Hospitality & Tourism

 183

C h a p t e r 4

Food and Beverage

L E A r N i N G o B J E C T i V E S

after reading and studying this chapter, you should be able to:

• Describe the duties and responsibilities of a food and beverage director and other key department heads.

• Describe a typical food and beverage director’s day.

• State the functions and responsibilities of the food and beverage departments.

• perform computations using key food and beverage operating ratios.

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184 Part i Introducing hospitality and Lodging

Food and Beverage Management In the hospitality industry, the food and beverage division is led by the director of food and beverage. he or she reports to the general manager (GM) and is responsible for the efficient and effective operation of the fol- lowing departments:

• Kitchen/catering/banquet • restaurants/room service/minibars • Lounges/bars/stewarding

Figure 4–1 illustrates a food and beverage organization chart. the position description for a director of food and beverage is both a job

description and a specification of the requirements an individual needs to do the job. In recent years, the skills needed by a food and beverage director have grown enormously, as shown by the following list of responsibilities:

• exceeding guests’ expectations in food and beverage offerings and service

• Leadership • Identifying trends • Finding and keeping outstanding employees • training • Motivation • Budgeting

LearnInG OBjeCtIve 1 Describe the duties and responsibilities of a food and beverage director and other key department heads.

Figure 4–1 • Food and Beverage Division Organization Chart for a Large Hotel.

Cooks Servers

Housemen

Creative Sales Associates

Servers

Bar Persons

Stewards Sous Chef

Services Manager

Captain Servers

Executive Chef

Catering Manager

Restaurant Manager

Chef Steward

Beverage Manager

Room Service Manager

Food and Beverage Director

Administrative Assistant

Asst. Food & Beverage Director

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chapter 4 Food and Beverage 185

• Cost control • Finding profit from all outlets • having a detailed working knowledge of the front-of-the-house

operations

these challenges are set against a background of stagnant or declin- ing occupancies and the consequent drop in room sales. therefore, greater emphasis has been placed on making food and beverage sales profitable. traditionally, only about 20 percent of the hotel’s operating profit comes from the food and beverage divisions. In contrast, the current acceptable profit margin from a hotel’s food and beverage division is generally con- sidered to be 25–30 percent. this figure can vary according to the type of hotel. For example, according to pannell Kerr Forster, an industry consult- ing firm, all-suite properties achieve a seven percent food and beverage profit (probably because of the complimentary meals and drinks offered to guests). It is interesting to note that U.S. hotels have fewer food and bever- age outlets compared to their asian and european counterparts. the reason is likely profit in the United States and culture in asia and europe where hotels are used more as meeting places and the bars and restaurants are well frequented by nonresidents.

a typical food and beverage director’s day might look like the following:

8:30 a.m. Check messages and read logs from outlets and security. tour outlets, especially the family restaurant (a quick inspection).

Check the breakfast buffet, reservations, and the shift manager.

Check daily specials.

Check room service.

Check breakfast service and staffing.

Meet the executive chef and purchasing director.

Meet executive steward’s office to ensure that all equipment is ready.

Meet banquet service office to check on daily events and coffee break sequence.

10:00 a.m. Work on current projects: new summer menu, pool outlet opening, conversion of a current restaurant with a new concept, remodeling of ballroom foyer, installation of new walk-in freezer, and analysis of current profit-and-loss (p&L) statements. plan weekly food and beverage department meetings.

11:45 a.m. visit kitchen to observe lunch service and check the “12:00 line,” including banquets.

Confer with executive chef.

Check restaurants and banquet luncheon service.

LearnInG OBjeCtIve 2 Describe a typical food and beverage director’s day.

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186 Part i Introducing hospitality and Lodging

1:00 p.m. Lunch in employee cafeteria with executive chef, director of purchasing, and/or director of catering to review any outstanding issues.

1:30 p.m. Meet with human resources to discuss current incidents.

2:30 p.m. Check messages and return calls. telemarket to attract catering and convention business.

Conduct hotel daily menu meeting.

3:00 p.m. Go to special projects/meetings.

5:30 p.m. tour cocktail lounges.

Check for staffing.

review any current promotions.

Check entertainment lineup.

6:00 p.m. Check special food and beverage requests/ requirements of any vIps staying at the hotel.

tour kitchen.

review and taste.

8:00 p.m. review dinner specials.

Check the restaurant and lounges.

a food and beverage director’s typical day starts at 8:00 a.m. and ends at 8:00 p.m., unless early or very late events are scheduled, in which case the working day is even longer. Usually, the food and beverage director works Monday through Saturday. If there are special events on Sunday, then he or she works on Sunday and takes Monday off. In a typical week, Saturdays are used to catch up on reading or specific projects.

the director of food and beverage eats in his or her restaurants at least twice a week for dinner and at least once a week for breakfast and lunch. Bars are generally visited with clients, at least twice per week. the director sees salespersons regularly because they are good sources of information about what is going on in the industry and they can introduce leads for business. the director attends staff meetings, food and beverage meetings, executive committee meetings, interdepartmental meetings, credit meetings, and p&L statement meetings.

to become a food and beverage director takes several years of experi- ence and dedication. One of the best routes is to gain work experience or to participate in an internship in several food and beverage departments while attending college. this experience should include full-time, practi- cal kitchen work for at least one to two years to master the core concepts, followed by varying periods of a few months in purchasing, stores, cost control, stewarding, and room service. Stewarding is responsible for back- of-the-house areas such as dishwashing and issuing and inventorying china, glassware, and cutlery. Stewarding duties include maintaining cleanliness in all areas. additionally, a year spent in each of the following work situations is helpful: restaurants, catering, and bars. after these departmental experi- ences, and once you master the core competencies, you can likely serve as

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chapter 4 Food and Beverage 187

a department manager, preferably in a different hotel from the one in which the departmental experience was gained. this prevents the awkwardness of being manager of a department in which the person was once an employee and also offers the employee the opportunity to learn different things at dif- ferent properties.

▶ check Your Knowledge

1. What are the skills and responsibilities of a food and beverage director?

2. Describe a food and beverage director’s day.

Being hired as the pot washer for the Old Homestead Country Kitchen at the early age of 15 hardly seemed to herald the beginnings of an auspicious career in the hospitality industry. But to George Goldhoff, with his high energy and natural leadership skills, he had found the perfect environment in which to excel. The sense of family and camaraderie between the staff members and the interaction with guests, mixed with the intensity of performance and dead- lines, have never lost their appeal. Excellence in service would become his lifelong pursuit.

Fast-forward 20 years. As director of food and beverage at Bellagio of MGM Resorts In- ternational in Las Vegas, George was responsible for the quality assurance, personnel devel- opment, and financial performance of 17 restaurants and 10 bars, with 3,000 employees and more than $200 million in revenues. As one of the original members of the opening team for the Bellagio, George drew from his extensive and varied food and beverage background to

make the Bellagio’s opening a success. George earned his B.S. degree in hotel, restaurant, and travel administration from the University of

Massachusetts, a big accomplishment for a young man without a high school diploma who was often character- ized as wild and rebellious. It was a revelation, an awakening of his potentials and the realization that he could accomplish great things. This accomplishment instilled in George the self-confidence in his abilities and the tech- nical skills necessary to achieve his goals. His introduction to corporate culture was as an assistant front-office manager and Hyatt corporate trainee in Savannah, Georgia.

Upon completion of his training, George moved to Tahoe in 1988, where he was able to combine his love for restaurants and sports. An all-around athlete, he pursued speed skiing competitions at the highest levels. George’s ambitions led him to The Plaza Hotel in New York, where he started as an assistant beverage director. At The Plaza, George immersed himself in his new position with his usual high-voltage energy and infectious enthusiasm. Within six months, he was promoted to manager of the stately Oak Room, the youngest manager in the restaurant’s 90-year history. Within a two-year period, he was promoted to managing four of The Plaza Hotel’s five à la carte restaurants.

i n t r O d u c i n g g e O r g e g O L d h O F F

president and CeO of pure Canadian Gaming, alberta, Canada.

(continued)

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188 Part i Introducing hospitality and Lodging

Kitchen a hotel kitchen is under the charge of the executive chef or chef in smaller and medium-sized properties. this person, in turn, is responsible to the director of food and beverage for the efficient and effective operation of kitchen food production. the desired objective is to exceed guests’ expecta- tions in the quality and quantity of food—its presentation, taste, and portion size—and to ensure that hot food is served hot and cold food is served cold. the executive chef operates the kitchen in accordance with company policy and strives to achieve desired financial results.

