The Foodservice Cycle

English Profession

March 2016

Management Business and Hospitality (MBH)

Name                        :      I DewaAyuIndra Cahyani

NIM                         :      20131414067

MBH-Semester VI

The Foodservice Cycle

Food and beverage (or foodservice) operations in the hospitality industry are concerned with the provisions of food and drink ready for immediate consumption (but excluding retailing and food manufacturing).

The Foodservice Cycle

n  Can be used as a basis (framework) to analyse and compare different foodservice operations

n  Can be used to help understand how an individual operation works:

n  Difficulties in one element of the cycle will cause difficulties in the elements that follow

n  Difficulties experienced in one element of the cycle will have their causes in preceding elements

Foodservice operations are concerned with:

n  The consumer needs and market potential in the various sectors of the foodservice industry.

n  The formulation of policy and business objectives that will guide the choice of the operational methods that will be used.

n  The interpretation of demand to make decisions on the range and type of food and beverages to be provided, as well as other services, and the service levels and prices to be charged.

n  The planning and design of facilities required for the food and beverage operations and the plant and equipment required.

n  The organization of provisioning for food and beverages and other purchasing requirements to meet the needs of food production, beverage provision and the service methods used.

n  Knowledge of the operational and management requirements for the food production, beverage provision and service processes and methods and decision make on the appropriateness of the various processes and methods, together with the management and staffing needs in order to meet the requirements of the operation.

n  Control of cost associated with the operation of food production, beverage provision and other services and the control of revenue.

n  Monitoring of consumer satisfaction to continually check in the extent to which the operation is meeting customer needs and aching customer satisfaction.

Characteristic Foodservice operations:

n  Following are the main characteristics:

n  A vital part of everyday life

n  Major contributor to the Hong Kong economy

n  Highly fragmented & complex

n  Creates employment

n  Encourages entrepreneurship

n  Promotes diversity through many different food concepts & cuisines

n  Innovative

n  Consumer led

n  High competition

n  Fulfils basic needs

System approach

n  Two dimensions:

n  Systematic approach to the design, planning and control of a food and beverage operation

n  The management of the operating systems within a food and beverage operation

Management of operations

n  Concerned with:

n  The management of materials

n  The management of information

n  The management of people (customers)

Four system for Foodservice

n  Food production

n  Beverage provision

n  Delivery or the ‘service sequence’

n  Customer management or the ‘customer process’

Interrelationship of the four systems of a food service operation

Dimensions of the hospitality industry’s product

n  Intangibility

n  Perishability

n  Variability of output

n  Simultaneous production and consumption

n  Ease of duplication

n  Heterogeneity

n  Demand variation

n  Difficulty of comparison

Sectors of the industry

n  Hotels and other tourist accommodation

n  Restaurants, popular catering, fast food, takeaway

n  Retail stores

n  Events/banqueting/conferencing/exhibitions

n  Leisure attractions

n  Motorway service stations

n  Industrial catering

n  Welfare catering

n  Licensed trade

n  Transport catering

n  Outdoor catering (off-premises catering)

Variables in Foodservice sectors

n  Historical background

n  Reasons for customer demand

n  Size of sector

n  Policies: financial, marketing, catering

n  Interpretation of demand/catering concept

n  Technological development

n  Influences / State of sector development

n  Primary/secondary activity

n  Types of outlets

n  Profit orientation/cost provision

n  Public/private ownership

Profit and cost markets

n  Profit market - includes hotels, commercial restaurants, pubs, fast food and leisure outlets

n  Cost market - includes catering in business and industry, education, healthcare and the armed forces

Summary of foodservice sectors

Types of market or Customer Type

n  General market

n  Non-captive: customers have a full choice

n  Restricted market

n  Captive: customers have no choice, for example welfare

n  Semi-captive: customers have a choice before choosing but then have little choice of food and drink other than that on offer

Customer is central

n  To the process and as an active participant within it

n  Understanding the customer is critical to the business success of foodservice operations

Different foodservice operations

n  Are designed for the:

n  Needs people have at a particular time

n  Rather than for the type of people they are

n  The same customer can:

n  Be business customer during the week

n  A member of a family at the weekend

n  Wanting a quick lunch or snack while travelling

n  Be organising a special event

Main Aim, the needs that customer might be seeking to satisfy are:

n  To achieve customer satisfaction

n  By meeting the customers’ needs:

n  Physiological

n  Economic

n  Social

n  Psychological

n  Convenience

n  Customers may want to satisfy some or all of these needs

Reason for a customer’s choice

n  Often determine the customer’s satisfaction or dissatisfaction

n  Dissatisfaction can come from:

n  Aspects of the food and beverage operation

n  Aspects beyond the operation’s control

n  Either way the operation has to deal with it

Potential dissatisfactions

n  Controllable by the establishment
e.g. scruffy, unhelpful staff, cramped conditions

n  Uncontrollable
e.g. behaviour of other customers, the weather,
transport problems

