Chapter 3252
Chapter 3252
Management and
Control
(With Practical Questions and Solutions for
Semester System)
&
Suniti Negi
International Culinary Foundation
New Delhi – 110070.
Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd.,
Ramdoot, Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004
Phone: 022-23860170/23863863; Fax: 022-23877178
E-mail: [email protected]; Website: www.himpub.com
Branch Offices :
New Delhi : Pooja Apartments, 4-B, Murari Lal Street, Ansari Road, Darya Ganj,
New Delhi - 110 002. Phone: 011-23270392, 23278631; Fax: 011-23256286
Nagpur : Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur - 440 018.
Phone: 0712-2738731, 3296733; Telefax: 0712-2721216
Bengaluru : Plot No. 91-33, 2nd Main Road, Seshadripuram, Behind Nataraja Theatre,
Bengaluru - 560 020. Phone: 080-41138821;
Mobile: 09379847017, 09379847005
Hyderabad : No. 3-4-184, Lingampally, Besides Raghavendra Swamy Matham, Kachiguda,
Hyderabad - 500 027. Phone: 040-27560041, 27550139
Chennai : New No. 48/2, Old No. 28/2, Ground Floor, Sarangapani Street, T. Nagar,
Chennai-600 012. Mobile: 09380460419
Pune : First Floor, Laksha Apartment, No. 527, Mehunpura, Shaniwarpeth
(Near Prabhat Theatre), Pune - 411 030. Phone: 020-24496323, 24496333;
Mobile: 09370579333
Lucknow : House No. 731, Shekhupura Colony, Near B.D. Convent School, Aliganj,
Lucknow - 226 022. Phone: 0522-4012353; Mobile: 09307501549
Ahmedabad : 114, SHAIL, 1st Floor, Opp. Madhu Sudan House, C.G. Road, Navrang Pura,
Ahmedabad - 380 009. Phone: 079-26560126; Mobile: 09377088847
Ernakulam : 39/176 (New No. 60/251), 1st Floor, Karikkamuri Road, Ernakulam,
Kochi - 682011. Phone: 0484-2378012, 2378016; Mobile: 09387122121
Bhubaneswar : Plot No. 214/1342, Budheswari Colony, Behind Durga Mandap,
Bhubaneswar - 751 006. Phone: 0674-2575129; Mobile: 09338746007
Kolkata : 108/4, Beliaghata Main Road, Near ID Hospital, Opp. SBI Bank, Kolkata - 700 010,
Phone: 033-32449649; Mobile: 07439040301
DTP by : Sanhita/Rakhi
Printed at : M/s. Sri Sai Art Printer, Hyderabad. On behalf of HPH.
PREFACE
In any size of food and beverage operations, a system of costing is an important aid to efficient
management and essential tool if profitability is to be maintained. The present-day keen competition
makes it necessary to keep accurate and systematic records of the actual cost of the goods and
services to be sold. Every single member of the staff should be cost-conscious, and it is the
responsibility of executives, heads of department and supervisors to instruct their staff and ensure
that they are aware of the purpose and value of costing. The major causes of the failure of food
and beverage operations have been the lack of understanding to implement costing systems.
This edition of the book has been thoroughly revised and updated as per the curriculum and
syllabus contents of the hospitality courses for Semester system. Therefore, the title of the book
has been changed to ‘Food and Beverage Management and Control.’
Most students of tourism and hotel management courses study subjects which relate to both
food and beverage operations. Similarly, most executives in the hotel and catering industry have
responsibility for the control of food and beverages. This book is designed to elucidate the basic
principles involved in food costing. It shows how all operational information relating to the
establishment is used to provide effective and profitable management decisions. The main objective
of the book has been to provide a practical text for students and trainees of the hotel and catering
industry. The book contains the basic arithmetic and proceeds step by step through food costing,
elements of cost, costing concepts, budgetary control, and break-even analysis as applied to the
food and beverage operations.
