Basics of Catering Management

Introduction to Off-Premise Catering Management
1
I NTRODUCTION TO O FF-P REMISE
C ATERING M ANAGEMENT
Off-premise catering is serving food at a location away
from the caterer's food production facility. One example of
a food production facility is a freestanding commissary, which
is a kitchen facility used exclusively for the preparation of
foods to be served at other locations.
Other examples of production facilities include, but are
not limited to, hotel, restaurant, and club kitchens. In most
cases there is no existing kitchen facility at the location
where the food is served.
Caterers provide single-event foodservice, but not all
caterers are created equal. They generally fall into one of
three categories:
Party food caterers supply only the food for an event.
They drop off cold foods and leave any last-minute
preparation, plus service and cleanup, to others.
Hot buffet caterers provide hot foods that are
delivered from their commissaries in insulated containers.
They sometimes provide serving personnel at an additional
charge.
Full-service caterers not only provide food, but frequently
cook it to order on-site.
Basics of Catering Management
They also provide service personnel at the event, plus

all the necessary food-related equipment-china, glassware,
flatware, tables and chairs, tents, and so forth. They can
arrange for other services, like dcor and music, as well. In
short, a full-service caterer can plan an entire event, not just
the food for it.
Off-premise catering can mean serving thousands of box
lunches to a group of conventioneers; barbecuing chicken
and ribs for fans before a big college game, serving an
elegant dinner for two aboard a luxury yacht, or providing
food, staff, and equipment for an upscale fundraiser with
hundreds of guests. On a "degree of difficulty" scale from
one to ten-one meaning "easy" and ten meaning "most
challenging"-on-premise catering is a two, and off-premise
would rank a ten!
Off-premise caterers meet the needs of all market
segments, from the low-budget customer who looks for the
greatest quantity and quality for the least amount of money,
to the upscale client with an unlimited budget who wants
the highest level of service, the ultimate in food quality, and
the finest in appointments-crystal stemware, silver-plated
flatware, and luxurious linens. Between these two extremes
is the midscale market segment, which requires more quality
than the low-budget sector, but less than the upscale.
Off-premise catering is an art and a science. The art is
creating foods and moods, as the caterer and client together
turn a vision into reality. The science is the business of
measuring money, manpower, and material. Successful offpremise caterers recognize the importance of both aspectsart and science-and are able to work at both the creative
and the financial levels.
In off-premise catering, there is only one chance to get
it right. Many events, such as wedding receptions, occur
only once in a lifetime. Other events are scheduled annually,
quarterly, or on a regular basis, and the caterer who fails

to execute all details of such an event to the satisfaction of
the client will seldom have another chance.
Unfortunately for some, off-premise catering can be like
living on the brink of disaster unless they are experienced.
Uninitiated amateurs may not recognize a volatile situation
until it becomes a problem, later realizing they should have
recognized it earlier.
Catering off-premise is very similar to a sports team
playing all of its games away from home, in unfamiliar
surroundings, with none of the comforts of home to ease the
way. There is no home field advantage, but there is a
minefield disadvantage! As caterers plod their way toward
the completion of a catered event, there are thousands of
potential "land mines" that can ruin an otherwise successful
affair. Some examples follow:
Already running late for a catering delivery, the catering
van driver discovers that all vehicle traffic around the party
site is in gridlock. The traffic has been at a standstill for more
than an hour, the police say it will be hours before the
congestion can be eliminated, and the clients and their
guests are anxiously awaiting dinner.
The only freight elevator in a high-rise office building
has been commandeered for the evening by moving and
cleaning people, thus preventing access to the floor where
a caterer is to stage an event scheduled to start in two hours.
The wrong hot food truck is dispatched to a wedding
reception. The error is not discovered until the truck has
reached the reception and the bride and groom are ready
for their guests to be served. It will take more than an hour
to send the correct truck with the food that was ordered.
A cook wheels a container filled with cooked prime ribs
down a pier toward a yacht where the meat will be served
to a group of 80 conventioneers in half an hour. Suddenly,

the cook is distracted, and the prime rib container tumbles
over the edge of the pier into 40 feet of water.
The table numbers have vanished, and the guests are
ready to be seated for dinner.
The fire marshal arrives at a party site 20 minutes
before a catered event and refuses to allow guests access to
the party site because the space had not been authorized
for party use.
The catering crew arrives at the party site with a van
full of food, cooked to order-exactly one week early.
A new customer places an order and asks that the caterer
deliver to a home where family members and guests will
have gathered prior to a funeral service. The caterer sends
the food and, upon arrival, is told that the person with the
check-book is at the funeral home and is asked to please stop
back in an hour for the money. The delivery person leaves
without obtaining a signature. Upon returning, there is no
one home and no one from whom to collect payment.
While using a garbage disposal in a client's home, the
caterer suddenly hears a terrible noise and watches in horror
as water and garbage spew from the disposal all over the
floor. The irate customer refuses to pay the caterer and
threatens to sue for the cost of replacing the garbage disposal
that was ruined because of (in the customer's words) the
caterer's "negligence."
that the $600 rented chafing dish is missing. It was there

the night before, when the caterer left the client's home.
Get the picture? We could tell horror stories all day!
Seasoned off-premise caterers agree, these are only a few
of the thousands of obstacles that stand in the way of
completing a catered event. This book addresses the various
ways to professionally and successfully deal with difficult
situations.
With all of these very real potential problems, why are
there more than 50,000 off-premise caterers in the United
States? Why are more young people studying catering at
two-year and four-year colleges and universities? Why are
thousands of people starting their own catering companies,
risking their savings on their dreams of future success? The
reasons are numerous. They may love the adventure of
working in new and exciting places. They look forward to
the peaks and valleys of the business cycle. They love the
intense feeling of satisfaction that comes after successfully
catering a spectacular party. They love the myriad challenges
of this very difficult profession. Many are their own bosses,
with no one to answer to but the client. Many pick and
choose the parties they wish to cater. Many make six-figure
incomes each year, and others cater occasionally, just for the
fun of it.
COMPARING OFF-PREMISE AND ON-PREMISE
CATERING
What are the differences between off-premise catering
and on-premise catering? Let's examine these differences,
from both the client's and the caterer's viewpoints.
After catering a flawless party at a client's home and

loading the catering truck to capacity, the caterer is shocked
to learn from the client that all 15 bags of trash must be
removed from the client's property because of the
neighborhood's zoning ordinances.
FROM THE CLIENT'S VIEWPOINT
The caterer's rental company representative calls the

caterer the morning after an event and advises the caterer
Most clients fail to consider the cost of the rental

equipment such as tables, chairs, linens, china, glassware,
and flatware when they consider engaging an off-premise

caterer. They think it will be less expensive to entertain in
their homes, or at unique off-premise sites, than in hotels.
In fact, it can be more expensive, considering not only the
cost of the rental equipment, but also other costs such as
transportation of food and supplies to the site, the costs of
special labor and dcor, the need for tenting, air-conditioning
and/or heating, and other expenses. Clients may save some
money by buying their own liquor, but this can be
insignificant as compared with the added costs. For many
clients, the additional costs are far outweighed by the benefits
of entertaining in the privacy of their own homes or the
uniqueness of a special off-premise location such as a museum,
state-of-the-art aquarium, antique car dealership, or historical
site.
FROM THE CATERER'S VIEWPOINT
Off-premise caterers must plan menus that can be
prepared successfully at the client's location. For example,
foods to be fried should not be cooked in unventilated spaces,
like small kitchens in high-rise office buildings. On-premise
caterers are not as limited in this regard, and they are
generally supported by built-in equipment that can support
a wider variety of menus.
On-premise party personnel are more familiar with the
party facilities than those who work at a variety of unfamiliar
locations. Off-premise catering generally has greater seasonal
and day-to-day swings in personnel needs, which can create
a greater challenge for the off-premise caterer, who is
constantly recruiting and training staff; turnover is usually
high because such work is on an "as-needed basis."
There is definitely a greater potential for oversights in
off-premise catering. Backup supplies, food, and equipment
can be miles away or even inaccessible when catering, for
instance, aboard a yacht miles from shore. In spite of the

uncertainties, off-premise catering offers the opportunity to
work in a greater variety of interesting locations. The work
is more likely to be different each day, resulting in less
boredom and more excitement. For those looking for unlimited
challenges and rewards, off-premise catering may be the
answer.
ADVANTAGES AND DISADVANTAGES OF OFFPREMISE CATERING
In his book How to Manage a Successful Catering
Business, Manfred Ketterer mentions the numerous
advantages of catering:
Advance deposits
Limited start-up investment
Limited inventories
Controllable costs
Additional revenues
Business by contract
Direct payment
Advance forecasting
Free word-of-mouth advertising
Selectivity
Let's discuss a few of these items in more detail. First,
most off-premise caterers require some form of advance
deposit prior to an event. This deposit provides the caterer
with some security if the event is canceled and also can be
used to purchase some or all of the food and supplies for the
party.
There is no need for large amounts of capital to get
started, since most offpremise catering operations begin by
using the existing kitchen facilities of a restaurant, club,

hotel, church, or other licensed foodservice business. (It is
common knowledge that many start their catering businesses
in their home kitchens, but it is imperative to state that this
is in direct violation of most local zoning ordinances.) In
addition, all of the necessary catering foodservice equipment
such as china, glassware, flatware, tables, chairs, and linens
can usually be rented, thus avoiding having to invest in
expensive equipment inventories.
Food and supply inventories, as well as operating costs,
are much more easily controlled, because clients must advise
the caterer in advance as to the number of guests that are
expected. Off-premise caterers need buy only the amounts
necessary to serve the event, unlike a restaurant where
there is a large variation from day to day regarding the
number of patrons and their menu selections.
Off-premise catering generates additional revenues for
existing operations like hotels, clubs, and restaurants. They
can generate even more profit by providing other servicesrental equipment, flowers, dcor, music, entertainment, and
other accessory services.
Both the client and the caterer have expectations
regarding the outcome of the party. These expectations
should be clearly spelled out in a written contract. Payment
for an event is normally made directly to a manager or
owner, eliminating a middleman, whether it's a wedding
planner, on-site food and beverage director, or one of the
caterer's own staff members. This form of direct payment
provides for better cash control and fewer folks to share the
profit.
Advance forecasting is more accurate for off-premise
caterers, because parties are generally booked weeks, months,
or years in advance. Moreover, each part of the country has
seasonal swings, which make revenue forecasting somewhat
easier. For example, in the South the summer months are

generally less busy, but in the North these are the busy
months.
Off-premise events generate tremendous amounts of free
word-of-mouth advertising, which can produce future
business without the necessity of advertising. Many offpremise caterers feel that satisfied guests at one party will
either directly or indirectly book another party by speaking
favorably to friends and co-workers about the event and the
caterer. In other words, one party can create future parties.
Caterers also have the advantage of being somewhat selective
about their clients. There are no laws that require you to
accept every request to cater. If the job doesn't Advantages
and Disadvantages of Off-Premise Catering meet your
standards, politely decline. In sticky situations where you've
already begun to work with a client but find that your
communication styles just don't mesh-or, as sometimes
happens with weddings, the client is not heeding your advice
and you can't even decide who's really in charge-you can
walk away, as long as you do so within the terms of your
written agreement.
Off-premise catering does have some disadvantages too:
Catering managers, owners, and staff undergo periods of
high stress during very busy periods. Deadlines must be
met. There are no excuses for missing a catering deadline.
Stress is compounded because the workload is not evenly
spread throughout the year. For most off-premise caterers,
80 percent of the events are scheduled in 20 percent of the
time. For most, weekends are generally busier than weekdays.
Certain seasons, including Christmas, are normally busier
than others. Of course, caterers must maintain general
business hours too!
Many have left the catering field, burned out by the
constant stress and high energy demands. The seasonality
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of the business makes it difficult to find staff at certain times.

Revenues are inconsistent, making cash management very
difficult, particularly during the slower periods when expenses
continue yet revenues do not. For those caterers who operate
hotels, restaurants, clubs, and other businesses, the time
away from the main business-spent on the off-premise
business-can hurt. It is difficult for even the most wellorganized person to be in two places at the same time.
Many hoteliers and restaurateurs find the rigors of offpremise catering too great. Some quit after realizing the
difficulty of catering away from their operations. They feel
that the financial benefits are insufficient compared with
the effort required to cater off-premise events.
ELEMENTS OF SUCCESSFUL OFF-PREMISE
CATERING
What does it take to become a successful off-premise
caterer? What experience is necessary, and what personality
traits are desirable?
Work Experience
Prior experience in the catering profession or the
foodservice industry is important. Experience in food
preparation and foodservice (both back-of-the-house and
front-of-the-house) helps caterers understand the procedures
and problems in both areas and how the two areas interface.
Those with a strong kitchen background, for example, would
be wise to gain some front-of-house experience, and frontof-house personnel should learn the kitchen routine.
Many successful off-premise caterers began by working
as accommodators. Accommodators are private chefs who
are hired to prepare food for parties. Many assist the client
with planning the menu, purchasing the food, and even
arranging for kitchen and service staff. The food is prepared
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and served in the client's home or facility, eliminating the

need for a catering commissary. Accommodators receive a
fee for their services. The party staff is paid directly by the
client.
Passion
Successful professionals are passionate about their work,
and caterers are no exception. They love what they do!
Clients and staff members will quickly detect a lack of passion,
and it will cost you business and good workers. If you don't
love what you do, move on and try something else.
An Entrepreneurial Nature
The desire to be an entrepreneur is a trait that is highly
desirable for off-premise caterers. An entrepreneur must be
willing to spend extraordinary amounts of time and energy
to make the off-premise catering business successful, possess
an inherent sense of what is right for the business, have
the ability to view all aspects of the business at once rather
than focusing only on one or two parts, and demonstrate a
strong, incessant desire to be his or her own boss and become
financially independent.
BASIC BUSINESS KNOWLEDGE
Accounting and bookkeeping skills are necessary to
understand the financial aspects of operating a catering
business. The ability to prepare and interpret financial
statements is essential.
Learn as much about computers as you can. You'll be
amazed at how much you can accomplish by using e-mail,
having a website, and using specialized programs for
everything from budgeting to menu planning.
It's also important to understand the legal aspects of
catering. Laws that affect caterers include regulation of
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licensing, contracts, liability, labor, and alcoholic beverage

service.
A caterer, like any other businessperson, must have
some human resource skills. Knowing how to recruit, train,
motivate, and manage personnel is critical. Off-premise
caterers should be knowledgeable about how to develop and
implement a marketing plan.
Ability to Plan, Organize, Execute, and Control
These are the four basic functions of management. To
plan, a caterer must visualize in advance all of the aspects
of a catered event and document the plans so they are
readily understood by the client and easily executed by the
staff. Organizing is simply breaking down the party plans
into groups of functions that can be executed in an efficient
manner. Execution is the implementation of the organized
plans by the party staff. Controlling is the supervisory aspect
of the event. All well-organized and well-executed plans
require control and supervision. The adage is, "It is not what
you expect, but what you inspect." The premier off-premise
catering firms in the United States insist on excellent
supervision at each event.
Ability to Communicate with Clients and Staff
Listening is the key to good communication with clients
and prospective clients. Off-premise caterers must listen
carefully and attentively to determine what the client needs.
A client who calls and asks, "Are you able to cater a party
next Friday?" should be dealt with differently from one who
calls and asks, "How much will it cost for a wedding reception?"
The first caller is ready to buy your services, whereas the
second caller is Elements of Successful Off-Premise Catering
shopping.
Astute caterers must be able to respond to client requests
in such a manner that the client will immediately gain
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confidence in the caterer. Communicating with staff is a

complex issue. In simple terms, it can be reduced to the
ability to tell staff what is expected so that they understand,
and the ability to receive their feedback regarding problems,
both actual and potential. The result of effective
communication is an off-premise catering staff that
professionally executes a well-planned party that meets or
exceeds the client's expectations.
Willingness to Take Calculated Risks
Off-premise catering is a very risky business. It is not
for the fainthearted who are afraid of the unknown. For
example, it is more risky catering a corporate fund-raiser at
the local zoo under a tent than serving the same group in
a hotel ballroom. Off-premise caterers must know when the
risk outweighs the gain. In this particular example, catering
the event at the zoo without adequate cover in case of rain
would probably be too risky. The event could be ruined. The
tent makes the risk of rain a calculated one.
Sound Body and Mind
Off-premise catering requires working long hours without
rest or sleep, lifting and moving heavy objects, intense
pressure as deadlines near, and even long periods of little
or no business, which can cause concern. Successful caterers
should be in good physical shape, have a high energy level,
and be able to mentally deal with seasonal business cycles
that range from nonstop activity to slow periods with little
or no business. Off-premise caterers must be self-confident,
but at the same time realize that they must always find
ways to improve the quality of their food and services. In
this profession a fondness for people and feeling comfortable
in crowds is important. A "cool head" when under pressure
will keep both staff and client calm while potential problems
are resolved professionally and efficiently.
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Creativity
Ability to Project a Favorable Image
This is the benchmark of all outstanding caterers. Creative

caterers are able to turn a client's vision into reality by
creating the appropriate look, feel, menu, service, and
ambiance. Those who are not very creative can learn to be,
or they can employ those who are creative.
Prospective clients hire caterers based on their perceived

image of the caterer and what the caterer will provide. In
some sense, then, caterers are selling themselves more than
their food. Off-premise caterers must be able to project a
favorable image to the client, one that is in accord with the
client's expectations.
Dependability
Dependability is a major cornerstone of success in offpremise catering. When a caterer fails to deliver what was
promised, the negative word of mouth travels fast among
clients and potential clients. Even in those situations where
circumstances change, making it more difficult to perform
as promised, the outstanding caterer will find a way to
deliver rather than use the changed circumstances as an
excuse not to deliver.
Open-Mindedness
Open-minded caterers read up on catering trends and
try new recipes and menus. They are willing to prepare
unfamiliar dishes requested by clients, after thoroughly
testing and understanding the recipes. They discover and
try new dishes. They are always learning better ways to run
their businesses.
Ability to Meet the Needs of Clients
The needs of the client must always come first. Success
in this business comes from identifying these needs and
satisfying them. Unsuccessful off-premise caterers are those
who get lost in trying to satisfy their own needs for money,
equipment, and greater self-esteem.
They forget that the primary goal is to serve the needs
of the client. When a client's needs are met, the caterer's
needs for revenues, profits, and positive feedback will
automatically be met.
For example, a caterer whose image is sophisticated and

upscale will be hard-pressed to sell a Little League banquet
with a low budget. Successful caterers understand their
projected images and target their marketing efforts at those
clients who desire that image.
Sense of Humor
In this pressure-packed, deadline-oriented, and stressful
business, it is easy to get carried away with the magnitude
of the undertakings and become so tense and uptight that
work ceases to be fun. Laughter at the right time can relieve
that tension and stress, putting a renewed sense of fun into
the work at hand. How do caterers serve shrimps? They
bend down!
MANAGING AN OFF-PREMISE
Catering Operation
Even those who possess the qualities that indicate offpremise catering success must know how to put these talents
to use effectively. Off-premise caterers should be hands-on
managers who are constantly customer focused. They must
be able to lead staff and clients alike, while conducting
business in a professional manner.
They must be able to make timely, ethical decisions,
while understanding what makes for a successful event.
They must also avoid those situations that cause a business
to fail.
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Developing a Strategic Plan

Yogi Berra, the zany former New York Yankee catcher,
is famous for his many witticisms, such as, "Nobody goes
there anymore-it's too crowded." But his best quote may be
this one: "If you don't know where you're going, you will
wind up somewhere else."
That's the reason you need a strategic plan-a roadmap
to help you determine the direction in which you wish to go,
and the specific goals you'll need to accomplish to get there.
A strategic plan starts with a statement of core values, which
may include things like client satisfaction; ethical business
practices; staff satisfaction, training, and motivation;
community service; and operating an environmentally
conscious business.
From these core values, a caterer can develop a Mission
Statement-a succinct sentence that sums up the company's
mission. Here's an example:
"To meet the catering needs of the corporate community,
providing high levels of service and food quality that result
in repeat business and vital growth." After the Mission
Statement comes the Vision Statement-a concise summary
of where you want to be in the future. Again, an example:
"Within five years, our company will be the top-ranked
catering firm in our area, with continuing sales and profit
growth, while giving back to our community." It's not enough
to brainstorm about these statements. Writing them down
is the first step to making a commitment-to make them a
reality. Only after they are put in writing can you develop
more specific objectives to increase sales and profits, measure
customer satisfaction, size up your competitors, and plan the
ways in which you will give back to the community.
Your Mission and Vision Statements lead naturally to
the next step-to establish goals for the operation. You may
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have heard time management experts use the term "SMART"

when describing goals. The acronym stands for: Specific:
The goals to be accomplished must be easily understood,
concise, and unambiguous.
Measurable: There should be no question about whether
one attains, or falls short of, a goal. It may be measured in
terms of quality, cost, quantity, or time. Attainable: The
goals may be just out of reach, but they're not out of sight!
The best goal challenges and motivates you and your team.
If it's practically impossible, it may be too frustrating.
Relevant: The goals must fit well with your long-term
mission and vision, your objectives, and the results you
expect.
Time-bound: There must be a specific deadline for
completion of each goal. An example of a SMART goal might
be to increase sales and profits by 20 percent each year for
the next five years.
Once a caterer has set goals, there must be certain tradeoffs. To increase sales, for instance, may require raising
prices, hiring more staff to be able to cater more events, or
spending money on advertising. The major goals can be
broken into smaller, intermediate steps, with a time line to
keep the company on track. And remember, goals are not
just for the owner of a company. The staff and other
professionals employed by the company-tax preparer, banker,
attorney-should also be well aware of the goals. You'll need
their help to achieve them, and you want them on your side,
committed to your goals. Too often, caterers believe they can
do everything themselves. They fail to ask for or accept
advice from outside consultants and colleagues. It is far
more intelligent to ask for assistance when you need it.
Someone familiar with your plans and your passion for them
is far more likely to be helpful. Finally, as soon as a goal
is set, take some action on it.
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The last part of a strategic management process is to

reevaluate your mission, vision, and goals periodically. Times
change, trends change, and you become aware of new
information. Let's say a caterer's sales year showed a 50
percent increase, when he or she had set a 20 percent
annual goal. In this case, the next year's goal might be more
realistically revised to a 30 percent increase.
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critical times such as hot food dish-up, and even help scrape,
stack, and wash dirty dishes if that's what is necessary. It's
a roll-up-your-sleeves kind of profession, and you should
never be totally satisfied with the way things are. Always
look for new ways to present food and make it more flavorful,
and for better and more efficient ways to do things.
CUSTOMER-FOCUSED MANAGEMENT
HANDS-ON ATTENTION TO DETAIL MANAGEMENT

The devil is in the details. Have you ever heard that old
saying? Another way to put it: We've all been bitten by a
mosquito or stung by a bee, but how many of us have been
bitten by an elephant? It's always the little things that get
us! In catering, the details are virtually endless, a stream
of tiny elements that might go wrong and result in a
catastrophe. One thing forgotten, misheard, or misplaced
can ruin an event. So it's important to check and recheck
and to be prepared for last-minute emergencies.
It is simply not possible to run this kind of business from
behind a desk, reading computer printouts and delegating
all tasks. Off-premise catering companies must be managed
from the center of the action, whether that is with the guests
or preparing foods in the kitchen. It comes from checking
and rechecking every detail to ensure that it meets the
highest of standards. It comes from inspecting for the best
and expecting the best. Some call this management style
"management by walking around." In one sense that is true,
but there is more to it than walking around. Astute offpremise
caterers must:
Obtain feedback from clients and guests regarding the
food and service. Oversee the catering staff to ensure they
are performing as directed and as expected.
Help out when a table needs to be cleared or when the
bar suddenly becomes very busy. Help in the kitchen during
An off-premise caterer's full-time mission must be to

satisfy the needs of clients. Mike DeLuca, editor of Restaurant
Hospitality magazine, puts it this way: Companies that are
100% customer focused make the customer's satisfaction
their only goal. They do not have as goals, increasing sales
by a certain percentage, raising a profit margin, or reducing
debt. They believe... that if you strive to sell only the highest
quality product and strive to please every customer, sales,
profit and success will follow. This is a difficult concept for
many of us to grasp. It means letting go of a financial
accounting structure passed down from generation to
generation of Harvard MBAs who've instilled in us that the
only way to build your bottom line is to raise your top line
and squeeze the middle.... That can work... but wouldn't you
rather make the quality of your food, the dining experience
and your customer's satisfaction your primary concern?
The moral is simple: If you satisfy your customers while
charging a fair price and controlling costs, profits will follow.
MANAGING AN OFF-PREMISE CATERING
OPERATION
Managerial Decision Making
Off-premise catering managers must make decisions that
keep their operations running smoothly. They realize that
some decisions will be better than others, that there is no
perfect solution to every problem, and that the best decision-
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making goal is to find the best possible solution with the

least number of drawbacks.
Connie Sitterly, a management consultant and author,
states that to be a good decision maker you should "plan
ahead so when problems crop up, you're prepared to act, not
react. Control circumstances, instead of allowing them to
control you. Take the initiative by anticipating and solving
business problems."
Although hundreds of books have been written about
decision making, the following tips from Ms. Sitterly should
be helpful. They're paraphrased from an article she wrote
back in 1990 in The Meeting Manager, but they are still upto-the-minute when it comes to making tough decisions
successfully.
Remember that there's seldom only one acceptable solution
to the problem. Choose the best alternative.
Make decisions that help achieve the company objectives.
You need to consider feelings whenever people are
involved. Even if you must make an unpopular decision, you
can minimize repercussions... if workers know you have
taken their feelings into account.
Allow quality time for planning and decision making...
pick a time when you are energetic and your mind is fresh.
Realize that you'll never please everyone. Few decisions
meet with unanimous approval... the appointed authority,
not the majority, rules.
Make time for making decisions... in business, delaying
a decision can cost thousands of dollars.
Put decision making in perspective. Every executive
feels overwhelmed at times by either the enormity or the
number of decisions made during a business day.... For
peace of mind accept that you are doing the best job you
21
can with the time, talent, and resources you have. Don't
wait for a popular vote. Rallying your colleagues around
your decision before you take action or waiting for their vote
of confidence before deciding anything may cost too much
in time. There are times when you just have to do something.
Leadership
There are major differences between those who lead and
those who manage. Catering companies need both types of
executives, and some who can do both. If a catering company
is earning sevenand eight-figure annual revenues, it is most
definitely being led by people with leadership skills.
Leaders are able to get people to do things they don't
necessarily like to do, but they do them and even enjoy
them. You might say:
Professionalism and Common Business Courtesy
Off-premise caterers who are not professional in their
business practices will never reach the pinnacle of success
in the field. Before we address the technical aspects of
catering in the succeeding chapters, it is of utmost importance
that we define professionalism. The following guidelines are
adapted from an article by Carol McKibben in Special Events
magazine:
Become known for doing what you say you are going
to do.
Give price quotes and commitments only when you know
everything about the event.
Treat clients and staff members with respect.
Build relationships with clients. Do not look at them as
accounts or projects.
Be on time, or a bit early, for appointments. Be prepared
for an appointment. Be honest; don't play games.
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Stand behind your work. If it is wrong, make it right.

