh meats, poultry, fish and produce

26 | P a g e items, should be cross-utilized as much as possible when menus are planned to reduce waste and better control costs. Suggested Steps in Menu Planning Once it’s time to actually plan the menu, the conventional wisdom is to start with a menu pattern that fits your operation and then work through breakfast, then lunch, then dinner. For instance, if you are planning a lunch menu, will you have soups, salads, sandwiches, pizzas, full platters, sides, desserts, and beverages? How many selections will you offer in each of your chosen menu categories? Will you have daily specials? Are there any other special options you might want to offer your customers? Once you establish your menu categories, it is recommended to plan the main entrees (platters) first, then the sides that go with the entrees. Other entrees, such as sandwiches and entrée salads are planned next, followed by soups, appetizers, additional sides, and any planned daily specials. Desserts and beverages finish off the categories. This sequence of working through the menu categories helps make sure the most expensive dishes are chosen first so the lower-priced items can better fit in the plan and complement the choices offered. Typically the more limited the menu choices, the easier it is to control costs, so it’s not surprising that many successful operations serve only pizza and a few Italian selections while others specialize in burgers and fries, or even just ice cream and frozen treats with a few sandwiches. The menu planner can consider factors such as cross-utilization of products, balance, variety, customer preferences and trends, as well as all those management factors for the entire menu mix. In a later chapter another management tool, menu engineering, a way to analyze the menu offerings and their popularity and profitability, will be discussed. 2.4 Menu Design When writing descriptive copy for a given menu item, the menu planner must first consider the restaurant’s concept and brand as well as the target market. The writing style must be appropriate for both. If the business is a quick-service operation in which customers can have lunch in less than thirty minutes, then the menu copy must be streamlined and easy to read. On the other hand, an upscale restaurant where diners expect to spend over two hours eating can provide lengthier menu descriptions. Tone is as important as length to generate menu and audience alignment. A straightforward, no-nonsense operation that serves “serious” food to knowledgeable foodies may prefer descriptive copy that lists ingredients and cooking techniques with little embellishment. A casual establishment that stresses theme over food may emphasize that theme in its menu descriptions. For example, a sports bar may use sports terminology in the menu copy. A barbecue shack may incorporate country phrases or terminology. There is no one correct way to describe a dish, but the descriptive copy should match the style of the restaurant.

27 | P a g e The following are some examples of the menu item descriptions for three different types of operations: Concept 1: Upscale modern American restaurant with a straightforward approach to menu descriptions. Hickory smoked baby back ribs, brown sugar–Maker’s Mark glaze, maple-bacon baked flageolets, garlic-Tabasco collards Concept 2: A sports bar that incorporates sports into everything it does. End Zone Ribs—Score seven ribs with this half rack of tender, smoked baby backs topped with our sweet and tangy end zone barbecue sauce. Don’t pass up the sides of slow-cooked baked beans and collards. No penalty for excessive celebration. The descriptive copy should only use words that the majority of the target market is likely to know and to appreciate. For example, an upscale French restaurant serving the culinary cognoscenti can incorporate French terms in its menu copy in ways that a simple French café serving the local lunch crowd cannot. In an upscale restaurant, the menu planner may assume that most guests will understand and appreciate French culinary terms that describe a classic dish. In a casual café, diners rarely care about fancy terminology; they merely want to know what’s in the dish they’re ordering. Less familiar culinary jargon is more common in ethnic or upscale restaurants than it is in other types of foodservice operations. Truth in Menus While a poorly written menu description may confuse the guest, such an action is not illegal. However, lying on a menu constitutes false advertising and is illegal. Many localities have laws against false advertising, and some specifically address misleading language on menus. The truth-in-menu categories are as follows: 1. Quantity When a menu states or implies a certain size or portion of food, the food provided to the guest must match that size. Thus, if a dish advertises “6 colossal shrimp,” there must be six shrimp, all of a size that qualifies as colossal. “Extra large” portions must be larger than the standard portion size for a menu item. The biggest challenge for meeting the quantity requirement has to do with the weight of cooked foods. While it is easy to measure a sandwich with 4 ounces of sliced turkey breast, many entrées advertise a precooked weight for their meats and poultry. Unfortunately, a raw 12- ounce steak does not weigh 12 ounces after it is cooked to medium rare, and a welldone steak will weigh even less. The best way to accurately represent portion size on a menu for steaks, chops, and similar cuts is with a sentence somewhere on the menu stating that the measurements listed are for precooked weight. Those dishes for which this note is relevant can have an asterisk directing the customer to the clarifying statement.