The book is intended for those currently involved with the food and beverages or those plan
to involve in the future. Basically, it is hotel management book concentrating on techniques of food
and beverage operation using costing and control techniques to do better job of managing the food
and beverage establishment. The main purpose of the book is to explain procedure for controlling
all costs. Basic records and procedures, have been described and forms, charts graphs used for
easy understanding of the problem.
Much of the information contained within the book has come from notes and papers gathered
over the last 40 years, some of which has no identifiable source.
The book has been supported by solved practical exercises, diagrams, models, review and
discussion questions, and objective type questions. It would prove a valuable book for all those
engaged in hotel, restaurant and industrial catering as well as an excellent textbook for students
and trainees.
We wish to thank staff of the Himalaya Publishing House pvt. Ltd. New Delhi and Mumbai
for their assistance and encouragement in the preparation of this book. Very special thanks to
Shri Niraj Pandey, and Shri K. N. Pandey Director HPH for thoughtful preparation of this book.
To all former students who listened to the lectures that were the basis for this book, we extend
our appreciation.
We are grateful to the leading hotels of Taj Group, Oberoi, Welcome Group, Ashok Group,
and Hyatt Regency, Meridian, Reddison, Centaur Hotel, all restaurants, and food and beverage
establishments who helped in the preparation of the book.
Authors
CONTENTS
SECTION – I : INTRODUCTION
The word ‘hotel industry’ covers all undertakings concerned with the provision of accommodation,
food and beverages away from home. In addition to hotels, there are many establishments dealing with
food and beverages such as those operating strictly on commercial basis and those which are
subsidised; and outlets where catering is either the main activity (i.e., commercial restaurant) or it is
the secondary activity (i.e., transport catering, hospital catering, school-college catering). These may
be public owned or privately owned establishments. Finally, there are establishments whose market
is confined to restricted groups (i.e., hospitals) and those open to the public at large.
Sandwich Bars
Kiosks
Drive-inns and Automats
Discotheques
Clubs
Night Clubs
Bars
Pubs
Industrial Catering
Farm House Catering
Rest Houses
Dak Bungalows
Tourist Home
Cafeterias Line Cafeterias
Scramble-up Cafeterias, etc.
Take-aways
Counter Service
Ins
Modern day food and beverage services are not confined to few and limited establishments but
to a wide range of units scattered over a region. Many of these units are independent in nature and
peculiar in their behaviour. The clientele of these establishment belong to all strata of society depending
upon the types, services offered and the quality, taste and preparation of food and beverages. Some
of these establishments offer accommodation as well as food and beverages facilities, whereas other
specialise in catering facilities only. Depending upon the nature of the food and beverage facilities and
types of services offered, these establishments may be classified as given in Fig. 1.1A.
The planning process of food and beverages involves the settings of several basic policies such
as marketing policy, defining the marketing to be catered for; financial policy, dealing with envisaged
profitability or cost constraints of the establishment; and a catering policy, defining the main objectives
of operating the food and beverage facilities; and the methods by which such objectives are to be
achieved.
OBJECTIVES
The main responsibilities and objectives of food and beverage departments are:
(1) Provision of food and beverage facilities,
(2) Purchasing, receiving, storing, issuing, and preparation of food and beverage for sale,
(3) The formulation of an efficient control system,
(4) The training, motivation and controlling, and
(5) Coordinating.
6 Food and Beverage Management and Control
Purchasing
Receiving Storage Lounge Bar
Restaurant Floor
Issuing Service Service
Service Service
Room
Service Banquet
Pastry
Service
Shop
Fig. 1.1B: Departments/Divisions in a Food and Beverage Establishment
Private Hotels/Pensions
These establishments are known as pensions in Austria, Germany and Switzerland. In Britain,
these are called as private hotels, or a guest house, or a boarding house. Catering facilities are casually
restricted to residents, many of whom may stay for longer and such definite period as a week or a
fortnight, commonly reserving accommodation in advance.
