CChapter 5 The menu: Food and Beverage The menu is the primary selling tool of any establishment that offers food & beverage for sale. From the establishments perspective the menu should meet the objectives of the marketing policy, the catering policy and the financial policy. Basically eating establishments only have 2 types of food menus: - Table d'hôte Means food from the hosts' table and may be identified by: • Being a restricted menu • Offering a small number of courses, usually three or four • A limited choice within each choice • A fixed selling price • All the dishes being ready at the same time Often contains popular dishes and is easier to control, fixed price, often offered to a costumer together with an à la carte menu. Can be offered for breakfast, lunch and dinner. Their many adaptations are used for banquets, buffets, coffee houses (commonly used in hotels and restaurants. Characterized by: being a set menu for 12-18 hours a day, being reasonably priced, offering a range and choice of items that are suitable for snacks, light meals, lunch or dinner. Offering a limited range of foods that are either already cooked, are of the convenience type food category and require little preparation time, or are simple and quick to cook. A simplified form of service being offered.) and cyclical menus. - À la carte Means a free choice from the card or menu and is identified by: • Being usually a larger menu than a table d'hôte menu and offering a greater choice. • Listing under the course headings all of the dishes that may be prepared by the establishment. • All dishes being prepared to order. • Each dish being separately priced. • Usually being more expensive than a table d'hôte menu. • Often containing the exotic and high cost seasonal foods. May contain a plat du jour or 'specialty of the house' selection. Are more difficult to control by their seize and unknown demand of each item. Also special promotion menus can be offered in this form. Serving can be done in different ways, serving on silver flats and dishes, by plating the main item accompanied by separate dished greens and vegetables for own choice, or by selecting your plated meal at a service counter. The content of food menus varies with the type of menu, the segment of the market it is aimed at, the occasion, the food cost available, the country or region, etc.. Table d'hôte menus often only offer 3 or 4 optional choices. Notice that when a large number of courses is served, the portions are often very small. The menu, together with other physical attributes of a property contributes to creating a level of expectation from the costumer. Copy, colour, lay-out, quality and material used on the many is also a part of this process. The chosen menu should fit the setting of the restaurant. The mixing of languages often appears to be a problem, therefore the explanation with each dish is very important. Comparatively lower production costs and modern materials should ensure that menus are always kept clean and presentable. Menus should be easy to read, clear and precise and enable customers to calculate approximately how much they are likely to spend and show clearly if any additional charges are to be made, eg service charge. The larger the menu, the more time consuming it is for the customer to make their selection of food and wine, on the other hand it should offer enough choice. The size and shape of a menu can add to and complement the uniqueness of the facility. Menu pricing needs to fulfill two needs, for the caterer the need to make adequate profits and for the customer the need to satisfy getting value for money. There are a number of well-established pricing models commonly used some of which are better suited to commercial undertakings whilst others are more frequently used in 'not for profit organizations'. Cost plus pricing takes the ingredient or food cost element of a menu item and simply adds a predetermined multiplier or markup. Makes the desired return and had only a few additional costs. Competition pricing as the name suggests copies the prices of competitors. Can easily spiral out of control into a price war. Rate of return pricing: the basis for this method is an attempt to establish a break-even matrix based on predicted costs and sales. Is unlikely to give definite menu prices. Elasticity pricing: considers the market and its sensitivity to price change. The market may also allow supply to be the determinant of price thereby allowing price increase without undue effect to volume. Backward pricing considers what the customer or market will bear in terms of price. Requires fairly accurate ingredient and processing costs to be established and relies heavily on volume forecasts. Prime cost and its variant actual cost endeavor to provide more accurate cost models. Prime cost attempts to calculate labour cost in addition to food cost and actual cost attempts to include overheads. Department profit margins: the approach to menu pricing must follow from the outline of the basic policies and from the determined departmental profit targets. What is necessary is for the total sum of the individual departments' contributions to equal (at least) the desired contribution to the revenue for the whole establishment. Differential profit margins: It is unusual to apply a uniform rate of gross profit to all of the items found on a food menu or beverage list, although the simplistic method of costing can at times still be