Product augmentation

n  The core of the product

n  The food and drink provision

n  The tangible elements of the product

n  The methods of delivery

n  Augmentation of the product

n  Takes into account the complete package

n  Competition mostly takes place at the augmented level

Reason for eating out

n  Convenience

n  Variety

n  Labour

n  Status

n  Culture / tradition

n  Impulse

n  No choice

Meal experience factors

n  Food and drink on offer

n  Level of service

n  Level of cleanliness and hygiene

n  Perceived value for money and price

n  Atmosphere of the establishment

The business environment

n  P                      Political

n  E                     Economic

n  S                      Socio-cultural

n  T                     Technological

n  L                     Legal

n  E                     Ecological

Key influences

n  Social trends/lifestyle

n  Amount of disposable income

n  Inflation/stagnation

n  Available credit

n  Cultural factors

n  Regulation – taxation, VAT, tourism

n  Media – television, advertising, magazines, celebrity chefs

The micro-environment

Porter’s Five Forces

Legal framework includes

n  Health, safety and security

n  Licensing framework

n  Selling goods by weights ad measures

n  Contracts

n  Selling good by description

n  Avoiding discrimination

n  Providing services

n  Customer property and customer debt

n  Data protection

Important of compliance

n  Penalties for non-compliance can be severe, both for the business and for the management and staff

n  Important that all members of staff contribute to ensuring compliance

Health, safety, and security

n  Duty to care for all staff and lawful visitors and must not:

n  Sell (or keep for sale) food and beverages that are unfit for people to eat

n  Cause food or beverages to be dangerous to health

n  Sell food or beverages that are not what the customer is entitled to expect, in terms of content or quality

n  Describe or present food in a way that is false or misleading

n  A foodservice operator must be able to demonstrate that steps have been taken to ensure good food hygiene (due diligence)

Licensing framework

n  Four key objectives:

1.      the prevention of crime and disorder

2.      public safety

3.      the prevention of public nuisance

4.      the protection of children from harm

Requirements include

n  Display of a summary of the premises licence

n  Drinks price lists to be displayed

n  Restrictions on under-aged persons being served alcohol and employed to serve alcohol

n  The need for an authorised person (or the personal licence holder) to be on site at all times

Other types of licenses include

n  Music (live or pre-recorded)

n  Dancing

n  Gambling

n  Theatrical performance and television display

n  Supervisor and the staff should be aware of the provisions and limitations of the licences to ensure compliance

Selling goods by weights and measures

n  Generally requires

n  Display of the prices and the measures used for all alcohol served

n  The food and beverage items for sale to be of the quantity and quality demanded by the customer

n  The use of officially stamped measures

Selling goods by description

n  All food, beverages and other services provided must be:

n  fit for purpose and of satisfactory quality in relation to price and description

n  accurately described in terms of size, quality, composition, production, quantity and standard

n  All statements of price must be clear and accurate

n  Food, beverages and other services correspond to their description

n  Times, dates, locations and nature of service are as promised

n  Billing is fair, transparent and reflects the prices quoted

To ensure compliance

n  Take care when:

n  wording menus and wine lists

n  describing items to customers

n  stating if prices include local and/or government taxes

n  describing conditions such as cover charges, service charges or extras

n  describing the service provision

Avoiding discrimination

n  Acts relating to discrimination on grounds of ethnic origin, race, creed, sex or disability

n  Three types of discrimination:

n  Direct discrimination

n  Indirect discrimination

n  Discrimination through victimisation

Providing services

n  Generally no specific requirement to serve anyone

n  Important to be aware of:

n  Circumstances where there may be a mandatory requirement to provide services

n  Valid reasons for refusal 

Customer property and debt

n  Good practice to ensure:

n  care is taken of customers’ property in order to minimise potential loss or damage

n  clear guidance on the procedures to follow if the customer is unable or unwilling to pay

n  Customers right to expect that data about them is:

n  kept secure

n  only used for the published business purposes

n  Operations must ensure data is:

n  Kept up to date, fairly, lawfully and securely

n  Not passed on to third parties without prior consent

n  And that staff are aware of required procedures

Ownership of Foodservice operations

Management options

Self-operated:

The owner or organization manages the operation themselves. It could be a small, large or a franchised situation.

Franchise agreement:

With a franchise, the franchisee (the owner of the facility) pays fees to the franchisor (or Franchise Company) in exchange for the right to use the name, building design, and business methods of the franchisor. Furthermore, the franchisee must agree to maintain the franchisor’s business & quality standards’.

Management contracting

When an owner or operator of an establishment employs or contracts specialized hospitality or food & beverage service company to manage the whole or part of the operation. This could be either in a hotel or in a non-commercial institution, for example a university.

Outsourcing

Increasingly, hotels are realizing that hotel-run restaurants are in some cases unprofitable due to many residents opting to dine at known branded outlets.

Therefore, a new & emerging trend is where the hotel forms a partnership with a restaurant/coffee chain/bar brand that would operate from a designated area within the hotel.