Some executive chefs are now called kitchen managers; they even serve as food and beverage directors in midsized and smaller hotels. this trend toward “right-sizing,” observed in other industries, euphemistically refers to restructuring organizations to retain the most essential employees. Usu- ally, this means cutting labor costs by consolidating job functions. For exam- ple, Michael  hammer is executive chef and food and beverage director at the 440-room hilton La jolla torrey pines. Mike is typical of the new breed of exec- utive chefs: his philosophy is to train his sous chefs, sous being a French word meaning “under,” to make many of the operating decisions. he delegates order- ing, hiring, and firing decisions; sous chefs are the ones most in control of the production and the people who work on their teams. By delegating more of the operating decisions, he is developing the chefs de partie (or stations chefs) and empowering them to make their own decisions. as he puts it, “no decision is wrong—but in case it is unwise, we will talk about it later.”

In 1993, he realized one of his dreams—the opportunity to work with the legendary Joe Baum—managing the famous Rainbow Room in Rockefeller Center. George’s commitment to service, the evident pride he takes in his work, and his high standard of ethics earned him praise from Joe Baum as being his best maître d’ ever. In 1997, he left the Rainbow Room to enroll in the MBA program at Columbia University. With the same self- confidence, resourcefulness, and ability to focus on multiple tasks, George, not surprisingly, took first place in Columbia’s Business Plan competition and was the recipient of the prestigious Eugene Lang Entrepreneurial Initiative Fund. Armed with his MBA degree and newly acquired business skills, he was ready for his next adven- ture. George went on to become General Manager of Gold Strike Casino Resort and is now President and CEO of PURE Canadian Gaming Corp., based in Edmonton, Alberta, Canada.

For George, it’s all about service. Excellence in guest satisfaction and a genuine concern for his staff and coworkers have been his guiding principles. The ability to instill in those around him the desire to strive beyond and stretch past their comfort zones is just one of his leadership characteristics. George has great expectations for himself and those around him and is not afraid of hard work. In fact, he works with a passion. The long hours and the intensity do not faze him. His adaptability to different situations, his ability to relate to a variety of personalities and temperaments, and his keen sense of humor serve him well both in front and back of the house. With his winning smile and straightforward demeanor, George sets his sights on a promising future and the many adventures ahead.

i n t r O d u c i n g g e O r g e g O L d h O F F (Continued)

LearnInG OBjeCtIve 3 State the functions and responsibilities of the food and beverage departments.

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chapter 4 Food and Beverage 189

Mike spends time maintaining morale, a vital part of a manager’s responsibilities. the kitchen staff is under a great deal of pressure and frequently works against the clock. Careful cooperation and coordination are the keys to success. he explains that he does not want his asso- ciates to “play the tuba”—he wants them to conduct the orchestra. he does not hold food and beverage department meetings; instead he meets with groups of employees fre- quently, and problems are handled as they occur. Controls are maintained with the help of software that costs their standard recipes, establishes perpetual inventories, and calculates potential food cost per outlet. today, executive chefs and food and beverage directors look past food cost to the actual profit contribution of an item. For example, if a pasta dish costs $3.25 and sells for $12.95, the contribu- tion margin is $9.70. today, there are software programs such as Cheftec that offer software solutions for purchas- ing, ordering, inventory control, and recipe and menu cost- ing; Cheftec plus offers perpetual inventory, sales analysis, theoretical inventory reports, and multiple profit centers.

Controlling costs is an essential part of food and beverage operations and, because labor costs represent the most significant variable costs, staffing becomes an important factor in the day-to-day running of the food and bever- age locations. Labor cost benchmarks are measured by covers-per-person-hour. For example, in stewarding, it should take no more than one person per hour to clean 37.1 covers. Mike and his team of outlet managers face interesting chal- lenges, such as staffing for the peaks and valleys of guest needs at breakfast. Many guests want breakfast during the peak time of 7:00–8:30 a.m., requiring organizations to get the right people in the right place at the right time to ensure that meals are prepared properly and served in a timely manner.

at the hilton La jolla torrey pines, executive Chef hammer’s day goes something like the following:

1. arrive between 6:00 and 7:00 a.m. and walk through the food and bev- erage department with the night cleaners.

2. Check to make sure the compactor is working and the area is clean.

3. Check that all employees are on duty.

4. ask people what kind of challenges they will face today.

5. Sample as many dishes as possible, checking for taste, consistency, feel, smell, and overall quality.

6. Check walk-ins.

7. recheck once or twice a day to see where the department stands pro- duction-wise—this helps reduce or eliminate overtime.

8. approve schedules for food and beverage outlet.

9. Keep a daily update of food and beverage revenues and costs.

10. Forecast the next day’s, week’s, and month’s business based on up- dated information.

11. Check on final numbers for catering functions.

The executive chef of a large hotel manages the kitchen and may not do much cooking—mostly administration.

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190 Part i Introducing hospitality and Lodging

Financial results are generally expressed in ratios, such as food cost percentage—the cost of food divided by the amount of food sales. a simple example is the sale of a hamburger for $1.00. If the cost of the food is $0.30, then the food cost percentage is 30 percent, which is about average for many hotels. the average might be reduced to 27 percent in hotels that do a lot of catering. as discussed later in this section, in determining the food and beverage department’s profit and loss, executive chefs and food and bever- age directors must consider not only the food cost percentage, but also the contribution margin of menu items. the contribution margin is the amount contributed by a menu item toward overhead expenses and is the difference between the cost of preparing the item and its selling price.

another important cost ratio for the kitchen is labor cost. the labor cost percentage may vary depending on the amount of convenience foods pur- chased versus those made from scratch (raw ingredients). In a kitchen, the labor cost percentage may be expressed as a food sales percentage. For example, if food sales total $1,000 and labor costs total $250, then labor costs may be expressed as a percentage of food sales by the following formula:

Labor Cost

Food Sales , therefore

$250

$1,000 = 25% labor cost

Labor management is controlled with the aid of programs such as timepro from Commeg Systems. timepro is a time, attendance, and schedul- ing package that provides an analytical tool for managers and saves time on forecasting and scheduling.

an executive chef has one or more sous chefs. Because so much of the executive chef’s time is spent on administration, sous chefs are often respon- sible for the day-to-day running of each shift. Depending on size, a kitchen may have several sous chefs: one or more for days, one for evenings, and another for banquets.

LearnInG OBjeCtIve 4: Perform computations using key food and beverage operating ratios.

Based in Minneapolis, Carlson’s brands and services employ about 100,000 people in nearly 150 countries and territories.1 Formerly led by Chairman Marilyn Carlson Nelson and now led by her daughter, Chair Diana Nelson, Carlson continues to build on a cornerstone set by Marilyn’s father, Curtis Carlson, over 75 years ago: developing long-lasting relationships with clients.

The history of Carlson is one of the classic business success stories in the American free- enterprise system. Starting in 1938 with merely an idea and $55 of borrowed capital, entrepreneur Curtis L. Carlson founded the Gold Bond Stamp Company in his home city of Minneapolis, Minnesota. His trading stamp concept, designed to stimulate sales and loyalty for food stores and other mer- chants, proved to be right for the times and swept the nation in a wave of dramatic growth.

Through the years, Carlson diversified into hotels, travel, and other related businesses. In the 1960s, Carlson and several other partners collectively bought an interest in the original Radisson

c O r P O r a t e P r O F i L e

Marilyn Carlson nelson, Former Chairman and CeO, Carlson

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Under the sous chefs is the chef tournant (relief cook). this person rotates through the various stations to relieve the station chef heads. these stations are organized according to production tasks, based on the classic “brigade” introduced by escoffier. the brigade includes the following:

Sauce chef, who prepares sauces, stews, sautés, and hot hors d’oeuvres

roast chef, who roasts, broils, grills, and braises meats

Fish chef, who cooks fish dishes

Soup chef, who prepares all soups

Cold larder/pantry chef, who prepares all cold foods: salads, cold hors d’oeuvres, buffet food, and dressings

Banquet chef, who is responsible for all banquet food

pastry chef, who prepares all hot and cold dessert items

vegetable chef, who prepares vegetables (this person may be the fry cook and soup cook in some smaller kitchens)

Soup, cold larder, banquets, pastry, and vegetable chefs’ positions may be combined in smaller kitchens.

▶ check Your Knowledge

1. What is a food cost percentage, and how is it calculated?

2. What is a contribution margin?

3. how is labor cost percentage calculated?