Bed and Breakfast Establishments
In some countries, these establishments are known as ‘aparthotels’ and ‘hotel garnis’, and
represent a growing form of accommodation units catering for holidays as well as business travellers
without the service of main meals.
Self-service and Self-catering Accommodation
A growing amount of accommodation is provided in houses, flats, chalets and other units, such
as self-service and self-catering accommodation for holidays in many countries.
Holiday Camps
These are distinctive establishments with permanent building, and/or static caravans which
normally provide entertainment and recreation facilities, catering facilities, etc., in addition to holiday
accommodation.
Holiday and Conference Centres
These are open to general public or to restricted groups, often comprise substantial facilities
which may need not be available for block arrangement.
Private Households
These are distributed throughout as a large number of very small units. They offer a substantial
total bed capacity as a business to accommodate visitors and provide food and beverage facilities to
the resident customers.
Caravans and Camping Sites
These units provide facilities for mobile caravans. They constitute a significant accommodation
category in many holiday areas and provide catering facilities only to the participants.
Restaurants
These establishments provide food and drink generally at high price with high level of service.
(1) According to the Type of Service:
(i) Waiter service
(ii) Self-service
Waiter service restaurants have been traditional and will probably always remain popular. These
restaurants could be further be divided into first class and popular priced restaurants. The first class
restaurants because of the extent of the menu, the highly skilled staff and the standard of service, serve
delicious rich food in luxurious surroundings and charge accordingly. The popular price restaurants
8 Food and Beverage Management and Control
serve simple menus at moderate prices. The staff requirement of the two kinds of restaurants will be
completely different; whereas the customers in popular priced restaurants may expect the waiter
serving them to be occupied with as many as a dozen other covers, the guest in the first class
restaurant will have waiting on him no less than four or five persons, including the station waiter, the
station head waiter, the clearing waiter, the wine butler, the wine waiter, etc.
Self-service establishments are gradually gaining popularity. It is being put to effective use in
cafeterias, canteens, dining halls, drive-inns, etc.
(2) According to extent of the Menu Offered:
(i) Haute cuisine restaurant serving elaborate menu, and
(ii) Light snacks.
Grill Rooms
The present-day grill rooms are the later off-shoots of the hotel and catering industry. They owe
their existence largely to the travelling tourists who find it burdensome to dress formally for dinner.
The grill rooms, therefore, provide excellent meals, long or short, without making any demands
regarding formal dress. Grill rooms could be quite, luxurious, offering excellent service. The staff of
these grill rooms is of highly skilled nature as far as the preparations are concerned.
Counter-services
Counter-service units are managed by supervisors with some waiters/helpers on the counter. In
this type of service, generally, a certain quantity of food is prepared or finished in front of the customer
with the help of a back-bar unit. Ready-to-use items are used to speed up service. This type of service
is getting popularity in India. Counter-services are most suitable and very popular in departmental
stores, railway stations and airline terminals.
In restaurants featuring counter-services, soups, sandwiches, hot dishes, desserts and excellent
coffee is served. Food is reasonably priced. This type of service allows rapid turnover because of the
limited time available with the patrons. An excellent volume of business can be achieved even though
the average check is less than in the dining room. Covers are usually laid on the counter to receive
the customer, the menu is presented to him as he sits down and an a lá carte type of order taken and
served. The atmosphere is more intimate and relaxed. The workplace behind the counter is limited.
Each waiter can serve 8-10 covers. During service, it is most important that the butter, salt, pepper,
sugar, cream and ketchup should be within easy reach of the customer. Checks should be made out
and placed on the counter immediately after the last item has been served, the waiter collecting the
cash himself, unless the duty is assigned to someone else.
The counter is kept clean and ready to receive any customer. The used tableware should be
cleared away as soon as possible. Soiled dishes be kept unsighted, especially for the customers who
must take the vacant seats.