28 | P a g e 2. Quality While a menu planner may describe a dish as “outstanding” or “excellent,” she must take care that industry terms with specific definitions are only used when they accurately describe the food being served. For example, beef can earn a grade of USDA prime, choice, or select (among others). If a menu calls its steak “prime,” it cannot serve another grade of beef. (Note that prime rib refers to the cut, not to the quality grade.) Similarly, when a restaurant advertises grade AA eggs, the kitchen cannot serve grade A eggs. A menu planner should use terms that are not legally defined for the industry when she wishes to suggest that the food is of high quality but knows that the chef uses ingredients of varying or lower quality. 3. Price The price listed on a menu is the price that the restaurant must charge. Any additional charges must be communicated to the customer. Common examples are “blue cheese dressing -$0.25 extra” and “add $0.50 for each additional pizza topping.” Clubs or lounges must list cover charges or drink minimums if they are going to charge them to customers. Additionally, automatic service charges must be stated, such as “18% gratuity will be added to the bill of parties of 5 or more.” In short, hidden fees may not appear on the bill without warning. 4. Brand Names Major food companies have an interest in promoting and supporting their brand. Some invest millions of dollars in creating their brand, and they do not want it undermined by a sloppily run restaurant. Thus, if a menu or server suggests that one brand is being served, the restaurant may not substitute another brand. Examples of violations include filling bottles labeled Heinz with generic ketchup or listing Absolut in a drink description but using another brand instead. This is the reason that a customer may ask for “Coke” and hear the server reply, “Is Pepsi OK?” Were the server to simply nod and bring a glass of Pepsi, she would effectively imply that Coke is available for sale when it is not. The two colas are not interchangeable. These two soft drink powerhouses thrive by promoting brand loyalty and emphasizing the differences between the two brands. Offering a product that is substandard (and each believes the other’s is substandard) under a different brand name undermines both products’ brands. Brand-name food companies know this, and they sue for financial damages when they find a violation. When a brand name is listed on a menu or stated by a server (or customer), then that exact brand must be used. 5. Product Identification When an ingredient is listed on a menu, that same ingredient must be used in the execution of the dish. This might seem obvious, but some restaurants regularly make substitutions without notifying customers. Substitutions may be necessary due to delivery shortages or price fluctuations, but customers have a right to know about the change. A switch from canola oil to peanut oil can cause an allergic reaction in guests who read a menu description as peanut-free. Allergic reactions can trigger not only a hospital visit but a successful lawsuit against the offending company. When substitutions are required, guests should be notified so that they can decide whether the change is acceptable to them.

29 | P a g e 6. Point of Origin It is trendy in restaurants today to list the source of a dish’s ingredients. In fact, some guests willingly pay a premium to support local farms through restaurant purchases. If a menu states that an ingredient comes from a specific place, then it must come from that source. An ingredient’s source is easy to verify on case labels, packing slips, or invoices (both by a chef and by a lawsuit-happy customer). If the point of origin for a dish is likely to vary, the menu planner should consider alternatives to listing the source on the menu. Servers, chalkboards, and paper menu inserts all allow for daily information changes in ways that a printed menu may not. Of course, menu planners must also be able to distinguish between a point of origin and a place name that is simply the name of that food. For example, Maine oysters must come from Maine, but Manhattan clam chowder does not need to be made in Manhattan (or using Manhattan clams). The chowder is simply the name of a preparation style, just as French fries need not come from France. A menu planner must know the difference in order to ensure that she does not inadvertently list a point of origin for an ingredient that comes from somewhere else. 7. Preservation When an ingredient is listed in a menu description as having undergone (or not undergone) a method of preservation, then the ingredient used must match that description. For example, if pancakes come with “fresh strawberries,” then canned strawberries are not an acceptable substitute. A chef cannot serve a wet-aged steak for one advertised on the menu as “dry aged.” Terms such as fresh, frozen, canned, dehydrated, jarred, or bottled must accurately represent the foods being served. 8. Food Preparation The words used to describe most cooking techniques have specific definitions. Steaming and boiling are not the same, so they should not be treated as interchangeable. If a menu describes broccoli as steamed, then boiled broccoli is not an acceptable substitute. Grilling and broiling are often similarly misstated on menus. A broiled steak should not be listed as a grilled steak simply because grilling is trendier and sounds better. In short, the cooking technique used in the kitchen must match the technique described on the menu. 9. Verbal and Visual Presentation This category extends all of the aforementioned truthin-menu guidelines to pictures and spoken words used in a restaurant. Just because a picture illustrating an eightpiece shrimp cocktail does not use the words “8 shrimp” does not exonerate the restaurant from serving only five shrimp. If a menu or menu board uses illustrations, those pictures must match the visual appearance of that dish when it comes out of the kitchen. Small variations, such as a slightly askew plate presentation, are acceptable, but obvious changes, such as the omission of a pickle or a different type of bread on a sandwich, are not. Words spoken by a server carry equal weight to the printed word or visual illustrations on a menu. Thus, if a server calls it butter, then butter must be served. When a guest asks whether a dish contains peanuts, the server’s answer is effectively the restaurant’s official answer.

30 | P a g e Discussion Question Identify a restaurant in your area (or in a nearby city), study the menu and discuss how detailed was the menu. Did it fit the restaurant’s theme? And discuss how does the restaurant could improve their menu? Layout of the Written Menu 1. Size of the Menu The first decision a menu designer must make is to select the ultimate size of the menu. The standard size for copier or printer paper is 8½" X 11". Some establishments use this size of paper inserted into a cover for their menu. Others go several inches larger to allow for bigger print, more images, or possibly to squeeze the entire menu onto one or two pages. A dessert menu or table tent menu may be significantly smaller. However, a menu designer should consider the practicality of the menu when selecting the size. A menu that is too small may require a large number of pages, which slows guests in their ordering or encourages them to skip entire headings. An overly large menu may feel clumsy and knock over water glasses on the table. Menus that are comfortable to hold and read should be the goal. Because 8½" X 11" paper is the most common, defaulting to this size may result in cost savings, too.