found in the non-commercial sector of the industry. The reason why uniform rates are not applied is that it ignores competition, ignores such things as capital investment and it emphasizes cost too much while it doesn't leave a flexible approach to pricing. It takes into account the sales mix of items from a food menu or beverage list and hopefully provide the competitive balance of prices so that in total it is attractive to the customer and achieves the desired gross profit and revenue for the department. Special pricing considerations: Sales tax: should be included in the rates, not taken in account with the calculations and customers should be aware of whether taxes are included yes or no. Service charge: An additional charge, made to customers, at a fixed percentage of the total costs of the food and beverage served. Determined by management, must be printed on the menu. Should not be included in calculations. Cover charge: additional charge to a meal in restaurants to cover such costs as the bread roll and butter and items included but not priced on the menu. Minimum charge: to prevent guests from taking seats in a busy restaurant for very low prices. Table d'hôte menus: characterized by being a restricted menu, offering a small range of course with a limited choice within each course and at a fixed selling price. The average should be taken as a price, price can vary for a fixed price or depend on the choice of main dish. (departmental profit) À la carte menus: characterized by being a larger menu than a table d'hôte menu, offering a greater choice of courses and dishes within each course, and each item being individually priced. (departmental profit) Banqueting menus: specific type of table d'hôte menu offering normally no choice to the customers. The specific difference in pricing this menu is that apart from the food and often the liquor, all the additional items are normally priced and charged separately. Pricing of beverages: similar to that for pricing foods. First, the departmental profit target and gross profit percentage should be set, followed by differential profit margins based on the sales mix achievable. The gross profit on house brand products is often higher. Subsidized operations: in the non-commercial sector of the industry. Subsidies may take the form of completely free premises, capital equipment, services, and labour or catering department may be required to pay a percentage of these costs with the balance being the subsidy. Adding value: it is necessary to consider the relationship between menu items so that the pricing structure appears balanced and acceptable in today's market place. Starters and desserts same price, main dishes more expensive than the most expensive dessert or starter on the list. Only 20-30% of the dishes consists out of ingredient costs. Menu knowledge: Aside from issues concerning allergies, special diets or preferred tastes discerning customers will expect waiting or sales staff to have a thorough understanding of all dishes both in terms of ingredients and preparation and cooking. Sales mix: different food or beverage items may carry significantly different levels of profit contribution. Overall the menu needs to have a complimentary pricing structure so that the differentiation appears well structured and meets all the other pricing criteria for customer acceptability. Nutrition: The public concern about the lack of nutrition has increased so bad that all food and beverage menus are ought to take this in account. Especially for schools, hospitals, prisons, the armed forces and many establishments regarded as having a 'captive market'. Menus and the law: there are a number of legal issues connected with the preparation of both food and beverage menus. The law requires that all descriptions applied to meals or their accompaniments must be accurate, whether given in writing or by illustration, on menus, blackboards, windows or any other means, including verbal descriptions by staff. Food labeling law states clearly that failure to inform customers honestly or to give misleading information is an alleged criminal offence. Food description problems: Using the term 'chicken fillet' or 'chicken breast' on a menu implies that you are providing a whole unprocessed product. There are a further range of descriptions about which the caterer need to be completely certain, which are factually correct before using them, for example stating that food is fresh or low calorie, that it is suitable for vegetarians, vegans or coeliacs. Beverage menus/lists: Fall under the requirements of licensing regulations. Customers don't have to purchase a drink with their dinner. Most beverages require fewer staff to process them and the profits from them is therefore higher than those from food.   