The counter type of food service may seem less pretentious, but it enjoys wide popularity. The
key note of this type of service is simplicity, and this combined with quality form a profitable
combination. Counter-service in some restaurants is not limited to simple menus only but may be very
elaborate in both menu and service.
Food and Beverage Management 9
clean but also to help them with any odd requirements, such as openers for proprietary drinks. Trays
and crockery must be constantly replenished on the racks and counter assigned to them. Simplicity
of service, combined with elegance in operation, can go a long way to making cafeteria operation a
success.
Canteens
The head of the canteen is known as canteen manager. The cafeteria system has been found to
be popular in canteens, where large number of customers have to be served, the multi-point or island
services can be used to advantage, thus eliminating the long queues whose pace is often dictated by
the indecision of one or two persons. In the multi-point system, the menu of the day is first written
on a large board which can be easily read from a distance. The price of each dish is marked on the
board. The service is so divided that various counters dispense a certain number of specific dishes
and one board stating what is available at any particular counter reserved for the dispense of soups,
another for main dishes, another for sweets and yet another for beverages. However, on these
counters, nothing is on display, and service is through service windows of hatches.
The payment of bill is to be made with the exact amount in cash or with the coupons of
appropriate value already purchased from the separate counter. No change being given at the service
window. This system is good where speed and service is essential, but involves pre-plating to a very
large extent.
Milk and Snack Bars
These two establishments are somewhat similar to each other, the milk bar being probably older
than the snack bar, having begun as a speedy service of milk in its various forms, viz., hot and cold
milk shakes, various ice-creams, sundees, etc. Today, these two establishments serve identical menus,
comprising tea, coffee, soft drinks, sandwiches, hamburgers, patties, pastries, etc.
Stools are provided at the serving counters, on which are displayed the provisions for sale. Other
patrons may stand around, placing their cups and plates on shelves. Usually, the number of tables is
limited and their size small. Each customer at the counter requires two feet of space so that 30-foot
counter will seat only 15-17 persons, and if they stand there for a very long time and prevent other
customers from being served, the takings are adversely affected. Space for customer to draw off is,
therefore, of the most importance. It is often not possible to allow comforts of chairs and tables. The
normal practice is for all free wall space to be provided with eating shelves and where possible for
stand up eating shelves or table to be provided in the open or middle part of the floor.
Milk bars and snack bars differ from the cafeteria in that the cash is directly paid to the assistant
serving the customer with the food and beverages.
Drive-inns
Basically, a drive-inn consists of an open or closed enclosure with a parking space for a certain
number of cars and a counter for the service of beverages at the entrance. As a car enters the drive-
inn, the order may be taken, and either served there and then or served a few minutes later by a waiter.
Dispensable crockery and cutlery (usually of stiff paper) is used. In a drive-inn cinema, a few hundred
orders may be served in a five or ten minutes intermission. Coupons may be sold beforehand and all
pre-plated. In the short intervalm then only the coupon and food are exchanged. The customers eat
in the comfort of their cars and discard the plates after their use.
Food and Beverage Management 11
Bars
The bar is generally a counter with bar stool, arranged on one side and a few low tables and chairs
placed around the room. A few tables of the conventional 30" height may also be arranged for
customers who intend to have a meal, but the menu may be restricted in choice.
Clubs
These establishments are formed by a group or class of people belonging to specific category
with some common objectives. The various types of club are such as, working women club, political
party club, social club, sporting club, restaurant club, private exclusive club, etc.
A club is a place where members can spend sometime in relaxation in pursuing a hobby and in
meeting people. Clubs can be residential as well as non-residential. Both provide the same facilities.
Generally speaking, apart from the fact that the residential clubs also offer accommodation usually for
a limited period to members and their guests, facilities provided by the club may include sports, both
indoor and outdoor, libraries, swimming pools, social activities, social work, pursuing a specific
hobby, etc. Membership may be restricted to certain class of society. A club may also offer credit
facilities like the Diners Club.