31 | P a g e Whatever shape or form the menu takes, the pages should not be cluttered. Empty or “white” space at the margins and between listings makes the menu appear clean and orderly and gives the eye a moment to rest between lines of text. As guests need places to hold the menu without covering up text, and since reading a menu should feel less laborious than reading a book, a good amount of white space is essential on most restaurant menus. Some operations reserve as much as 50% of the menu for white space to maintain this uncluttered look, but the exact percentage of white space should reflect the theme and physical interior of the restaurant. A colorful restaurant with lots of graphics on the wall and a “busy” feel may wish to replace some (though not all) of the white space with thematic imagery and color to give the menu a similarly lively feel. When a menu has too much white space, the menu designer can include photos, drawings, text on the history of the building and owners, or information about the business and other services it offers. The designer must always include room for pricing policies or food safety statements to keep the restaurant in compliance with truth-inmenu and food safety regulations. The business’s location, hours of operation, and contact information are optional for a sit-down establishment, but they are a must for a take-out menu. 2. Location of the Menu When determining the location of certain menu items, designers should consider the menu’s “hot zones.” A hot zone is the location where a guest’s eyes typically fall first the location that all guests will see even if they only glance briefly at the menu to make a quick selection. Because Americans read from left to right and top to bottom, their eyes tend to settle on the upper half of a page and gravitate to the right. Thus, on a single-page menu, the hot zone is top center. On a two-page or multipage menu, the upper half of each right page is the hot zone. Finally, on a trifold menu, the hot zone is located on the upper half of the center page.

32 | P a g e Knowing the location of a menu’s hot zone allows the menu designer to locate the items she most wishes to sell in the hot zone. Items there are likely to get additional attention from the guest and to garner a larger share of the business over time. Highly profitable items are best located in the hot zones. Of course, menu items cannot be randomly moved throughout the menu just to put the most profitable ones in the hot zones. Menus are typically organized under headings listed in the order in which the courses are normally eaten. Thus, appetizers come first, soups and salads appear next, entrées follow, and desserts, if they are included on the main menu, come last (although small plate and other non-traditional menus allow for more flexibility with menu item location). When beverages are listed on the food menu, they may be placed at the beginning (common with cocktails) or at the end of the menu (more prevalent for soft drinks). Because the courses must come in a prescribed order, menu designers may experiment with font size and the location of images to get the most profitable items in a heading to end up in the hot zone. If a heading falls completely outside of a hot zone, the designer at a minimum should place the items she most wishes to sell in the upper half of that menu category. 3. Paper and Typography With the layout determined, the menu designer next selects the paper and typography best suited for the foodservice operation. When making these decisions, the menu planner should account for the market’s demographics, dining room lighting, and legibility. To help support the overall guest experience, the menu planner should also consider the theme and feel of the establishment. A casual restaurant might use brightly colored paper with lots of photos on its menu, but to communicate a more serious food environment, an expensive restaurant would do better with fewer splashes of color and photos. The type of paper, kinds of images, and even the size and style of font project a certain experience to the consumer. That experience should always support the business’s brand and concept. In addition to choosing a paper’s size, the menu designer selects the paper’s color, weight, and texture. A designer can choose any color paper and font, but because of the contrast, the easiest to read is black lettering on a white background. A restaurant with a specific color theme might go with a similarly colored menu, but the paper should still be light and the writing dark. A paper’s weight and texture impact the guests’ perception of the menu. Heavyweight (thick) paper communicates seriousness, while thin paper feels flimsy in the hands. Of course, the weight may be irrelevant if the menu is slipped into a larger cover or laminated, as the guest will be unable to tell the weight of the paper under such circumstances. The font that a menu designer chooses should be easy to read but also suggestive of the business’s brand. Roman fonts, which use straight lines and simple curves with few embellishments, are quite legible and communicate a classic or traditional feel. Sans serif fonts provide a sleeker, more modern approach. Some fonts are more common in different countries, so an ethnic restaurant may use a specific font to support the theme of the culture and food being served. Scripts and other non-traditional fonts are creative but difficult to read. It is best to reserve the suggestive but hard-to-read fonts for menu headings while utilizing the simpler fonts for menu items and descriptive copy. The business name, which customers already know when they sit down, is the best opportunity to communicate a brand through a

33 | P a g e font. As suggested earlier, the color of the type should be dark and highly contrasted with a light background. 4. Covers and Treatments With the interior of the menu constructed, the menu designer must decide what cover or treatment, if any, the menu requires. Some businesses purchase permanent covers that allow for menu pages to be held inside and changed as desired. Others create menus in which the cover and content are affixed together; any change to the menu requires that the cover be reprinted as well. Still other establishments dispense entirely with covers and simply hand guests a single-page menu. Which approach the menu designer chooses depends on the company’s brand and the relative permanence of the menu. Menu covers come in a wide range of materials. Some are made of padded or synthetic leather while others are composed of hard plastic, wood, metal, or some other durable material. As with everything else related to menus, the cover should reflect the concept of the business. Leather is traditional for old-fashioned, high-end restaurants while metal may be used for a hip, modern, urban place. The front cover typically includes the business’s name and logo, possibly with a slogan or other images. When permanent covers allow for multiple iterations of the menu to be rotated within, little else should grace the cover. This provides the restaurant flexibility in changing its operation without having to purchase new covers. For example, if business hours are printed on the cover, then the restaurant cannot change its hours without paying to produce new covers. Since non-paper covers are more expensive to produce than the rest of the menu, the less frequently they are replaced, the better. Permanent menu covers should be durable, stain-resistant, and easy to clean. Even if the content on a menu cover is accurate, it must still be replaced once damaged or stained. A dirty or torn menu reflects poorly on a restaurant, and it can turn off customers who might otherwise enjoy the establishment. 5. Printing in-house versus Printing Professionally Once a menu has been laid out and the materials selected, the business’s manager must decide whether the menus will be printed in-house or by a professional printer. Professional printers use high-caliber machinery that can produce crystal clear images in a range of colors.