Hotel in downtown Minneapolis. Eventually, Carlson became sole owner of the hotel brand and expanded it around the globe.

Among the names in the Carlson family of brands and services are Radisson Hotels & Resorts, Park Plaza Ho- tels & Resorts, Country Inns & Suites by Carlson, Park Inn, Quorvus Collection, Radisson Blu, Radisson Red, and Carlson Wagonlit Travel.

Carlson Worldwide encompasses 1,370 hotels in 150 countries and territories, and is the world’s leading Travel Management Company. Under the banner of Looking Forward, Vision 20/20 has goals of creating sustain- able businesses, driving growth, and building shareholder wealth. Vision 20/20 has the strategic objectives of developing the right talent; fostering a culture of innovation and collaboration; creating customer bright spots; and delivering results.

In addition to global business success, Carlson is also recognized as a top employer by receiving numerous workplace awards and recognitions and is among the leadership in responsible business practices for people, community, and environment.

A pastry chef decorating a cake.

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192 Part i Introducing hospitality and Lodging

Food Outlets a hotel may have several restaurants or no restaurant at all; the number and type of restaurants varies as well. a major chain hotel generally has two restaurants: a signature or upscale formal restaurant and a casual cof- fee shop–type restaurant. these restaurants cater to both hotel guests and to the general public. In recent years, because of increased guest expectations, hotels have placed greater emphasis on food and beverage preparation and service. as a result, there is an increasing need for professionalism on the part of hotel personnel.

hotel restaurants are run by restaurant managers in much the same way as other restaurants. restaurant managers are generally responsible for the following:

• exceeding guest service expectations • hiring, training, and developing employees • Setting and maintaining quality standards

Chef Jose Martinez apprenticed with three legendary, three-star Michelin French chefs and restaurateurs: Joël Robuchon at Restaurant Jamin in Paris; Alain Senderens, a founder of New French cuisine; and chef Michel Guérard at Les Prés d’Eugénie at Eugenie les Bains, France. Chef Martinez was awarded his own Michelin star for Maison Blanche in Paris, and then moved his family to Longboat Key, Florida, where La Maison Blanche is now among the best restau- rants in the United States.

Chef Martinez arrives between 9:00 and 10:00 a.m. and does paperwork in the mornings. He orders and organizes supplies for the kitchen and meets with local farmers and small suppliers who, he says, understands his needs better than the large companies. He also works on the wine list by talking with suppliers and ensuring a good pairing with the menu items. By late morning he is planning and organizing the mise en place requirements for the evening dinner. At 1:00 p.m. he welcomes staff and gives their assignments. Chef Martinez always remembers that he must

be able to do and be responsible for everything. There is no separation between owner and staff in this size of restaurant.

The afternoon is entirely devoted to preparation for the completion of the mise en place. This is a routine opera- tion with a lot of discipline. The discipline is necessary to execute the mise en place correctly. At 5:00 p.m. the staff have their dinner before the opening at 5:30 p.m., when everything must be ready to go!

Chef Martinez’s philosophy is: “There is no alternative to excellence.” And he adds, “Capturing excellence in a dining experience begins and ends with the food. I have great respect for the production of food and the privi- lege bestowed on me being able to use it and apply my talent and focus on creating the most excellent product possible.”

a d aY i n t h e L i F e O F c h e F j O s e M a r t i n e z

Chef-Owner, La Maison Blanche, Longboat Key, Florida

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chapter 4 Food and Beverage 193

• Marketing • Banquets • Coffee service • In-room dining, minibars,

or the cocktail lounge

• presenting annual, monthly, and weekly forecasts and budgets to the food and beverage director

Some restaurant man- agers work on an incentive plan with quarterly perfor- mance bonuses. hotel res- taurants present the manager with some interesting chal- lenges because hotel guests are not always predictable. Sometimes they will use the hotel restaurants, and other times they will dine out. If they dine in or out to an extent beyond the forecasted number of guests, problems can arise. too many guests for the restaurants results in delays and poor service. too few guests means that employees are underutilized, which can increase labor costs unless employees are sent home early. a restaurant manager keeps a diary of the number of guests served by the restaurant on the same night the previous week, month, and year.

the number (house count) and type of hotel guest (e.g., the number of conference attendees who may have separate dining arrangements) should also be considered in estimating the number of expected restaurant guests for any meal. this figure is known as the capture rate, which, when cou- pled with historic and banquet activity and hotel occupancy, will be the res- taurant’s basis for forecasting the number of expected guests.

Most hotels find it difficult to coax hotel guests into the restaurants. however, many hotels continuously try to convert foodservice from a nec- essary amenity to a profit center. the royal Sonesta new Orleans offers res- taurant coupons worth $5 to its guests and guests of nearby hotels. another successful strategy, adopted by the hotel plaza athénée in new York, is to show guests the restaurants and explain the cuisine before they go to their rooms. this has prompted more guests to dine in the restaurant during their stay. at some hotels, the restaurants self-promote by having cook- ing demonstrations in the lobby: the “on-site” chefs offer free samples to hotel guests. progressive hotels, such as the Kimco hotel in San Francisco, ensure that the hotel restaurants look like freestanding restaurants with separate entrances.

Café at the Paris Casino and Hotel in Las Vegas.

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194 Part i Introducing hospitality and Lodging

F O c u s O n L O d g i n g

Gracious hospitality

Catherine Rabb, johnson and Wales University

I find great pleasure in seeing a well-managed hotel handling full occupancy, special events, and busy dining rooms with seemingly effortless grace. How welcoming it is for the traveler or for the guest at a special event to be served by professionals who embody the true spirit of gracious hospitality.

What the guest doesn’t see is the complex network of interlocking relationships and intensive training necessary behind the scenes to make each day successful at any hotel. It has been said that hotels need to be like ducks—appearing to glide effortlessly along the surface, while paddling like the devil underneath! Every person in our operation is a critical component of our business. We sell food and beverages in a variety of ways, but in hospitality operations, the interaction with the guest becomes part of the product, with no room for returns if service is defective. We are only as good as our last meal, our last event, or our last contact with a guest. Service itself is the product.

As you will learn in this chapter, many different departments and people with diverse skills must work together efficiently. Hotels of different sizes and styles exist, so some operations need more people, and some need less, but for all hotels a dedication to providing the best available services and products is critical. This diverse group of people must work together to create a service product whose appearance is seamless. The coor- dination of people, talents, schedules, and needs is a complex ballet of intricate steps choreographed to create a seamless whole. A successful operation needs the talents of every member of the staff and welcomes the varied skills, energies, and ideas that their team brings to the table. Everyone, from the newest part-time employee to the manager, needs to be at the top of his or her game to reach the goal of service excellence.

The term multitasking has perhaps been overused in recent years; however, nowhere is the term better suited than to describe the routine tasks done by so many industry professionals. Whether we are chefs, bartenders, stewards, catering managers, or food and beverage directors, we all need a wide variety of skills and abilities to be successful in this challenging industry. We need the technical skills necessary to do the job: correct service techniques, food preparation skills, the ability to mix a perfect drink, or to set a room properly for a special event. We must also possess the ability to interact with our team members, each of whom is responsible for a different set of tasks performed under pressure. It is critical that we understand and master the fact that our business must make a profit, and we work hard to blend effective budgets and cost controls with our service goals. We continuously provide extensive, thorough, effective, and ongoing training for ourselves and our staff so that our team is knowledgeable, trained, and empowered to act in the best interest of the guest and, ulti- mately, our operation. Our knowledge of the legalities of operating a business must be extensive so that our operations and our staff are protected. We are competitive because our market is changing and challenging, and we continually strive to position our businesses to be competitive. We must be strong because the physical demands of the business can be demanding, and we must be self-aware, for doing a challenging job well means that we are able to take care of ourselves and our lives outside the hotel. We lead by example to inspire our teammates to do the very best job they can, whatever the circumstances. Terrific service requires terrific people who possess the ability to integrate these characteristics into every workday.

What type of people are drawn to this business? People who love a challenge. People who enjoy other peo- ple. People who love their work and take pride in their ability to create a beautiful banquet, a perfect soup, or a well-designed training program. People with a work ethic, honesty, and integrity that make them an example to others. People who love to learn. People who enjoy the fact that every day is different and brings different chal- lenges. Perhaps someone like you!