Night Clubs
For purpose of entertainment and recreation, night clubs are very popular. A night club is an
establishment which provides entertainment in the form of cabarets, floor shows, etc., and the
facilities of a dance floor and music with limited or exclusive menu which includes the sale of alcohol
and tobacco. These clubs are generally open late into the night.
Discotheques
Most popular among the youth are the discotheques. The word ‘discotheque’ means a library of
music. In common usage, however, this word has come to represent an establishment where music is
played, live and/or recorded; and a dance floor is provided, where those interested can come and dance.
Other features vary with the establishment, like the decor, the lighting effect, sound effect, the extent
of menu, etc. The menu is generally limited offering snacks and beverages. Discotheques generally open
in the evening and remain open late though this is not a hard and fast rule.
Fast Food and Take-aways
These units are concerned with the preparation and service of food and beverage quickly for
immediate sale to the customers for consumption either on or off the premises. These are mostly found
in the high streets of most towns of today. Their special features are:
(1) These units are around:
(i) A product, e.g., hamburgers
(ii) A range of products, e.g., fish
(iii) Products of a country, e.g., Chinese, Indian, Mexican, etc.
(2) These units are owned by large chains or franchised.
(3) The product is well marketed.
(4) The pricing of items is within a fairly distinctive known price band.
12 Food and Beverage Management and Control
(5) The convenience type of commodities are used such as frozen chips, concentrated
beverage, syrups, etc.
(6) Use of partially or fully automated method of production.
(7) Simplified and basic methods of food service.
Function Catering
The function catering may be defined as the service of food and beverages at a specified time
and place, for a given number of people, at a known price. Examples of such catering are:
(1) Wedding
(2) Dinner dances
(3) Business functions:
Meetings
Conferences
Working lunches
(4) Outdoor catering at a show or exhibition
(5) Christmas function
(6) Retirement parties
(7) Fund raising events
(8) Banquets
(9) Exhibition, etc.
Welfare Catering
Welfare catering is a very sophisticated and delicate aspect of catering industry. It may be defined
as the function which are usually not organised on a purely profit basis but rather to serve the specific
goal of an organisation. It includes all the welfare food and beverage establishments in which the
profitability of the catering facilities is not the only outlet’s primary concern. The main purpose of
these establishments is the provision of food and beverages to people through social needs, primarily
determined by an authority.
Welfare catering may be classified as:
(1) Institutional Catering
School Catering
College Catering
Industrial Catering
The Services:
Army, Navy, Air Force
Police, Fire Service
Government Departments
Prisons
Hospital Catering
(2) The Employees Catering.
Food and Beverage Management 13
Hospital Catering
This form of food and beverage service in hospitals and nursing homes is different from other
catering establishment. The most common practice in large hospitals and nursing homes is to send
prepared food to the service pantries on the various floors where it is arranged on trolleys and trays
and carried to the patients’ rooms. Cold foods may be served to the patients 20-30 minutes before the
actual service of meals. Hot food is taken from the main kitchen to the pantries in heated food cases,
a few minutes before the actual service. Dishes, trays, etc. are washed and stored in each pantry.
Many small and large hospitals have central tray service, i.e., all the trays are set up in one place and
sent directly to the patients’ room. Some hospitals have dining rooms for accommodating patients. The
staff are served in the cafeteria.
Transport Catering
It includes that sector of food and beverage establishment which makes provision of food and
beverages to people who are on the move. Transport catering could be classified as:
(1) Railway Catering
(2) Airline Catering
(3) Ship Catering/Marine Catering.
Railway Catering
Railways are presently providing facilities of waiting rooms, restaurants and dining cars. In many
countries, railways have even gone into hotel operation, especially in large cities. Railway catering may
be divided into two major areas:
(1) Terminal Catering, and
(2) In-transit Catering.