34 | P a g e They are able to die cut menus into a range of shapes, if desired, and they can laminate menus as part of the service. Of course, professional printing costs money. Professional menu designers are a valuable resource for restaurant employees unskilled in menu design. An experienced designer can make recommendations regarding paper, font, and layout that a chef or restaurant manager probably has not considered before. Professional designers are far more aware of the range of paper and font choices that exist. They are able to efficiently lay menus out electronically, whereas a restaurant professional may be more skilled with food than with a computer publishing program. Most can design the company’s logo, letterhead, and business cards as well. For many foodservice operations, the cost of a professional menu designer is well worth the investment. 6. Print Quantities Calculating the number of menus to print depends heavily on the number of seats in the restaurant and on how long the menu is intended to last. Menus tear and stain over time, which requires that they be removed from circulation. Some guests take menus with them at the end of the meal. Employees may need a few copies to address questions of price or as training tools for new servers. While a restaurant that prints its menus daily may be fine with only enough menus to cover 25% of its seats, a restaurant that expects its menus to last for three to six months will need a much larger supply. Web Menus For some operations, the menu listed on the company’s web page is an exact copy of the print menu, usually in the form of a PDF file. For other businesses, the menu printed on the web page is designed solely for the web (though the content should not contradict the printed menu’s text). There are pros and cons to each approach. A PDF version requires a customer download, which can be slow, but it is easy to store on one’s own computer, to email to a friend, or to print out. The specially designed web page menu allows for a wider range of features. In addition to faster access to the menu, web links may allow guests to jump to the menu heading of their choice. The web menu can include things that the corresponding printed menu does not, including nutritional information and a photo for each dish. Menu planners can easily adjust a web-based menu to list daily specials, too. However, knowing that, customers expect an online menu to be constantly updated and perpetually current and accurate. Menu planners who are comfortable creating web pages may design their operation’s menu pages themselves. Others will hire a web designer or purchase an electronic menu template and platform to create their online menus.

35 | P a g e Discussion Question You are a menu designer for a Mexican restaurant. You are trying to decide between laminated menus and menus with exposed paper inserts attached at the corners of a permanent cover. What information would you want to know to help you make an informed decision? Menu Psychology 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: • placing menu items where the customer’s eyes tend to go first or last • 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.

36 | P a g e Chapter 3 : Menu Engineering Learning Objectives • Define menu analysis and explain the benefits to the establishment. • Construct menu engineering worksheet • Draw conclusions and recommendations based on menu analysis 3.1 Menu Engineering Menu engineering is a marketing strategy used by restaurants and foodservice establishments to increase profitability by analyzing and optimizing their menus. The goal of menu engineering is to create a menu that is both profitable and appealing to customers. Menu engineering involves analyzing the popularity and profitability of each menu item and using that information to make strategic decisions about menu design, pricing, and promotion. This can involve changing the layout of the menu, adjusting the pricing of items, and even removing or adding items to the menu. The process of menu engineering typically involves several steps: • Analyzing sales data: The first step is to analyze sales data to determine which menu items are the most popular and profitable. • Categorizing menu items: Menu items are then categorized into four categories based on their popularity and profitability: stars, plowhorses, puzzles, and dogs. • Making strategic decisions: Once the menu items have been categorized, strategic decisions can be made about how to promote or adjust each item to increase profitability. • Implementing changes: The final step is to implement changes to the menu based on the analysis and strategic decisions made during the previous steps. The menu analysis technique was developed by Michael L. Kasavana and Donald I. Smith and was described in a book published in 1982, known as menu engineering, the technique is now widely known and respected and has been the subject of numerous papers and articles. Although some do not agree entirely with the conclusions drawn by Kasavana and Smith, their approach to menu analysis is still timely, and is both interesting and revealing. In order to effectively analyze the menu, the following information are needed: 1. Menu item name 2. Number sold 3. Food cost 4. Sales price 5. Menu cost 6. Menu revenues

37 | P a g e With the availability of the information above, the following information can be identified: 1. Menu Mix % 2. Item CM 3. Menu Cost 4. Total Sales/Menu Revenue 5. Menu CM 6. Average Contribution Margin 7. Item Percentage 8. CM Category 9. MM Category 10. Menu Item Classification The example of the menu engineering worksheet of a Restaurant Parkview is shown as follows: Table 3.1: Menu Engineering Worksheet for Parkview Restaurant 3.1.1 Menu Mix % The menu mix percent is the same as the popularity index. The percentage for each item is calculated by dividing the number of units sold by the total number of units sold for all items. = Number sold/Total number sold x 100% For example: Banana Cake = 30/224 x 100% = 13.30% Based on the menu engineering worksheet as shown in Table 3.1, blueberry cheesecake has the high popularity of 16.7% as compared to others. No. Menu Item Name Number Sold Menu Mix % Food Cost Sales Price Item CM Menu Cost Total Sales Menu CM 1 Banana Cake 30 13.39 $ 5.50 $ 14.00 $ 8.50 $ 165.00 $ 420.00 $ 255.00 2 blueberry Cheesecake 36 16.07 $ 5.80 $ 16.00 $ 10.20 $ 208.80 $ 576.00 $ 367.20 3 Carrot Cake 20 8.93 $ 3.10 $ 8.90 $ 5.80 $ 62.00 $ 178.00 $ 116.00 4 Cheese Cake 24 10.71 $ 4.50 $ 13.00 $ 8.50 $ 108.00 $ 312.00 $ 204.00 5 chocolate Cake 12 5.36 $ 3.60 $ 7.60 $ 4.00 $ 43.20 $ 91.20 $ 48.00 6 Fruit Cake 6 2.68 $ 3.70 $ 10.90 $ 7.20 $ 22.20 $ 65.40 $ 43.20 7 Mix Fruit Cake 26 11.61 $ 2.90 $ 6.70 $ 3.80 $ 75.40 $ 174.20 $ 98.80 8 oreo cheesecake 19 8.48 $ 6.00 $ 14.50 $ 8.50 $ 114.00 $ 275.50 $ 161.50 9 Peach Cake 18 8.04 $ 5.90 $ 13.40 $ 7.50 $ 106.20 $ 241.20 $ 135.00 10 Peanut butter cake 33 14.73 $ 3.30 $ 7.40 $ 4.10 $ 108.90 $ 244.20 $ 135.30 Total Number Sold 224 100.00 Total CM $ 1,564.00