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chapter 4 Food and Beverage 195

Bars hotel bars allow guests to relax while sipping a cocktail after a hectic day. this opportunity to socialize for business or pleasure is advantageous for both guests and the hotel. Because the profit percentage on all beverages is higher than it is on food items, bars are an important revenue source for the food and beverage departments. the cycle of beverages from ordering, receiving, storing, issuing, bar stocking, serving, and guest billing is com- plex, but, unlike restaurant meals, a beverage can be held over if not sold. an example of a world-famous hotel bar is the King Cole Bar in the St. regis hotel in new York City. this bar has been a favored new York “watering hole” of the rich and famous for many years. the talking point of the bar is the painted mural of Old King Cole, the nursery rhyme character.

Bars are run by bar managers. the responsibilities of a bar manager include the following:

• Supervising the ordering process and storage of wines • preparing a wine list • Overseeing the staff • Maintaining cost control • assisting guests with their wine selection • proper service of wine • Knowledge of beers and liquors and their service

Bar efficiency is measured by the pour/cost percentage. pour cost is obtained by dividing the cost of depleted inventory by sales over a period of time. Food and beverage directors expect a pour cost of between 16 and 24 percent. Generally, operations with lower pour costs have more sophisti- cated control systems and a higher-volume catering operation. an example of this is an automatic system that dispenses the exact amount of beverage requested via a pouring gun, which is fed by a tube from a beverage store. these systems are expensive, but they save money for volume operations by being less prone to pilferage, overpouring, or other tricks of the trade. their greatest savings comes in the form of reduced labor costs; fewer bartenders are needed to make the same amount of drinks. however, the barperson may still hand pour premium brands for show.

hotel bars are susceptible to the same problems as other bars. the direc- tor of food and beverage must set strict policy and procedure guidelines and see to it that they are followed. In today’s litigious society, the onus is on the operator to install and ensure responsible alcoholic beverage service, and all beverage service staff should receive training in this important area because it might limit the bar’s liability. (the national restaurant association (nra) offers ServSafe alcohol.) If a guest becomes intoxicated and is still served alcohol or a minor is served alcohol and is involved in an accident involving someone else, then the server of the beverage, the barperson, and the manager may be liable for the injuries sustained by the person who was harmed, the third party.

another risk bars encounter is pilferage. employees have been known to steal or tamper with liquor. they could, for example, dilute drinks with water

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196 Part i Introducing hospitality and Lodging

or colored liquids, sell the addi- tional liquor, and pocket the money. there are several other ways to defraud a bar. One of the better known ways is to overcharge guests for beverages. another is to underpour, which gives guests less for their money. Some bartenders overpour mea- sures to receive larger tips. the best way to prevent these occur- rences is to have a good control system, which should include shoppers—people who are paid to use the bar like regular guests, except they are closely watching the operation.

In a large hotel there are sev- eral kinds of bars:

Lobby bar. this convenient meet- ing place was popularized when Conrad hilton wanted to generate

revenue out of his vast hotel lobby. Lobby bars, when well managed, are a good source of income.

Restaurant bar. traditionally, this bar is away from the hubbub of the lobby and offers a holding area for the hotel’s signature restaurant.

Service bar. In some of the very large hotels, restaurants and room ser- vice have a separate backstage bar. Otherwise, both the restaurant and room service are serviced by one of the regular beverage outlets, such as the restaurant bar.

Catering and banquet bar. this bar is used specifically to service all the catering and banquet needs of the hotel. these bars can stretch any operator to the limit. Frequently, several cash bars must be set up at a variety of locations; if cash wines are involved with dinner, it becomes a race to get the wine to the guest before the meal, preferably before the appetizer. Because of the difficulties involved in servicing a large number of guests, most hotels encourage inclusive wine and beverage functions, in which the guests pay a little more for tickets that include a predetermined amount of beverage service. Banquet bars require careful inventory control. the bottles should be checked immediately after the function, and, if the bar is very busy, the bar manager should pull the money just before the bar closes. the breakdown of function bars should be done on the spot if possible to help prevent pilferage.

the banquet bar needs to stock not only large quantities of the popu- lar wines, spirits, and beers, but also a selection of premium spirits and after-dinner liqueurs. these are used in the ballroom and private dining rooms, in particular.

A server carries Singapore Slings in the Long Bar at Raffles Hotel Singapore.

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Pool bar. a pool bar is popular at resort hotels where guests can enjoy a variety of exotic cocktails poolside. resort hotels that cater to conven- tions often put on theme parties one night of the convention to allow delegates to kick back. popular themes that are catered around the pool might be a hawaiian luau, a Caribbean reggae night, a Mexican fiesta, or Country and Western events. Left to the imagination, one could conceive of a number of theme events.

Minibar. the minibar, sometimes called an honor bar, is a small, refriger- ated bar placed in each guest room. It offers the convenience of having beverages available at all times. For security, the minibar has a separate key, which may be either included in the room key envelope at check-in or withheld, according to the guest’s preference. Minibars are typically checked and replenished on a daily basis. Charges for items used are au- tomatically added to the guest folio.

Night club. Some hotels offer guests evening entertainment and dancing. Whether formal or informal, these food and beverage outlets offer a full beverage service. Live entertainment is very expensive. Many hotels are switching to operations with a Dj or a bar that itself is the entertainment (e.g., a sports bar). Directors of food and beverage are now negotiating more with live bands, offering them a base pay (below union scale) and a percentage of a cover charge.

Sports bar. the sports bar has become a popular hotel feature. almost everyone identifies with a sporting theme, which makes for a relaxed atmosphere that complements contemporary lifestyles. Many sports bars have a variety of games such as pool, football, bar basketball, and so on, which, together with satellite-televised sporting events, contribute to the atmosphere.

Casino bar. Casino bar and beverage service is intended to keep people gambling by offering low-cost or free drinks. Some casino bars have lav- ish entertainment and light food offerings, which entice guests to enjoy the gaming experience, even when sustaining heavy losses.

Different types of bars produce revenue according to their location in the hotel and the kind of hotel in which they are located. nightclubs, sports bars, and banqueting departments see bulk consumption of alcoholic bever- ages, and restaurant bars usually see more alcohol consumption than mini- bars and lounge bars.

▶ check Your Knowledge

1. What departments does the food and beverage director oversee?

2. What are the specific responsibilities of a food and beverage director on a day-to-day basis?

3. explain how the pour/cost percentage is used in a bar to measure efficiency.

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198 Part i Introducing hospitality and Lodging

Stewarding Department the chief steward is responsible to the director of food and beverage for the following functions:

• Cleanliness of the back of the house (all the areas of the backstage that hotel guests do not see)

• Maintaining clean glassware, china, and cutlery for the food and beverage outlets

• Maintaining strict inventory control and monthly stock check

• Maintenance of dishwashing machines • Inventory of chemical stock • Sanitation of kitchen, banquet aisles, storerooms, walk-

ins/freezers, and all equipment • pest control and coordination with exterminating company • Forecasting labor and cleaning supplies

In some hotels, the steward’s department is responsible for keeping the kitchen(s) clean. this is generally done at night to prevent disruption of the food production operation. a more limited cleaning is done in the after- noon between the lunch and dinner services. the chief steward’s job can be an enormous and thankless task. In hotels, this involves cleaning up after several hundred people three times a day. just trying to keep track of every- thing can be a headache. Some hotels have different patterns of glasses, china, and cutlery for each outlet. the casual dining room frequently has an informal theme, catering and banqueting a more formal one, and the signa- ture restaurant, very formal place settings. It is difficult to ensure that all the pieces are returned to the correct places. It is also difficult to prevent both guests and employees from taking souvenirs. Strict inventory control and constant vigilance help keep pilferage to a minimum.

A chief steward checking the inventory.

Full-service hotels have several food and beverage operations. These may include breakfast, lunch, and dinner restaurants; lobby, pool, fitness club, spa, and snack bars; a night club and discothèque; and banquet/event rooms. In addition, hotels may have outlets such as a gift shop. All of these transactions are managed by point- of-sale (POS) systems. A POS system can enhance decision-making, operational control, guest services, and reve- nues. A POS system is a network of cashier and server terminals that typically handles food and beverage orders, transmission of orders to the kitchen and bar, guest-check settlement, timekeeping, and interactive charges

t e c h n O L O g Y s P O t L i g h t

Courtesy of James McManemon, M.S., University of South Florida Sarasota–Manatee

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Catering Department throughout the world’s cultural and social evolution, numerous references have been made to the breaking of bread together. Feasts or banquets are one way to show one’s hospitality. Frequently, hosts attempted to outdo one

posting to guest folios. POS information can also be imported to accounting and food-cost/inventory software packages. A variety of reports can be generated, including open check (list of outstanding checks), cashier, voids/ comps, sales analysis, menu mix, server sales summary, tip, labor cost, and so forth. Sophisticated POS systems can generate as many as 200 management reports. The advantages of using a POS system in a food and bever- age operation include the following:

1. Elimination of arithmetic errors: A POS system may eliminate manual arithmetic calculations, therefore increasing guest satisfaction and tips. A study concluded that restaurants using handwritten checks have lower tipping and a substantial loss of potential revenue.