Types of beverage menus/lists: grouped as being six of kinds: - full wine menus used in an up-market hotel or restaurant where the customers' average spend would be high and where the time available to consume their meal would be likely to be in excess of one and a half hour. Often 15-40 pages in length. The price range for this kind of menu is high because of the high quality products. The lay-out would usually be: house wines, champagnes and other sparkling wines, red wines, white wines and port, sherry and liqueurs. Then on to cognac, Armagnac, gin, vodka, vermouth, whisky. Beers, lagers and last mineral waters and fruit juices. - restricted wine menus Used in middle type market operations where the demand for a full wine menu is very limited. Mostly features a few well-known branded wines with which the majority of customers can identify. Price range is lower and sale of wine by glass or carafe is possible. - banquet/function menus Will offer fewer wines than a full menu, depends on the banqueting being done. Will usually list some well-known branded wines. Caterer must be careful with the mark-up of these wines since, because of their popularity, a lot of customers know the super market prices and to high prices can achieve annoyance. - bar menus Basically of two types, the large display of beverages and their prices which is often located at the back of or to the side of a bar and is often a legal requirement in many countries; or a small printed menu/list which are available on the bar and on the tables in the bar area(lounge and cocktail bars). - room service beverage menus Offer depends on the room service offered. Mini-bars limit the use of room service, seen their labour intensity. - special promotion beverage menus. Emphasis is laid upon special offers. Licensing: New licensing act 2003 has as key aims to allow more flexible opening hours, provide a single premises license to supply alcohol, regulated entertainment and refreshment late at night and provide a new system of personal licenses relating to the supply of alcohol. Description on beverage menus: Much of the regulations that covers food menus also applies to beverage menus or wine lists but there are additional regulations concerning portion sizes but also the need of crown stamped glasses.   The general rules for serving wines: commonly practiced today: - The progression of wines in a menu would be tat light and delicate wines are served before fuller bodied wines, that simple wines are served before the higher quality wines and that young wines are served before older wines. - When several wines are to be served with a menu the order of serving is normally accepted as being first a dry white wine followed by a red wine and finishing with a sweet white wine. - Wines from several countries mat be served with a meal providing that there is an affinity between the different wines and that they are accepted partners with the food. - Champagne may be served throughout a meal with dry champagne being served with all courses other than with the sweet course when semi-sweet champagne would be better suited. - Rosé wines mat also be served throughout a menu although it would be unusual for a formal or special gastronomic occasion. - Dry white wines are normally served with fish, shellfish and white meats such as poultry, pork and veal. - Red wines are normally served with red meats, for example beef and with game, for example all game birds, venison and hare. - Sweet white wines are normally served with the sweet course. - Port is accepted as being ideal for serving with cheese and dessert. Menu merchandising: The efficiency by which menus are merchandised to customers can affect the demand for the use of the food and beverage facilities as well as influence the selection of items and thereby the sales mix of an outlet. The major types of merchandising that may be employed by a catering operation includes the following: - Floor stands Particularly effective if used in waiting and reception areas to advertise special events, forthcoming attractions, etc. The announcements on these stands must be kept attractive and up to date or the messages grow old and ineffective. - Posters Have a wider circulation, they may be placed in any strategic position where people have the time available to read their messages. - Wall displays Are used extensively by fast-food operations showing enlarged colour photographs of the food and beverages available. - Tent cards Are often placed on restaurant dining tables to promote special events, attractions etc.. Are almost inevitably picked up at some time during dinner and can even be taken with them. This type of merchandising can help to make customers aware of the operation's alternative facilities and hence boost sales in these areas. - Clip-ons Most commonly used in restaurants to advertise specialty items, plats du jour, special table d'hôte lunches offered in an à la carte restaurant and so on. Is a useful tool to feature the higher profit earning food and beverage items, as it can promote a particular thing.   Chapter 6 Food and beverage operations: purchasing and storage Purchasing: a function concerning with the search, selection, purchase, receipt, storage and final use of a commodity in accordance with the catering policy of the establishment. With no specifications for commodities there would be neither quality nor quantity standards resulting in over-ordering or under-ordering, as yields for items would be indeterminable. Responsibilities of the purchasing function: Mostly managers place the orders with approved suppliers with terms and conditions pre-approved by management and usually controlled by the finance function. Usually includes the following aspects: - Responsibility for the management of purchasing/procurement and keeping purchasing records, recording the receiving and correct storage of goods. - The purchasing of all commodities within their responsibility. - Ensuring continuity of supply of those items to user or departments. - Finding cheaper (for the same quality) and more efficient sources of supply where this forms part of the job