38 | P a g e 3.1.2 Item CM Contribution margin (CM) is defined as sales price minus variable cost per unit. It is another phrase for gross profit. = Sales price – Food cost For example: Carrot Cake = $8.90 - $3.10 = $5.80 Foodservice managers refer to items with higher contribution margins as being more profitable than items with lower contribution margins. Thus, blueberry cheesecake has the highest contribution margin. 3.1.3 Menu Cost The menu cost for the item is simply the number sold times the individual cost. It is the same as the “Total Cost”. = Number sold x Food cost For example Mix Fruit Cake = 26 x $2.90 = $75.40 3.1.4 Total Sales/Menu Revenue Similarly, menu revenue for an item is the number sold, times the sales price of the item. = Number sold x Sales price For example Peanut Butter Cake = 33 x $7.40 = $244.20 3.1.5 Menu CM The menu contribution margin is found by multiplying the number of units sold for each menu item by its contribution margin. = Number sold x Contribution margin For example Cheesecake = 24 x $8.50 = $204.00

39 | P a g e 3.1.6 Average Contribution The average contribution margin, determined by dividing it by the total number of units sold. = Total CM/Total number sold For example Total CM = $1564.00 Total number sold = 224 Average Contribution = $1564.00/224 = $6.98 3.1.7 Item Percentage This is the percentage of an entire menu represented by each item on that menu, multiplied by 70 percent. There are 10 items on the menu used for Table 3.1, so each is one-tenth, or 7%, of the menu. 1/Total item on the menu x 70% For example Total number item 10 items on menu = 1/10 x 70 = 7% The alert student will note that this percentage represents 70 percent of the average number of menu items and will be used later in our discussion to determine if an item sold more or less than the average. Some will question why 100 percent of the average rather than 70 percent is used. The authors of Menu Engineering simply stated that using 70 percent of the average makes the results more realistic.

40 | P a g e Discussion Question Question 1 a. Complete the following menu engineering worksheet Menu Item Number Sold Menu Mix % Food Cost Sales Price Item CM Menu Cost Total Sales Menu CM Mc Chicken 35 $ 4.50 $ 7.50 Cheeseburger 47 $ 5.80 $ 8.40 Big Mac 41 $ 7.50 $ 10.90 Fillet o Fish 33 $ 3.90 $ 6.70 Nugget 39 $ 3.50 $ 5.90 Total b. Based on the above table, calculate the following: i. Total number sold ii. Average Contribution Margin iii. Item Percentage iv. Total Contribution Margin 3.2 Menu Engineering Categories The categories of the menu engineering could be perform once the menu engineering has been formulated. There are 2 categories to be identify: 1. Contribution Margin Category (CM Category) - Profitability The entries in this column, L for low and H for high, are made after comparing the contribution margin for each menu item with the average contribution margin for the menu (highlighted in orange colour). If the contribution margin for a given menu item is lower than the average contribution margin, the entry for that item in CM Category is L for low. If the contribution margin is higher than average, the entry is H for high . For example, the contribution margin for Banana Cake is $8.50, which is higher than the average contribution margin for the menu, $6.98. Thus, the entry for that item in CM Category is an H for high. Carrot Cake has a CM of $5.80, which is lower than the average contribution margin of $6.98, and the entry in CM Category for that item is L for low .