2. Improved guest check control: In an industry where the failure rate among restaurants is about 60 percent within the first three years, controlling costs and revenue is critical. A POS system allows for all transactions to be recorded, allowing less room for fraud. Failure to audit missing checks and to reconcile guest check sales with cash register readings often results in a lower sales volume and higher cost ratios. With a POS system, a server must place the order through a server terminal for it to be printed in the kitchen or bar. This ensures the recording of all sales and provides line cooks with legible orders. It also electronically tracks open checks, settled checks, voids, comps, discounts, and sales for each server, as well as employee meals.

3. Increased average guest check: Since orders are transmitted to the kitchen printer, travel time to the kitchen is reduced. This allows more time for suggestive selling and servicing guests. Also, a POS system provides a detailed summary for each server, listing average guest check, items sold, and total sales. This information can be used for job evaluations, motivational programs (e.g., wine contest), and assessing merchandising skills (e.g., average guest check and item sales), and server efficiency (e.g., sales per hour).

4. Faster reaction to trends: A POS system can provide a wealth of information on a real-time basis. Most POS systems can easily track sales and cost information by time period (e.g., hourly, daily, and weekly), employee, meal period, register, outlet, table, and menu item. This allows a restaurant opera- tor to quickly spot and react to problematic areas affecting profitability, such as a declining average guest check during lunch, excessive labor hours in the kitchen, a changing menu mix, or sluggish liquor sales.

5. Reduced labor costs and greater operational efficiency: An efficient POS system should be able to increase operational efficiency, therefore allowing staff members to have higher levels of produc- tivity. In the long term, this may result in reduced labor costs.

In addition to the POS system, some of the applications for a restaurant include table management systems, home delivery, frequent-dining and gift card programs, inventory control systems, and menu management sys- tems. We will cover them in the future chapters.

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200 Part i Introducing hospitality and Lodging

another with the extravagance of their feasts. today, occasions for celebra- tions, banquets, and catering include the following:

• State banquets, when countries’ leaders honor visiting royalty and heads of state

• national days • embassy receptions and banquets • Business and association conventions and banquets • Gala charity balls • Company dinner dances • Weddings

the term catering has a broader scope than does the term banquet. Banquet refers to groups of people who eat together at one time and in one place. Catering includes a variety of occasions when people may eat at vary- ing times. however, the terms are often used interchangeably.

For example, catering departments in large, city-center hotels may ser- vice the following events in just one day:

• a Fortune 500 company’s annual shareholders’ meeting • an international loan-signing ceremony • a fashion show • a convention • Several sales and board meetings • private luncheons and dinner parties • a wedding or two

naturally each of these events requires different and special treatment. hotels in smaller cities may cater the local chamber of commerce meeting,

a high school prom, a local company party, a regional sales meeting, a professional workshop, and a small exhibition.

Catering may be subdivided into on-premise and off-premise. In off-premise catering, the event is catered away from the hotel. the food may be prepared either in the hotel or at the event. the organizational chart in Figure 4–2 shows how the catering department is organized. the dotted lines show cooperative reporting relationships, and continuous lines show a direct reporting rela- tionship. For example, the banquet chef reports directly to the executive chef, but must cooper- ate with the director of catering (DOC) and the catering service manager.

the DOC is responsible to the food and bev- erage director for selling and servicing, catering, banquets, meetings, and exhibitions in a way that exceeds guests’ expectations and produces reason- able profit. the director of catering has a close working relationship with the rooms division

A caterer oversees an event.

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chapter 4 Food and Beverage 201

manager because the catering department often brings conventions, which require rooms, to the hotel. there is also a close working relationship with the executive chef. the chef plans the banqueting menus, but the catering man- ager must ensure that they are suitable for the clientele and practical from a service point of view. Sometimes they work together in developing a selection of menus that will meet all the requirements, including cost and price.

Position Profile of a director of catering the director of catering must be a leader and possess a thorough going knowledge of food and beverage management. the profile of a person hold- ing this position would be as follows:

Leadership

• Lead a team of employees • Set departmental mission, goals, and objectives

Figure 4–2 • Organization of the Catering Department.

Catering Sales Managers

Catering Steward

On-Call Servers

Catering Account

Executives

Director of Sales

Banquet Chef

Banquet Cooks

Executive Chef

Director of Catering

Catering Coordinator and O�ce Sta�

Catering Service Manager

Catering/Banquet Maître d‘s/Captains

Catering/Banquet Bartenders/Servers

Banquet Houseman

Banquet Bars

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202 Part i Introducing hospitality and Lodging

• Set service standards • ensure that the catering department is properly maintained

Skills and Abilities

• an ability to sell conventions, functions, and banquets • an ability to develop individual and department sales and cost budgets,

and produce a profit

• an ability to train department members in all facets of the operation • possess creativity, as well as knowledge, about food, wine, and service • possess a useful knowledge of the likes, dislikes, and dietary restric-

tions of various ethnic groups, especially jewish, Middle eastern, and european

the catering department is extremely complex and demanding; the tempo is fast and the challenge to be innovative is always present. the direc- tor of catering in a large city hotel should, over the years, build up a client list and an intimate knowledge of the trade shows, exhibitions, various com- panies, groups, associations, and social, military, education, religious, and fraternal market (SMerF) organizations. this knowledge and these contacts are essential to the director of catering’s success, as is the selection of the team members.

the main sales function of the department is conducted by the DOC and catering sales managers (CSMs). their jobs are to optimize guest satisfaction and revenue by selling the most lucrative functions and exceeding guests’ food and beverage and service expectations.

the DOC and catering sales managers obtain business leads from a vari- ety of sources, including the following:

Hotel’s director of sales. he or she is a good source of event bookings be- cause he or she is selling rooms, and catering is often required by meet- ings and conventions.

General managers. these people are good sources of leads because they are very involved in the community.

Corporate office sales department. If, for example, a convention were held on the east Coast one year at a Marriott hotel, and by tradition the association goes to the West Coast the following year, the Marriott hotel in the chosen city can contact the client or meeting planner. Some organizations have a selection of cities and hotels bid for major conventions. this ensures a competitive rate quote for accommodations and services.

Convention and visitors bureau. here is another good source of leads because its main purpose is to seek out potential groups and organiza- tions to visit that city. to be fair to all the hotels, they publish a list of cli- ents and brief details of their requirements, which the hotel catering sales department may follow up on.

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chapter 4 Food and Beverage 203

Reading the event board of competitive hotels. the event board is gen- erally located in the lobby of the hotel and is frequently read by the competition. the CSM then calls the organizer of the event to solicit the business the next time.

Rollovers. Some organizations, especially local ones, prefer to stay in the same location. If this represents good business for the hotel, then the DOC and GM try to persuade the decision makers to use the same hotel again.

Cold calls. During periods of relative quiet, CSMs call potential clients to inquire if they are planning any events in the next few months. the point is to entice the client to view the hotel and the catering fa- cilities. It is amazing how much information is freely given over the telephone.

the most frequent catering events in hotels are the following:

• Meetings • Conventions • Dinners • Luncheons • Weddings

For meetings, a variety of room setups are available, depending on a client’s needs. the most frequently selected meeting room setups are as follows:

Theater style. rows of chairs are placed with a center group of chairs and two aisles. Figure 4–3 shows a theater-style room seating setup with equipment centered on an audiovisual platform. Sometimes multimedia presentations, requiring more space for reverse-image projections, reduce the room’s seating capacity.

Classroom style. as the name suggests, tables, usually slim 18-inch ones, are used because meeting participants need space to take notes. Class- room-style seating usually takes about three times as much space as theater style and takes more time and labor to set up and break down. Figure 4–4 shows a classroom-style setup.

Horseshoe style. Horseshoe-style room seating (Figure 4–5) is frequently used when interaction is sought among the delegates, such as training sessions and workshops. the presenter or trainer stands at the open end of the horseshoe with a black or white board, flip chart, overhead projec- tor, and video monitor and projector.