role. - Keeping up to date with all the markets being dealt with and evaluating new products. - Research into products, markets, price trends, etc.. - Co-ordinating with production departments to standardize commodities and therefore reduce stock levels. - Liaising with production, control, accounts and marketing departments. - Reporting to senior management usually through established communication channels. The purchasing procedure: The procedure can be broken down in 8 steps: - Each section of the organization will have established stock levels and a procedure for stock replacement. This can also be automatically with an EPOS system (electronic point of sale). - The selection of the source of supply is usually agreed in advance by the department manager or by head office so that contracts can be agreed. - The ordering process is electronic, telephone or written order. - The acceptance of goods ordered and the adjustment of any discrepancies in quality of quantity of goods delivered, checking delivery notes/invoices. - Checking the temperature of the goods on delivery and recording this in writing. - Checking the condition of packaging or containers and rejecting those that are not in good condition. - Periodically checking the temperature of the delivery vehicle and recording this in writing. - The transfer of commodities to the ordering department or to the stores or cellar. The procedure should meet the requirements of the Food Safety Act 1995 and the established Hazard Analysis and Critical Control Point (HACCP). Use a 5-prong purchasing strategy, you want to buy: - The right product - The right quality - At the right price - At the right time - From the right source. The selection of a supplier: Seeking a new supplier requires caution and detailed inquiries need to be made in at least the following areas: - Full details of the firm and the range of items they are selling. - A copy of recent prices lists. - Details of trading terms. - Details of other customers - Samples of products. Also a visit should be paid to see the size of the company, the size of the processing and storage facilities, the size of their transport fleet and to meet members of the management team. Price and quality performance: Essential to any business is continuity of supply and the building of a sustainable relationship with a supplier that are often of greater importance than saving a few pence per item. Delivery performance: Prompt deliveries mean that the goods will be delivered when required and when staff is available to check them efficiently for quantity and quality. Aids to purchasing: two main problems: - Keeping up to date with what is available in all the markets in which they are dealing. - Keeping up to date with the current prices for all commodities. Buyers need to be aware of what general information services are available that will help them: - The supply trade press: published weekly, give valuable current general information and indications of future trends. - The commodity trade organizations: provide info about a particular commodity, such as the types available, how they should be stored and names of local and national suppliers. - The catering trade press: contains items of commodity news and information of present and future prices. - The national press: leading newspapers publish commodity market news with details of the range of prices being paid in certain markets. - Government publications: Giving a variety of information such as a national food survey response, availability of specific commodities and current food legislation. - Published price indexes: produces by government departments, consumer associations and by trade journals. Starts from a particular date in time listing large groups of commodities and monitor the change in prices from that initial period, also recording changes The purchasing of foods: The true cost calculation has to take into account the invoice price less any discounts claimable, storage costs of the item and the production costs. Purchasing by contract or tender: There are 2 common types of contract used: the organization will advertise the tender in the trade press, eg offered are invited to supply fresh fruit and vegetables for the period of one year for a specific event. - The specific period contract: aims at determining the source of supply and the price of goods for a stated period often of three to six months. Used for items with a fairly stable price. - The quantity contract: aims at ensuring continuity of supply of a given quantity of an essential item at an agreed price over a particular trading period. Purchasing by 'cash and carry': For medium and small establishments for which the orders are to small to get regular deliveries. Particular advantages are: - Warehouses are situated near to most catering establishments and their hours of business are usually longer than those of most food wholesalers. - Small or large quantities may be purchased at competitive prices. - Customers are able to see what they are buying, as against buying just from a price list or catalogue. Also tasting and special offers are a pro. - Customers may use the warehouse as often as they like and in doing so they keep the level of stocks held low. Two disadvantages are: - Caterers have to provide their own staff and transport to collect the items from the warehouse. - Caterers have to pay cash for the items they purchase. Purchasing by paid reserve: used when it is necessary to ensure the continuity of supply of an item for the menu, which is of particular importance to the restaurant.