41 | P a g e Table 3.2: Menu Engineering Worksheet for Parkview Restaurant 2. Menu Mix Category (MM Category) – Popularity Popularity is determined by comparing sales of items to expected popularity. The expected popularity is the predicted menu mix (sometimes called the sales mix) if each of the menu items in a category were equally popular. The entries in MM Category (L and H for low and high ) are determined by comparing the menu mix percentage for each item in Menu Mix % with Item Percentage. For example, the menu mix percentage for Banana Cake is 13.39%. Compared with the item percentage of 7%, this is high, so the entry for Banana Cake is the letter H. The menu mix percentage for Chocolate Cake is 5.36%, is lower than item percentage of 7%, thus MM Category will be labelled as L. Table 3.3: Menu Engineering Worksheet for Parkview Restaurant No. Menu Item Name Number Sold Menu Mix % Food Cost Sales Price Item CM Menu Cost Total Sales Menu CM CM Categ ory 1 Banana Cake 30 13.39 $ 5.50 $ 14.00 $ 8.50 $ 165.00 $ 420.00 $ 255.00 H 2 blueberry Cheesecake 36 16.07 $ 5.80 $ 16.00 $ 10.20 $ 208.80 $ 576.00 $ 367.20 H 3 Carrot Cake 20 8.93 $ 3.10 $ 8.90 $ 5.80 $ 62.00 $ 178.00 $ 116.00 L 4 Cheese Cake 24 10.71 $ 4.50 $ 13.00 $ 8.50 $ 108.00 $ 312.00 $ 204.00 H 5 chocolate Cake 12 5.36 $ 3.60 $ 7.60 $ 4.00 $ 43.20 $ 91.20 $ 48.00 L 6 Fruit Cake 6 2.68 $ 3.70 $ 10.90 $ 7.20 $ 22.20 $ 65.40 $ 43.20 H 7 Mix Fruit Cake 26 11.61 $ 2.90 $ 6.70 $ 3.80 $ 75.40 $ 174.20 $ 98.80 L 8 oreo cheesecake 19 8.48 $ 6.00 $ 14.50 $ 8.50 $ 114.00 $ 275.50 $ 161.50 H 9 Peach Cake 18 8.04 $ 5.90 $ 13.40 $ 7.50 $ 106.20 $ 241.20 $ 135.00 H 10 Peanut butter cake 33 14.73 $ 3.30 $ 7.40 $ 4.10 $ 108.90 $ 244.20 $ 135.30 L Total Number Sold 224 100.00 Total CM $ 1,564.00 7 AVG CM 6.98214 No. Menu Item Name Number Sold Menu Mix % Food Cost Sales Price Item CM Menu Cost Total Sales Menu CM CM Categ ory MM Cate gory 1 Banana Cake 30 13.39 $ 5.50 $ 14.00 $ 8.50 $ 165.00 $ 420.00 $ 255.00 H H 2 blueberry Cheesecake 36 16.07 $ 5.80 $ 16.00 $ 10.20 $ 208.80 $ 576.00 $ 367.20 H H 3 Carrot Cake 20 8.93 $ 3.10 $ 8.90 $ 5.80 $ 62.00 $ 178.00 $ 116.00 L H 4 Cheese Cake 24 10.71 $ 4.50 $ 13.00 $ 8.50 $ 108.00 $ 312.00 $ 204.00 H H 5 chocolate Cake 12 5.36 $ 3.60 $ 7.60 $ 4.00 $ 43.20 $ 91.20 $ 48.00 L L 6 Fruit Cake 6 2.68 $ 3.70 $ 10.90 $ 7.20 $ 22.20 $ 65.40 $ 43.20 H L 7 Mix Fruit Cake 26 11.61 $ 2.90 $ 6.70 $ 3.80 $ 75.40 $ 174.20 $ 98.80 L L 8 oreo cheesecake 19 8.48 $ 6.00 $ 14.50 $ 8.50 $ 114.00 $ 275.50 $ 161.50 H H 9 Peach Cake 18 8.04 $ 5.90 $ 13.40 $ 7.50 $ 106.20 $ 241.20 $ 135.00 H H 10 Peanut butter cake 33 14.73 $ 3.30 $ 7.40 $ 4.10 $ 108.90 $ 244.20 $ 135.30 L H Total Number Sold 224 100.00 Total CM $ 1,564.00 7 AVG CM 6.98214

42 | P a g e Once the CM and MM Categories have been formulated, the next step would be identifying the categories of each of the items by plotting them into the graph as follow: Discussion Question Based on the question 1 above that you have done, identify each item to L or H category and fill them up into table as follow: Menu Item Number Sold Menu Mix % Food Cost Sales Price Item CM Menu Cost Total Sales Menu CM CM Category MM Category Mc Chicken 35 $ 4.50 $ 7.50 Cheeseburger 47 $ 5.80 $ 8.40 Big Mac 41 $ 7.50 $ 10.90 Fillet o Fish 33 $ 3.90 $ 6.70 Nugget 39 $ 3.50 $ 5.90 Total

43 | P a g e 3.3 Menu Analysis The Menu Engineering Matrix The menu engineering matrix is a categorization method where you’ll put menu items into one of these four categories: Stars, Puzzles, Plowhorses, and Dogs. It is a scatter chart where the Y-axis is the item’s popularity (number of items sold in a certain timeframe) and the Xaxis will be the item’s profitability (the item’s profit margin). 3.2.1 Stars: High Profitability and High Popularity Stars are the cream of the crop. They have a high-profit margin and are very popular with the customers. These menu items are the ones that should remain constant. Keep them consistent and try to do promotions for these items. Stars are your menu’s most popular, profitable items. They’re inexpensive to make and your guests order them often. Rather than rework these menu items, it’s best to leave them as they are and promote them in any way you can. Make sure your menu design draws special attention to them, increasing the likelihood that you sell more of your Stars and maximize profits per service. 3.2.2 Puzzles: High Profitability and Low Popularity Puzzles are items on your menu that have a high profit margin but are very difficult to sell. The goal for these items is to find out why they aren’t selling. Could they be priced a little too high for the value of the item? Is the item not being promoted enough on your marketing channels? Is the description not enticing? Analyzing your Puzzles can help you come up with suitable combo offers and drive sales. Any of these can have an effect on a menu item’s popularity. Try experimenting with them and measuring the results of the changes you make on their sales.

44 | P a g e 3.2.3 Horses: Low Profitability and High Popularity Horses are items on the menu that are very popular with your customers but are quite expensive cost-wise. The goal with these items is how to make them more profitable. Some ways include reworking the recipe to create a more profitable item – just make sure you’re not completely compromising the quality of the item. Plowhorses are popular menu items whose food costs are more expensive. The objective with menu items that fall into this category is to make them more profitable either by raising its menu price, lowering food costs, reworking the recipe with different ingredients or pairing it with high-profit sides and cocktails. Also, pay attention to the portion size of your plowhorses. If you’re noticing that customers rarely finish their plate, it may be wise to serve slightly smaller portions, reducing food waste and food cost per serving in the process. 3.2.4 Dogs: Low Profitability and Low Popularity Dogs are the items on your menu that are high on food cost and not really popular amongst your customers. Dogs are the menu items that are expensive to make and aren’t popular. They take up valuable space on your restaurant menu, distract your guests from your stars and puzzles. You have several options for what to do with dogs. You can remove them from your menu entirely, de-emphasizing them on your menu or reworking the price or ingredients based on customer feedback. If you choose to rework a dog and both its sales and contribution margin remain low, consider removing it from the menu altogether.