Dinner style. Dinners are generally catered at round tables of eight or 10 persons for large parties and on boardroom-style tables for smaller numbers. Of course, there are variations of the dinner-style room seating setup (see Figure 4–6).

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204 Part i Introducing hospitality and Lodging

catering event Order a catering event order (CEO), which may also be called a banquet event order (BEO), is prepared/completed for each function to inform not only the client but also the hotel personnel about essential information (what needs to happen and when) to ensure a successful event.

the CeO is prepared based on correspondence with the client and notes taken during the property visits. Figure 4–7 shows a CeO and lists the room’s layout and décor, times of arrival, if there are any vIps and what special attention is required for them, bar times, types of beverages and ser- vice, cash or credit bar, time of meal service, the menu, wines, and service details. the catering manager or director confirms the details with the client.

Figure 4–3 • Theater- Style Seating.

Auditorium

Figure 4–4 • Classroom-Style Seating.

Classroom

Figure 4–5 • Horseshoe-Style Seating.

Horseshoe

Figure 4–6 • Dinner-Style Seating.

Dinner Table

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chapter 4 Food and Beverage 205

Figure 4-7 • Catering Event Order.

POST AS: EVENT NAME: GROUP: ADDRESS:

PHONE: FAX: GROUP CONTACT: ON-SITE-CONTACT:

DAY DATE TIME FUNCTION ROOM EXP GTE SET RENT

BAR SET UP:

N/A

MENU:

7:30 AM CONTINENTAL BREAKFAST

Freshly Squeezed Orange Juice, Grapefruit Juice, and Tomato Juice Assortment of Bagels, Mu…ns, and Mini Brioche Cream Cheese, Butter, and Preserves Display of Sliced Seasonal Fruits Individual Fruit Yogurt CoŠee, Tea, and DecaŠeinated CoŠee

PRICE:

11:00 AM BREAK

Refresh Beverages as needed

BEO # 003069

All food and beverage prices are subject to an 18% service charge and 7% state tax. Guarantee figures, cancellations, changes must be given 72 hours prior or the number of guests expected will be considered the guarantee. To confirm the above arrangements, this contract must be signed and returned.

ENGAGOR SIGNATURE DATE

WINE:

FLORAL:

MUSIC:

AUDIO VISUAL: –OVERHEAD PROJECTOR/SCREEN –FLIPCHART/MARKERS –VCR/MONITORS

PARKING:

HOSTING PARKING, PLEASE PROVIDE VOUCHERS

LINEN: HOUSE

SETUP: –CLASSROOM-STYLE SEATING –HEAD TABLE FOR 2 PEOPLE –APPROPRIATE COFFEE BREAK SETUP –(1) 6‘ TABLE FOR REGISTRATION AT ENTRANCE WITH 2 CHAIRS, 1 WASTEBASKET

Fri January 25, 2013 7:30 AM – 12:00 PM Meeting Palm Garden 50 250.00

CHERI WALTER

BILLING:

DIRECT BILL

Amount Received:

THE GRANDE TORREY PINES HOTEL BANQUET EVENT ORDER

WELCOME BREAKFAST MEETING GRUHL AND ASSOCIATES 41 MAIN ST DENVER, CO (619) 635-4627 (619) 635-4528 Dr. Chad Gruhl same

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206 Part i Introducing hospitality and Lodging

Usually, two copies are sent, one for the client to sign and return and one for the client to keep.

an accompanying letter thanks the client for selecting the hotel and explains the importance of the function to the hotel. the letter also men- tions the guaranteed-number policy. this is the number of guests the hotel will prepare to serve and will charge accordingly. the guaranteed number is given about seven days prior to the event. this safeguards the hotel from preparing for 350 people and having only 200 show up. the client, naturally, does not want to pay for an extra 150 people—hence, the importance of a close working relationship with the client. Contracts for larger functions call for the client to notify the hotel of any changes to the anticipated number of guests in increments of 10 or 20.

experienced catering directors ensure that there will be no surprises for either the function organizer or the hotel. this is done by calling to check on how the function planning is going. One mistake catering directors some- times make is accepting a final guest count without inquiring as to how that figure was determined. this emphasizes the fact that the catering director should be a consultant to the client. Depending on the function, the conver- sion from invitations to guests is about 50 percent. Some hotels have a policy of preparing for about 3–5 percent more than the anticipated or guaranteed number. Fortunately, most events have a prior history. the organization may have been at a similar hotel in the same city or across the country. In either case, the catering director or manager will be able to receive helpful infor- mation from the catering director of the hotel where the organization’s func- tion was held previously.

the director of catering holds a daily or weekly meeting with key indi- viduals who will be responsible for upcoming events. those in attendance should be the following:

• Director of catering • executive chef and/or banquet chef • Beverage manager or catering bar manager • Catering managers • Catering coordinator • Director of purchasing • Chief steward • audiovisual representative

the purpose of this meeting is to avoid any problems and to be sure that all key staff know and understand the details of the event and any special needs of the client.

catering coordinator the catering coordinator has an exacting job in managing the office and controlling the “bible,” or function diary, now on computer. he or she must see that the contracts are correctly prepared and must check on

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numerous last-minute details, such as whether flowers and menu cards have arrived.

Web-enabled technology tools such as new- market International’s Delphi system (which is used at more than 4,000 properties) is a leader in delivering group, sales, catering, and ban- quet software for global travel and entertain- ment groups. One of the latest hotels to adopt the Delphi system is the Wynn Las vegas, which installed the sales and catering systems Delphi Diagrams, MeetingBroker, and eproposal. the Delphi system can keep inventory current in real time because of its ability to interface with the property management system. the suite of Del- phi products allows function space to be clearly and concisely managed, which increases guest satisfaction and profitability.

An elegant banquet room at a hotel.

a d aY i n t h e L i F e O F j a M e s M c M a n e M O n

Food and Beverage Manager, hyatt regency

Friday—Start of a Busy Weekend

6:30 a.m.–8:00 a.m. (opening manager) Upon arrival, I will first walk through the res- taurant to ensure prompt opening. I make sure tables are properly set, the carpet is clean, lighting is set, and that nothing is broken. I check for all the little things that may seem trivial but that don’t go overlooked by our more observant guests.

Next, I walk through the breakfast buffet to make sure it’s fully stocked and meets corporate standards. Afterward, I make my way over to the coffee bar to make sure that the barista is set up and ready to go for the coffee rush. I will spend the next 15 minutes talking to guests and conducting quality checks at each table to ensure that all of our guests’ needs are being fulfilled and that they are enjoying their dining experience.

8:00 a.m.–8:30 a.m. At the daily meeting for operations managers, the managers of each operation in the hotel meet in the general manager’s office to recap the previous day’s business and discuss activity in each de- partment that day. This meeting will include the food and beverage manager, banquets manager, housekeeping manager, front-office manager, sales and catering manager, executive chef, and general manager.

I will routinely discuss amenities that need to be sent up to guests’ rooms that day, groups in-house, and reser- vations or parties we are expecting in the restaurant. It just so happens that today the restaurant will be hosting a four-course dinner for 30 people, carefully crafted and paired with unique wines by our executive chef.

(continued)

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208 Part i Introducing hospitality and Lodging

8:30 a.m.–11:00 a.m. Balance managing the breakfast shift with preparation paperwork. Besides manag- ing the floor during the breakfast shift, I must manage daily paperwork, which includes updated employee’s schedules and time clocks for payroll, purchase inventory for the outlets, and respond to e-mails from employees, clients, and so on.

11:00 a.m.–12:00 p.m. Once breakfast ends at 11 a.m., I will conduct a post-shift with my employees (serv- ers, room service attendants, barista), where I discuss how I felt the breakfast shift went that morning, along with anything else they would need to know for the upcoming lunch shift that day. I will make sure that side work is completed in a timely manner and will then meet with incoming employees who are about to start their shift for the day.

12:00 p.m.–4:00 p.m. Manage the lunch shift and finish paperwork. This entails expediting food, conducting quality checks with guests, and assisting staff when business picks up. Once the lunch rush slows down, I will complete any unfinished paperwork, and then begin preparing for the four-course menu for this evening. Here is an idea of what we will be serving:

First course: Lemon verbena smoked scallops with a cantaloupe caviar, micro mint leaves, and black lava sea salt, paired with a Chardonnay from Santa Barbara, California.

Second course: Watermelon steak crusted with a warm and smoky spice blend, wild arugula, Humboldt fog cheese and aged balsamic, paired with a Rose of Syrah from Colchagua Valley, Chile.