Terminal catering comprises bar, self-services and waiter services restaurants, fast food, and
take-away units supplemented by vending machines, dispensing hot and cold foods and beverages.
In-transit catering consists of restaurant cars service, and buffet service.
The establishments like the restaurants or the hotels are the same whether they are operated by
the railways or by any other entrepreneur, but dining car service presents its own problems. These
are mainly the shortage of space, inefficient control of incoming dust and smoke, low paid staff, and
long duty hours leading to poor employee-employer relation, small working space both in kitchen and
servery, etc.
While most of the food required en route is taken on board at the start of the journey, certain
items are picked up at various points on the way. All food used must be subjected to strict checking
for quality and stored in the most hygienic conditions. Crockery and cutlery must be washed properly.
The railway will do well to install dishwashing machines in their dining car kitchens.
Airlines Catering
The technological development in the field of aviation has totally revolutionized the catering
facilities in air catering. Airlines have to provide food and accommodation to passengers in transit.
Whereas passengers are stopped over at the best hotels in the city when they are making a scheduled
stop-over at the airlines expense or when a flight is unduly delayed, thus automatically taking care of
the guests’ comfort. The problems faced by the catering personnel are how to provide delicious, and
14 Food and Beverage Management and Control
wholesome food to passengers in flight. This is done by preparing all food in flight kitchens on the
ground, or getting the food cooked by hotels under contract, freezing it and reheating the food in flight.
The reheating of food is now being done by most of the major airlines by the use of microwave ovens
in which very high frequency waves heat the food in seconds by inducing very high frequency
molecular motion within the food. The menu for the first class and economy class passengers are
different, and first class passengers are also served wines free of any additional charge.
The food and beverage portions are highly standardized with meal portioned into plastic trays
which are presented to passengers and from which they eat their meals. Disposable cutlery, napkins,
etc., are used which reduce the facilities for washing up and cut down on breakage and wastages.
In some cases, there is no portion control, service is from a gueridon trolly. Food is portioned in front
of the customers and garnishing, slicing, etc., added according to their requests. The crockery used
may be bone China with fine glasses and cutlery.
Like railways, air catering may also be classified as terminal catering and inflight catering or
transit catering.
Ship Catering/Maritime Catering
Ship catering has its own rich tradition. It is a branch of catering with a charm of its own because
a ship may take anything from a couple of days to a fortnight or more to reach the next port of call.
The result is that large quantities of food and drinking water, alcohol, etc. must be carried on board.
Sea or marine catering varies from the provision of food and beverage on the short route ferries to the
large cruises or passenger lines. A ship carrying a thousand passengers on a ten-day voyage may carry
as much as 6,000 lbs of butter alone, other commodities being on a similar scale. The catering personnel
for a large liner may number from 65-68% of the total staff on board. There may be two kitchens, one
for staff and another for the passengers and there may be separate dining rooms for first class and rest
of the passengers. In addition, there may be a private dining room maintained for the captain.
Popular Catering
These establishments provide food and beverages generally at low/medium price with limited level
of service. It includes:
(1) Cafes
(2) Pizzerias
(3) Whimpy
(4) Grills
(5) Special Coffee Shops
(6) Little Chefs
(7) Steak Houses.
Leisure Attractions
Provision of food and beverage to people engaged in another leisure pursuit is the objective of
these. It includes:
(1) Theme Parks
(2) Galleries
(3) Theatres
(4) Airline Terminals.
Food and Beverage Management 15
(e) Better quality food usually gives a better yield than inferior quality food.
(f) An efficient food cost system will prevent waste and stealing.
(g) The aim of menu planning is to give the customer what he wants, not what the caterer thinks
what he wants.
(h) The variety and number of dishes on the menu does not affect the organisation of the
kitchen.
(i) Delegation is an important aspect of supervision.