In the face of abuse from others, don't respond by becoming
abusive. Try to detach yourself from it emotionally and
handle it logically. Of course, do not use your position of
power to abuse others.
Dress professionally.
Enjoy your work as an off-premise caterer. When work
ceases to be enjoyable, it is time to quit and find a new
career.
Ethics in Management
The Roman philosopher Publilius Syrus said, "A good
reputation is more valuable than money." This is as true
today as it was in ancient times. And yet, lack of ethics is
perhaps the most widely discussed topic in today's business
world. We read and hear of illegalities, scandals, and other
forms of questionable behavior bringing down some of the
nation's largest corporations.
Off-premise caterers are in no way exempt from ethical
concerns. Even the smallest caterers deal in issues of fairness,
legal requirements, and honesty on a daily basis. Examples
include truth in menu, misleading advertising, unexpected
and unjustified last-minute add-ons to the party price, and
even underbidding a competitor when the client has disclosed
your competitor's price.
The truly ethical caterer will assume responsibility for
the host to ensure that the host plans an event in the best
interest of the guests.
A host who wishes to serve alcohol to underage guests
or barbecued ribs to a group of elderly people (tough to eat
with dentures) is out of line and needs to be advised that
this will not work. In fact, an ethical caterer will refuse to
cater an event that is clearly not being planned in the best
interest of the host or guests.
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There are times when a caterer is given a free hand in

planning a menu. Perhaps a grieving client calls for food
after the funeral of a loved one, saying, "Please send over
food for 50 guests tomorrow night. You know what we like!"
The ethical caterer will not take advantage of this situation
by either providing too much food or overcharging the client.
Another temptation arises when the caterer is pressed
to cater more events on a certain day or evening than he
or she can reasonably accommodate. The extra money looks
good. Unethical caterers will rationalize that they can handle
all the events, even if an inexperienced supervisor or staff
must oversee these events, or even if the kitchen staff will
not be able to prepare the caterer's usual high-quality food
because of lack of time and personnel. Caterers who take
on more work than they can reasonably accommodate are
greedy and are considered by many observers to be unethical.
In the foregoing situation the caterer should decline the
work and perhaps recommend another caterer. Some caterers
refuse to recommend another catering firm because they feel
that if the client is not pleased with the other firm, the
caterer who turned down the business will be blamed for the
recommendation. Other caterers freely recommend one or
more companies when unable to cater events. There are
times when it is very hard not to bad-mouth a competitor,
but this is considered unethical as well as rude. Those who
are ethical would rather point out their own strengths than
downgrade the competition.
It can be very tempting for self-employed caterers to
underreport income or overstate expenses. They rationalize
that no one will know if they accept cash for a party, then
fail to report it as income and pay the associated tax, or that
no one will know if they happen to charge personal expenses
now and then to the business. Some caterers who are licensed
to sell liquor by the drink or by the bottle are tempted to
24
bill clients for beverages that were not consumed. These

practices are not only unethical-they are illegal.
Other ethical violations occur when caterers receive
under-the-table cash "kickbacks" from suppliers, misrepresent
their services to potential clients, or bid on party plans or
ideas stolen from other caterers.
Caterers also soon learn that some clients are unethical.
A few are masterful at finding fault with a wedding or other
important event, then demanding a "discount" based on
whatever flaw they feel they have uncovered. Some will
refuse to pay for linens that were damaged by candles they
lit on them! You'll find people who, midparty, will ask you
to stay "a couple hours of overtime, just to wrap things up"then not show up to pay you for the extra time the next day,
as agreed.
Others will haggle over the tiniest details on an invoice
or try to engage more than one caterer in a bidding war to
lower prices. Caterers who deal with "middleman"
organizations, like destination management firms or
production companies, may find that a client of one of these
companies will come back later to try to deal directly with
you, thus cutting out the middleman who recommended
you!
As a catering professional, you need to expect a certain
amount of this behavior and must protect yourself if you
suspect an ethical question may arise. Insisting on security
deposits, having a valid and authorized credit card number
on file for unforeseen charges, refusing to look at other
caterers' written bids, and standing firm on your own invoice
prices are just a few ways ethical problems can be avoided.
And rather than cut out a legitimate middleman-type of
vendor, you can either refuse to deal directly with a client
who tries such a maneuver or suggest a commission be paid
to the middleman.
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You will also be put in some sticky situations as-during

tough times, and even good times-certain clients will make
unrealistic requests. They've often been good, regular clients
too! But they'll promise you future business if you'll cater
their party "at cost," or defer payment for them, or ask some
other special favor "just this once." These requests are unfair,
and you're right to be squeamish about them. Offpremise
caterers should be extremely wary when approached in this
fashion. As a general rule, clients who do not pay their bills
in a professional manner, or who are not willing to pay a
fair price for catering services, are not worth the headaches
they cause.
The Jefferson Center of Character Education has set
forth a list of ten "universal values": honesty, integrity,
promise keeping, fidelity, fairness, caring for others, respect
for others, responsible citizenship, pursuit of excellence, and
accountability. These values should provide some solid
guidance for any businessperson who considers himor herself
a true professional.
Separating Yourself from the Competition
Great caterers do more than imitate-they innovate. There
are distinct advantages for those who offer a unique menu,
a unique service, or perhaps a unique location. They may
build and improve on someone else's concept, but they strive
to take the idea to the next level. Rather than mimicking
another's success, they imprint their own signature on their
menus.
The "Unique" bar may include all the traditional
accompaniments too-but what a difference a little
imagination makes! There might even be a bit of caviar to
top the mashers at the Unique bar, and perhaps they'll be
served in martini glasses. Why not have fun with it?
One of America's top chefs, Charlie Trotter, looks at food
trends differently in his book Lessons in Excellence. Says
26
Trotter, "It's important that you foster a company culture

that spurs you and your employees to search for innovative
opportunities. Innovations can satisfy needs that are unmet
or offer solutions to time-worn problems, or they can be new
ways of saving time, space and money."
Trotter says he and his staff use input from their travels,
readings, television, radio, and even hobbies to hit upon
trends. They keep up on the latest changes in public opinion
and demographics to search for interesting, potentially highgrowth markets. Currently, they've identified ethnic cuisines
such as Pan-Asian and Nuevo Latino as hot areas for menu
innovation.
The bottom line is that they create their own trends.
Similarly, as with any career, catering professionals need to
reexamine their business strategies from time to time. Some
caterers do what they do best, are well known for it, and
never vary their formulas. Their clients love them and get
exactly what they expect.
Other caterers blindly copy everybody else. They ricochet
from one recipe to the other, never bothering to see if it
meets their clients' needs. If they read about it in Food Arts
magazine, they feel they have to serve it!
But most caterers lie somewhere between these two
extremes, blending the successful ideas of the past with new
twists. Great caterers also separate themselves from
competitors by using the resources around them to build
their businesses.
In South Florida, for example, one caterer specializes in
event planning for doctors, through his hospital foodservice
management job. Another has an exclusive off-premise
contract for a sports facility; a third was the on-premise
caterer for a city club, which resulted in off-premise jobs for
the club members. Capitalize on the audience you havethey're (almost) already yours!
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Personal Management
Off-premise caterers must learn how to deal with principles
of stress management, time management, and personal
organization if they are to manage at peak efficiency. Time
is our most precious commodity, and to waste it because of
being overstressed or disorganized will inevitably result in
less-than-desirable results.
Stress Management
Stress comes from interaction with others, and from
having to meet deadlines. A certain amount of stress and
tension is necessary to achieve the best results-those who
are too laid back generally do not maximize their potentialbut too much stress causes chronic fatigue, irritability,
cynicism, hostility, inflexibility, and difficulty in thinking
clearly. Catering managers who are overstressed are unable
to perform at maximum capability.
Stress can often be controlled through:
Daily exercise such as brisk walking, running, or other
aerobic pursuits that increase the pulse rate. Some folks
purposefully take their minds off work when they exercise;
for others, the daily walk or run is a time to get their day
mentally organized.
Relaxation techniques, including meditation and yoga.
Writing down the issues that cause stress. Identify those
issues in your life that can be controlled, and simply decide
to make the best of those that cannot. List ways to deal with
the controllable stress factors.
Reading articles and books on stress reduction.
It is important to remember that some stress in catering
is good. An arrow would not be propelled from a bow if the
bow was not stressed. However, too much stress can break
the bow, as well as ruin catered events.
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Time Management
There are only 168 hours in each week, and the greatest
rewards come to those who accomplish the most meaningful
things during this fixed amount of time. Offpremise caterers
realize that if they can accomplish more meaningful
production in less time, they will have more time for things
other than work. They also realize that working smarter, not
harder, through the effective use of time will produce greater
results.
The key to effective time management is to set goals for
a lifetime, for five years, and for each year, month, week,
and day. (Use some of the tips for putting SMART goals in
writing-not just for "big picture" goals, but as part of your
daily business.) Without written goals, off-premise caterers
cannot effectively manage their time.
Because time management involves choosing how to
spend time, it is impossible to make proper choices without
knowing your desired goals. The captain of a ship without
a destination cannot choose the proper course. He will cruise
aimlessly at sea, never reaching his port of call.
It is equally important to schedule "downtime" for yourselffor family, friends, hobbies, and interests other than work.
You are guarding against burnout when you insist on some
personal time.
Off-premise caterers can choose from an array of timesaving techniques and technical advances to help them in
the quest to efficiently manage time: Make those daily,
detailed lists of goals and objectives.
Use technical advances to speed up paper handling,
such as fax machines and computers with word processing,
accounting, and menu-planning software. For heaven's sake,
if you don't have a computer, get one! You can purchase one
nowadays for a monthly payment of less than $40. You can
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take classes to learn how to use it or hire someone to teach

you individually.
Use cellular phones to stay in touch while away from the
office. These are lifesavers at off-premise catering locations
when emergency and other calls are necessary, and if you
have downtime, a cellular phone can make it easy for you
to use this time to return phone calls.
Handle incoming papers only once. Here's the rule: Do
it, delegate it, discard it, or file it. (Better yet, hire someone
else to file it!)
Do your most important work at times when you happen
to be most alert. Most of us know whether we are "morning
people" or "night owls." Take advantage of your peak energy
periods to handle your most challenging tasks. Sign up for
a seminar or course in time management to learn more tips.
One of the biggest time wasters for a caterer is also the
source of much business-the prospective client who calls to
ask questions-so it's an interruption that cannot be ignored,
but can be controlled. Whoever answers the phone at your
business should always qualify the incoming call by asking:
The date of the event

The location of the event
The number of guests
The budget for the event
Why? First of all, time can be wasted talking about an
event before you ask the date and discover you're not able
to do it in the first place because of a scheduling conflict.
Perhaps the number of guests is too small or too large for
your particular company, the budget is insufficient, or the
proposed location is already booked for another event.
Always focus on results by asking yourself, "Will this
activity help me achieve any of my goals?" Prioritize tasks
30
in order of their importance and know when to delegate

them to others. Most people waste countless hours, days,
weeks, and years chitchatting on the phone, shuffling papers,
running errands, and doing other things that are easy
enough but offer little or no payoff.
Learn to delegate these types of tasks whenever possible.
Pay other people to do them, and don't tell yourself you can't
afford it-you can always make more money, but you have
only so much time. The true achievers-in catering and in
other fields-minimize their time on lowpriority, low-payoff
tasks and turn their attention to those things that will bring
the greatest rewards.
These tasks are often difficult to accomplish, take a great
deal of time, and involve at least some risk. For example,
a caterer could spend the entire day showing prospective
clients numerous suitable locations for a major event. The
caterer would then spend the next three days preparing a
written proposal for an event at each of the locations, with
no guarantee that the event will even take place. However,
if the caterer is hired, there's a five-figure profit to be made.
Worth the risk? Certainly! Another high-payoff task might
be to write a new catering menu.
Both this and the aforementioned task require large
chunks of time and involve some risk, but more than likely
will produce major rewards in increased revenues and profits.
In summary, off-premise caterers who best manage their
time in the long run will be the most successful. They become
the leading caterers in their communities, in their states,
and in the country.
Getting Organized
When projects, tasks, catering kitchens, and offices are
organized, things run much more smoothly and efficiently.
The time spent looking for things and jumping from job to
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job is wasted time that could be put to much better use.

Many off-premise caterers have found various methods that
work for them: Establish a filing system using hanging
folders and manila folders.
Categories can include upcoming events, projects to do,
and projects pending. Files should be stored vertically, rather
than stacked atop one another, for greater accessibility.
Take a tip from event planners who start a separate notebook
for each event they are working on. Into this three-ring
binder go all notes, contracts, sketches, color samplesanything for that particular job.
Consider hiring a professional organizer to come to your
office and set up a filing and record-keeping system that
works for your business.
Keep those items that are used frequently close by.
Focus on one project at a time, rather than jumping from
one thing to another. This can be easily accomplished by
blocking out some time during the day to work on major
projects and arranging for no interruptions.
Whenever possible, try to schedule time to return phone
calls and/or e-mail messages. That way, you can handle
them all at once, instead of scattering them (and your
thoughts) in five-minute intervals throughout the day.
Either at the end of each day or first thing in the
morning, prepare a list of things to do for the day.
Summary of Personal Management
Those off-premise caterers who can effectively deal with
stress, who properly manage their time, who learn to delegate
and keep things organized will lead their peers into the
future. They will set the standards for others to follow. They
will accomplish more and will be in a position to receive the
greatest rewards as a result.
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Looking Ahead-Catering in the Future

What does the future hold for caterers in this new century?
First of all, we know that catering is neither rocket
science nor brain surgery. Change is inevitable in this
business, but not at the same rate as, say, in molecular
theory or medical technology. In fact, in catering,
rediscovering foods of the previous century is trendy! Many
caterers still feature the signature dishes-honey coconut
shrimp, beef tenderloin, Caesar salad-that they've served
for decades. Why? The customers demand, and enjoy, them.
This certainly doesn't mean things stay stagnant in our
industry. Innovative buffet and food station dcor will
continue to evolve. Most catering companies will continue
to build their reputations on elegant, "over-the-top" food
presentations, and the healthy competition shows no signs
of abating.
Other caterers prize research, developing cutting-edge
menu items to set them apart from the pack. More women
are entering the off-premise catering field. Paula LeDuc in
the San Francisco Bay area, Katherine Farrell in Ann Arbor,
Abigail Kirsch in New York, Mary Micucci in Los Angeles,
and Joy Wallace in Miami are but a handful of enterprising
women who have grown their companies into catering's
elite.
Staffing woes will continue to be monumental, as hiring,
training, and retraining get tougher. Foodservice has always
been a somewhat transient industry. Astute caterers will use
preemployment aptitude and personality testing, master
online staff scheduling systems, and develop their own
training programs. They will also realize, if they haven't
already, that they must treat their employees at least as well
as they treat their clients. Along the same lines, in a toptier catering operation, the employees treat each other as
well as they treat their clients.
33
Caterers of the future will come to realize that bigger

is not necessarily better. Having a large volume of business
is admirable-but only when the quality of your work rises
to the same level. A company can grow to the point where
quality slips, gross profit margins lag, more equipment is
needed, overhead costs expand, and the bottom line shrinks
proportionately. The intelligent caterer will downsize, watch
margins and profits grow-and overall stress levels diminishas they become more selective about the clientele they service.
Caterers are realizing that "high tech" will never replace
personalized service, or "high touch"-but without high tech,
they'll limit their potential for high touch. In an industry
where, amazingly, some caterers still don't accept credit
cards, the savvy businessperson is learning to embrace new
technology, launching interactive websites and e-mail
marketing campaigns. They're creating improved computergenerated proposals, rental orders, packing lists, staffing
schedules, and instant financial statements. And they're
realizing that computer-savvy business owners have more
time to do what they love-which is run their business!
Competition will continue to increase. Sales will grow,
but not without some dips, because economic woes, terrorist
attacks, and the resulting fears cannot help but impact the
catering profession. More caterers were hurt financially by
the recession at the beginning of this century than by the
September 11 terrorist attacks, but both left their marks on
the industry. An increased use of security cameras at highprofile events (and in some cases, to thwart theft) is one
result of the heightened awareness.
Mega-event catering is acknowledged as an excellent
way to grow business-at golf and tennis tournaments,
NASCAR races, air shows, boat shows, and more. In addition
to being profitable events, they expose the caterer to a wider
range of potential clients. Then again, a caterer from Augusta,
34
Georgia, generates enough revenue from serving sandwiches

and beverages at the Masters' Golf Tournament that he
need not cater at all the rest of the year! The pressure
experienced in servicing huge, multiday events is as big as
the events themselves, but the rewards can be significant.
At the end of the 1900s, B. Joseph Pine II wrote The
Experience Economy, a primer about the "new rules of
engagement" for businesses. Pine asserts that a new economic
model is taking shape as we move from a service-based
economy into an experience-based economy, where successful
vendors literally create an "experience" for clients by using
props and services to engage them in an "inherently personal
way."
Pine claims that Walt Disney was the founding father
of the "Experience Economy," and in today's restaurant
industry there are plenty of examples-Rainforest Caf, Planet
Hollywood, Hard Rock Cafes, and other themed eateries
that combine food, service, and atmosphere to create a more
"complete" dining experience. This kind of trend is adaptable
for off-premise caterers too, with elaborate themes, staff
members who double as costumed performers, team-building
events, and imaginative menu items presented in wild new
ways to delight and entertain the crowd as well as feed
them!
For those who love to have fun, and who are as
adventurous as they are practical, it's a great time to be an
off-premise caterer.
The Seven Habits of Highly Successful Caterers
Let's examine some additional techniques, philosophies,
and real-life ways to be successful in the challenging field
of off-premise catering.
Habits are things we do automatically, like brushing our
teeth, combing our hair, or straightening a tablecloth that's
35
uneven. We hardly think about them, we just do them.