Third course: Espresso braised short rib with forest mushroom polenta and burnt leek chocolate pesto, paired with a Meritage from Paso Robles, California. This is a bold and rounded red wine that blends Cabernet Sauvignon, Cabernet Franc, Merlot, and Petit Verdot.

Fourth course: Cinnamon plum tea panna cotta with amarena cherries, paired with a Muscat from California. This wine serves as the perfect accompaniment to the thick panna cotta and rich, syrupy cherries.

After the menu has been created, I will show the servers how the restaurant should be set for this event. There should be a different glass for each wine, and the table decorum should be elegant but simple. We don’t want to overwhelm our guests with gaudy decorations; the food and wine will speak for itself.

4:00 p.m.–10:00 p.m. (closing manager) Manage the dinner rush. In addition to the party of 30, there will be plenty of other guests in the restaurant for dinner this evening who will expect to receive a wonderful dining experience. The manager must balance all activity to ensure a smooth and successful operation. This is the chal- lenge in managing food and beverage operations, but it is also where the excitement lies.

10:00 p.m.–12:00 a.m. Once the dinner rush is over, it’s time to conduct a walk through and make sure the space is properly set for the following morning, then finish closing paperwork and call it a day. Although one manager does not typically stick around from sunrise until midnight, it has been known to happen on occasion. This is an industry that requires sacrifice of your time, and sometimes your patience. Describing a day in the life of a food and beverage manager is somewhat challenging, because each day is so different—and that’s what I love about it.

a d aY i n t h e L i F e O F j a M e s M c M a n e M O n (Continued)

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chapter 4 Food and Beverage 209

catering services Manager the catering services manager (CSM) has the enormous responsibility of delivering higher-than-expected service levels to guests. the CSM is in charge of the function from the time the client is introduced to the CSM by the director of catering or catering manager. this job is very demanding because several functions always occur simultaneously. timing and logistics are crucial to the success of the operation. Frequently, there are only a few minutes between the end of a day meeting and the beginning of the recep- tion for a dinner dance.

the CSM must be liked and respected by guests and at the same time be a superb organizer and supervisor. this calls for a person of outstand- ing character and leadership—management skills that are essential for suc- cess. the CSM has several important duties and responsibilities, including the following:

• Directing the service of all functions • Supervising the catering housepersons in setting up the room • Scheduling the banquet captains and approving the staffing levels for all

events

• Cooperating with the banquet chef to check menus and service arrangements

• Checking that the client is satisfied with the room setup, food, bever- ages, and service

• Checking last-minute details • Making out client bills immediately after the function • adhering to all hotel policies and procedures that pertain to the cater-

ing department, including responsible alcoholic beverage service and adherence to fire code regulations

• Calculating and distributing the gratuity and service charges for the ser- vice personnel

• Coordinating the special requirements with the DOC and catering coordinator

▶ check Your Knowledge

1. What is the difference between banquets and catering?

2. What does SMerF stand for?

3. Where do the director of catering and the catering sales manager obtain their information?

4. What are the various styles used when setting up a meeting room? Give examples of when each style might be used.

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210 Part i Introducing hospitality and Lodging

room Service/In-room Dining the term room service has for some time referred to all service to hotel guest rooms. recently, some hotels have changed the name of room service to in-room dining to present the service as more upscale. the intention is to bring the dining experience to the room with quality food and beverages but also by providing quality service.

a survey of members of the american hotel & Lodging association showed that 56 percent of all properties offer room service and that 75 per- cent of airport properties provide room service. Generally, the larger the hotel and the higher the room rate, the more likely it is that a hotel will offer room service.

economy and several midpriced hotels avoid the costs of operating room service by having vending machines on each floor and food items such as pizza or Chinese food delivered by local restaurants. Conversely, some hotels prepare menus and lower price structures that do not identify the hotel as the provider of the food. as a result, the guests may have the impression that they are ordering from an “outside” operation when they are in fact ordering from room service.

the level of service and menu prices will vary from hotel to hotel. the hilton La jolla torrey pines in California has butler service for all guest rooms without additional charge.

a few years ago, room service was thought of as a necessary evil, some- thing that guests expected, but which did not produce profit for the hotel. Financial pressures have forced food and beverage directors to have this department also contribute to the bottom line. the room service manager has a difficult challenge running this department, which is generally in oper- ation between 16 and 24 hours a day. tremendous effectiveness is required to make this department profitable. nevertheless, it can be done. Some of the challenges in operating room service are as follows:

• Delivering orders on time—this is especially important for breakfast, which is by far the most popular room service meal

• Making room service a profitable food and beverage department

• avoiding complaints of excessive charges for room service orders

there are many other challenges in room service operation. One is fore- casting demand. room service managers analyze the front-desk forecast, which gives details of the house count and guest mix—convention, group, and others for the next two weeks. the food and beverage forecast will indi- cate the number of covers expected for breakfast, lunch, and dinner. the convention résumés will show where the convention delegates are having their various meals. For example, the number of in-house delegates attend- ing a convention breakfast can substantially reduce the number of room service breakfast orders.

experience enables the manager to check if a large number of guests are from different time zones, such as the West or east Coasts or overseas. these guests have a tendency to get up either much earlier or much later than the

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average guest. this could throw room service demands off balance. Demand also fluctuates between weekdays and weekends; for example, city hotels may cater to business travelers, who tend to require service at about the same time. however, on weekends, city hotels may attract families, who will order room service at various times.

to avoid problems with late delivery of orders, a growing number of hotels have dedicated elevators to be used only by room service during peak periods. at some hotels, rapid action teams (rats) are deployed. these are designated food and beverage managers and assistants who can be called on when room service orders are heavy.

Westin hotels recently introduced Service express, an innovation that allows a customer to address all needs (room service, housekeeping, laun- dry, and other services) with a single call. In addition, new properties are designed with the room service kitchen adjacent to the main kitchen so that a greater variety of items can be offered.

Meeting the challenge of speedy and accurate communication is imperative to a successful room service operation. this begins with timely scheduling and ends with happy guests. In between is a constant flow of information that is communicated by the guest, the order taker, the cook, and the server.

another challenge is to have well-trained and competent employees in the room service department. From the tone of voice of the order taker and the courteous manner with which the order is taken to the panache of the server for the vIp dinners, training makes the difference between ordinary service and outstanding service. With training, which includes menu tast- ing with wine and suggestive selling, an order taker becomes a room ser- vice salesperson. this person is now able to suggest cocktails or wine to complement the entree and can entice the guest with tempting desserts. the objective of this is to increase the average guest check. training also helps the setup and service personnel hone their skills to enable them to become productive employees who are proud of their work.

Troy Williams, a food and beverage operations consultant, shared his experience consulting for a large hos- pital that wanted its food and beverage operations to run more like a hotel room service department. After inspecting the hospital’s existing food and beverage operation through several observation periods, Troy determined that a set of service standards were warranted. Two particular areas of the hospital’s opera- tion were problematic, both of which would be specific concerns addressed by any high-quality hotel room service department:

h O w t O c r e at e a n e w s e t O F s e r v i c e s ta n d a r d s

Courtesy of James McManemon, M.S., University of South Florida Sarasota–Manatee

(continued)

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212 Part i Introducing hospitality and Lodging

• Food tray presentation • Food service attendant’s approach when entering a patient’s room, including appearance, delivery of food,

and interaction with patient, as well as departure

The new set of service standards were created based on the ideal service delivery common in many high qual- ity hotels and adapted to the hospital setting as follows:

Approach • Professional Appearance: Make sure you are in proper uniform and your name badge is facing front. • Ensure: Check the food tray to ensure all items and condiments are included, drinks are standing upright,

and the tray is attractively presented. • Knock: Always knock before entering. • Sanitize: Always wash hands or use hand sanitizer upon entering a room.

Interaction • Posture: Stand upright, not leaning, and make direct eye contact with the patient. • Positive Attitude: Greet every guest with a smile and provide an authentic and friendly interaction, using

the patient’s name in the process. • Setup: Make sure the tray is properly set for dining on the patient’s bedside table, napkins and cutlery are

placed in an orderly fashion, offer to unwrap or open drinks for patients.

Familiarity • Identification: “Good (morning/afternoon/evening), (patient’s name). I am (your name) from Food and

Nutrition Services. I have your meal for you.” If you cannot pronounce their last name, ask, “Can you tell me your last name?”