(organically grown fruit, specially bred meat etc.) Total supply: offered by only a few major suppliers who are able to supply service of all commodities to caterers. Advantages: only 1 negotiation, less paperwork, fewer deliveries. Disadvantage of which is to be tied to 1 major supplier, whose prices may not be competitive. Purchase specifications for food: a concise description of the quality, size and weight required for a particular item. The relevant members of the management, goods received clerk, food control clerks and all suppliers on the ''approved suppliers list'' should have a copy. Reasons for preparing specifications are: - Establishes a buying standard of a commodity for an establishment so that a standard product is available for the kitchen and restaurant to prepare for the customer. - Informs the supplier in writing precisely what is required, and it assists the supplier in being competitive with pricing. - It provides detailed information to the goods received clerk and the storeman as to the standard of the foods accepted. - It makes staff aware of the differences that can occur in produce, for example, size, weight, quality, quantity etc.. Might contain info about irradiation, ethical sourcing, food air-miles, fair trade products and sustainability. The purchasing of beverages: Branded products are more likely attractive to the customer. The following points are generally noticeable: - There are fewer and often restricted source of supply. - The high value of beverage purchases so consideration of stock holding size, value/cost and security are important issues. - That free advice and assistance with purchasing are given by the wine and spirit trade, this is particularly helpful with regard to setting and maintaining a good wine list. - Quality factors are difficult to evaluate and require special training to identify them. - There are far fewer standard purchasing units than for food which makes pricing and stock control more straightforward. - There is an established standard of product. - The prices of alcoholic beverages do not fluctuate to the extent that food prices do. Wine shippers: Firms that purchase wine in the country of origin and ship it to whatever country it is to be sold in. The range of products they sell is mostly limited to only wine productions out of one region. Wholesalers: Usually the subsidiary wine companies of the large breweries or independent wine companies. Offer a very wide range of all beverages as well as a regular delivery service to the caterer. Cash and carry: Offer a very limited range of spirits, wines, beers, etc. at very keen prices, but no other service (supermarkets). Useful in case of emergency or when special offers are being made. Auctions: Method of purchasing that has limitations in that it usually is only for the sale of wines. Offers small quantities of leftovers, suitable for special occasions. Purchase specifications for beverages: Generally sold and purchased by brand name, label of the product, each having a consistent quality and quantity standard of content for each selling unit. Wine specifications include details of vintage and shipper country of origin, alcoholic content and with the exception of France the grape variety. A lot is guaranteed but the price, should get special attention.   Receiving of food: The main objectives to ensure safety and the requirements of the HACCP policy for all establishments are: - The quantity of goods delivered matches the quantity that has been ordered. - The quality of goods delivered is in accordance with the specification stated. - The prices where stated are correct. - When the quantity or quality of the food delivered is not in accordance with the purchase order or an item is omitted from the order a credit note is provided by the driver. - An accurate record is made on the delivery note, recording details of the delivery including temperature and condition of packaging. - Goods should be decanted into clean storage containers where appropriate. High cost processed foods: To set up a form of special control on high cost foods bar code tagging expensive food serves many purposes: - It aids the control of expensive foods. - It allows the receiving clerk to record each item and to check it against the delivery note/invoice. - It assists in obtaining a more accurate daily food cost percentage figure. - It assists in controlling the stock levels of these items. The operation of bar code tagging of any items is as follows: - On receiving the items they are read by a bar code reader attached to a commuter system. - This matches the item to the order/stock item/purchase requisition. - Receipt of the foods is logged onto the EPOS control system where it may be identified in a number of different formats depending on the company. - The system is accessed as required by sector manager accounts office, chef or bar manager. - As sales go through the till the EPOS system reduces the stock holding proportionately. - In a sophisticated system EPOS may generate a new order requisition or order directly from the supplier. Storing and issuing food: Food storage falls under the safety regulations and forms part of the organizations HACCP policy. The basic goal of storage management is to prevent loss of merchandise due to: theft, pilferage and spoilage. After the delivery foods are categorized in perishable and non-perishable items. Perishable items go straight to the refrigerators and cold rooms in the kitchen and will mostly be processed in 1-3 days. The non-perishable items go to the food store where they are unpacked and checked for any damage after which they will be placed on racking. Issuing of food: The pricing of issues is usually at the 'at purchased price' basis.   