Stephen R. Covey wrote The Seven Habits of Highly
Effective People, which has been a bestseller for years-you
should read it if you haven't already. But what are some
habits that mark successful caterers? What separates star
performers from the rest of the crowd? With a nod to Mr.
Covey, here are seven key traits.
Willingness to Take Calculated Risks

One of our favorite sayings is, "A turtle goes nowhere
until it sticks its neck out." In order to succeed, we must be
continually growing and improving, and the only way to do
this is to leave our comfort zones-and stick our necks out!
If you're right-handed, you feel quite comfortable writing
with your right hand.
Try writing with your left hand. You're definitely out of
your comfort zone. But after a while, you'll find you can
actually write with either hand. Successful caterers make
things happen by taking calculated risks, whether it is
trying new menu items, new buffet display concepts, or
accepting a job in a new and challenging off-premise location.
Caterers who refuse to take risks fail to grow and learn are
left behind.
Sincere Concern for Others

Nobody cares how much you know until they know how
much you care. Empathy and genuine concern for your
clients and staff are paramount to long-term success. What
are their needs, wishes, and desires? What are their concerns
and their "hot buttons"?
By putting ourselves in their positions, we can begin to
show concern for others and understand them. When we do
this, we develop meaningful relationships and, not
coincidentally, loyalty. We give them what they want, and
we get what we want.
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Keeping Up with Current Trends

It's not just a matter of food and presentation and theme
trends. Caterers who are not wired to do business online
through the Internet and e-mail are missing out on huge
opportunities.
The online catering referral service, Leading Caterers of
America (founded by the book's co-author Bill Hansen),
receives 5 to 20 inquiries per day from clients looking for
catering services coast to coast, in Alaska, Hawaii, and
occasionally overseas. People do shop for catering online,
and the companies that lead the way have highquality
websites and diligently reply to e-mailed requests in a timely
manner. Caterers need to get in the habit of responding to
e-mail correspondence as soon as possible, as well as providing
e-mailed proposals to those clients who prefer to do business
via their computers. Event planners who book caterers for
their clients love receiving e-mailed proposals, because they
are easy to copy-and-paste into their own proposals. If you're
not in the habit of working online, you're behind the times.
Excellent Priorities and Time Management

You get 20 percent of your sales and profits from 80
percent of your clients, and 80 percent of your sales and
profits from 20 percent of your clients.
None of us ever go home at night thinking that all the
work is done-it never is. It's simply a question of what's most
important, as well as what's most urgent. Urgent things are
never really an issue. There's no question that if you have
a catered event today, it will get done. But what's most
urgent is not necessarily what's most important. You must
understand the difference.
For example, you could spend a day catering three small
parties for 25 guests each, but fall behind on preparing a
proposal for another job, in three months, for 500 guests-
37
and lose it to a competitor whose proposal was simply

submitted on time. Successful caterers spend their time in
those areas that generate the biggest paybacks in terms of
money, quality, and other rewards.
They make a habit of planning their days, leaving time
for the most important, as well as the most urgent. At the
start of each day they prepare an agenda that details both
short-term objectives and long-term goals. If you're a student,
you should already be using this technique to accomplish
as much as you can in school.
Quality before Quantity

Bigger is not necessarily better. Still, many of us get
caught up in that way of thinking. If our sales are $1
million, let's go for $2 million. If they're $2 million, what's
wrong with $4 million? And if $4 million is good...
There's nothing wrong with building sales if quality does
not suffer. However, when the quality of our products and
services suffers so does the quality of our lifestyle.
More business means more hours at work. And doctors will
tell you they've never met a man or woman who, on a
deathbed, expressed a wish that he or she had spent more
time at work.
If we can grow our businesses with no adverse effects
on the quality of our lives or our products, then we should
go for it! But if we find profits slipping and clients
complaining, and we need a letter of introduction when we
stumble home at 3:00 A then something's very wrong.
We need to make of habit of continually asking ourselves
whether we might be better off with less business and more
time for ourselves and for our families. We need to continually
examine the quality of our work to ensure that it's not
slipping because we've allowed ourselves to take on too
much.
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Being Detail Oriented

A baseball player who bats.250 gets three hits for every
12 times at bat. One who bats .333 gets four hits for every
12 times at bat. The difference-one more hit for every 12
times at bat-means the difference between an average major
league ball player and a Hall of Fame inductee.
Do you make it a habit to continually look for the little
things? A good caterer isn't nitpicky, but is forever
finding something that needs to be tweaked, adjusted, redone,
or improved-little things that most customers won't notice,
but that greatly impact the overall professionalism of an
event.
Being aware of the details in flavors, looks, aromas, and
tidiness separates the average caterers from the superstars.
And, by all means, check the spelling, grammar, and
punctuation in all your written materials, from brochures
to contracts-or hire someone to do it. Again, the goal is to
present a professional image. Remember? The devil is in the
details.
Setting High Standards

If you refuse to accept anything but the very best, you
very often get the best. Successful caterers set their standards
high and expect excellence from themselves and their staff
members.
They're never happy with the status quo, always striving
to make each party, wedding, or event better than the last.
They debrief after an event, asking staff for input and
improvements.
They know that if they fail to improve, they're leaving
the door open for their competitors to capture a good customer
or a larger share of the market. Successful caterers also
make a habit of lifelong learning. They're forever reading,
39
attending trade shows, and exploring areas that will help

them improve their own businesses with new ideas. They
challenge and reward their staff members for having the
same attitude. Vince Lombardi, the late NFL coach, who
during his career coached the first team to ever win the
Super Bowl, put it this way: "The quality of a person's life
is in direct proportion to their commitment to excellence,
regardless of their chosen field of endeavor."
HOW DOES AN OFF-PREMISE CATERER
Gauge Success? There are a number of signs to look for
when evaluating an existing off-premise catering business.
Healthy companies rate highly in all of these areas. Those
that are unhealthy, or even on the brink of failure, will not
rate nearly as well. Management thoroughly plans,
organizes, executes, and controls each catered event.
Proper controls are in place for costs, accounts receivable
and payable, and liquid assets such as cash and inventories.
Theft prevention is also a priority. Food and service quality
is well-controlled and meets or exceeds clients' approval.
Pricing for food and services is fair and competitive with
other firms in the marketplace. There is a spirit of healthy
competition. The catering firm enjoys good working
relationships with both clients and suppliers. Time and
attention are given to food safety in storage, preparation,
and display. Employees know the local health codes and
follow them.
There is sufficient working capital to operate the business.
The firm can make loan payments as they become due.
Excessive credit is not extended to clients. Budgets are
prepared and followed. Business records, insurance coverage,
and licenses are kept up to date. The information derived
from these records is used to provide data to help manage
the business.
40
Sales growth is controlled. There are sufficient financial

and personnel resources to operate as business steadily grows.
Market trends are anticipated.
Management and staff have a good working knowledge
of the off-premise catering field.
There are solid, trusting relationships between
management and staff. Staff members are well trained and
feel truly appreciated-because they are. Management works
closely with a qualified accountant to plan for payment of
taxes.
And, finally, management is willing to seek qualified
professional assistance if problems arise.
THE OFF-PREMISE CATERING MODEL
Once the planning is complete, it is possible to provide
clients with written proposals, which include all the
aforementioned plans along with pricing. Normally, proposals
are modified somewhat. Once modification is complete and
all provisions meet with the approval of both caterer and
client, a contract is prepared that contains all the conditions
outlined in the proposal.
As the party date approaches, certain operational
elements are addressed, such as: Hiring and scheduling
staff Purchasing and pre-preparation of menu items Ordering
equipment as needed from party rental companies Obtaining
licenses and permits, as needed, for use of the site, serving
alcohol, etc. Preparing a "pull sheet" that details all items
supplied by the commissary to produce the party.
Coordinating all beverage and accessory services with
the client and the vendors. All the preplanning elements
culminate on the day or night of "The Show." That's when
staff, equipment, food, and other services arrive at the party
site, and the event is executed.
41
After the event, there are certain outcomes, which include:

Positive and/or negative word of mouth about the event
Revenues, expenses, profits, and cash Accounting records
By reading and studying this text, you will gain a
thorough understanding of how all these elements combine
to produce a successful off-premise event at the hands of a
professional caterer.
CONCLUSION
This book should provide all the necessary information
to those who are motivated to start their own companies or
to develop an off-premise catering division of an existing
foodservice operation. Study hard, and, as an entrepreneurial
and motivated student, you should be well on the way to
a thorough understanding of the catering field.
We must warn you-catering is not an especially easy
way to make a living. But it is an extremely rewarding and
interesting field that combines interpersonal and
organizational skills, societal trends, and financial acumen.
If you do it well, your clients won't be the only ones celebrating
at your events!
42
Food and Beverage Distribution
43
obstacles-or opportunities. Having the right business solution

in place can help you not only succeed in the industry, but
excel.
EFFECTIVE SALES ORDERING
2
FOOD
AND
SUSTAINING
INDUSTRY
BEVERAGE DISTRIBUTION
SUCCESS
IN
COMPETITIVE
Strict compliance standards, low profit margins, intense

competition, high customer-service expectations-when you're
in the food and beverage distribution industry, these
conditions defi ne your business. As a player in the industry,
how effectively you meet the challenges determines whether
or not your company is successful.
There are tough issues on many fronts. First, you need
fast and effective sales ordering processes to ensure customer
needs are fully understood and addressed quickly.
You also need fl exibility-the kind that can help you
respond to customer demands and market trends as soon as
they're identifi ed. You have to be able to see information
across all facets of your operations, and possess effi cient
delivery mechanisms that will get product where it needs to
be, when it needs to be there.
You also have to react quickly to issues such as food
safety and recalls before they can damage reputations, and
closely monitor compliance with a range of regulations,
whether from the FDA, the EU, or the International Food
Standard. Put together, these conditions can present
Getting your customer orders processed quickly and effi

ciently is at the core of your business. With a robust business
solution in place that tightly integrates your fi nancials,
inventory, and customer relationship management, you can
be assured that orders are handled promptly and without
error.
For example, by tightly integrating your data, you can
create customer-driven forecasts based on repeat buying
patterns to effectively plan warehousing and purchasing
processes. Integrated solutions can also support Automatic
Data Collection (ADC) processes to ensure that distribution
systems are integrated with fi nancial and reporting
applications. This in turn ensures that accurate data fl ows
throughout the organization, increasing the accuracy of
inventory and orders shipped, and boosting your forecasting
capabilities. As orders are shipped, integrating accurate catch
weights directly to accounting for billing may also help boost
profi tability and customer satisfaction through more effi
cient operations.
And with effi cient sales ordering in place, you can
improve your customer service by delivering real-time,
customerfocused information directly to your customers at
any time-the kind of service that will keep the orders rolling
in.
Responsiveness
Well-integrated business solutions give you the kind of
agility and fl exibility your business needs to serve your
customers and compete effectively.
44
A fl exible business solution can, for instance, enable you

to integrate customer relationship management (CRM) and
accounting systems to support individual customer
requirements. Or implement a fl exible pricing strategy that
uses unlimited price lists, price banding, cost uplift pricing,
or quantity break pricing.
If your business fi nds itself responding to many customer
requests for automated reports, or for frequently requested
information, fl exible systems can give you the ability to
make reports and data available to customers over secure
Internet connections. Well-connected systems also will help
you coordinate all aspects of communications when multiple
personnel are communicating with the customer.
Efficient Deliveries and Food Safety
Getting the right product to the customer when they
need it is the bottom line for food and beverage distributors.
Robust, connected solutions can help make that job easierand can be critical tools when you are managing product
shelf life or responding to quality and food safety issues.
Your business solution should be able to effectively blend
with technologies such as bar code and radio frequency
identifi cation (RFID) to provide real-time information that
can help you plan product delivery schedules more effi
ciently, or allow customers to see deeper into the supply
chain. You can also tighten delivery times and schedules by
using your business software to create automated processes
for specific customer requests.
Effi cient delivery also means cost-effective delivery.
Your IT systems should help drive down the cost of business
with ADC sales systems that are tightly integrated to all
other business systems in the organization. This integration
can help you nearly eliminate comprehensive inventory
counts, lower inventory required to service customers, pull
45
customer orders in a fraction of the time typically required,

and comply with changing customer demand.
When it comes to food safety or quality issues, having
quick access to the broadest set of data is critical. Help keep
the food supply safer by coordinating tracking of product
from suppliers, and facilitate traceability from supplier to
customer in markets where it's required. You can also improve
accountability by implementing metric setting and tracking
for individual warehouses, departments, and processes.
Microsoft DynamicsTM offers a set of strong applications
that deliver a compelling suite of technologies for
organizations in the food and beverage distribution industry.
The integrated tools in Microsoft Dynamics can help you
succeed by speeding products from supplier to the store
shelf, removing waste from operations, and meeting the
demands of your retailing customers and consumers.
Our technology platform will enable your organization
to assemble a complete, integrated set of leading-edge business
applications. These integrated applications can be deployed
quickly and inexpensively without complicated customizations
and drawn-out implementation projects. Microsoft Dynamics
solutions and Microsoft partners support:
o Automated product tracking and tracing from the
supplier to the retailer.
o Marketing promotion management.
o Integrated ADC solutions and catch weight
capabilities.
o Real-time reports and alerts to management and
retailers.
o Responsiveness to customer demands.
o Customized business reports.
46
o Accurate demand forecasting.

o Low-cost, Web-based customer support systems.
AInnovative Integration
Microsoft Dynamics provides a fl exible set of solutions
that can be easily adapted to your operational needs. Built
on the Microsoft Windows ServerTM platform, Microsoft
Dynamics helps you take advantage of technologies such as
Microsoft Windows SharePoint Services for knowledge
management and collaboration, Windows Terminal Services
for extending access to data and processes, and Web services
that can enable visibility into your customers' and suppliers'
systems. Microsoft SQL ServerTM delivers a solid foundation
for collecting, analyzing, and reporting data across your
company's systems. And deep integration with Microsoft Offi
ce System applications, such as Microsoft Excel, Word,
Outlook, Internet Explorer, SharePoint, and Visio, can
help you better understand inventory, plan production and
lead times, design reports, and use data required to make
accurate and cost-effective decisions.
Partners with Industry Expertise
Microsoft Dynamics solutions are delivered by a network
of partners with expertise in food and beverage distribution.
They can provide local, personalized service-from planning
and implementation, to customization, to ongoing support
and education. That means you get world-class business
solutions from professionals who understand your business
and will be there as your business conditions change.
Plan for Growth
Organizations need systems that can deliver a strong
return on investment (ROI) in meeting current needs, while
providing for the opportunity to scale dramatically to account
for organic growth, acquisitions, changes in business focus,
47
and other foreseeable future changes to the business. Microsoft

Dynamics, along with Microsoft server technologies and
productivity solutions, offers tremendous flexibility and
scalability to implement the solution to meet today's
requirements and to allow for substantial future growth and
change.
MANAGING FOOD AND BEVERAGE INNOVATION
Driving Growth through Product/Service
Development
Driving profitable growth through development of
consumer and customer relevant products and services is on
the agenda in all food and beverage companies. Particularly
since the industry is being challenged by price pressures and
reduced differentiation (on the verge of commoditisation)
between manufacturers. The Managing Food and Beverage
Innovation (MFBI) program focus on developing capabilities
in both participants and their organizations on how to build
and implement an innovation strategy, resulting in
innovation efforts that are; strategically aligned;
differentiating against competition (delivering relevant, new
consumer benefits supporting brand value); planned over
time and in resources; effective, efficient and transparent to
the organization.
The program provides managers from food and beverage
companies with the skills and tools required to design and
implement an innovation strategy and product/service
pipeline to fill the strategy with content. The program relies
on action learning, i.e. a balance between theory and practice
through lectures, workshops, home company assignments
and multi company assignment, assisting in the
implementation of learning in ones daily work and in the
organization. Participants develop and deliver actual plans
for a business unit at the home company including a strategic
48
outlook, operational recommendations and an implementation

plan. More specifically, MFBI will help participating
companies and/or managers to:
Understand and apply the concepts of:
o Innovation strategy-define what should be the focus
of the company's innovation efforts in terms of
business, service and product development based on
an understanding of the company/business unit
strategy and business environment. What capabilities
are required and does the organisation have them or
need to acquire them
o Entrepreneurship-understand what drives innovation
in entrepreneurial organisations and companies, in
theory and practice, and how can this understanding
support the home company efforts
o Innovation pipeline-apply tools and practices on how
to build an innovation pipeline to deliver against the
strategy
o Commercializing Innovations-understand how to
successfully implement and commercialize an
innovation in parallel to an existing product portfolio
o Change management-assess how well the home
company is prepared to drive innovation (organisation,
culture, remuneration systems, capabilities, etc) and
what best practices could be applied to approach
change management
o Learn to design initiatives that are innovative and
improve innovativeness by applying theoretical and
managerial tools to real life situations. This skill is
developed through a balance of readings, class
lectures, group exercises and industry-specific case
discussions.
49
o Complete a Home Company Assignment (HCA)

targeting business development at a specific business
unit. In collaboration with SIMI, the sponsoring
company the participants identify a business unit in
the organization which will be the target for the
HCA. Participant develops a growth plan including
an innovation strategy, product/service pipeline and
implementation plan. Senior, experienced faculty helps
participants develop actionable and justified
recommendations, while executives from the
sponsoring companies ensure that the work is relevant
and supported by top management. The objective is
to deliver tangible value to the home company. The
HCA is conducted under protection of confidentiality
agreements with SIMI and faculty and are not shared
with other participants.
o Through Multi Company Assignments (MCA) develop
an understanding of major issues related to
Innovation in the Food industry and build a capability
to analyse and react on issues of strategic importance.
o Extend professional networks within the industry to
benefit both participants and their sponsoring
companies.
o Earn a diploma that is recognized by the industry,
and increases the professional value and loyalty of
the individual. The faculty uses executive MBA
criteria to determine whether participants have
successfully completed the assignments.
The MFBI program consists of four modules:
Module I: Developing an Innovative Strategy

Objective: Understand the concept and task of
developing an innovation strategy for a business unit and
how it directs innovation efforts throughout the organisation.
50
A balance of theory tools and marketplace date are used in

teaching. Learning's are applied and analysed through the
start of HCA and MCA.
Key Sessions
o Innovation Strategy: concepts and frameworks for
developing an innovation strategy for e.g. a business
unit. Generating demand through blue ocean strategy
concepts
o Understanding and analysing business environment
data driving innovation; Market discontinuities
driving change. Consumer needs and consumer
behaviour. Company capabilities and shortcomings
o HCA I: apply the concepts & frameworks for
developing an innovation strategy during the 3 weeks
following the module. Executive advisors, assigned
by the home company, are invited to an optional
discussion of home-company assignments on the 2nd
evening of the module
o MCA I: Introduction of a process for analyses of
industry issues that have strategic impact on a
business. Quartz Management Consultants will
introduce tools and methodology. The teams will test
and use these on model issues in preparation of the
analyses of a live issue agree with the steering board
for the program and chosen by each individual
51
initial innovation strategy and building a market/product/

service pipeline to realize the strategy in the marketplace.
Key Sessions
o Written feedback on HCA I from Faculty
o How to develop entrepreneurial behaviour and
understanding best practises of innovative companies
o Learning and applying tools for identifying growth
drivers and building a pipeline of innovation
o MCA II: The teams will meet experts on the respective
industry issue to discuss the topic in more depth as
a guide for their live analyses
o Executive guest speaker on Retailization-the power
of the shopper and the retailer in European food and
beverage markets
Module III: Managing and Implementing Change

Objective: Innovation is often connected to change. This
module teaches how to implement the capacity for innovation
and market product innovation inside and outside an
organisation. The post-module home company assignment
will build on the first two by focusing on the "how of change",
i.e. how the different initiatives identified in previous
assignments can be introduced in the own company, at
customers and into the market.
Key Sessions
Module II: Building an Innovation Pipeline
o Written feedback on HCA II from Faculty
Objective: To provide participants with concepts and

management approaches for improving innovativeness:
leadership role, culture shaping, strategic aspiration, idea
creation, idea clustering-conceptualisation, benefit pipeline
and initial business plans. The post-module home company
assignment will build on the first assignment by revising the
o Workshop on Commercialization of Innovations in

the F&B industry:
o Presentations from Industry Executives on best
practice from implementation and commercialization
of innovations in the European F&B industry,
sustainability and leadership
52
o Managing Change
o Barriers to change-the dilemma of the need for
stability and the need to change
o How to manage human resources in change
o How to build and support an innovative culture
o MCA III: With facilitation from Quartz Management
Consultants the teams start the process of analysing
and building a hypothesis on their respective industry
issue. Industry experts will return to challenge the
teams conclusions
Module IV: Preparing for Home-Company Impact

Objective: Having developed a strategy for innovation,
recommendations for how to build an innovation pipeline
and a change program to support the effort, the final module
will facilitate successful application of learning at the home
company in two ways: (1) Home-Company Teams will prepare
an improved version of the previous home company
assignments, for discussion with faculty and the homecompany executive advisor (2) Multi-Company Groups will
prepare and present their final point of view on the industry
issues researched, for discussion in a concluding seminar.
Key Sessions
o HCA IV Examination: one-hour presentation,
dialogue and feedback on key recommendations to
prepare for a later successful presentation to home
company top management.
o Industry Issue Workshop: a workshop for MultiCompany Groups to prepare a final presentation on
their conclusions and recommendations on their
respective industry issue
o Industry Issue Seminar: presentation, examination
53
and discussion of industry issue reports with

participants, faculty, home-company executive
advisors, MFBI steering board members and MFBI
alumni.
o Graduation: a ceremony and dinner on the evening
of 26 June to which home-company executive advisors
and steering board members are invited
Learning Methods
The key factors in SIMI's learning processes are:
o Top international faculty sharing cutting edge
research and best practices
o Intensive participant involvement
o Preparation and discussion of cases that are relevant
to the industry
o Real home company assignments addressing
opportunities defined with the sponsoring company
o Multi-company group projects on industry issues
relevant to driving and managing innovation
o And advice from faculty and industry executives
The program requires intensive preparation and
commitment on part of the participants. This includes prereading, class lectures and discussions, case studies, individual
and group assignments, and application of learning to home
company assignments.
Modules I, II and III each requires about 10 to 15 hours
of preparation, and 25 to 30 hours for a post-module home
company team assignment.
To anchor the learning and contribute directly to
improvements at the sponsoring company, participating
companies are expected to appoint one executive advisor to
54
55
help the participating team. The home-company executive

advisor's role is to challenge and guide the team in their
home company assignments, ensure the relevance of the
recommendations and help implement the team's
improvement plan during and after the program.
Participating Companies
Before the start of module IV, participants are required

to prepare a final HCA presentation in collaboration with
their home-company executive advisor. This presentation
refines the key home company recommendations from module
I-III assignments, and is reviewed with a faculty member
to ensure successful implementation at the home company
after the program. An additional 15 to 25 hours may be used
on this final report and discussion in the two weeks before
module IV starts. During the entire program and concluding
in module IV, participants work in 4-6 multi-company groups
to deliver reports on industry issues relevant to the food and
beverage industry to expand industry-specific learning and
networking. These groups are facilitated throughout the
program by advisors.
Constructive input from leading players within these

industries assures the program continuous improvement.
These players also help create a balance between SIMI's
academic ambitions and the demands of the industry.
Both the home company and the multi-company

assignment examinations must be successfully completed to
earn a diploma. Grades A, B and C are pass grades and F
is fail. Full attendance is required to qualify for a diploma.
SIMI acts as a resource to the food and beverage industries

in supporting food and beverage producers, and ingredient,
packaging and equipment suppliers with identification of
opportunities for long-term sustainable growth.
Since 1997, 150 high potential, experienced managers

from 44 leading food and beverage companies in Europe and
the US have attended the program. SIMI governs the program
on behalf of a steering board of executives.
The Steering Board for MFBI consists of the following
companies and executives:
Arla Foods amba
Anne Lindholm
Behnk
Carsten Hallund Slot
Carlsberg A/S
Thomas Tuxen
Due to the international composition of the faculty and

the participants, the English language is used exclusively
throughout the program.
Lantmnnen
Faculty
Morten Hellesen
SIMI recruits top, internationally known faculty from

Asian, European and North American business schools
supplemented with experienced business executives and
advisors to industry. The high academic level combined with
specific industry knowledge enriches the learning
environment.
Ann-Kristin Kongstad
Majvi Wulff-Christensen
Chr. Hansen A/S