45 | P a g e Chapter 4: Food and Beverage Purchasing and Supply Learning Objectives • Outline the purchasing process in the operations of foodservice establishments • Explain the purchase process and determine who should make purchasing decisions • Describe how quality standards for food purchases are established 4. 1 Introduction All food service businesses, regardless of size or type, have certain processes in common. Whether the foodservice business is a fast-food restaurant or a fine-dining establishment, it must purchase supplies from purveyors either by phone, computer e-mail or Web page, letter, or salesperson who calls at the establishment. Both types of establishment must receive the supplies when they arrive, and someone must verify that the quantity, quality, and price are the same as ordered. The food must be properly put away in dry storage, refrigerator, or freezer. When needed, the food must be taken from storage and prepared for customers who order it. Finally, the food must be served to the customers. All foodservice establishments, then, have the following sequence of operation: 1. Purchasing 2. Receiving 3. Storing 4. Issuing 5. Producing 6. Selling and serving In each of these steps, it is possible for unwanted and unwarranted costs to develop. For example, a purchasing steward can order more of an item than is needed, resulting in excess supplies that go bad before they can be used. Food can be improperly stored so that it spoils prior to production. The cooks can prepare food improperly so that it cannot be served and must be thrown out. In each of these instances, excessive costs are incurred and profit suffers. This chapter deals with measures that can be taken to prevent unnecessary cost from developing in purchasing and receiving. Succeeding chapters discuss measures to prevent excessive cost in storing, issuing, production, and sales. 4. 2 F&B Purchasing and Supply Food and beverage purchasing and supply refer to the process of procuring food and beverages for businesses in the hospitality industry. The process involves identifying the products required, sourcing the products, negotiating prices, and arranging for their delivery.

46 | P a g e In the food and beverage industry, purchasing and supply are critical components of the business because the cost of goods sold (COGS) is typically one of the highest expenses. Effective purchasing and supply can help businesses control costs and improve their profit margins. The process of food and beverage purchasing and supply involves the following steps: • Identifying the products required: Businesses need to determine what products they need to purchase, including the quantity, quality, and specifications of the products. • Sourcing the products: This involves identifying potential suppliers and evaluating their products and pricing. Businesses can source products from local farmers, distributors, wholesalers, or directly from manufacturers. • Negotiating prices: Negotiating prices is essential to ensure that businesses get the best possible price for the products they need. Negotiations may involve volume discounts, rebates, or other incentives. • Placing orders: Once the supplier and price have been agreed upon, businesses can place orders. They need to ensure that they order the correct quantity and quality of products. • Receiving and inspecting the products: When the products are delivered, they need to be inspected to ensure that they meet the agreed-upon specifications. • Storing and inventory management: Businesses need to store the products correctly and manage their inventory to ensure that they have enough products on hand to meet customer demand without overstocking. • Using the products: Finally, businesses need to use the products to create their food and beverage offerings. Effective food and beverage purchasing and supply can help businesses control costs, ensure product quality, and improve their profitability. 4. 3 Purchasing The purchasing process is an essential part of every food service operation. All competent cooks should be skilled in buying the appropriate ingredients, in accurate amounts, at the right time, and at the best price. Every kitchen operation has different purchasing procedures. But there is one rule that should always be followed: Buy only as much as it is anticipated will be needed until the next delivery. This will ensure that foods stay fresh and will create a high inventory turnover. All foods deteriorate in time, some more quickly than others. It is the job of the purchaser to ensure that only those quantities that will be used immediately or in the near future are purchased.

47 | P a g e Market Sourcing Sources of supply vary considerably from location to location. Large cities have a greater number and variety of suppliers than do small towns and isolated communities. Purchasers should establish contact with available suppliers such as wholesalers, local producers and packers, retailers, cooperative associations, and food importers. In most instances, the person in charge of buying will contact several suppliers to obtain the necessary foods. Some wholesalers diversify their product lines in order to meet all food-related kitchen needs. Food products are obtained from various sources of supply. For example, a packing house supplies meat and meat products, while a food wholesaler supplies dry goods. Once business is established with a supplier, all transactions should be well documented and kept readily available on file. There are two major food categories: perishables and non-perishables. Perishables Perishable items include fruits, vegetables, fresh fish and shellfish, fresh meats, poultry, and dairy products. As a rule, perishables are bought frequently to ensure freshness. Frozen foods, such as vegetables, fish and meat products, have a longer lifespan and can be ordered less frequently and stored in a freezer. Non-perishables Non-perishable items include dry goods, flour, cereals, and miscellaneous items such as olives, pickles, and other condiments. These can be ordered on a weekly or monthly basis. Keep in mind that just because something does not go bad isn’t a reason to buy it in quantities larger than you need. Every item in your inventory is equal to a dollar amount that you could be saving or spending on something else. Consider that a case of 1000 sheets of parchment paper may cost $250. If you have a case and a half sitting in your inventory, but only use a few sheets a day, that is a lot of money sitting in your storeroom.