Stocktaking of food: The main objectives of stocktaking are: - To determine the value of the goods held in stock. - To compare the value of the goods actually in the stores at a particular time with the book value of the stock which will have been calculated with the simple formula of: Value of opening stock + purchases during the period – requisitions during the same period = value of closing stock - To show slow moving items. - To compare the usage of food with the food sales, to calculate the food percentage and gross profit. - As a deterrent against loss and pilferage. - To determine the rate of stock turnover for different groups of foods. This is calculated by the formula: Cost of food consumed = rate of stock turnover Average value of stock at cost price in a given period. Receiving of beverages: The main objectives are as for receiving food deliveries plus: - Crates and cases should be opened to check for such things as empty, missing or broken bottles. - An accurate record is kept of all chargeable empties delivered and returned. - Deliveries of beverages are timetabled with the suppliers so that those responsible for liquor storage are available. Storing an issuing of beverages: Ideally and in large organizations the storage of beverages is separated in 5 area's: - 13-16 ᵒC: main storage area for spirits and red wine held dry and draught-free. Also used for the general collection and preparation of orders for the various bars and the storage of keg beers when there is a reasonable turnover. - 10ᵒC: for the storage of white and sparkling wines. - 6-8ᵒC: Really necessary only when the turnover of kegs is slow as otherwise may be stored at 13-16ᵒC. - 13ᵒC: for the storage of bottle beers and soft drinks. - Storage for empty bottles, should be tightly controlled, not only because of the returnable value of the crates and bottles is high, but also to prevent free access by bar staff when an 'empty for full' bottle method of issuing is in operation. After the control bottles should be stored on the appropriate shelves according to the standard bottle cod/bin list. This list eliminates the confusion of bottle sizes, spelling of names and different brands and establishes a starting point for the control of beverages.   The EPOS system then keeps records of the stocks. This can be physically checked by: - Cellar records: If the value of the cellar record stocks is high, it will almost certainly be checked by the electronic system. - A cellar inwards book: provides accurate reference to all beverages coming into the cellar, and posting data for the cellar man's bin cards. - Bin cards: provided for each individual type of beverage held in stock and record all deliveries and issues made. - Cellar control book: Provides a record of all daily deliveries to the cellar and the daily issues of each beverage from the cellar to the various bars and should cross-check with the entries on the bin cards and the various EPOS sales and inventory control system. - Ullages and breakages: recording of all ullages(all substandard beverages such as bottles of weeping wines, bottles of wines with faulty corks, unfit barrels of beer etc.) and breakages, together with an explanation, and countersigned by a member of the F&B department. - Empties: crates, kegs, beer bottles, soda siphons, etc. are charged for by the supplier against delivery and must be returned. - Hospitality book: necessary to record the issue of drinks to the kitchen and other grades of staff as laid down by the company policy. Issuing of beverages: The pricing of issues for beverages is different from that for food in that two prices are usually recorded, the cost price and the selling price. The cost price is recorded to credit the cellar account and for trading account and balance sheet purposes. The selling price is recorded for control purposes to measure the sales potential of a selling outlet using the basic formula: Opening stock + purchases – closing stock = total beverage consumed = beverage revenue It should be noted that the above formula might be calculated for the value of stock and purchases either: - At cost price in order to compare the usage with the actual sales and to ascertain the profit margin and beverage gross profit. - At sales price in order to compare potential sales with the actual recorded sales. Stocktaking of beverages: The main objectives of stocktaking are as those set out for food however it may be done more frequently: - To combat its higher susceptibility to pilferage. - To allow for more frequent orders and therefore less stock holding of expensive items. - To control the quality and condition of some highly perishable, shot-life items for example real ales. The rate of stock turnover is calculated in the same way as food stock turnover: Cost of beverage consumed = Rate of stock turnover Average value of stock at cost price   Chapter 7 Food and beverage operations: production and service The dividing line between food and beverage production and food and beverage service is not always distinguishable.