Jesper Allentoft
Danisco A/S
Torben Svejgrd
56
Findus
Tina Bengtsson
Novozymes A/S
Peder Holk Nielsen
Orkla Foods AS
Hkon Mageli
Procordia Food AB
Christer Grnberg
Pgen AB
Peter Bruun
Sknemejerier AB
Sophia Palebo
Danish Food Federation
Ole Linnet Juul
Swedish Food
Federation
Agneta Dreber
Federation of
Norwegian Food
Industries
Roald Gulbrandsen
In addition, companies such as Coca Cola, Danish Crown,
EAC/Plumrose, R. Frch Plast, Mars/Masterfood, GEA/Niro,
Nestl, Raisio, TINE, Toms, Unilever, and V & S have
participated in the program.
Said about the program by sponsoring companies:
"We have sent several teams to the Managing Food

and Beverage Innovation program at SIMI with the
objective to build team and business unit capabilities
driving innovation. The learning methods used at
SIMI have proven efficient in balancing theory and
57
practice preparing the teams for action leading to

profitable commercial initiatives. We continue to work
with SIMI through the Program Steering Board
developing and supporting the program."
Mikael Aru, Managing DirectorProcordia Food AB:
"The MFBI program at SIMI has proven a valuable

contribution to our understanding of how to drive
innovation in our business. In particular the fact
that we were able to send a cross-functional group
of students from our company has helped to create
a very tangible and useful outcome. Our employees
have been very pleased with the quality of what was
offered by SIMI."
Participant Profile
The Managing Food & Beverage Innovation program is
designed for experienced, high-potential functional or project
managers in the entire macro food chain, who need to
develop an understanding of the future strategic options in
the industry and the importance of innovation as a lever for
profitable growth. Participants represent a diversity of
functional areas such as general management, R&D, product
management, sales, marketing, supply chain and business
development.
To obtain maximum benefit from the program,
participants are admitted in teams of two to four, preferably
from multiple functions in the same strategic business unit.
This ensures cross-functional cooperation required to
implement home company assignments and is often the start
of a stronger cooperation between these functions.
Enrolment will be limited to 32 managers, representing
13 company teams. This limitation facilitates a high level of
class discussions, advice and feedback. The MFBI program
has been conducted successfully Seven times since 1997.
58
The recent average participant has been 40 yrs old with six
years of management experience and 12 years of industrial
experience. We aim at recruiting an international class
representation from mainly Nordic and European
nationalities.
Said about the program by alumni:
MFBI is a great program. It has provided professional

insight at a high level due to the quality of the
faculty. In addition it has given the opportunity to
meet and network with competent and exiting persons
within the industry.
For our company the program has proven to be of high
value. The tools and models have helped reveal unprofitable
activities within the company and have been of great help
in the development of assessment of alternative solutions,
which are in the implementation phase in the company.
Once accomplished our company will have a new innovation
strategy built on a clear and coherent business model with
focus on value creating activities.
High class lecturers providing insight on latest innovation
topics in a well balanced mix of practical experiences and
theory. The analysis of individual, company specific
innovation topics and challenges and the development of a
dedicated business case for launching a new innovation are
just some of the many valuable take-aways of the course.
The MFBI program is a great program due to the
combination of lessons, teamwork, home company assignment
and networking. It gives a professional insight in the strategic
world of doing business, and inspires to new ways of thinking.
All tied up by a very skilled faculty and experienced and
highly professional teachers.
For our company the program has been of high value.
The different tools used in the home company assignment
59
have inspired our company to think in new ways of doing

business, opening the gates to new markets and growth
possibilities. On a personal level I have experienced a field
of opportunities and strategic insight that has inspired me
in my daily work with product development and innovation,
focusing on creating value for our customers, our consumers
and our company.
SIMI's MFBI program 2007 was a very stimulating
experience to me and it has considerably increased my
understanding how to manage innovation strategy and
innovation processes. The three "legs" of the programClassroom theory, multi company assignment, and home
company assignment-have all given me inspiration for my
daily work in the company. Especially the home company
assignment (an actual business case), which was done
together with a younger colleague, Jakob Neimann,-also
attending the program-has been very fruitful, because we
could apply directly the theory, the tools and the learning
from case stories given by excellent teachers. Theory does
not make it alone-the SIMI frames and spirit together with
a very motivated and open minded participant team made
it a total success experience to me".
MFBI is a great program!! Why?
o It has gives us the opportunity to work in projects
from a more strategic perspective.
o MFBI has broaden our competencies in strategic
innovation and gives us deeper understanding in the
power of implementation. It's something that we use
in our daily business after the SIMI graduation.
o SIMI has forced us to challenge internal and external
orthodoxies and put more focus on how to be and act
different.
o During the course professionals from international
60
business schools and companies have provided us

with useful tools. At Abba we have really appreciated
all tools helping us with implementation and to create
more structure in the strategic process.
Tuition and Admission
SIMI recommends that customers send teams of 2-4
participants to the program for maximum learning and HCA
efficiency. In certain circumstances SIMI accepts.
The fee covers all learning materials and food during the
program. Travelling and lodging expenses are not included.
Please submit your application before 28 April for early
admission, or latest by 15 June 2008. Early application is
recommended to ensure availability of space and to allow
time to appoint a home company team sponsor before the
program starts.
Each applicant will be interviewed by telephone to ensure
that program prerequisites are met, and that program
procedures are clear. Prerequisites include a minimum of
five years of industry and three years of management
experience, and a bachelor degree or equivalent. However,
final evaluation of the applicant will be based on the overall
balance of key factors such as management experience,
academic background, industry experience, international
experience, relevance to current job position, and potential
of the individual.
QUALITY MANAGEMENT OF PRISON FOOD AND
TRAINING
General Description of the Organisation and/or Project

The Irish Prison Service (IPS) is responsible for the
provision of safe, secure custody for those people committed
to prison by the Courts. We are a key component in our
country's criminal justice system ensuring safer community
61
life. The IPS has a staff complement of approximately 3,200

operating in its Head Office, Training Centre and 14 prison
institutions. During 2004, 8,230 persons were sent to prison,
a decrease of 10% on the previous year. The daily average
number of persons in custody in 2004 was 3,199, an increase
of almost 1% on 2003. The IPS is committed to managing
custodial sentences in a way which encourages and supports
prisoners in their endeavouring to live law abiding and
purposeful lives as valued members of society.
This document is the story of how the Irish Prison Service
achieved Excellence in all aspects of Food Safety, Food
Management and Hygiene. It is a story of the Irish Prison
Service's 14 year journey on the road to independently
recognised catering excellence. It is a story of good
management, teamwork, improved services and developed
opportunities. It is a story of a service provider that changed
its status from a provider of unacceptable practices and poor
standards to a benchmark of best practices and business
efficiency.
The main Content of the Case

In 1992 the Irish Quality Association (today called
Excellence Ireland) were invited in to audit Wheatfield
Prison's new kitchens and food storage areas. The audit was
carried out under 5 separate categories-Structural HygieneOperational Hygiene-Food Storage and Protection-Staff
Facilities & Personal Hygiene and Hygiene Management
Systems. To our surprise and horror, our flagship prison
failed on all counts. The governor convened the Irish Prison's
first hygiene committee and we set our first two objectives:
1) To become compliant with current and pending legislation
and 2) to achieve Hygiene Award Status. Wheatfield achieved
its goal within 12 months and the Irish Prison Service set
up a committee to review and upgrade the catering function
at each of its prisons.
62
63
The Reasons behind the Case
1. The Department of Justice, Equality and Law Reform;
Food safety has become a matter of major public interest

in Ireland and throughout Europe in recent years. The
Hygiene of Foodstuffs regulations, which were enacted in
Ireland in 1998 and 2000, gave effect to European law on
the matter. In the context of large-scale institutions like
prisons, food safety is immensely important. Within prisons,
particular risks arise because large numbers of people are
in close confinement together. As a consequence of drug
misuse many people may be unwell or be more at risk of
succumbing to illness. It is essential in the management of
prisons to be assured that the highest possible standards are
maintained where food safety is concerned. An indication of
the scale of our operation can be gleaned from the fact that
over 3,000 persons are held in custody on a daily basis in
this jurisdiction with a throughput of in excess of 8,000
persons per annum.
2. The General Public;
Food is immensely important in prison. The quality of

the food on a prisoner's plate is at the heart of effective
prisoner management. An efficiently sourced, hygienically
produced and a proper, wholesome, nutritious diet contributes
to the morale of our prisoners and supports them in partaking
to the full in the rehabilitative regimes we provide in a
custodial setting.
In prison, food has a major bearing on the quality of
prison regime. In particular, it contributes to health and
relates to health education. Considerable benefits are
achievable where prison catering, education, health care
and relevant outside agencies work in a complementary
manner to promote a healthy lifestyle and healthy eating.
The Actors behind the Case

The customers of the Irish Prison Service are identified
under one of the following three categories:
3. The 3,200 inmates incarcerated in our prisons.

As part of our needs analysis, we formally wrote to the
Department of Justice asking for detailed instructions
regarding their specific needs and requirements. As
Wheatfield prison was the launching platform for our hygiene
programme we carried out a survey of its 320 inmates.
We consulted with Failte Ireland, Excellence Ireland,
the Food Safety Authority of Ireland and the N.S.A.I. We
visited a wide range of hospitals and a number of large
catering outlets in the private sector.
The end result is a Quality Customer Service that is
comprised of a completely transformed, cost effective catering
function with added value. As well as providing in excess
of 13,000 quality meals per day, we offer inmates training
that is validated and accredited by the National Training
Authority, recognised throughout Europe and designed to
meet the needs of employers. We offer real life skills that
are transferable to both the home and work situation and
help increase feelings of self worth and self esteem.
The Process Leading to Success

Excellence is a journey, not a destination and although
our journey did have a beginning (Wheatfield Prison) it now
involves, on a daily basis, for 365 days a year, all 14
institutions under the control of the Irish Prison Service and
the Prison Service Staff Training Centre.
Our road to success was paved with challenges and
opportunities, and strong leadership and teamwork were the
main catalysts for change. A major challenge to the success
of this initiative was securing the necessary financial
resources to support the essential changes required to achieve
64
the appropriate standards. The allocation of a sufficient staff

complement to the catering function, the professional training
of the teams concerned, access to advice from specialist
advisors and the structural and equipment changes required
in many of our kitchens all required resourcing.
The drivers for securing the resources included the
developing statutory requirements in this field and the cost
savings which could be generated through central purchasing
and waste management and through the avoidance of
potentially costly claims arising from inmates as a consequence
of unsatisfactory food quality and hygiene standards.
The most important consideration was, however, the
benefits in terms'of prisoners' health and contentment of
providing them with good food properly prepared and well
presented.
Although resources were a primary consideration, some
of our biggest problems involved changing attitudes. In
1520 Machiavelli wrote... "Innovators of change make
enemies of all who prosper from the old regime and receive
only lukewarm reception from those who will prosper from
the new". In some respects, very little has changed since
then and we overcame the attitudinal hurdles by adopting
a multi-disciplinary approach to problem solving.
Our management change project was action/research
based and it allowed us to engage in the practice of continuous
improvement. Our catering strategy continues to be subject
to review and our clearly stated goals and objectives help
provide clarity of direction and ensure individual
responsibility and accountability.
Small successes became the building blocks for bigger
efforts and goals scored were acknowledged at every level.
Our initial multi-disciplinary hygiene programme (the
forerunner of all our catering management systems) was an
65
exercise in Teamwork, Goal setting, Preventative

maintenance and Pro-active intervention. It was also a
springboard for many more initiatives.
A key characteristic of prison catering is the inter-agency
partnership that operates between three public service bodies,
the Irish Prison Service, Failte Ireland, who bring training
expertise of the highest standard and the Food Safety
Authority of Ireland who have regulatory as well as hygiene
promotion responsibilities.
Training has been a main focus of our change
management programme over recent years. A comprehensive
training prospectus has been developed and introduced for
all workers involved in the food chain (Victualling clerks,
Industrial Supervisors, Catering Managers, Cleaners, Cooks,
Kitchen workers, Internal Auditors etc). The participation
of our customers-our prisoners-has also been fundamental
to the success of our catering initiative. They now carry out
most of the operational tasks in our kitchens under the
supervision of our trained staff. They have taken up
opportunities to take a certified training programme, validated
and accredited by Failte Ireland, designed to prepare them
for employment on release. They have also contributed
through inmate surveys on menu content and variety.
Results Indicating the Success
Success on a Plate-Our Credentials and Improvements

A set of fully documented standards for prison catering
has been developed and introduced. These were developed
by a multi-agency team of professionals, and in consultation
with Failte Ireland and the catering teams at local prisons.
They are subject to ongoing review and improvement. Our
28-day menu caters for medical, cultural and religious needs.
It is complemented with an optional vegetarian cycle and
the dietary needs of ethnic minority groups can also be met.
66
Our recipe manual has colour photographs showing how

each meal is to be presented on the plate for the guidance
of servery workers. The menu cycles and the standard recipes
together provide a basis for preparing standard costs at each
prison and of controlling catering expenditure.
IS 340
This standard has been prepared by the National
Standards Authority of Ireland in consultation with the
catering industry, and is the standard required to achieve
compliance with SI 165 of 2000, Hygiene Foodstuffs
Regulations. The Hygiene Mark, which is awarded by
Excellence Ireland, assesses caterers by reference to this
standard. It is envisaged that the Hygiene Mark will be
introduced in all prisons as a quality assurance procedure
over the next few years.
Safety Standards
Our Safety Standards provide standard safe operating
procedures for the various hazards present in kitchens and
a safety induction training manual for use in the prison
kitchens is available in each location. Safety standards for
catering are reviewed on an ongoing basis to ensure they
reflect current best practice.
Food Specifications
Incoming foodstuffs have a critical impact on the quality
of catering and its cost. Dealings with the suppliers of
foodstuffs are managed by reference to detailed foodstuff
specifications and incoming product is subject to scrutiny.
Foodstuffs are purchased in accordance with standard Public
Service practices for procurement and only from approved
suppliers who operate in accordance with relevant food
hygiene regulations (potential suppliers are advised, as part
of the tendering process, that their premises will be audited
by prison personnel).
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Our food specification procedures set out detailed

requirements for all foodstuffs being purchased for the prison
kitchens. They also deal with all issues of hygiene arising
in relation to the food being supplied. As with the safety
standards, this material is under constant review and revised
as appropriate to ensure it reflects current best practice.
Monitoring and External Audits

A key aspect of the development programme for prison
catering is the establishment of an independent external
audit so as to provide comprehensive reports of the quality
standards being achieved and to highlight areas in need of
greater attention.
Food Hygiene regulations and good management practice
require that catering operations are subject to ongoing
monitoring with records being retained on an ongoing basis
for inspection. These records are then archived. The main
procedure involved is HACCP (hazard analysis and critical
control point), which has been a mandatory requirement
under the statutory regulations of 1998 and 2000 regarding
food safety. This monitoring and record keeping is carried
out at local prison level and is the responsibility of the person
in charge of the kitchen along with local management.
A process of conducting external audits of each prison
catering operation has been established in the prisons. It is
conducted annually by Failte Ireland and/or Excellence
Ireland. Each audit is comprehensive. It deals with all aspects
of catering including the operation of the local monitoring
procedures (HACCP).
Awards
Today, the Irish Prison Service proudly boasts the
successful achievement of a wide range of prestigious and
independently accredited National and International
standards and awards. Our credentials are clear and our
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improvements are indisputable. Our kitchens are showrooms

of excellence and shining examples of best practice. Each
year we beat hundreds of competitors in the public and
private sectors in the race for recognised excellence. We are
the first organisation on the Island of Ireland to have
achieved the combined standards of I.S.O 9001:2000 & I.S.
343:2000 for catering
In 2004 we were outright winners of the Excellence
Ireland Supreme Award.-beating stiff competition from a
wide range of top class private and public businesses
throughout the country including hotels, restaurants,
bakeries, supermarket chains, food processing plants,
wholesalers, and dairy producers. We are acknowledged
exemplars of best practice and catering managers in the
private and public sector now use our kitchens as benchmarks
of sustainable quality, cost effectiveness and efficiency.
Innovation and Sustainable Quality
Examples of our innovative approach include the design
and introduction of safety signs, induction booklets and
interactive e-learning programmes that are suitable for
trainees with literacy and numeracy problems, the broadening
of the work/training programmes for inmates and the
introduction of recycling and waste prevention programmes.
The sustainability of the programme is as assured as its
quality. The catering improvement programme is in operation
for in excess of 14 years and it gets stronger each year.
Independent assessment combined with training, continuous
professional development, professional pride and a strong
desire to maintain our international status is our guarantee
of sustainable quality.
Improved Services and Applied Learning

In 1991, Ireland's flagship prison was in breach of
statutory regulations. Today, that same prison operates to
69
the highest European standards and was a recent winner

of of Excellence Ireland's Supreme Award for Hygiene.
Success breeds success and lessons learned on our journey
often became foundation stones for other projects. The
catering success story had a knock on effect that reached
into every corner of the institution and into every institution
in the State. It resulted in the development of a national
programme to improve the catering function at all prisons.
It also had the indirect effect of raising standards in other
areas within the prison (e.g. prison officers compared the
new improved kitchen standards with their own canteen
and working areas, became dissatisfied with their own
situation and strove for change). This resulted in improved
services generally and a string of associated awards. (N.I.S.O
award for general safety, energy efficiency awards etc)
Delivering SMART Outputs and Results

The improvement in prison catering in recent years is
testament to the professionalism of our multi-disciplinary
catering management team. Our outputs and results are
Specific, Measurable, Achievable, Realistic and Timely. We
can and do achieve excellence in standards when the occasion
demands and we comply fully with current and pending
legislation.
We provide a quality catering service. We are
acknowledged leaders in the catering sector. We provide
transferable life and work skills for inmates. We are engaged
in continuous professional development. We offer enhanced
employment opportunities. We support our training
programmes with meaningful certification. We offer value
for money. We guarantee quality and we are accredited
exemplars of best practice. Currently, some of Ireland's oldest
prisons are holders of the prestigious Hygiene Award and
prisons now compete with each other and with a myriad of
organisations in the private sector in the race for recognized
70
71
excellence. Our outdated, wasteful and cost ineffective 7 day

menu cycle has been replaced with a healthy, innovative,
cost effective 28 day standard menu cycle that incorporates
a 14 day vegetarian cycle and caters for a wide range of
individual needs (religious, cultural and medical).
and litigation, the Irish Prison Service is free to concentrate

on new and innovative ways to improve its business
performance.
The main Obstacles of the Case
The Survey also confirms higher growth during 200506 in almost all the products belonging to Food and Beverage
segment over the corresponding previous period. The
improvement has been reflected both in volume terms and
in terms of value for most of the products. The overall
industry has achieved a growth rate of about 8 % in terms
of value during 2004-05.
Shaking people out of their comfort zones and changing

attitudes were the hardest obstacles to overcome. Our
antiquated, cost ineffective system was driven by rules of
operation that were designed in 1947. There was comfort
and safety in familiarity for suppliers, chefs and prison
management. All concerned had to become aware of their
fundamental role within the change management process
to ensure the success of the initiative. They had to be moulded
into a cohesive multi-disciplinary team with a single agreed
vision.
Main Sources of Inspiration behind the Case
The initial source of inspiration was a desire to
professionalise our catering programme. We were in obvious
breach of statutory regulations, open to litigation and a
potential outbreak of food poisoning due to bad food safety
practices. However, once we achieved compliance with
statutory regulations, our professional pride and a desire to
reach our full potential became our main motivators.
The most Important Lesson Learned
"We want to, so lets do"is easier and better than "We
have to, so go do". Compliance with legislation and the
adoption of best practices is not the hard option, it is the
practical option. Today while other organisations scramble
to keep ahead of exposure and bad publicity, while television
programmes and newspapers tell stories of business closure,
cross contamination, bad practices, super bugs, food poisoning
A FICCI survey of Food and Beverages Industry has

shown positive growth trends during April-March 2004-05.
The survey confirms that the Rs 3584 bn Indian Food

and Beverages industry have shown buoyancy due to some
positive factors :
Government's high priority for development of food
processing industry to encourage commercialization and
value addition to agricultural produce.
Liberal reform measures and various tax benefits

Policy Initiatives taken by the Government in the
Food Processing Sector which include :
Food processing industry declared a priority area.
Entire sector is de-licensed.
Automatic approvals for foreign investment up to 100
percent, except some products like alcoholic beverages and
also technology transfer.
Zero duty import of capital goods and raw material

for100 percent export oriented units.
Agro based l00 percent export oriented units allowed
sale up to 50 per cent in domestic tariff area.
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Export earnings are exempted from corporate tax

All processed fruits and vegetables products exempted
from Central Excise Duty.
Government grant given for setting up of common
facilities in Agro Food Park.
Full duty exemption on all imports for units in
Export Processing Zones.
Use of foreign brand name is freely permitted
The Federation of Indian Chambers of Commerce and
Industry (FICCI) has recently conducted the survey of
industries in the Food and Beverages sector through extensive
interactions with representatives of industry, allied industry
organizations, associations, government and public sector
undertakings.
73
lifestyles and consumption habits. Godrej Consumer, Marico,

Dabur are among the companies
Some companies have achieved growth in the key
processed food segment by reaching lower price points to
make the products more affordable to a bigger consumer
class
The Unorganized, small players account for more than
70 per cent of the industry output in volume terms and 50
per cent in value terms.
Lower overheads due to limited local area, family
management, focused product lines and less expenditure on
marketing help the unorganized sector to grow.
With the changing life styles of the consumers and rising

disposable income of the growing middle-income group,
Branded Food, Health food and Convenient Food are rapidly
rising segments of this industry which are gaining vast
popularity. The market for branded foods is growing at a
healthy 10%-15%.
The Food and beverages sector is witnessing recently

large-scale transformation, huge advertisement spending,
,awareness campaign about the products and brands,
distribution of free samples with the focus on improving the
distribution network to make strong presence in the Indian
market. Key factors to success are distribution (in rural
markets) and advertising (in urban markets Innovation and
launching of new brands are being adopted by the companies
to grab the market.
The next sunrise industry for India is going to be food.

In terms of total output addition, food has surpassed IT and
pharma
Big companies have started sourcing their products from

local manufacturers as cost saving measures and to enter
the mass consumer segment..
India's middle class segment will continue to hold the

key to success of the processed food market in India. The
profile of the middle class is changing steadily as hired
domestic help is becoming costlier. This is conducive to an
expansion in demand for ready to eat Indian-style foods.
The market is seeing players like Heinz, Mars, Marico,

Conagra, Pepsi, ITC, Dabur, Britannia, Cadbury, HLL,
Pillsbery, Nestle and Amul, Smithkline Beecham, The Surya
Food and Agro Private Ltd etc and a host of local
manufacturers offering competition with their established
brands on national level. Every player is busy in the race
by expanding their product range.
Indian food and beverage companies are making a beeline

for regional overseas markets like Bangladesh, Pakistan,
Nepal, Middle East and CIS countries because of similar
The companies have added new variants into their

existing brands including stylish packaging
74
Many food and beverage companies have targeted the

schools spread throughout the country for brand promotion
and sale of their products The focus on urban markets have
also contributed significantly to the growth of the biscuit
industry.
Semi-processed foods/Cooked/Ready to eat foods sector is
growing by 20 per cent due to rising demand.
Milk and milk products is rated as one of the most
promising sectors in the Food Processing Industry though
traditional dairy products are India's largest selling and
profitable segment and accounts for more than 50 per cent
of milk and dairy products
Cashing on brand value and encouraged by the growing
market, select dairy companies are planning major expansion
plans in various cities with new brands of products including
those suited to local taste and preferences and realizing
higher price with higher sales volume
Some national brands like Haldiram, Bikanervala, K C
Das, Chitales, Ganguram, Brijwasi, Agarwal Sweets etc are
getting wide acceptance because of consistent quality and
product safety
Local manufacturers with numerous local brands cater
to populous segment and contribute considerably in the
bread segment.
Biscuits' packaging has undergone a swift transformation.
Major players are now trying to differentiate their brands
to reflect their superior quality through superior packaging.
Both public and private players operate in the market.
Large MNCs, such as Hindustan Lever, Nestle and Pepsi
Foods, compete with public sector giants such as NDDB,
NAFED and MAFED in the fruit juice market
Some market leaders have introduced age-specific market
segmentation with a new sub-brand, Real Junior targeted
75
at Children below 6 years, claimed to be a first of its kind

initiative in the country.
Street corner vendors are still very popular. Fruit juices
in the unorganized segment are considered cheaper and
fresher by the consumers, even though they are often
relatively unhygienic.
Standard grocers are the leading distribution channel,
with one third of the Indian confectionery market, by value.
Traditional grocers are the only other channel to take a
double-digit share.
Malted beverages with nutritional attributes control
around 70% of the total market and energy drinks (brown
beverages) account for the rest.
The emergence of new players at the lower end of the
packet tea market with marketing support from the retailers
has affected the industry and particularly, the value added
segment badly.
There has been a trend towards consolidation of the
existing tea plantations.
Smaller players are being bought over by larger estates
or global consumer goods majors.
Strong beer, which has 5 percent of alcohol content,
outsells mild beer in India and accounts for more than 68
% of the total sales..
Beer is losing ground to hard liquor in India. Amidst
beers, the current trend is that lager beer is giving way to
strong beer.
Brewers in India are gearing up for the consolidation
wave sweeping the global beer industry.
The price stability throughout the year has contributed
to the increase in domestic liquor sales.
76
The Northern region has contributed significantly as

Rajasthan has regularized sales in the state with the formation
of a distribution corporation similar to Karnataka.
Flavoured low alcohol beverage with new variants like
the 330 ml beer pack have driven sales growth across the
country.
Several Indian brands have made inroads into the foreign
markets including British market
Branded products are preferred in the Edible oil segment
as the urban consumers are increasingly becoming health
conscious and looking out for low-cholesterol cooking medium.
Growth Highlights
The FICCI survey confirms higher growth rates for some
sectors belonging to Food and Beverages segment as
compared to the previous year based on the estimates made
by the industry and interaction with the concerned
representatives in the industry. The industry is estimated
to have achieved higher growth of 8 per cent in 2004-05
with an estimated figure of Rs. 3584 billion. The overall
industry has achieved a growth rate of 8 % in value terms
during 2004-05.
The sectors that have recorded an excellent growth of
20% and above are-Semi-Pocessed/Cooked Ready to
Eat(20%),and Ice-Cream (25%), Wine (20%). The Sectors
that have recorded a high growth rate between 10%-20%
are-Branded Flour (Atta) ( 12%), Bakery items including
Bread,Cakes, Pastry (10%-Organised Sector(11%), Biscuits
(12%), Biscuits Organised/Packaged sector(14%), Processed
Fruits and Vegetable Juices, Pulp sauces, Ketch ups (18%),
Milk Products (10%),Traditional/Unorganised milk
products (10%), Organised Branded milk products
(15%),Khoa/chhana based sweets (10%), Butter(10%), Curds
and curd products (12%),), Health beverages/Malted food
77
(11%), Spirits/Country Liquor (10%), Alcoholic beveragesIMFL (10%), Beer (10%).