48 | P a g e The following is a typical product purchasing cycle. 4. 4 Developing Purchasing Procedures Purchasing is one of the key areas in the cost control process of the restaurant and foodservice industry. When a customer orders an item from the menu, he or she has certain expectations. If size, shape, colour, grade, or portions are mentioned, then those food characteristics are what the customer should receive. The person responsible for purchasing items for the operation must be aware of these customer expectations and procure exactly what is stated on the menu. In addition to the correct item, the buyer must also purchase the correct amount. If too many goods are purchased, not only is the operation’s capital tied up in inventory, but if the goods are perishable, they might spoil. This is one way for operations to lose money. However, if too few goods are purchased, there is the danger of running out and disappointing guests. Purchasing, like every other section in the operation, is an area where costs can get out of line. Controls and procedures must be instituted to prevent this from happening. The purchasing procedure consists of the following steps: 1. Designating a purchasing person 2. Determining which products to buy by establishing product specifications 3. Estimating how often and how much to order 4. Choosing purchasing methods based on organizational needs 5. Selecting vendors

49 | P a g e Who Should Buy? The first step in the purchasing process is designating who will do it. It could be one or several people, depending on the size of the operation. In very large restaurant or foodservice operations such as major hotels, hospitals, and college foodservices, a purchasing agent will do the buying. In smaller operations, it could be the general manager, production manager, or chef. In most kitchens, purchasing and ordering are done by the chef and sous-chefs, although in larger hotels there may be purchasing departments assigned this responsibility. Most kitchens will have a list of suppliers, contacts, delivery dates and schedules, and order sheets with par stock levels to make purchasing easier. For a special function or event, such as a banquet, it may also be necessary to determine the required supplies for that function alone. Regardless of who does it, this person is referred to as the buyer and is the sole person responsible for purchasing particular goods. While the buyer’s responsibility may be shared, clearly designating who will be the buyer for which items eliminates confusion and minimizes the risk of running out of a product or having too much of it on hand. For example, in a larger operation, the chef might purchase meat, seafood, and produce, while the sous chef orders dairy, baked goods, dry goods, and supplies. Although two people are purchasing, only one person is the buyer in each category. Buyers need to possess a variety of skills such as: • Balanced communication skills They must be able to listen to the needs of stakeholders in their operation, including the preparation staff, accounting staff, receiving and storing staff, ownership, and management. They must also be able to articulate those needs to vendors. • Excellent math skills Math is basic to all of the primary functions of the buyer and storeroom staff: buying, receiving, storing, and issuing. • Computer skills Computers are widespread in purchasing. Tracking inventory is the heart of control and purchasing, and is mainly done with computer software. • Product knowledge Buyers can develop their food knowledge by spending time at trade shows, farmer’s markets, and food distributor’s warehouses. Attending food shows is an efficient way to keep up on the latest food and equipment developments. What to Buy? To know what to purchase, a buyer must work with a number of variables. The buyer needs to know the growing seasons for produce and that beef prices are lower in the spring than in the fall. The buyer must be familiar with varieties, grades, and forms in which the products can be purchased. And the buyer needs to be able to judge if a distributor quotes, or offers, a fair price.

50 | P a g e An experienced buyer can “read the market” for signs of supply, demand, and price fluctuations and does not rely on supply-and-demand information received from suppliers. Suppliers, also called vendors, are the companies that provide products purchased for use in restaurant and foodservice operations. Some examples for products provided by suppliers are meat, dairy, vegetables, fruit, utensils, and paper products. The buyer also needs to organize product specifications by vendor. That is, products that will be ordered from the same vendor should be grouped together. The buyer must also have a working knowledge of grading terminology, labelling terms, and standards used to judge quality. A buyer’s responsibilities go beyond getting the best price and ensuring that sufficient quantities are available; standards of quality must be upheld as well. Specifications There is such a wide variety of food available, the specification (or spec) is an important control device. Through this device managers set policy as to which brands, grades, and variety of food products will be ordered for the operation. A specification ties together what is written on the menu and what is called for in the standardized recipe. It also controls the purchasing and receiving procedures. Meat, seafood, poultry, processed fruits and vegetables, and fresh fruits and vegetables can be ordered under different specifications. For example: • Meats can be ordered by grade, cut, weight/thickness, fat limitation, age, whether fresh or frozen, and type of packaging. • Seafood can be ordered by type (e.g., fin fish/shellfish), species, market form, condition, grade, place of origin, whether fresh or frozen, count, size, and packaging, • Poultry can be ordered by type, grade, class (e.g., broiler, fryer), style (e.g., breasts, wings), size, whether fresh or frozen, and packaging. • Processed fruits and vegetables can be ordered by grade (sometimes), variety, packaging size and type, drained weight, count per case, packing medium, and whether canned or frozen. • Fresh fruits and vegetables can be ordered by grade (sometimes), variety, size, weight per container, growing area, and count per container, A specification explains or describes the desired product name, its intended use, grade and size, and other product characteristics. It also includes general instructions regarding delivery, payment procedures, and other pertinent data. Basically, it tells the supplier exactly what the buyer wants. A specification should be documented so that both the buyer and the supplier are clear on the buyer’s purchase requirements. Managers, with input from the chef or production manager, must write the specifications for all the food needed to produce the standardized recipes of the menu items. It is important to match product specifications to the desired use. One example of a mismatch might be ordering Grade A tomatoes for spaghetti sauce, when Grade B tomatoes would suffice and save the operation money. Large operations typically write formal specifications; smaller operations might use verbal specifications.