• Description: Offer a brief description of all items on the tray to ensure that the order is accurate.

Personalization • Quality Check: After you have given a brief description of the meal, ask, “Does everything look fine?” If the

patient asks you to assist, please do. • Offer Additional Assistance: Ask if you can assist the patient with any additional needs. • Closure: Use the phrase, “Enjoy your meal, (Mr./Mrs. patient’s name).”

h O w t O c r e at e a n e w s e t O F s e r v i c e s ta n d a r d s (Continued)

Sustainable Food and Beverage practicing sustainable food and beverage operations can and does lead to a better bottom line. When operators save water and electricity, recycle, and purchase local produce, they help lessen the footprint of the operation.

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chapter 4 Food and Beverage 213

Guests are increasingly aware of the importance of sustainable operations of a food and beverage facility. they are pleased to see the greening of food and beverage operations and the use of local natural products, which helps reduce the cost of transportation and adds local flavor.

Michelle Leroux, director of sales and marketing at the Delta Chelsea hotel in toronto, has noticed a shift in the booking inquiries: “It isn’t so much that having a ‘green’ or ‘sustainable’ meeting package sells additional pieces of business—it is more along the line that certain groups will not book at your hotel if you can’t demonstrate knowledge and experience with sustainable meetings.”2

according to Brita Moosmann, a consultant,3 the best way to start the pro- cess of making food and beverage more sustainable and profitable is to conduct a comprehensive audit or evaluation of your food and beverage operation in order to provide a baseline in terms of energy efficiency and carbon footprint; they should be part of an overriding strategy that will provide an in-depth anal- ysis of the organization’s sustainable position. this evaluation also should mea- sure the impact of the various elements on the organization’s stakeholders and have a total quality approach regarding customer satisfaction. It is also advisable to obtain feedback to understand what is important to the local community.

trends in Lodging Food and Beverage • hotels are using branded restaurants instead of operating their own

restaurants.

• hotels are opting not to offer food and beverage outlets. these are usu- ally smaller to midsized properties that may have restaurants on the same lot or nearby.

• restaurants and beverage outlets are being made more casual. • restaurants are being developed or remodeled with a theme. For

example, one major hotel chain has adopted a northern Italian theme in all its restaurants.

• Menus are being standardized for all hotel restaurants in a chain. • Many hotels are converting one of the beverage outlets into a sports-

themed bar.

• technology is being used to enhance guest services and control costs in all areas of a hotel, including guest ordering and payment, food produc- tion, refrigeration, marketing, management control, and communication.

• More low-fat and low-carb items are being added to menus:

– healthier menu items with less salt and sugar.

– hotel restaurants are offering more locally sourced produce and an occasional herb garden.

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214 Part i Introducing hospitality and Lodging

The Sunnyvale Hotel is operated by a major hotel management corporation. To ensure guest satisfaction, 300 survey forms, each containing 65 questions, are mailed to guests each month. Usually, about 70 of the forms are returned. The hotel company categorizes the guest satis- faction scores obtained into colored zones, with green being the best, then clear and yellow, and red being the worst. Scores can be compared with those of equivalent hotels.

The most recent survey indicated a significant decline for the Sea Grill Restaurant, with scores in the red zone. Guests’ concerns were in the following areas: hostess attentiveness, spread of service, and quality of food.

On investigation, the director of food and beverage also realized that the name of the restaurant, Sea Grill, was not appropriate for the type of restaurant being operated. When asked, some guests commented “it’s a bit odd to eat breakfast in a fish place.”

discussion Question 1. What would you do, as director of food and beverage, to get the guest satisfaction scores

back into the clear or green zones?

c a s e s t u d Y

ensuring Guest Satisfaction

Karla Gomez is the supervisor at the Grand Hotel’s casual restaurant. Karla’s responsibilities include overseeing five servers and two bussers, seating guests, and taking reservations. One Friday evening, the restaurant was very busy—all 20 tables were occupied, there was a substantial wait list, and there were people on standby. The service bar was almost full of guests, and most of the seated guests in the dining area had finished their entrées or were just beginning their desserts. They were not leaving, however, in part because of cold, rainy weather outside. The guests did not seem to be in a rush to leave the restaurant, but several of the guests waiting for tables were complaining about the long wait.

discussion Question 1. What can Karla do to solve the problem?

c a s e s t u d Y

Friday evening at the Grand hotel’s Casual restaurant

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chapter 4 Food and Beverage 215

Summary

1. the food and beverage department division is led by the director of food and beverage, who is responsible for the efficient opera- tion of kitchen, catering, restaurants, bars, and room service; in addition, the director has to keep up with trends and preplan for special events.

2. a hotel kitchen is the responsibility of the executive chef, who is in charge of the quality and quantity of food, organization of the kitchen and his or her sous chefs, administrative duties, and careful calcula- tion of financial results.

3. a hotel usually has a formal and a casual restaurant, which are either directly con- nected to the hotel or operated separately.

4. Bars are an important revenue source for a hotel, but they must adhere to strict guide- lines to be profitable. Commensurate with

its size, a hotel might have several kinds of bars, such as a lobby bar, a restaurant bar, a minibar, or even a night club.

5. the chief steward has the often unrewarded job of cleaning the kitchen, cutlery, plates, glasses, and backstage of the hotel and is in charge of pest control and inventory.

6. Catering is subdivided into on-premise and off-premise occasions, which may include meetings, conventions, dinners, luncheons, and weddings. according to the occasion, the type of service and room setup may vary. Catering involves careful planning and the interaction and cooperation of many people.

7. room service offers the convenience of dining in the room, with quality food and beverage service, at a price acceptable to both the guest and the hotel.

Key Words and Concepts

banquet banquet event order (BeO) brigade capture rate catering catering coordinator catering event order (CeO) catering services manager (CSM) chef tournant chief steward classroom-style seating

contribution margin dinner-style room seating director of catering (DOC) director of food and beverage executive chef food cost percentage food sales percentage guaranteed-number policy horseshoe-style room seating kitchen manager labor cost percentage perpetual inventory

pilferage pour/cost percentage responsible alcoholic beverage service restaurant manager room service shopper sous chef station chef theater-style room seating

review Questions

1. Briefly describe the challenges a food and beverage director faces on a daily basis.

2. List the measures used to determine the food and beverage department’s profit and loss.

3. explain the problems a hotel faces in mak- ing the following departments profitable: restaurants, bars, and room service.

4. explain the importance of the catering de- partment for a hotel and list the responsi- bilities of a catering sales manager (CSM).

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216 PArT i Introducing Hospitality and Lodging

Internet Exercises

1. Organization: Benchmarque Summary: Benchmarque is a staffing com- pany for people developing a career in hospitality and event management. It is an Australia-based company but also of- fers opportunities in a number of countries across Asia.

(a) Which services are offered by the company to its clients? (b) Look for “current positions” under the “candidates” section, and click on “find a job in food and beverage man- agement.” Find out the career progres- sion path for front of house staff.

2. Organization: The Peninsula Hong Kong Summary: The Peninsula Hong Kong is Hong Kong’s oldest hotel. This hotel is known for its superior luxury and service.

(a) Look up the restaurants under the “Dining” section. Where are these res- taurants located in the hotel? Which cuisines do they offer? Do the ambiance and room set up match the cuisines? Who are the target consumers of these restaurants?

Apply Your Knowledge

1. A five-star hotel is set to receive a group of 50 corporate leaders for breakfast. What es- sential information should the catering de- partment of the hotel include in the event order?

2. If the labor cost for the previous event is $1,050 and the sale is worth $5,500, what is the labor cost percentage for the event?

Suggested Activities

1. Contact a bar manager in your area. Dis- cuss with him or her how to monitor pilferage and overpouring. Ask what the expected and actual pouring cost percent- ages are and how the manager deals with any variances.

2. Visit a hotel restaurant in your area. Make a note of how busy the establishment is.

Does it seem to be staffed with the appro- priate number of employees? Are guests be- ing served in a timely manner? Think about why this specific restaurant may be overly crowded or overly vacant. What could or should be done differently? What seems to be working well?

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chapter 4 Food and Beverage 217

endnotes 1. Carlson. Our Company. http://www.carlson.com/

our-company/index.do (accessed May 22, 2015). 2. Brita Moosmann, Sustainable F&B Operations

Can Create Valuable Profit Partner, http://

hotelnewsnow.com/, search for “Sustainable F&B Operations Can Create valuable profit partner” to view this article (accessed March 9, 2015).

3. Ibid.

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