Some sectors which have recorded Moderate and single
digit growth are-Food & Beverage (8%), Bread (7.5%), Bread/
Organised (8%), Culinary products/Snack food(8%),Fruits
and vegetables(5%), Milk and Dairy products (4.5%), Milk
(4.5), Milk liquid/packaged(5%), Milk Products(8%), Milk
powder including infant milk(7%), Ghee(5.5%),Cheese/
Panner(8%), Chocolates (8%), Sugar Confectionary/
Gums(4%), Health Beverages/Malted Food(8%), Tea (7%).
Liberal policy measures of the government and sector
specific concessions have helped growth.
A package of fiscal incentives provided by various State
governments like Himachal Pradesh, Uttranchal, have
encouraged companies to set up manufacturing facilities in
these regions. The excise exemption for 10 years and income
tax exemption for 5 years for units located in backward
regions under section 80IA have encouraged many
companies to set up new units and helped growth
BASIC ISSUES AND CONSTRAINTS
The foremost setback in expanding the food-processing
sector, in terms of both investment and exports, is lack of
adequate infrastructure.
There is an absence of a strong and dependable cold
chain system which is very vital and essential for food
processing industry based mostly on perishable products.
Farm produce of about 30 per is being wasted every year
only because there is no adequate storage, transportation,
cold chain facilities and other infrastructure supports.
Harmonization of multiple food laws is an urgent
necessity. It has been observed that there are 13 laws
enforced by 9 Ministries. There is a need for integrating into
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one common food law. Prevention of Food Adulteration laws

is not only stringent one but time consuming also. It is
considered as an archaic and needs review.
Food standards should not be overlapping, contradictory
and highly prescriptive but should be made simple to be
complied with and industry friendly. The proposed Food
Safety and standard Bill, 2005 with penal provisions requires
a review as the same gives huge powers to the Inspecting
Officers to seize the food articles without authorization and
may create unwanted confusion to the detriment of the
industry.
There is a need for a review of the Agricultural Produce
and Marketing Act to ensure freedom to farmers to sell
agricultural produce to sellers of his choice at remunerative
prices rather than selling them through regulated market
committees or authorized agents.
The Essential Commodities Act (ECA) puts a lot of
hindrances including easy inter-state movement of food
grains and essential food items. Commodity traders should
not be regulated and free movement of agricultural produce
should be permitted between states. This is very essential
for food processing where the processing units are located
in different states.
There is multiplicity of taxes, local taxes and levies
charged on different commodities belonging to food and
beverages industries. Different states have different sales
tax rates. Different Mandi taxes charged by local market
committees in different states, inter-state charges and levies
like Chungi tax and procedural complexities add pressure
on margins and put hurdles to sound growth and
development of the food processing sector.
Higher cost of raw materials and packing materials put
pressure on margins Some commodities in one segment are
used as inputs in another segment of the food processing
79
industry, e.g, skimmed milk powder (SMP) used as raw

material for chocolate, ice cream etc sugar, edible oil used
as raw materials for a number of items, molasses for alcohol
etc. There has been a rise in the prices of all such commodities
which have impacted the overall cost of production in the
food processing industry sectors. There is a need for review
of all such cases involving the users and the producers.
The higher railway freight has pushed up cost of raw
materials and inputs such as sugar, edible oil and all these
add to cost of production.
Besides different commodities are subject to different
rules and system of regulations and licensing, e.g, dual
taxation system for tea, dual licensing for sugar, different
labeling rules for some food and beverages items like alcoholic
beverages. These are mentioned in the detailed segmentation
section. FICCI has highlighted some areas of concern
impacting the overall Food and Beverage Industry and some
sector specific issues through its Pre-Budget Memorandum
for the year 2005-06 to the Government for consideration
as under :
The exemption on Milk and Milk products, fruits and
vegetable products, edible oils etc that already exists at the
zero rate, should continue.
The Excise Duty on all Value Added food products like
Nutritional and health foods, confectionary, innovative
Indian ethnic products, high value Ready to Cook/serve
products to be brought down to a maximum of 8% from
16 %.
Excise on all Machineries used for the processed food
industry should be lowered to a maximum of 8%.
Ice-creams and Non-alcoholic beverages dispensed by
vending machines are exempt from excise duty, while other
beverages like chocolate drinks, health drinks which are
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dispensed by vending machines attract 16%. The excise

duty on packaging materials and packaging machineries
used for the processed food industry should come down to
8%. Packaging material for match sticks is exempted from
excise duty.
The Sales Tax or VAT rates for all machinery used
should be lowered to the concessional rate of 4%..
CST @ 4% is a big obstacle in creating one single Indian
Market and it is suggested that the CST be phased out
urgently.
OPPORTUNITIES AND PROJECTION
The survey confirms that the Food and Beverages sector
is poised for further growth because of the emerging
opportunities and strong fundamentals developing in the
economy.
The Food and Beverage Industry is projected to have
overall growth between 8%-8.5 % in 2005-06.
The sectors which are projected to achieve excellent
growth of 20% and above in 2005-06 are-Semi Processed/
Cooked Ready to eat (22%), Ice-Cream(20%), Edible/
Vegetable oil (20%),Wine(22%).
The sectors that are projected to achieve high growth
between 10%-20% are: Branded Flour Atta (13%), Bakery
Items including bread, cakes, pastry (11%),organized sector
(12%),Bread/organized (10%),Biscuits (13%), Biscuits
Organized/Packaged sector (14%), Culinary products/snack
food) (10%),Fruit juices,pulp,and concentrates (18%), Sauces/
ketups (17%), Milk Products(11%),Traditional/unorganized
(12%), Organized/branded (15%),Khoa/chhana based sweets
(11%),Butter(12%),Curd & curd products(12%),
Chocolates(10%),Beer (10%), Spirits/liquors (11%), Edible
Oil (20%), Some sectors projected to record moderate and
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single digit growth are: processed Food products (8.5%),

Food products (8%), Flour/atta (7.5%), Bread(9%), Milk and
Dairy products(6%), Milk (6%), Milk Powder including infant
milk (6%),Ghee (6.5%), Cheese/paneer (8%), Sugar
confectionary/gums (5%), Health beverages/Malted food
(9%),Tea (8.5%), IMFL (10%), Sugar (8-10%)
The recent policy packages announced by the government
for farmers for raising rural income is bound to stimulate
growth further. The Union Budgets 2004-05 and 2005-06
have given some incentives for boosting the food processing
industry sector including tax exemption on agroprocessing units and full exemption of excise duty on dairy
machines.
The government has recently outlined some measures
for growth and development of the primary sector.The
measures include strengthening the means to increase the
yield in agriculture and dairy sectors, improving farm credit
and doubling agricultural credit over the next three years,
raising horticultural output to 300 million tons by 2011 and
removing all controls that hamper increase of farm income.
The National Policy aims to increase the level of food
processing from 2 per cent to 10 per cent by 2010 and 25
per cent by 2025.
The proposal to enhance the level of institutional credit
to be provided by banks and financial institutions from Rs.
80000 crore during 2003-04 to about Rs 105000 crore and
to bring l00 new farmers in a district in the yearly loan
scheme would accelerate rural income and rural demand.
Development of rural infrastructure, rural extension
services, agro-based and food processing industries have
been given high priority in the budget for generating
employment, reducing poverty and raising the income level
of the farmers and rural masses by the Government.
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83
The process of setting up of Food Parks in various key

locations of the country with the involvement of the various
state governments and other allied institutions is on.. The
Minister of Food Processing Industries has announced the
setting up of 500 such parks within the 10th Five-year plan
across each parliamentary constituency. This will give a
boost to growth and development of food processing industries.
FOOD AND BEVERAGES INDUSTRY SURVEY
The FICCI survey highlights the need for pro-active

government action for helping the industry to achieve lower
cost, improved quality and better performance in the
competitive environment. For tapping the opportunities and
potentials, some initiatives and steps are required to be
taken for technology improvement, automation and
computerization in the manufacturing processes, quality
control, improvement of packaging to improve shelf life of
products, investment in R & D to develop new products and
for establishing an efficient cold chain system.
While food accounts for only 9.7% of the total private

consumption expenditure for an average American
person,15% for the Japanese and 15% for the British, for
the Indian it is the single largest component of their total
consumption expenditure, accounting for as much as 53%.
There is the need for ensuring adequate land for large

scale farming/contract farming by introducing necessary
amendment in the existing laws and in the Land ceiling Acts
Harmonization of multiple food laws by integrating into one
common food law is an urgent necessity.
Experts suggest that the next sunrise industry for India

is going to be food. In terms of total output addition, food
has already surpassed IT and pharma. While the total output
addition in information technology and pharmaceuticals is
of the order of Rs.30,000 crore and Rs. 15,000 crore,
respectively, between 1993 and 2000, food manufacturing
recorded an output addition of Rs.90,000 crore, which is the
double of the two industries put together.
The expert committee set up by Ministry of Agriculture

has estimated that an investment of the order of about Rs.
11200 crores in the next 10 years would be required for
establishing infrastructure in agriculture marketing. There
is need for developing market yards/auctioning centres to
handle perishable commodities including flowers. Commodity
exchanges in India are now being encouraged while covering
a large number of commodities.Commercial banks in India
with a wide network of branches in the rural areas may act
as intermediaries between the exchanges (aggregators)and
farmers to make available the benefits of price risk insurance
to large sections of the farmers.
The size of the Food and Beverages Industry is estimated

to be Rs 3584 billion. India is among the world's major
producer of food and produces over 600 million tonnes of
food products every year and has huge potentials with the
food and agricultural sector which contributes to around
22% of India's GDP.
India's food consumption market is expanding rapidly to

attract global food and drink giants. Rising per capita incomes,
changing life styles, and a growing younger population with
preference for convenience food have driven growth.
India is the second largest producer of rice and wheat

and the largest producer of pulses. The total production of
food grains is estimated to reach 213 million tones in 200304 after a setback in 2002-03 recording 174.2 million tonnes
of production. Table 1 gives product wise current performance
in production and growth rates.
The Food Processing Industry sector in India has been
accorded high priority by the Government of India, with a
number of fiscal relief and incentives, to encourage
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commercialization and value addition to agricultural produce.

Indian food processing industry is poised for further growth
in view of the liberal policy measures and government's
commitment for reforms and development of food and agroprocessing industries.
This opens up huge opportunities for large investments
in food and food processing industries in different fields
including up gradation of technologies and improvement of
skills with installation of modern machinery and equipment,
especially in areas of canning, dairy plants, specialty
processing. The opportunities of investment lie in various
stages like packaging, preservation of food with suitable
refrigeration and thermo processing, quality control and
also in creating a good marketing and distribution
infrastructure and an efficient network of cold chain
management system.
Health food, health food supplements, Convenient Food
and Branded Food are rapidly rising segments of this industry
which is gaining vast popularity with the changing life
styles of the consumers.
been given enough priority for generating employment and
reducing poverty and raising the income level of the farmers
and rural masses by the Government. The present
Government also plans to continue the process further with
a package of incentives for rapid progress and development
of rural India.
Of the total estimated food market of approximately
Rs.3584 billion, value-added food products comprise about
Rs.920 billion.
The unorganized, small players account for more than
75% of the industry output in volume terms and 50% in
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value terms There are very few large Indian Food Brands
with global presence. Although India is among the world's
largest producers of many food items, only about 20% of
India's fruit and vegetable output is processed in the country,
compared to 30% in Thailand, 80% in Brazil and 60-70%
in countries like the UK and US.
There is strong preference for raw and semi-processed
foods in most parts of the country. The tremendous potential
for growth of the industry is also reflected in the number
of foreign investment proposals received for the various subsectors of the industry.
Since the liberalization in 1991 till January 2004
proposals for projects of over Rs.87715 crores have been
proposed in various segments of the food and agro-processing
industry including Rs 33574 crore for food processing, Rs
33818 for sugar and Rs 20323 crore for vegetable oil and
vanaspati. Besides, the Government has also approved
proposals for joint ventures, foreign collaboration, industrial
licenses and 100%export oriented units envisaging an
investment of about Rs.20,000 crores. Out of this, foreign
investment is of Rs 9620 crore which is 3.3 of total Foreign
Direct Investment.
Liberalization of Food Sector started since 1991, removal
of price controls, de reservation of small scale industry,
reduction in import tariffs, fiscal incentives for encouraging
investment in the sector under the liberalized policy
environment of the Government have spurred growth in
this sector.
The Government has provided many liberal incentives
to encourage the Food Processing industry.
Policy Initiatives in the Food Processing Sector
Food processing industry declared a priority area.
Almost entire sector is de-licensed.
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Automatic approvals for foreign investment up to 100

percent, except some products like alcoholic beverages and
also technology transfer.
Zero duty import of capital goods and raw material
for100 percent export oriented units.
Tax exemption on agro-processing units and full
exemption of excise duty on dairy machines
Agro based l00 percent export oriented units allowed
sale up to 50 per cent in domestic tariff area.
Export earnings are exempted from corporate tax
All processed fruits and vegetables products exempted
from Central Excise Duty.
Government grant given for setting up of common
facilities in Agro Food Park.
Full duty exemption on all imports for units in Export
Processing Zones.
Use of foreign brand name is now freely permitted
Income Tax exemption for 5 years for new units only in
fruits and vegetable processing industry etc.
Sector specific concessions have been extended to
different products of the Food Processing Industry which
among others include :
Exemption for all the milk products but not condensed
milk
Reduction for biscuits,cakes and pastries to 8%
Sugar based confectionary exempted
Reduction for meat and poultry products to 8%
India's middle class segment will continue to hold the
key to success of the processed food market in India. Of the
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countries total population of one billion, the middle class

segment account for about 350-370 million. Though a
majority of families in this segment have non-working
housewives or cannot afford hired domestic help they prefer
to prepare food of their taste in their own kitchens. But the
profile of the middle class is changing steadily as hired
domestic help is becoming costlier. This is conducive to an
expansion in demand for ready to eat Indian-style foods.
As about 10% of output is processed and consumed in
packaged form, there is huge potential for expansion of the
food processing industry.
In view of the tremendous growth potential of this
segment many MNCs as well as domestic players have made
an aggressive entry in the sector, betting large amounts of
money.
Companies like Nestle after achieving growth in the key
processed food segment are now reaching lower price points
to make the products more affordable to a bigger consumer
class.
With changes in eating habits and the increased
affordability of the growing middle-income group of Indian
population, the market for branded foods is growing at a
healthy 10%-15%.
In the basic food segment there is dominance of the
regional unorganized sector. This is to some extent due to
government policies of the past, wherein, many segments
were reserved for the small-scale industry.
However, the segments, which are dominated by the
unorganized sector, have the potential to grow faster in the
years to come. For example, products like 'atta' are already
poised for hectic competition between players like HLL,
Pillsbury, Conagra and ITC, because of changing lifestyles
and preference for brands.
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Pizza hut outlets, the MNC food chains are operating in

the big cities and expanding their network in cities and
small towns with variety of cooked, ready to eat food and
drinks.
The process of setting up of Food Parks in various
key locations of the country with the involvement of
the various state governments and other allied
institutions has been initiated. The minister of Food
Processing Industries has announced the setting up of 500
such parks within the 10th Five year plan across each
parliamentary constituency.
The market is seeing players like Heinz, Mars, Marico,
Conagra, Pepsi, ITC, Dabur, Britannia, Cadbury, HLL,
Pillsbery, Nestle and Amul, Smithkline Beecham, The Surya
Food and Agro Private Ltd, MTR Ltd etc and a host of other
regional and local manufacturers offering competition with
their established brands on national level. Every player is
busy in the race by expanding their product range.
HLL has entered the ready to eat segment through
Indus Valley rice meals in seven flavours. Satnam Overseas
has also entered this growing market with its Kohinoor
brands of rice meals and curries. ITC 's more than 50 packaged
branded food products under Kitchens of India and
Aashirvaad brands with different varieties of ready to eat/
cooked food is gaining popularity in the market.
The sector is witnessing large-scale transformation, huge
advertisement spending, focus on improving the distribution
network to make strong presence in the Indian market.
BASIC ISSUES AND CONSTRAINTS
The foremost setback in expanding the food-processing
sector, in terms of both investment and exports, is lack of
adequate infrastructure. There is an absence of a strong
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and dependable cold chain system. Without a strong and

dependable cold chain vital sector like food processing
industry which is based mostly on perishable products cannot
survive and grow. Cold chain facilities are miserably
inadequate to meet the increasing production of various
perishable products like milk, fruits, vegetables, poultry,
fisheries etc.
Farm produce of about 30 per is being wasted every year
only because there is no adequate storage, transportation,
cold chain facilities and other infrastructure supports.
Provision should be made for sufficient accommodation in
various modes of transport, particularly in trains for transport
of perishable fruits and vegetables in cool condition on priority
basis Harmonization of multiple food laws is an urgent
necessity. It has been observed that there are 13 laws
enforced by 9 Ministries. There is a need for integrating into
one common food law.
Prevention of Food Adulteration laws is not only stringent
one but time consuming also. It is considered as an archaic
and needs review.
Food standards should not be overlapping, contradictory
and highly prescriptive but should be made simple to be
complied with and industry friendly. The proposed Food
Safety and standard Bill, 2005 with penal provisions requires
a review as the same gives huge powers to the Inspecting
Officers to seize the food articles without authorization and
may create unwanted confusion to the detriment of the
industry.
There is a need for a review of the Agricultural Produce
and Marketing Act to ensure freedom to farmers to sell
agricultural produce to sellers of his choice at remunerative
prices rather than selling them through regulated market
committees or authorized agents. There is the need for
ensuring adequate land for large-scale farming/contract
90
farming by introducing necessary amendment in the existing

laws and in the Land ceiling Acts.
The Essential Commodities Act (ECA) puts a lot of
hindrances including easy inter-state movement of food
grains and essential food items. Commodity traders should
not be regulated and free movement of agricultural produce
should be permitted between states. This is very essential
for food processing where the processing units are located
in different states. There is multiplicity of taxes, local taxes
and levies charged on different commodities belonging to
food and beverages industries. Different states have different
sales tax rates. Different Mandi taxes charged by local
market committees in different states, inter-state charges
and levies like Chungi tax and procedural complexities add
pressure on margins and put hurdles to sound growth and
development of the food processing sector.
Higher cost of raw materials and packing materials put
pressure on margins Some commodities in one segment are
used as inputs in another segment of the food processing
industry, e.g, skimmed milk powder (SMP) used as raw
material for chocolate, ice cream etc sugar, edible oil used
as raw materials for a number of items, molasses for alcohol
etc. There has been a rise in the prices of all such commodities
which have impacted the overall cost of production in the
food processing industry sectors. There is a need for review
of all such cases involving the users and the producers.
The higher railway freight has pushed up cost of raw
materials and inputs such as sugar, edible oil and all these
add to cost of production. Besides different commodities are
subject to different rules and system of regulations and
licensing, e.g, dual taxation system for tea, dual licensing
for sugar, different labeling rules for some food and beverages
items like alcoholic beverages. These are mentioned in the
detailed segmentation section.
91
FICCIS TAX PROPOSALS

The exemption on Milk and Milk products, fruits and
vegetable products, edible oils etc that already exists at the
zero rate, should continue.
The Excise Duty on all Value Added food products like
Nutritional and health foods, confectionary, innovative
Indian ethnic products, high value Ready to Cook/serve
products to be brought down to a maximum of 8% from 16
%. Excise on all Machineries used for the processed food
industry should be lowered to a maximum of 8%.
Ice-creams and Non-alcoholic beverages dispensed by
vending machines are exempt from excise duty, while other
beverages like chocolate drinks, health drinks which are
dispensed by vending machines attract 16%.
The packaging cost component in the food products is
very high amounting to almost 40%-60% of the cost
depending on the size of the product.The excise duty on
packaging materials and packaging machineries used for
the processed food industry should come down to 8%.
Packaging material for match sticks is exempted from excise
duty.
The Sales Tax or VAT rates for all machinery used
should be lowered to the concessional rate of 4%.. CST @ 4%
is a big obstacle in creating one single Indian Market and
its suggested that the CST be phased out urgently.
OPPORTUNITIES AND PROJECTION
The Food and Beverages sector is poised for further
growth because of the emerging opportunities and strong
fundamentals developing in the economy.
With the growing awareness about health products in
the minds of consumers, increasing urbanization, rising
standards of living and popularity of convenience foods, the
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industry is expected to witness further growth. Table 2 gives

product wise growth projection.
The recent policy packages announced by the new
government for farmers for raising rural income is bound
to stimulate growth further.
The present Government with a human face in reforms
process strongly favors the idea of raising the level of living
of rural masses through innovative reforms and packages
for farmers.
The Union Budget 2004-05 and 2005-06 have given
some incentives for boosting the food processing industry
sector including tax exemption on agro-processing units and
full exemption of excise duty on dairy machines.
been given high priority in the budget for generating
employment, reducing poverty and raising the income level
of the farmers and rural masses by the Government.
A package of fiscal incentives provided by various State
governments like Himachal Pradesh, Uttranchal, have
encouraged companies to set up manufacturing facilities in
these regions. The excise exemption for 10 years and income
tax exemption for 5 years for units located in backward
regions under section 80IA have encouraged many
companies to set up new units.
The government has recently outlined some measures
for growth and development of the primary sector which
include among others strengthening the means to increase
the yield in agriculture and dairy sectors, raising horticultural
output to 300 million tons by 2011.
The proposal to enhance the level of institutional credit
to be provided by banks and financial institutions from Rs.
80000 crore during 2003-04 to about Rs 105000 crore and
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to bring l00 new farmers in a district in the yearly loan

scheme would accelerate rural income and rural demand
and speedy monetization in rural area. This would provide
untapped commercial opportunities for banks to lend and
earn reasonable profits.
The process of setting up of Food Parks in various key
locations of the country with the involvement of the various
state governments and other allied institutions is on.. The
Minister of Food Processing Industries has recently
announced the setting up of 500 such parks within the 10th
Five-year plan across each parliamentary constituency. This
will give a boost to growth and development of food processing
industries.
The proposed measures also include some vital changes
in the Agricultural Produce Marketing (APMC) Act by
incorporating contract farming, land leasing and privatization
of food grain storages over time.
There is the need for ensuring adequate land for large
scale farming/contract farming by introducing necessary
amendment in the existing laws and in the Land ceiling Acts
The proposals also include removal of restrictions facing
farming community including cross border movement of
food grains, doing away with local level rules and restrictions
that prevent easy movement and marketing of food grains
and improving marketing structure.
The National Policy aims to increase the level of food
processing from 2 per cent to 10 per cent by 2010 and 25
per cent by 2025.
There is a need for pro-active government action for
helping the industry to achieve lower cost, improved quality
and better performance in the competitive environment. For
tapping the opportunities and potentials, some initiatives
and steps are required to be taken for technology
94
improvement, automation and computerization in the

manufacturing processes, quality control, improvement of
packaging to improve shelf life of products, investment in
R & D to develop new products and for establishing an
efficient cold chain system.
The expert committee set up by Ministry of Agriculture
has estimated that an investment of the order of about Rs.
11200 crores in the next 10 years would be required for
establishing infrastructure in agriculture marketing. There
is need for developing market yards/auctioning centres that
can handle perishable commodities including flowers.
Commodity exchanges in India are now being encouraged
while covering a large number of commodities.Commercial
banks in India with a wide network of branches in the rural
areas may act as intermediaries between the exchanges
(aggregators)and farmers to make available the benefits of
price risk insurance to large sections of the farmers.
95
ITC (Aashirvaad) entered the market. Traditional brands

like 'Shakti Bhog' have also consolidated their position.
Increased competitive activity is spurring market growth.
The segment, which had been growing with excellent rate
of 40-50% till 2000 is now growing by 12% in 2004-05. The
market has huge potential as in urban areas (with market
size of about 42 mn tons), branded atta accounts for 2-3%
of consumption and is getting increasing acceptance.
BAKERY INDUSTRY
The annual production of bakery products which includes
bread, biscuits, pastries, cakes, buns, rusk etc is estimated
to be 50 lakh tones in 2004-05 with estimated value of Rs
69 billion. The two major bakery industries, viz., bread and
biscuit account for about 82% of the total bakery products.
The organized sector has a market share of 45 per cent and
the balance 55 per cent is with the unorganized sector in
the baked products..
DETAILED SEGMENTWISE ANALYSIS