Popular Foodservice in Hong Kong

Types of operation	Description
First Class	Offering a high level of table (silver, Guerdon and/or plated) service. Often associated with classic or haute cuisine.
Ethnic	Establishments tending to reflect ethnic origin.
Themed	With a concept, which make it takes priority over everything else. The concept can be represented by architecture, food, music, and overall 'feel' of the restaurant.
Bistro, Brasserie	Normally serving one-plate items rather than formal meals.
Coffee shop or café	A small social gathering place which sells varieties of coffee and tea. Some snack, light food and portioned dessert as supplement.
Cafeteria	Primarily self-service with customer choosing selection from a counter or counters in varying designs and layouts.
Fast Food Outlet	Substantial sector in the catering industry. Meeting the needs of all-day meal taking and also the need for ‘grab and go’ service.
Wine bars	Commonly wine themed. A typical feature of many wine bars is a wide selection of wines available by the glass.

Foodservice in Hotels

n  Most hotels operate multiple F & B outlets. Outlets, products and services offered are subject to change from property to property. The outlets could be:

n  Employee dining

n  Mini Bar

n  Fine dining

n  Restaurant

n  Coffee Shop

n  Conferencing & Banqueting

n  outside catering

n  Room service

n  Bar

n  Lounge

Foodservice in Accommodation

 

Definitions of meal experience

n  The meal experience may be defined as series of events both tangible and intangible that a customer experiences when eating out.

n  Tangible- which can be feel by touching, seeing like restaurant tables, chairs etc.

n  Intangible- which can be only sensed/felt like restaurant atmosphere etc.

n  It is difficult to define exactly where a meal / drink experience actually starts and ends, although it is usually assumed that the main part of the experience begins when a customer enters a restaurant and ends when he leaves the restaurant.

Five Foodservice Method

n  All modern food and beverage service methods can be grouped or categorized under the customer process:

n  Table service

n  Self-service

n  Assisted service

n  Single point service

n  Specialized service (or service in situ)

n  In group A – D of the customer processes, the service is provided in areas primarily designed for that purpose, such as a restaurant or takeaway.

n  In customer process E, the service is provided in another location, where the area is not primarily designed for the purpose, for example, in a guest room, lounge or hospital ward.

n  Table service: the customer is served at a laid table. This type of service, which includes plated service or silver service, is found in many types of restaurant, cafes and in banqueting.

n  Self-service: the customer is required to help him or herself from a buffet or counter. This type of service can be found in cafeterias and canteens.

n  Assisted service: the customer is served part of the meal at a table and is required to obtain part through self-service from some form of display or buffet. This type of service is found in carvery type operations and may also be used for functions.

n  Single point service: the customer orders, pays and receives the food and beverage, for instance at a counter, at a bar in licensed premises, in a fast food operation or at a vending machine.

n  Specialized service (or service in situ): the food and drink is taken to where the customer is. This includes tray service in hospitals or aircraft, trolley service, home delivery, lounge and room service.

Group A: Table service Service to customer at a laid over
Waiter	a)      Silver/ English			Presentation and service of food by waiting staff, using a spoon and fork, onto a customer’s plate, from food flats or dishes
	b)      Family			Main courses plated (but may be sliver served) with vegetables placed in multi-portion dishes on tables for customers to help themselves; sauces offered separately
	c)      Plate/ American			Service of pre-plated foods to customers. Now also widely used for banqueting
	d)     French			Presentation of food service dishes individually to customers by food service staff for customers to serve themselves
	e)      Russian			Table laid with food for customers to help
	f)       Guerdon			Food served onto customer’s plate at a side table or trolley may also include carving and fish filleting, the preparation of foods such as flammable
Bar counter				Service to customers seated at bar counter (often U-shaped) on stools
Group B: Assisted service Combination of table service and self-service
Assisted			a)      Carvery		Some parts of meal are served to seated customers; other parts are collected by the customers from a buffet.
			b)      Buffets		Customers select food and drink from displays or passed trays; consumption is either at tables, standing or in lounge area
Group C: self-service Self-service of customers
Cafeteria			a)      Counter		Customers queue in line formation past a service counter and choose their menu requirement in stages before loading them onto a tray
			b)      Free-flow		Selection as in counter to random service points; customers usually exit area via a till point
Sometimes food is displayed behind the counter and the guests may indicate their choice to the counter attendant. The food is served pre‐plated and the cutlery is handed directly to the guest. Guest will pay at the cashier or have to buy coupons in advance.
Note: some ‘call order’ production may be included in cafeterias.
Group D: Single point service Service of customers at single point – consumed on premises or taken away
5. Takeaway		Customer orders and is served from single point, at a counter, hatch or snack stand; customer consumes off the premises; some takeaway establishments provide dining area
6. Drive-thru		Form of takeaway where customer drives vehicle past order, payment and collection points
7. Fast food		Commonly used nowadays to describe type of establishment offering limited range menu, fast service with dining area, and takeaway facility
8. Vending		Provision of food service and beverage service by means of automatic retailing
9. Kiosks		Outstation used to provide service for peak demand or in specific location; may be open for customers to order and served, or used for dispensing to staff only
10. Food court		Customers may either order and eat or buy from a number of counters and eat in separate eating area, or takeaway
11. Bar		Term used to describe order, service and payment point and consumption area in licensed premises