Milling Industry Branded Flour (ATTA)
The milling industry comprises rice milling, wheat-flour
milling and pulse milling. It includes a wide range of products,
from basic ground wheat (atta) to flakes of wheat, rice or
corn. Over the years, there has been a steady process of
technology upgradation and modernization in the traditional
milling industry. The grain-processing sector is largely unorganized, although there are a few large players in the
market.
Since the packaged flour market was explored first at
a national level by the Mumbai-based DCW group in 1994,
with "Captain Cook" atta, some large players, like Hindustan
Lever (with its Annapurna brand) and Godrej Pillsbury
(Pillsbury), Agro Tech (Healthy World), Nature Fresh and
BREAD INDUSTRY
The bread industry with estimated production of 27 lakh
tons in 2004-05 and having 7.5 % growth is represented by
both the organized and unorganized sectors with 55 per cent
and 45 per cent contribution to production.
The large organized sector players who are prominent
in the high-and medium-price segments include Britannia,
Modern Industries Ltd. Brands like Modem and Britannia
are major players in the bread market and together they
account for 90% of the organized bread market.
Local manufacturers with numerous local brands cater
to populous segment and contribute considerably in the
bread segment.
Low margins, high level of fragmentation are the main
96
features in the bakery industry. Volumes, brand loyalty and

strong distribution networks are the main drivers of growth.
Organized bread industry is recently facing problems due
to low margins of profit due to escalating prices of major raw
materials, particularly wheat flour, vegetable oil, sugar,
milk.
According to All India Bread Manufacturers Association,
bread should be included as a food item in the Mid-Day
Meals Scheme and thus making a very nutritious and
hygienic food available to the children and the poorer sections
of the community.
BISCUIT INDUSTRY
The large organized sector players who are prominent
in the high-and medium-price segments include Britannia,
Parle and Bakeman. The major brands of biscuits are
Britannia, Parle, Bakeman, Priya Gold, Elite, Cremica,
Dukes, Anupam, Horlicks. Within the sector, Britannia has
become aggressive with its Tiger brand with variants to
compete with Parle's Parle-G in the glucose biscuits category.
Britannia and Parle dominate in branded biscuit segment.
The Surya Food and Agro Private Ltd with its Priya Gold
Brand has come out of the local fold.
ITC Foods Ltd has expanded network and is promoting
its Sunfeast biscuits across 1000 schools in the country.
Foreign players like United Biscuits and McVities have
also entered the fray. However, these players have
concentrated themselves in the super-premium and premium
segments.
The companies have added new variants into the existing
brands as done by Britannia in Good Day brand. Parle G
in Hide & Seek with addition of flavors like butter, badam,
pista and cashew, HLL in Kisan Grudy biscuit brand.
97
The focus on urban markets have also contributed

significantly to the growth of the biscuit industry.
Focused advertising and new launches helped the biscuit
industry to grow. The World Food Programme procuring
about 25,000 tonnes of biscuit through a tendering process
from Priya Gold, Cremica and Anmol for school children in
Pakistan, Iraq and Afganistan has opened opportunities for
the Indian companies. The top 5 manufacturers-Britannia,
Parle, Priya Gold,Cremica and Anmol have competed with
each other over prices and quantities.
Britannia, which is a market leader in the top end, has
been trying to make a dent into the mass market segment
with the Tiger Brand with more emphasis to tap the rural
market. Parle is doing the opposite, trying to break into
Britannia's strong hold with its popular Parle-G brand.
The per capita consumption of biscuits in our country is
about 1.52 kg as compared to more than 12 kg in developed
countries.
Besides the two major players, Parle and Britannia, the
State-level markets show the presence of strong regional
players such as Bakeman, Priya Gold, Shalimar, Windsor
and Champion-brands present in almost all markets.
Biscuits' packaging has undergone a swift transformation.
From Britannia's functional protective blister wraps, which
prevent breakage, to Parle's stylish offering packaging has
been completely transformed.
The excise duty cut on biscuits from 16% to 8% has given
a boost to biscuit industry. But there are some basic issues
confronting the industry.
Various States have increased Sales Tax on Biscuits
ranging from 16 per cent in Andhra Pradesh and 8 per cent
in Uttar Pradesh, Karnataka, Delhi and Haryana.
98
The Federation of Biscuits Manufacturers of India (FBMI)

wants the Central government to reconsider its decision to
include biscuits in the category of Revenue Neutral Rate
(RNR), and levy 12.5% VAT. Biscuits should be recognized
as a mass consumption item.
SEMI-PROCESSED/COOKED/READY TO EAT
The market for semi-processed/cooked and ready to eat
foods is estimated to be of around Rs 82.9 billion in 200405 and is rising rapidly with a growth rate of 20 per cent.
With the changing life styles of the Indian middle class
and the busy schedules of both the husband and wife in the
family the demand for semi-processed cooked/ready to eat
food will rise steadily as hired domestic help is also becoming
costlier.
HLL has entered the ready to eat segment through
Indus Valley rice meals in seven flavours. MTR Foods has
also launched a whole range of rice meals and other curries.
Satnam Overseas has also entered this growing market with
its Kohinoor brands of rice meals and curries. ITC 's more
than 50 packaged branded food products under Kitchens of
India and Aaashirvaad brands with different varieties of
ready to eat/cooked food is gaining popularity in the market.
Pizza Corner,has also expanded its outlets rapidly this
year. Global Franchise Architects (GFA) currently has 37
Pizza Corner outlets across India.
99
spaghetti is gaining popularity. HLL (Kissan and Knorr

range) and Nestle (Maggi) dominate this segment, as both
have large product portfolios. Heinz and Top Ramen are also
knocking at the door.
Indian snack food market has reached a value of Rs
1530 crore. It is one of the largest snack markets in the
world. Potato chips are by far the largest product category
within snacks, with 85% of the total market share. Snack
nuts and savory snacks also add
to the market. At present, popcorn has yet to break into
the Indian market.
Frito Lay's India, Pepsico's Snack Food Division having
snack foods plants in Channa (Punjab) and Pune
(Maharashtra), and going for another in (Sakrail) West
Bengal with investment of Rs 75 Crores as the state of West
Bengal has immense opportunities for agro-based industries.
The company has carried out backward integration to source
potatoes and other crops with farmers across the states
The world's largest producer of French fries and potato
specialties McChain Foods with McChain Smiles and NP
Foods have entered in India's potato snack industry in 2005.
FRUIT JUICES/PULP & CONCENTRATES/SAUCES/
KETCH UPS
The total production of culinary products and snack food

is estimated to be around Rs 1750 crore in 2004-05 and is
growing at a moderate rate of 8 per cent.
India is the second largest producer of both fruits and

vegetables in the world. Different Agro-climatic conditions
ensure availability of a wide range of fruits and vegetables
in large quantities throughout the year. India produces
about 148.6 million tones of fresh fruits and vegetables of
which fruits contribute to about 48.5 million tons and
vegetables account for the rest 100 million tons.
The culinary products including mainly wheat based

products comprising of noodles, vermicelli, macaroni and
The potential of the sector has, however, not been fully

tapped. India produces about 11 mn tonnes of processed
CULINARY PRODUCTS & SNACK FOOD
100
fruits and vegetables, fruit juices, pulp and concentrates.

The production/market for Indian fruit juice/pulp concentrate,
sauces/ketch ups is estimated to be more than Rs 2800 crore
in 2004-05 with growth rate of 18 per cent.
The market has immense potentialities provided some
infrastructural facilities for efficient transportation and
marketing of fruits and vegetables are created. Provision
should be made for creation of an efficient cold chain system
subsequently. About 89% of the processing units are in the
small and medium sectors.
Street comer vendors are still popular. Fruit juices in the
unorganized segment are considered cheaper and fresher by
the consumers, even though they are often unhygienic.
Pepsi with its brand Tropicana and Dabur Foods through
Real brand compete in the market. Coca Cola India its only
juice brand-Maaza is further is talking to multi-packaging
to attract customers. Mother dairy is also in the line to access
the market effectively through Safal brand.
Dabur Foods not only leads with innovation in its product
offerings but also has now taken the lead in redefining
traditional marketing dynamics in the segment. The
Awareness about health and more sophisticated cocktail
culture has driven growth in packaged fruit juice segment.
CONFECTIONARY INDUSTRY
The Indian confectionary market can be segmented into
sugar boiled confectionary, chocolates, mints and chewing
gums. Organized market for sugar confectionary/gums is
estimated to be 183216 tons in volume and around 19.2 bn
in value.
The entire market can be divided into 7 major categories,
namely Hard Boiled Candies (HBC), Toffees, Eclairs, Chewing
gums, Bubble gum, mints and Lozenges. The confectionary
market is highly fragmented with several players with strong
101
regional presence. Leading players are Cadbury India, Nestle,

Nutrine, Parry's Confectionary, Parle, Ravalgon, Candico
etc.
The chocolate market in India is estimated to be around
30800 tonnes. It is dominated by 2 major players, Cadbury
India Ltd and Nestle India Ltd, which together account for
about 90% of the total chocolate market.
Cadbury India is the market leader with 65-70% share
in chocolates, but Nestle is also growing faster. ITC and HLL
are also operating in the confectionery segment. Parle is
trying to revive popular Poppins melody. It plans to give the
brand a new packaging and a makeover for Mango Bite. It
is also concentrating on newer brands such as Smoothies
(lacto), Chox (chocobar) and Cafechino (coffee toffee).
Players like Cadbury and Nestl have also introduced
chocolates in smaller packs, costing less than the regular
packs to have larger penetration in the market New product
launches including-a brown and white chocolate combination
'Dairy Milk Two-in-One', 'Bytes' choclate wafer snacks by
Cadbury India are driving growth. Standard grocers are the
leading distribution channel, with one third of the Indian
confectionery market, by value. Traditional grocers are the
only other channel to take a double-digit share. The remainder
of the market shows a high degree of fragmentation. Low
margins, high volumes, price sensitivity and high advertising
expenses characterize the Chocolate industry.
The perishable nature of the product and the fact that
India lacks a cold chain distribution network are among the
major problems that inhibit market expansion. The chocolate
companies are facing problems due to scarcity of milk and
rising prices. The private dairies have raised the prices
including the prices of Skimmed Milk Powder (SMP), the
essential ingredient for manufacturing milk chocolates and
ice cream mixes in addition to biscuits and confectionery
102
103
products. The proposed Food Safety and standard Bill, 2005

with penal provisions requires a review as the same gives
huge powers to the Inspecting Officers to seize food articles
without authorization and may create unwanted confusion
to the detriment of the industry.
this has encouraged the growth of the organized sector in

the Dairy segment.
According to the Indian Confectionary Manufacturers'

Association, hard boiled candies should be brought out of the
list reserved for SSI and also there should be reduction of
excise duty on gums.
The National Dairy Development Board (NDDB) is a

major player in the market with its major brand, Amul.
Leading brands like Amul, Nestle, Mother Dairy and
Britannia are in the race to tap the growing market.
MILK AND DAIRY PRODUCTS/HEALTH

BEVERAGES
SmithKline Beecham Consumer Healthcare, Nestl India

and Heinz India are amongst the large MNCs that dominate
the high-value milk products market. Other players include
Indiana Dairy Specialties, Jagatjit Industries Ltd and various
other state co-operatives.
Milk and milk products is rated as one of the most

promising sectors in the Food Processing Industry.
India is the largest milk producing country with
production of more than 92 million tonnes.
With increased production of liquid milk, there has been
a simultaneous growth in the production of processed milk
products, including milk powder, infant milk food, condensed
milk, butter, cheese, ice-cream, ghee, curd and khoa and
khoa based sweets. The traditional dairy products are India's
largest selling and profitable segment and accounts for more
than 50 per cent of milk and dairy products.
The production of traditional dairy products is estimated
to reach Rs 1089 billion in 2004-05 against the total estimated
production of milk and dairy products of the amount of Rs
1747 bilion. The organized sector sector accounts for Rs 264
billion. It has been observed that efficient production and
marketing can bring about more than 200 per cent value
addition in the Indian dairy segment.
With liberalisation, the import of technology and
machinery has effected modernization and technological
breakthrough in production of traditional milk products and
The dairy industry is dominated by the co-operative

sector. About 60% of the installed processing capacity is in
the co-operative sector.
Some dairy plants have production of mithais on a

commercial scale. Some national brands like Haldiram,
Bikanervala, K C Das, Chitales, Ganguram, Brijwasi,
Agarwal Sweets etc are getting wide acceptance because of
consistent quality and product safety.
Encouraged by the growing market and cashing on
brand value select dairy companies are planning major
expansion plans in various cities with new brands suited to
local taste and preferences and realizing higher prices with
higher sales volumes.
The milk and dairy products segment is set for up
gradation of cold-storage chains for expansion. Mother Dairy,
a wholly owned subsidiary of National Dairy Development
Board plans to make strong presence in the market of milk
and milk products under the Mother Dairy brand through
retail outlets across the country in addition to its own 300
outlets with provision of cold storage and cold chains.
North India is one of the most important markets for
ghee since it accounts for 45 per cent of the country's ghee
104
market. There are different taxes and duties by both the

Central and State Governments. Some procedural issues
including amendment of Milk & Milk Products Order (MMPO)
of the Government of India need to be reviewed for bringing
viability in the production of milk and milk products.
For tapping the opportunities and potentials, some
initiatives and steps are required to be taken for technology
improvement, automation and computerization in the
manufacturing processes, quality control, improvement of
packaging to improve shelf life of products, investment in
R & D to develop new products and for establishing an
efficient cold chain system.
With the growing awareness about health products in
the minds of consumers, increasing urbanization, rising
standards of living and popularity of convenience foods, the
industry is expected to witness strong long-term demand
growth potential.
BEVERAGES/NON-ALCOHOLIC MALTED FOOD &
HEALTH BEVERAGE
The Rs. 14.4 bn malted foods market is composed of two
segments-brown and white. While the brown drinks are
held to be as energy boosters, the white drinks are regarded
as milk substitutes.
Malted beverages with nutritional attributes control
around 70% of the total market and energy drinks (brown
beverages) account for the rest.
The malted food drink industry is dominated by few
players. These include brands such as ' Horlicks, 'Complan'
and 'Viva', which are mainly known as white beverages.
'Boost', 'Bournvita', 'Milo' and 'Maltova' on the other hand
are classified as brown drink. Smithkline Beecham's 'Horlicks'
and 'Boost' dominate the segment with around 65 % of the
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market share. Cadbury's Bournvita, Nestle's 'Milo', Hienz's

'Complan' and Amul's 'Nutramul' are the other famous brands
of the respective players.
The consumption pattern of malted beverages differs
according to usage patterns across geographic zones. In the
southern and eastern regions white beverages are preferred
as substitute for milk. The people in the east prefer for
sweetness of taste, the southern region prefers more cocoa
based beverages.
TEA INDUSTRY
The Rs 86 bn Indian tea industry's leaders have launched
a number of instant tea drinks for the new-generation
consumers.
Tea has managed to remain on top despite repeated
onslaughts by other beverage segments largely because of
its price advantages.
India has a vast domestic market. The Industry is
estimated to have achieved a production of 878 million kg
in 2005 from 820.5 million Kg in 2004 with a growth of
about 7 per cent.
About 88 per cent of tea grown in India belongs to CTC
variety. India generally produces black tea. Black tea can
be classified into two groups-Orthodox tea and Crush, Tear
and Curl (CTC), a cheaper variety depending on the system
of processing the green leaves.
Tea plantations in India are concentrated in the NorthEast (Upper Assam, West Bengal) and the South (Kerala,
Tamil Nadu). The North-Eastern region with 82% of area
accounts for 76% of total tea production. In the North East,
the yield is lower but quality of tea is superior.
Consumers in different parts of the country have
heterogeneous taste. Dust tea is very popular in the south
106
107
and in central India. In the western states, good quality

loose tea is preferred in Gujarat, whereas in Maharashtra,
consumers provide a large market to packet as well as
unbranded tea. The eastern states of West Bengal and
Orissa and northern states consume CTC.
All tea factories are not capable of manufacturing both

CTC and Orthodox tea.
Tea trading in the domestic market is done in two waysauction and private selling. Bulk trading is done by auction.
There are six major auction centers in India
Another issue confronting the industry is that of

differential import duty on bulk and branded tea. The
differential duty has led to surge in imports of foreign tea
as well as lower quality tea in bulk form.
The main players in the tea industry are Hindustan

Lever, Tata Tea, Williamson Magors, George Williamson,
Harrisons Malayalam, Mcleod Russel, Bishnauth Tea,
Dhunseri Tea, Warren tea, AFT Industries. These ten
companies together account for approximately 75 per cent
of the turnover
In the packet/branded tea segment Hindustan lever is
the leader. The other important players in this segment are
Tata tea, Duncans, Goodricks and Jay Shree.The major
segment of the market is dominated by the unorganized
players. Besides, many local brands have entered the
packaged tea segment. There are about 1000 brands of tea
in the country and out of which more than 90 % brands are
represented by the regional players. Regional brands have
increased their market share from about 37 per cent to
around 50 per cent.
The industry is faced with multi-pronged problems. On
the one hand it is plagued by low productivity and lower
price realizations and on the other hand the changes in
demand due to changing consumer profiles and the threat
of imports put pressure on the margins. Some of the basic
issues and constraints are:
The higher age of tea plants in India compared to tea
plants in other tea producing countries has affected the
quality and yield.
Huge investment is required for installation of machinery

and equipment to enable the factories to have the facility
of dual manufacturing.
Income tax liability for tea companies is calculated

differently. It is deemed that 60% of the pre-tax profits is
agricultural income, which is taxable by the states.
The remaining 40% is taxable as corporate income by
the Centre. This Dual taxation system is hurting the industry
badly.
Tea Marketing Control Order requires all the
manufacturers to sell 75% of tea (excluding exports and
packet sales) through auction houses.
This industry is very labor intensive. Labor cost is
generally fixed and therefore lower production would result
in higher unit cost of production.
In India, large capital investment, long gestation,
stringent labor laws and restrictive land ownership laws
prevent Indian entrepreneurs from expanding tea production
and business.
The Government has also taken some policy measures
and incentives for the growth and development of the tea
industry.
The Government has extended benefit under Section 33
AB of Income Tax Act, whereby profit up to 40 per cent can
be ploughed back for these purposes.
100 per cent foreign direct investment (FDI) has been
108
109
allowed in the tea plantation sector with 26 per cent

divestment over 5 years
sales in the state with the formation of a distribution

corporation similar to Karnataka.
Replanting and modernization are very essential for

maintaining the quality and productivity of tea bushes.
Flavoured low alcohol beverage with new variants like

the 330 ml beer pack have driven sales growth across the
country. United Breweries Ltd, Shaw Wallace, MC Dowell
& Co Ltd (part of the UB Group) Radico Khaitan, Mohan
Meakins, Sula Vineyards, Mount Shivalik, Seagram India
Ltd are among the familiar names in the alcoholic beverage
industry in the country.
There has been a trend towards consolidation of the

existing tea plantations. Smaller players are being bought
over by larger estates or global consumer goods majors, as
in the case of Unilever Plc. buying over Rossell Industries.
The purchase by Tata Tea of UK-based Tetley's tea is a move
towards consolidation among the global tea majors. The
industry plans to access the market with innovative beverages
such as "herbal tea" and "iced tea" for the modern consumer
combined with an advertisement orientation. The PepsiLipton alliance to launch iced tea and cold coffee is an
initiative in this direction.. Apart from improving realizations
the tea companies are also making strategies to attract new
consumers (especially the younger generation)
ALCOHOLIC BEVERAGES
Alcoholic beverages is growing industry in India. The
alcoholic beverages industry in India is generally divided
into two main categories-Industrial Alcohol and Potable
Alcohol. Potable Alcohol segment comprises some categories
as Beer, Country Liquor, Indian Made Foreign Liquor (IMFL)
and wine. IFML primarily comprises wine, vodka, gin,
whisky, rum and brandy.
The Indian beer market has reached about 94 million
cases or 7.3 lakh kilolitre (one case is 12 bottles each of 650
ml) in the financial year, 2004-05 and is expected to reach
100 million cases in 2005-06.
The price stability throughout the year has contributed
to the increase in domestic liquor sales. The Northern region
has contributed significantly as Rajasthan has regularized
UB accounts for nearly 40 per cent of total domestic beer

sales and controls close to 50 per cent of the brewing capacity.
United Breweries (UB) Ltd, and Millennium Alcobev Ltd
(MABL), a three-way joint venture with UK's Scottish &
Newcastle (S&N) and UB group, now manage almost half
of the beer sales in the world's second most populous market.
Strong beer, which has 5 percent of alcohol content,
outsells mild beer in India and accounts for more than 68
% of the total sales.
Indian Made Foreign Liquor Market is estimated to be
105 million cases in 2004-05.
Country Liquor Market is estimated to be 175 million
cases.
Mount Shivalik Group, has pioneered the concept of the
Super Strong segment in India.
UB group has its eye open on entering the branded
country liquor business. Radico Khaitan has established its
presence significantly.The UB Group Spirits Division also
controls about 35% market share. It has developed about 66
brands with different flavours (Whisky, Rum, Brandy, Gin,
Vodka, Wines).
Another significant player in the domestic spirits market
is Seagram India which has launched a premium Vodka
brand.
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The Indian wine market, estimated at 5 lakh cases

annually, has witnessed robust 30% growth over the past
few years. This includes about 3 lakh cases of quality wine
produced by emerging domestic wine companies like Indage,
Sula and Grover's.The domestic production is having a growth
of about 20 per cent Champagne Indage Ltd., Asia's biggest
wine producer and the largest indigenous wine maker in
India, is in the process of taking its niche red and white wine
to mass market by breaking price barrier besides entering
into beer market and acquiring a vineyard in Maharashtra.
Brewers in India are gearing up for the consolidation
wave sweeping the global beer industry.
Several Indian brands have made inroads into the foreign
markets including British market. The domestic alcoholic
beverages industry is plagued with some basic issues and
constraints. The basic issues relate to distribution, mobility,
labeling laws and duty structure.
Distribution schemes vary between states. Free market
system practiced in Mumbai while Government operated
system is followed in Delhi. The auction system is operational
in Haryana and Madhya Pradesh.
Lack of uniformity in sales tax rates and other charges
by different state governments is an important deterrent.
Each state has a different tax structure and levies and other
regulations regarding licensing fees and sales of new brands.
Different states have different labeling laws that leads
to wastage, delay and higher cost of production.
Besides heavy financial implications on them, they cannot
transport their products from a market that has excess
capacity to one where there is a short supply. Treating beer
to the same level of taxing as on hard liquor is unjustified
since the alcohol content in beer is very low. Beer should
be delinked from IMFL.
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The liquor output should be brought under the purview

of the value added tax (V AT) in all States. However, the
V AT should comply with the principle of revenue neutrality
rather than a revenue enhancing measures.
According to All India Distillers' Association, there is the
need for a review of the ban imposed in the year 1975 on
the expansion of capacity for production of alcoholic beverages
As the quantitative restrictions on the import of alcoholic
beverages has been removed on 1st April 2001, there is no
justification for the ban on expansion of domestic capacity
by the domestic industry.
Increase in the price of molasses, essential raw materials
for production of alcoholic beverages due to shortage and
inadequate availability, has affected production adversely.
The Indian Liquor market is expected to grow at about
10 per cent in volume terms. The premium segment is
expected to grow by 20 % and the cheap segment is expected
to grow by 7-8 percent..
Edible Oil
The growth of the Rs. 250 bn edible oil industry in India
has been somewhat stagnant at around 5% per annum. The
market for edible/vegetable oils is estimated to be 10.4 million
tones in 2004-05 including domestic production of about 6
million tons. Nine major oilseeds contribute three-fourths of
the total oil availability in the country, including those for
industrial use.
The country resorts to sizable amount of import to bridge
the gap between domestic availability and to stabilise prices
of edible oil, an essential commodity. Oilseeds have support
price mechanisms to help the farmers.
NDDB has emerged as a major player in the sector with
its "Dhara" brand of edible oil. Even small growers and cooperatives having crushing units or solvent extraction units
112
have started branding their products. As the urban

consumers are increasingly becoming health conscious and
looking out for low-cholesterol cooking medium, branded
products have come to play a major role. Players like ITC,
Marico, Hindustan Lever, etc., in the private sector, and
NDDB, in the co-operative sector, have made strongholds
the urban market in various oil segments.
In Edible oils, National Dairy Development Board
(Anand), ITC Agro-Tech (Secunderabad), Marico Industries
(Mumbai), Ahmed Mills, (Mumbai) are the major players.
In vanaspati, Hindustan Lever (Mumbai), Wipro
(Bangalore),Rasoi (Calcutta), Avi Industries (Mumbai are
the major players.
The major oil brands are Sundrop, Dhara, Saffola,
Sweekar and Postman. The major vanaspati brands are
Dalda, Rath.
The main issues in the edible oil segment is the rising
cost of raw materials. Raw material cost account for 70 per
cent of sale price. Free imports, low import duties and slump
in global prices lead to `dumping'.
Indian Sugar Industry
India's sugar industry is amongst the largest agroprocessing industries of the country with an annual turnover
of Rs 200 billion.
But the industry is recently facing a setback in production.
Because of devastating drought, delayed payments to
farmers, inadequate availability of cane and some other
reasons production came down to 13.5 million tones in 200304 and 12.7 million tons in 2004-05.
The production of sugarcane is cyclical in nature. Hence
the sugar production is also cyclical as it depends on the
sugarcane production in the country.
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As Indian sugar industry uses sugar cane as the only

input, the sugar industries have sprung up in large sugar
cane growing states like Uttar Pradesh, Maharashtra, Tamil
Nadu, Karnataka, Punjab, Gujarat, Andhra Pradesh, West
Bengal. Uttar Pradesh and Maharashtra are the leading
sugar producing states of the country.
Of the total 564 sugar mills across the country, more
than 144 are remaining closed during the season bringing
down sugar production. Indian sugar industry is highly
fragmented with organized and unorganized players.
The farmers co-operatives own and operate the bulk of
sugar industry's total capacity. Of the total 450 mills
operating in the country, about 252 are in the cooperative
sector.
The leading players in Indian sugar industry are
Balrampur Chini Mills Ltd, Bajaj Hindustan Ltd, Andhra
Sugars Ltd, Thiru Arooran Sugars Ltd and, Dhampur Sugar
Ltd. The players are consolidating their position to increase
their market share either by acquiring smaller mills or by
going for green field capacity additions. Besides the Indian
urban market is slowly moving towards branded sugar.
The Indian sugar industry is faced with some problems.
Sugar is a controlled commodity in India under the
Essential commodities Act, 1955. The Government controls
sugar capacity additions through industrial licensing,
determines the price of the major input sugarcane, decides
the quantity that can be sold in the open market, fixes the
prices of the levy quota sugar and determines maximum
stock levels for wholesalers etc.
Dual Pricing System is adopted in the Indian sugar
industry, which includes sugar price in Public distribution
system and the free sale sugar price. As represented by
Indian Sugar Mills Association (ISMA), the industry suffers
114
Marketing of Food and Non-alcoholic Beverages
115
from lack of a uniform pricing system. Inadequate sugar

cane availability, uneconomical size, old age, bad condition
of plant and machinery are some of the reasons responsible
for closure of many mills in the country,
There is a shortfall in cash credit limit for sugar industry
by banks to the extent of 40% of requirement, according to
Indian Sugar Mills Association (ISMA).
The Central and state governments have announced
measures for the development of the industry. Central
Government has also provided inland transport subsidy for
sugar export. Maharashtra state government has provided
subsidy of Rs 1000/-for every ton exported from the state.
Government has outlined some measures involving banks
and state governments to hike cash credit limit for the sugar
factories.
The measures also include special attention to sugar by
expediting special relief package for the sugar industry and
reshaping the terms of credit by including either a one year
moratorium on loan repayment or soft loan package for state
governments meant to clear arrears to cane farmers.
3
MARKETING OF FOOD AND
N ON- ALCOHOLIC B EVERAGES
As part of the implementation of the World Health
Organization (WHO) Global Strategy on Diet, Physical
Activity and Health (DPAS), and in preparation for the
WHO European Region Ministerial Conference on
Counteracting Obesity, WHO organized a Forum and
Technical Meeting on the at the Lysebu Conference Hotel
in Oslo, Norway, from 2 to 5 May 2006. The Norwegian
Directorate for Health and Social Affairs kindly supported
both the Forum and the Technical Meeting.
The objectives of the Forum were to review the current
state of knowledge regarding the influence of marketing,
including advertising, of foods and nonalcoholic beverages
on children's dietary choices; to discuss the implications of
this influence on children's nutritional status; and to review
national experiences and actions taken by various
stakeholders to address the issue.
Participants included academics, technical staff from
ministries of health and representatives from different
stakeholder groups. They discussed the evidence of the impact
of marketing on children's diets; the changes that have
taken place in statutory regulation and self-regulation
between 2004 and 2006; different methods of categorizing
116
foods according to their nutritional composition; and the

experiences of countries with either statutory or selfregulatory processes in place. Details of the presentations
and the conclusions of the Forum are outlined in part 3 of
this report.
Having considered the information presented during the
Forum, the Technical Meeting participants discussed possible
measures that could be taken by WHO and national
governments to limit the adverse impact of marketing on
children's health.
The participants at the Technical Meeting agreed that
marketing should be defined in accordance with the
definitions of the American Marketing Association and that
all forms of commercial promotion should be considered as
part of the scope of any action. "Promotion to children" was
agreed to include both promotion that is deliberately targeted
to children and scheduled to reach them and promotion that
is targeted at other groups but to which children are widely
exposed.
"Children" was agreed to mean all persons aged under
18 years, following the United Nations Convention on the
Rights of the Child, but it was recognized that children
under the age of about 13 years are more vulnerable and
may therefore require more stringent protections.
The participants also agreed that exposure to the
commercial promotion of energy-dense, micronutrient-poor
foods and beverages1 can adversely affect children's
nutritional status. Meeting participants recommended that
WHO should:
(i) support national action to protect children from
marketing by substantially reducing the volume and
impact of commercial promotion of energy-dense,
micronutrient-poor foods and beverages to children;
117
(ii) address issues such as cross-border television

advertising and global promotional activities; and,
(iii) consider the development of an international code on
the marketing of food and beverages to children. The
recommendations from the Technical Meeting are
detailed in part 4 of this report.
The Technical Meeting was one element of an ongoing
process of evidencegathering, review and discussion with a
wide range of stakeholders. This meeting and others will
serve to inform WHO's future work on this issue.
INTRODUCTION
Chronic, noncommunicable diseases (NCDs)-including
cardiovascular disease, diabetes, cancers and other obesityrelated conditions-constituted 60% of global deaths and
almost half of the global burden of disease in 2005.
In response to this disease burden, the Fifty-fifth World
Health Assembly in May 2002 called on WHO to develop
a global strategy on diet, physical activity and health in
resolution WHA55.23. The development of this strategy
involved consultations with Member States in all WHO
Regions, other United Nations organizations, other
intergovernmental bodies, and representatives of civil society
and the private sector. Advice was also provided by a reference
group of independent international experts.
Marketing of foods to children was often mentioned
during these consultations as an important topic requiring
action. In addition, the Report of a Joint WHO/FAO Expert
Consultation Diet, nutrition and the prevention of chronic
diseases, launched in April 2003, notes that there are limits
to what individual countries can do alone to promote optimal
diets and healthy living. It states that:
Strategies need to draw substantially on existing
118
international standards that provide a reference in

international trade. Member States may wish to see additional
international standards that address, for example, the
marketing of unhealthy food (particularly those high in
energy, saturated fat, salt and free sugars, and poor in
essential nutrients) to children across national boundaries.
The WHO Global Strategy on Diet, Physical Activity and
Health (DPAS), together with the resolution by which it was
endorsed, was formally adopted by the Fifty-seventh World
Health Assembly in May 2004. The strategy recognizes the
heavy and growing burden of NCDs and addresses two of
the main risk factors for NCDs-diet and physical activity.
The goal of the strategy is to promote and protect health by
guiding the development of an enabling environment for
sustainable actions at individual, community, national and
global levels which, when taken together, will lead to reduced
disease and death rates related to unhealthy diet and physical
inactivity.
DPAS specifically points to the responsibility of Member
States to formulate and promote national policies, strategies
and action plans to improve diet and encourage physical
activity and recommends that governments should provide
accurate and balanced information to consumers. In this
context, the strategy highlights the fact that food advertising
affects food choices and influences dietary habits. It specifies
that food and beverage advertisements should not exploit
children's inexperience or credulity.
Messages that encourage unhealthy dietary practices or
physical inactivity should be discouraged, and positive,
healthy messages encouraged. DPAS states that governments
should work with consumer groups and the private sector
(including advertising) to develop appropriate multisectoral
approaches to deal with the marketing of food to children,
and to deal with such issues as sponsorship, promotion and
119
advertising. The strategy also notes that the private sector

can be a significant player in promoting healthy diets and
physical activity.
At the time that DPAS was adopted, WHO published a
report on the global regulatory environment related to the
marketing of food and non-alcoholic beverages to children.
The report concluded that, while many countries have a
range of regulations applicable to the marketing of food to
children in place, there were gaps and variations in the
existing global regulatory environment, and enforcement of
regulations varies considerably between countries. An
updated version of the report was presented as a background
paper at the WHO Forum and Technical Meeting on the
In June 2005, a WHO Expert Meeting on Childhood
Obesity was held in Kobe, Japan, which reviewed major
contributing factors to childhood overweight and obesity;
the assessment issues for identifying overweight and obesity
among school-age children and adolescents; and the existing
intervention programmes, their impacts on preventing
childhood obesity, and lessons learnt. Outcomes of the Expert
Meeting included various issues related to assessment and
monitoring of the growth of school-age children and
adolescents and effective strategies to prevent childhood
obesity, in particular in school settings, as well as possible
measures to ensure that the marketing and promotion of
food and non-alcoholic beverages to children are consistent
with the achievement of a "healthy" diet.
Lastly, it is noted that work aimed to limit the adverse
impact of marketing on children's health is in accordance
with the rights of children for protection as acknowledged
by the United Nations Convention on the Rights of the
Child, the right to adequate food, as set out in the
International Covenant on Economic, Social and Cultural
120
Rights, and consistent with the United Nations guidelines

for consumer protection.
Following these developments and as part of the
implementation of DPAS, WHO headquarters, in
collaboration with the WHO Regional Office for Europe,
organized a Forum and Technical Meeting in Oslo, Norway,
from 2 to 5 May 2006 on the marketing of food and nonalcoholic beverages to children. For the first two days
representatives from health and consumer nongovernmental
organizations, private food and advertising industry trade
associations, academics, technical staff from ministries of
health, and representatives of organizations of the United
Nations system, the International Food Policy Research
Institute and the European Commission met at the Forum
to review and discuss the current state of knowledge
regarding the influence of marketing and various national
experiences of how the issue can be addressed. On the two
following days, academics, technical staff from ministries of
health, and representatives of organizations of the United
Nations system, the International Food Policy Research
Institute and the European Commission met for a Technical
Meeting to suggest possible measures to be taken. The
Norwegian Directorate for Health and Social Affairs
generously supported the convening of the meetings.
This is the combined report of the WHO Forum and
Technical Meeting on the. The report outlines the purpose
of the meetings, summarizes the discussions that took place
in the Forum, and details the conclusions and
recommendations from the Technical Meeting that followed.
The structure of this report follows the structure of the
meetings.
The report from the Forum and the recommendations of
the Technical Meeting to WHO will serve to inform WHO's
future global work in the area of marketing food and non-
121
alcoholic beverages to children and, with other background

documents and the European Charter on Counteracting
Obesity, will feed into the WHO European Region Ministerial
Conference on Counteracting Obesity in November 2006.
DEFINITION OF REGULATION
For the purpose of the Forum, the Technical Meeting
and this report, the definition of regulation was taken from
Hawkes as follows:
Regulation is "broadly defined as any law, statute,
guideline or code of practice issued by any level of government
or self-regulatory organization (SRO). Regulations can be
divided into three categories:
o statutory regulations
o non-statutory government guidelines
o self-regulations
Statutory regulations are either texts enshrined in
laws or statutes, or rules designed to fill in the details of the
broad concepts mandated by legislation. The development,
promulgation and enforcement of statutory regulations are
the responsibility of government or a mandated body.
Self-regulations are put into place by a self-regulatory
system whereby industry actively participates in, and is
responsible for, its own regulation. Led, funded and
administered by the industries concerned, self-regulation
normally consists of two basic elements. The first, a code of
practice-a set of ethically-based guidelines-governing the
content of marketing campaigns, and the second, a process
for the establishment, review and application of the code of
practice. This process can be structured in many different
ways, but typically involves an SRO set up by the advertising
and media industries, and in many cases also involving the
companies that use advertising to promote their products or
122
services. Self-regulation may be mandated by government

framework legislation, but can also exist completely
independently of government regulation."
In some cases voluntary codes are developed by individual
companies-these are not the same as selfregulation but should
still be considered for their potential impact on marketing.
OPENING SESSION
The meeting was opened by Professor Knut-Inge Klepp,
Chair of the Norwegian National Council for Nutrition, who
introduced the speakers. The Norwegian State Secretary for
Health, Ms Rigmor Aasrud, welcomed everyone to Norway.
She highlighted the active involvement of Norway in the
development of the WHO Global Strategy on Diet, Physical
Activity and Health and expressed support for the
multisectoral approach. In Norway, an action plan on physical
activity was launched in December 2004, and an action plan
on promoting a "healthy" diet, which will discuss possible
restrictions on marketing to children, will be finalized in late
2006. An intersectoral strategy to tackle inequalities in health
is also being developed. In the context of improving labelling,
the Norwegian health authorities are now also considering
whether or not symbols, similar to the Swedish keyhole
symbol, should be introduced as a government initiative.
Norway would support the development of such a system at
a European level.
Ms Aasrud urged the WHO Secretariat to continue its
efforts to promote and coordinate implementation of DPAS.
She said she looked forward to seeing the results of the
meeting and highlighted the 2006 World Health Assembly
as an opportunity to give further attention to the issue of
marketing to children.
The Director General of the Norwegian Directorate for
Health and Social Affairs, Bjrn-Inge Larsen, said he
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welcomed the opportunity to examine-together with the

leading experts in the field-the different aspects of marketing
food and beverages to children. He highlighted the WHO
Child Growth Standards launched in late April 2006 in
Geneva, Switzerland, as a key tool for the prevention and
early recognition of childhood obesity.
Mr Larsen pointed out that Norway has a long history
of nutrition policy going back to the formulation of an
integrated Food and Nutrition Policy proposed by the
Government and endorsed by Parliament in 1976. He said
that the current major challenges are increasing fruit and
vegetable intake, addressing the sharp increase in sugar
consumption among children and adolescents and tackling
overweight and obesity.
To prevent the development of an obesity epidemic,
Norway regards preventive measures as very important,
including possible restrictions on the marketing of energydense, nutrient-poor foods to children. Mr Larsen said the
Norwegian authorities should be a driving force in creating
common international regulations in this area and welcomed
the WHO initiative. Norway has a long tradition of using
tax and marketing restrictions in the field of tobacco and
alcohol and Mr Larsen felt that now the time had come to
consider such measures in other areas of public health.
Dr Denise Coitinho, Director of the WHO Department
of Nutrition for Development and Health, then welcomed
participants to the meeting on behalf of WHO headquarters.
She pointed out the importance of taking further steps in
the implementation of DPAS based on the growing problem
of child obesity worldwide. She described the meeting as an
important response to the challenges set out in DPAS, and
said that the International Code of Marketing of Breast-milk
Substitutes could provide guidance to the discussions in this
meeting.
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Dr Francesco Branca, Regional Adviser for Nutrition

and Food Security, welcomed everyone on behalf of the
WHO Regional Office for Europe.
He highlighted relevant initiatives at the European
Regional level and, in particular, the WHO Ministerial
Conference on Counteracting Obesity, which will take place
in Istanbul in November 2006. This Conference is expected
to adopt a European Charter on Counteracting Obesity and
to provide feedback on a draft second European Food and
Health Action Plan.
Dr Branca said that the WHO Forum and Technical
Meeting were important parts of the preparatory process for
the Ministerial Conference and subsequent European Charter
and Action Plan.
The objectives of the Forum and the Technical Meeting
were described by Dr Colin Tukuitonga, Coordinator of the
WHO Surveillance and Population Based Prevention Unit
in the Department of Chronic Diseases and Health Promotion
at WHO headquarters.
Objectives of the Forum
To review the current state of knowledge regarding
the influences of marketing, including advertising, of
foods and non-alcoholic beverages on children's dietary
choices.
To discuss the implications of this influence.
To discuss national experiences and actions taken by
various stakeholders to address the issue.
Objectives of the Technical Meeting
To summarize and complete the discussions and
evidence presented at the Forum on the current state
of knowledge regarding the influences of marketing
on dietary choices.
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To provide guidance for various actors and

stakeholders on how to manage and limit the negative
influences of marketing and advertising of foods and
non-alcoholic beverages on children's dietary choices,
while encouraging the promotion of healthier food
and beverage options.
To indicate elements to be included in future
guidelines.
WHO FORUM
The Forum was attended by representatives of a wide
variety of stakeholders, including representatives of health
and consumer nongovernmental organizations, private food
and advertising industry trade associations, academics,
technical staff from ministries of health, and representatives
of organizations of the United Nations system, the
International Food Policy Research Institute and the
European Commission. The following summaries of the
speakers' presentations are based on the presentations given
at the Forum supplemented by abstracts provided by the
speakers.
Marketing Foods to Children
This first session examined different perspectives on
The session comprised an overview of the nature of food
marketing and the need for change, a review of the evidence
of the effect of food advertising on children, and an assessment
of the changes in statutory regulation and self-regulation
of food marketing to children since the last review in 2004.
Food Marketing and Children: Setting a Course for

Change
The marketing of food to children accomplishes what
industry intends.
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Cultivated as consumers at very early ages, children are

trained to desire foods and beverages whose typical
consumption may compromise health.
Science on the topic is abundant and converges on
unambiguous conclusions, namely that such marketing to
children increases:
consumption
preference for energy-dense, low-nutrient foods and
beverages
purchase requests
purchases
positive beliefs about food and beverage products.
Swift and aggressive action should be taken to address
food marketing (and the other proven contributors to poor
diets) if there is to be any hope of curtailing poor nutrition
and obesity in children. This requires anticipating industry
manoeuvres that could undermine public health mandates
for promotion of foods such as fruits and vegetables; noting
that traditional advertising on television, radio, and billboards
is merely a fraction of total marketing (hence all forms of
marketing must be included); and taking a creative approach
to limiting damaging practices.
Industry activities, such as the promotion of physical
activity and marketing self-regulation do not adequately
address the problem and can be a diversion, possibly doing
more harm than good by forestalling legislation and litigation.
Considerable talent resides in the food industry and in
the marketing and lobbying industries which support it.
Harnessing this human capital for good is possible but will
only occur in response to government action or public outrage.
Public opinion polls show substantial support for regulation
to curtail food marketing aimed at children. The convergence
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of science and public opinion makes the present an ideal

time to act decisively. A creative approach to the problem
is needed. One way may be to set the industry a target-for
example a 25% reduction in children's consumption of certain
types of food-and leave the industry free to decide how it
will achieve the target.
The Extent, Nature and Effects of Food Promotion to
Children: A Review of the Evidence
A recent systematic review of the extent and nature of
food promotion to children, and its effects on their food
knowledge, preferences and behaviour, focused on the
following questions:
What is the extent and nature of food promotion to
children?
What are the effects of food promotion on children's
food knowledge, preferences and behaviour?
The findings in relation to the extent and nature of food
promotion were that:
Food dominates advertising to children.
Five product categories dominate this advertising (soft
drinks, presugared cereals, confectionary, snacks and
fast food restaurants).
The advertised diet contrasts dramatically with the
recommended diet.
Children engage with and enjoy this "unhealthy"
advertising.
The findings in relation to the effects were that:
Food promotion influences children's nutritional
knowledge, food preferences, purchasing and
purchase-related behaviour, consumption, and diet
and health status.
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The extent of the influence is difficult to determine

(though advertising is independent of other factors).
Food promotion affects both total category sales and
brand switching.
While the more complex studies have all been undertaken
in developed countries, the review shows that children
respond to advertising in much the same way regardless of
their country's place on the development ladder. In fact,
there is reason to believe that children in developing countries
may be even more vulnerable to food promotion because:
They are less familiar with advertising.
They are a key entry point for developed country
firms because they are more flexible and responsive
than their parents.
They associate developed country brands with
desirable attributes of life.
Consideration should therefore be given to how
infrastructure can be developed so that countries have
adequate complaints procedures and mechanisms for
enforcing and monitoring either legislation or self-regulatory
activities.
The review is likely to understate the problem. The
evidence base focuses on television advertising, with relatively
little attention given to other forms of advertising, and
several indirect effects of marketing are not considered. The
review concludes that food marketing affects children's food
behaviour in a negative way and therefore global action is
needed on the marketing of food to children.
Changes in the Global Regulatory Environment
In May 2004, WHO's DPAS called on governments,
private industry, and consumer groups to take action against
marketing messages that promote unhealthy dietary practices.
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A review based on a systematic research strategy was recently

carried out to investigate changes that have occurred in the
regulatory environment around food marketing to children
since then. Although some changes have occurred, from a
global perspective there has been more talk about regulation
than action to implement regulations. It appears that this
heightened level of discussion and action has been directly
and indirectly stimulated by DPAS and as a result there are
now increasing numbers of ideas and proposals on how food
marketing to children can be regulated. Countries can draw
on these experiences as a means of informing the development
of regulation appropriate to their national contexts.
Six key trends are discernible:
The development of self-regulatory codes by the
advertising and food industry. Industry has been
proactively developing self-regulatory processes. Since
2004, 10 countries have developed or revised
selfregulatory codes on food-almost a 100% increase.
However, the activity has been largely limited to
Australasia, Europe and North America. The industry
has also been lobbying aggressively against any
legislative proposals to restrict food marketing to
children.
Slower development of statutory regulation by some
governments, despite strong advocacy by public health
and consumer groups.
Some governments have taken action to address food
marketing to children; they have supported developments
in self-regulation and discussed options for statutory
regulation, although there has been little real change in
statutory regulation. Consumer groups remain firmly in
favour of statutory restrictions. In different parts of the
world consumer groups have stepped up campaigns calling
for statutory regulation on all forms of marketing and have
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produced numerous reports indicating that the marketing

of energy-dense, nutrient-poor foods is continuing and
intensifying.
A concentration of activity in high-income countries.
There is relatively little action to restrict marketing
in middle-and low-income countries, despite the fact
that it is in these countries where advertising and
promotional activities are growing faster and
potentially have a greater impact.
A continued focus on television advertising. Most of
the discussions about regulation have focused on
television advertising and in schools. However, since
2004, increased awareness and attention has been
paid to other promotional techniques.
The continued growth of traditional and/or nontraditional advertising techniques. This is true for all
countries, but particularly for middle-and low-income
countries, and is partly stimulated by the liberalization
of advertising services markets.
More attention is now paid to monitoring and
enforcement. This includes both existing and new
regulations. However, monitoring is still inadequate
in terms of measuring the impact of regulations on
the quantity and quality of food promotion and on
children's food choices and diets.
In order to move forward, the goals of regulation need
to be clarified in relation to whether we are aiming for:
responsible marketing to children (quality);
reduced amount of food marketing experienced by
children (quantity);or
improved food choices made by children and their
parents (outcome).
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It is also important that the level and type of evidence

needed to support t development of regulations is clarified
and targets are set to evaluate the impa of regulations as
and when they are implemented.
Categorizing Foods according to their Nutritional
Composition
For a long time food has been categorized in various
ways to show what should be eaten more of and what should
be eaten less of. However, different stakeholders often use
different criteria when categorizing foods to identify which
are the healthier options on offer.
Nutrient profiling refers to a range of different
mechanisms for classifying foods according to their nutritional
value-varying from a simple definition of "low fat" being less
than 3 g to the much more complicated nutrient profiling
model recommended to inform the restrictions on advertising
to children in the United Kingdom. Nutrient profiling can
be defined as "the science of categorizing foods according to
their nutritional composition". It can be used to communicate
effectively with consumers the nutritional implications of
their purchasing decisions.
There are a number of reasons why it might be important
to distinguish between "unhealthy" and "healthy" food,
including:
improving the comprehensibility of nutrition labelling
regulating nutrition and health claims
compositional standards for foods
reforming taxation/subsidy systems
regulating the marketing of foods (to children).
This session considered different nutrient profiling
methods under development and their potential usages.
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Nutrient
Kingdom
Profiling-experience
from
the
United
The marketing of foods to children is generally held to

be beneficial if the foods marketed contribute towards a
"healthy" diet and conversely is held to be harmful if the
foods marketed do not.
Therefore, there needs to be clarity about which foods
contribute towards a "healthy" diet and which do not. Clarity
is also crucial when seeking to regulate the marketing of
food to children, e.g. when drawing up rules or guidelines
on which foods should be allowed in vending machines in
schools, or which foods should be allowed to be advertised
to children on television.
Manufacturers already use different forms of nutrient
profiling systems to justify their marketing strategies. A
uniform system would help consumers make their choice.
A systematic, staged approach to developing nutrient
profiling involves generating a variety of different "nutrient
profile models" and testing the different models to assess
which is most suitable using different validation methods.
A nutrient profiling model has been developed by the
United Kingdom Food Standards Agency as a tool for
categorizing foods on the basis of their nutrient content. The
agency's nutrient profiling model uses a simple scoring system
to rate the overall balance of nutrients in a food. It identifies
foods high in fat, salt or sugar while recognizing the important
contribution of fruit, vegetables, cereal, meat and dairybased products to a balanced diet.
The model was delivered to the Office of Communications
(Ofcom), the independent regulator and competition authority
for the United Kingdom communications industry, on 6
December 2005, to help tighten controls on the advertising
to children of foods high in saturated fat, salt or sugar. The
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approach was tested on food sold in the United Kingdom and

therefore may not be relevant for other countries. The global
applicability of nutrient profiling systems may require further
work to allow for a broad range of food products, and they
may need to be adapted in the context of local foodbased
dietary guidelines.
Comparisons of Different Systems of Nutrient
Profiling-merits and Limitations
Growing concern about food-related diseases-such as
childhood obesity-has led to increased interest in nutrient
profiling. Nutrient profiling systems aim to categorize foods
according to their nutritional composition while also taking
into account current objectives of nutrition policies. When
developing a nutrient profiling system, a series of practical
questions arise, including:
Which nutrients should be examined?
Should we consider specific food categories or take a
more general approach?
Other technical questions should also be considered,
such as:
What is the reference basis e.g. should foods be
compared on a 100-g, 100-kcal, or portion basis?
Which mathematical model should be followedthreshold, scoring or continuous?
How should the final result be presented?
An overview of existing nutrient profiling schemes
illustrates how technical matters may influence the final
result. Indeed, when comparing how different systems rank
the same foods, consistency is often relatively weak-this may
be shown using a list of 125 food items ranked by four
different systems. In addition, practical objectives have often
driven the methodological decisions and-while this might
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seem a pragmatic approach-this usually produces systems

which are only fit for a unique purpose and that are not
easily adaptable.
For instance, while some nutrient profiling schemes take
into account both "negative" and "positive" nutrients, others
are only concerned with the negative properties of food.
There are also systems that include whole food groups-such
as fruits and vegetables-in addition to several nutrients
such as fat, sugar, sodium, fibre, vitamins, minerals and
protein.
A validation step to compare systems is clearly needed.
Validation methods which have been proposed but are not
yet operational include comparison with expert opinion and
more science-based procedures.
If the primary goal of the nutrient profiling systems is
to improve the nutritional quality of the diet, then we need
to consider how they can be used, not only in relation to the
marketing of foods to children and to determining foods
eligible for health claims, but also for food and nutritional
labelling, consumer education, and industry research and
development. The variety of systems in place today-and
their relative incompatibility-may be very confusing for all
stakeholders, including consumers.
Work is currently under way to develop innovative and
science-based systems focused on improving the quality of
the diet. However, even the perfect nutrient profiling system
will remain a technical tool used to inform decisions that
have to be taken and implemented in a political context.
The keyhole label is a simple, positive label used to help
consumers make "healthy" food choices. The label was
introduced during the 1980s as part of a regional intervention
project in northern Sweden to reduce the prevalence of
coronary heart disease. Today the symbol is used nationally
on a voluntary basis, and is free of charge to the user. The
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criteria for labelling are set by the National Food

Administration.
The symbol combines two elements-the food circle and
the food pyramid. When the symbol appears on a package
it guarantees that the product has a low amount of all of
the following ingredients:
total fat
saturated fatty acids
trans fatty acids
added sugars
salt as sodium and/or that the product has a high
amount of fibre
The keyhole label is a relative, not an absolute, scheme,
indicating nutritionally better options within a category.
The criteria are based on the products that are on the
market today and the scheme should be regarded as ongoing
and dynamic where the criteria will change over time. One
of its main purposes is to serve as an incentive to the food
industry to reformulate products to make them more
"healthy". The keyhole labelling scheme is a positive labelling
scheme promoting healthier products. It does not identify
energy-dense, nutrient-poor foods and therefore cannot be
used to identify those foods for which there should be
marketing restrictions.
Practical Application of Nutrient Profiles: the Swedish
Keyhole System
Examples of countries with statutory regulatory or
selfregulatory measures to control marketing of foods and
non-alcoholic beverages to children.
This session examined a number of national approaches
to the statutory regulation of marketing of foods to children,
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137
examples of self-regulatory approaches, and a discussion of

the pros and cons of statutory regulation versus selfregulation.
legislation prohibiting advertising of food and

beverages in schools
Advertising Foods to Children in Norway
warning systems (such as on tobacco products)
The Office of the Consumer Ombudsman is an

independent authority that monitors marketing activities
and negotiates contracts between consumers and business.
In addition, the Ombudsman can impose sanctions. A brief
survey done by the office showed that a large number of
television commercials shown during youth programmes
promote "unhealthy" foods-such as chips, sweets and
chocolate-while hardly any "healthy" food is advertised.
campaigns for "healthy eating" in schools
the introduction of labelling systems
negotiating guidelines with business

additional legislation after five years if advertising
has not been reduced.
In Brazil, there is currently no specific legal regulation
on food marketing to children. However, several initiatives
are being developed:
Several laws regulate the marketing of food and

beverages to children in Norway today. The Marketing
Control Act is the general regulation for all marketing
activities supervised by the Consumer Ombudsman. This
Act states that marketing activities should not be in conflict
with good marketing practice or otherwise unfair on
consumers and that marketing should not be misleading or
incorrect. The Office of the Consumer Ombudsman has
handled several cases of misleading or incorrect marketing
practice, most of which have been initiated by consumers.
The State of So Paulo Congress passed a law in

February 2005 creating a public policy to prevent
obesity. When fully implemented by an Executive
Act, this will provide the legal basis on which to
restrict marketing to children.
There is no overall self-regulatory framework to address

food marketing aimed at children in Norway. Several
companies claim to have internal guidelines, but do not
promote them. No initiatives have been taken by trade
associations to establish a self-regulatory framework.
In 2003, two lawsuits were filed against soft drinks

companies based on the Consumer's Defence Code.
One case was overruled but in the other it was ruled
that the company should stop marketing to children
and that it should warn consumers on every soft
drink container and in all advertising that excessive
sugar consumption may damage health.
Several additional measures must be taken in the future

combining selfregulatory measures, corporate social
responsibility and legislation.
Education and information is essential and schools must
play an important role in this. Suggested measures to address
marketing aimed at children include:
The federal health agency is aiming to pass a regulation

banning all forms of commercial promotion of products
rich in fat, sugar or salt and compelling companies
to include a statement about "healthy" eating with
every piece of commercial promotion.
Other key points made in the presentation included the

following:
No one will ever be able to establish what constitutes
"sufficient evidence" of the influence of marketing on
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children's diet. Thus, delaying action until we have

"sufficient evidence" is a trap. We should not convert
to a perennial debate what can already be considered
a known fact.
Measures successfully taken to prevent tobacco and
alcohol use should be used as models to control
marketing influences. These include counteradvertising, public campaigns, lawsuits, reduction of
marketing power and taxation.
Controls on marketing should form part of an extensive
public policy to combat obesity.
The two main obstacles to the adoption of legal
measures to control marketing influences are the
strong lobby against them and the lack of public
support for them due to the limited information
available about the magnitude and causes of the
public health problem.
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at children less than 13 years of age are totally prohibited.

The regulatory ban on advertising to children is very broad
and applies to any goods, including but not limited to food,
and to all forms of advertising. Section 248 of the Consumer
Protection Act stipulates that "Subject to what is provided
in the regulations, no person may make use of commercial
advertising directed at persons under 13 years of age".
To determine what constitutes an advertisement directed
at children, Section 249 of the Act states that "account must
be taken of the context of its presentation, and in particular
of:
(a) the nature and intended purpose of the goods
advertised;
(b) the manner of presenting such advertisement; and
(c) the time and place it is shown". A scale chart is used
to assess whether an advertisement is directed to
children.
Nongovernmental organizations and advocates should

file lawsuits against companies for abusive campaigns.
Marketing Control Measures in Brazil
More emphasis needs to be given to the psychological

consequences of obesity, including distress, low selfesteem, social discrimination and stigmatization among
children.
Elements to define an advertisement directed at children

Legislation is enforced by the Consumer Protection Law
Enforcement Agency in Quebec. The agency reports directly
to the Minister of Justice and has all the necessary
investigation and prosecution powers to enforce the law.
WHO, because of its impartiality and credibility, has

a very important role in providing technical support
and guidance for policy-makers around the world,
and also in disseminating information and monitoring
progress in relation to the regulation of food marketing.
Advertising to Children
In 1978, the Government of Quebec enacted the
Consumer Protection Act, which came into force in 1980.
Under this Act, all forms of commercial advertising directed
Although the agency does not have a Clearance

Committee; advertising agencies and legal firms consult
with it on a regular basis. The compliance with this
prohibition is mainly monitored through a complaint filing
system and media reports on the issue.
The provisions were challenged by the industry as soon
as they were enacted. After a long judicial debate, the
Supreme Court of Canada ruled in 1989 that although the
prohibition constituted a restriction to the freedom of
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expression guaranteed by the Charter of Rights, this

limitation is reasonable and justifiable in a free and democratic
society mainly because the purpose of the measure is the
"protection of a group which is particularly vulnerable to the
techniques of seduction and manipulation abundant in
advertising".
Self-regulatory Code on Advertising of Food Products
Aimed at Minors in Spain
In February 2005, the Spanish Food Safety Agency
launched a Strategy for Nutrition, Physical Activity and
Prevention of Obesity (NAOS Strategy), with the goal of
promoting a "healthy" diet and physical activity.
One of the objectives of the strategy was to develop a
framework for collaboration with the food industry to promote
the production and distribution of products that contribute
to a healthier, more balanced diet. As part of this collaboration,
an agreement was signed with the Spanish Federation of
Food and Drink Industries to develop a code to regulate
advertising and marketing of food and beverages aimed at
children.
This "Code of Self-Regulation of the Advertising of Food
Products Directed at Minors (translation from Spanish)"
(PAOS Code) is a big step forward in the regulation of
commercial promotion of food. Aiming to reduce the
commercial pressure on children to consume disproportionately, the code states that advertising will not exploit the
special confidence of children, including through parents,
teachers or celebrities.
It requires special caution in advertisements directed to
children under the age of 12. The PAOS Code explicitly
states that celebrities cannot be used by commercial companies
to promote food and drink, unless used to "promote healthy
eating habits" (or physical exercise) among children. It also
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states that since children cannot distinguish clearly between

television programmes and advertising, advertisements
directed at minors must be clearly distinguished from
programmes. As a general rule, food advertising cannot
promote "unhealthy" food practices or sedentary lifestyles.
No product should appear as a substitute for any of the three
main daily meals.
As of December 2005, there were a reported 35 signatories
to the code, including the Spanish Federation of Food and
Drink Industries. Enforcement of the PAOS Code is the
responsibility of the Spanish Association for the SelfRegulation of Commercial Communication (Autocontrol)
funded by the commercial sector. This self-regulation is in
addition to the existing government control mechanisms.
Any infractions of the code are assessed by an Autocontrol
jury composed of "prestigious persons in the fields of
advertising and commercial communication".
Companies that infringe the code are fined, with a
maximum sanction of 180 000 euros, according to the level
of premeditation and unfair competition to other food
companies. Funds raised from these fines are used to cover
administrative costs and to undertake educational campaigns
to promote "healthy" lifestyles. Autocontrol also offers copy
advice for advertisers in advance of broadcasting. A separate
Monitoring Commission-made up of consumer and industry
representatives and chaired by a government official-has
also been created to review the operation of the PAOS Code
and to propose improvements.
Country Perspective: South Africa
Concern about childhood obesity and the marketing of
food is not currently seen as a real issue in South Africa
although increasing local media coverage indicates that the
issue is slowly gaining momentum.
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South Africa has a very young population with nearly

50% of the population under the age of 20.
The South African advertising industry compares with
the best in the world and it employs the full spectrum of
techniques in promoting to children. Six out of the 10 main
advertisers promote food.
Since 1969 the country has opted for a voluntary system
of self-regulation based on that in the United Kingdom. The
South African Advertising Standards Authority is responsible
for the regulation of advertising within this self-regulatory
framework. The authority operates with a Code of Advertising
Practice, in which provisions for the protection of children
are made. The Code stipulates pre-clearance of
advertisements. Non-compliance results in sanctions. No
consumer complaints relating to food advertising targeting
children have been received by the Advertising Standards
Authority in the recent years.
Academic research on advertising aimed at children is
sparse in South Africa, while commercial research is plentiful.
Civil society appears to pay little attention to the issue of
marketing to children, and it is not a priority on the
government's agenda. More support for research and a
comprehensive media literacy campaign to introduce and
engender healthy scepticism are important parts of the
solution to the issue of advertising aimed at children in
South Africa.
The New Zealand Ministry of Health developed "Healthy
Eating Healthy Action" (HEHA) in 2003 and its
implementation plan in 2004. The HEHA strategy is an
integrated policy framework relating to nutrition, physical
activity and obesity which aims to bring about changes in
the environment in which New Zealanders live, work and
play. It brings together HE (healthy eating) and HA (physical
activity).
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The HEHA strategy outlines the multiple actions required

by multiple players and sets out government expectations
for a wide range of other public and private sectors, e.g. local
government, transport, education and industry. The
Advertising Standards Authority regulates advertising in
New Zealand. The complaints board reviews complaints about
advertisements that contravene the code of practice in any
media and requests withdrawal of advertisements found to
be in breach. There has been 100% compliance with rulings
to date.
The codes regarding children and food have recently
been reviewed, largely as a result of initiatives arising from
the HEHA strategy. This review has led to significantly
strengthened codes linked with the strategy, with Food and
Nutrition Guidelines and with the United Nations Convention
on the Rights of the Child.
The Food Industry Accord, representing marketers,
manufacturers and retailers, arose from the HEHA Industry
Group, driven by the twin goals of social responsibility and
a desire to avoid regulation.
The Food Industry Accord is not a partnership with the
Ministry of Health, but is an industrydriven body responding
to strong imperatives from the Minister of Health to "do
more". The accord has been a driver of a number of industry
initiatives, including a review of the Advertising Standards
Authority's advertising codes. Discussion continues around
ways to further strengthen the self-regulatory mechanisms.
Experiences from New Zealand
At a wider level, a key strategy of HEHA is to mobilize
community and intersectoral action around goals to build
community ownership, and establish and support an impetus
for change. Thus a wide range of projects-at District Health
Board, community, school, primary care and local government
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levels-are under way and will be supported by a national

social marketing campaign.
APPROACHES BY THE PRIVATE SECTOR AND
INITIATIVES BY HEALTH AND CONSUMER
ORGANIZATIONS
Responsible Food and Beverage Marketing
Owing to the rising incidence of obesity worldwide, food
marketing has come under the spotlight. Despite a lack of
agreement on the role of marketing, advertisers have taken
action to address societal concerns.
Advertisers are investing to strengthen standards
and governance structures for responsible marketing.
The vision is of standards that operate effectively
within a regulatory framework, through participative,
accountable and transparent governance structures,
and that are enforced effectively.
Advertisers have invested heavily in media literacy
education for children. For example, the Media Smart
programme now operates in over 30% of primary
schools in the United Kingdom.
The World Federation of Advertisers has made
substantial commitments to the EU Platform on Diet,
Physical Activity and Health and participates in
similar multi-stakeholder platforms in several
countries. The federation is also in dialogue with the
European Commission and nongovernmental
organizations through the EU Advertising
Roundtable.
The World Federation of Advertisers recognizes that
advertising has a modest effect on children's food preferences,
but that this effect is small compared to a variety of other
factors. Furthermore, the federation does not believe that
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the literature provides evidence of a link between advertising

and obesity. Obesity is rising worldwide despite a marked
decline in food advertising in most mature markets and
there seems to be no correlation between obesity levels and
marketing regulation.
There is a need to address societal concerns, but the
policy instruments must be based on a realistic understanding
of the food chain and the role of marketing. Marketing is
central to the process of increasing the demand for "healthy
options"; without marketing there will be no competition,
innovation or increased choice. Regulation cannot be effective
if it stifles competition or innovation. Marketing standards
are a valuable complement to regulation, and are most
effective when set at national level, based on specific cultural
and socioeconomic sensitivities and needs.
Marketing to Children: Threat or Opportunity? A
Choice for the Future
The title of the Institute of Medicine's report Food
marketing to children and youth: threat or opportunity?
encapsulates a basic choice to be made by those interested
in improving child nutrition and health today-are we going
to approach marketing to children primarily as an evil which
is to be controlled, or will we harness the power of
communication, combining social marketing with commercial
marketing, to improve the diets of children? The European
food industries have already taken important steps in creating
principles of marketing and advertising as the basis for
national norms to be used by governments, companies, and
industry associations.
Some examples of European food industries which have
created such principles are the Confederation of the Food
and Drink Industries of the EU, the Union of European
Beverages Associations, the European Vending Association,
as well as the International Chamber of Commerce. However,
146
147
these principles (limits) on marketing are unlikely to achieve

the objectives laid out by the Institute of Medicine unless
they are a part of an overall communications and marketing
effort to promote "healthy" diets.
For food advertising, EASA applies its Best Practice

Recommendation on Monitoring, based on the International
Chamber of Commerce Framework on Responsible Food and
Beverage Communications.
The Institute of Medicine report sets out what needs to

be improved in children's diets in the United States-and
there is clear relevance for children in Europe and many
other countries. While the United States may presently have
the most extreme levels of childhood obesity, dietary goals
are much the same for European and other countries.
EASA is currently running a comprehensive 2006

Monitoring Exercise, in which self-regulatory organizations
in 14 countries are monitoring all television food
advertisements for a three-month period. Based on the results
of this exercise, national scoreboards will be developed,
detailing compliance rates with the International Chamber
of Commerce Framework and national self-regulatory codes.
The scoreboards will also show what parts of the codes are
most often breached, and by what sector of the industry. An
independent auditor will verify the results, which will be
presented at the meeting of the European Commission's
Platform on Diet and Physical Activity in October 2006.
Unfortunately, changing behaviour in order to achieve

dietary goals has proven to be very difficult. Realistic goals
for dietary change need to be established and a collaborative
approach, combining the power of commercial and social
communication, needs to be devised, in order to achieve
those goals. Marketing norms are obviously a part of this,
but should be dealt with in the context of a positive plan
which has a chance of achieving dietary goals.
EASA's member organizations are self-regulatory
organizations, advertisers, agencies and media associations.
EASA is the single authoritative voice of advertising selfregulation whose mission is to promote responsible advertising
through best practice in self-regulation across the EU for the
benefit of consumers and business. It also provides
information and research, promotes convergence among
national self-regulatory systems, and manages cross-border
complaints.
Self-regulation is based on an agreement of what
constitutes responsible behavior. Industry codes are devised
at national level by advertisers, agencies and the
various forms of media, and national self-regulatory
organizations are set up to apply these codes. The advertising
industry supports self-regulation financially, morally and
practically.
Monitoring Compliance with Food and Nonalcoholic

Beverage Marketing Codes
There are several reasons for supporting self-regulation:
its ability to respond quickly to breaches of codes, its flexibility
in a rapidly changing industry and the ease of use for
consumers who wish to make a complaint. By applying
national self-regulatory codes of advertising practice based
on the International Chamber of Commerce codes, and
carrying out comprehensive monitoring, industry
demonstrates its ability to regulate itself responsibly. Food
marketing aimed at children has increased dramatically in
the USA over the last two decades. Manufacturers and
restaurant chains use aggressive and sophisticated
techniques to attract children's attention, manipulate their
food choices, and prompt parents to purchase products that
are high in fat, sodium and/or sugar.
Food marketing works, according to the Institute of
Medicine in the USA. The barrage of food marketing by
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industry has created a serious information imbalance where

messages to children to eat healthfully are greatly
outnumbered by messages from the industry to consume
products of low nutritional value. This information imbalance
is so great that it cannot be remedied simply by increasing
the quantity of nutrition education messages to children.
Rather, the problem needs to be remedied by limiting the
promotion of foods of low nutritional value.
While parents bear much of the responsibility for feeding
their children well, government has a role to restrict activities
that undermine parental authority, protect children from
marketing practices that harm their health, and help make
the "healthy" choice the easy choice. This implies an important
role for government in the area of food marketing to children.
To achieve this objective government authorities should:
Set nutrition standards for the kinds of food that can
and cannot be promoted to children of different ages;
implement restrictions on the marketing and
promotion of any foods that fall below these nutrition
standards.
Unfortunately, the United States government is not
seriously pursuing such steps. Instead, it is waiting for
major commitments by the food and advertising industries.
Such standards, however, have not been achieved
through industry-wide self-regulation. In fact, not a single
self-regulatory authority in the world has set nutritional
standards for the types of foods that can, and cannot, be
marketed to children (although some individual food
companies such as Kraft have set internal corporate
guidelines that they use to restrict the promotion of certain
products).
Instead, self-regulatory measures merely attempt to
prevent the use of misleading or unethical marketing
149
techniques. This effort does not get to the crux of the

information imbalance problem. The United States
Department of Health and Human Services and the United
States Federal Trade Commission have recommended that
the selfregulatory body in the USA, the Children's Advertising
Review Unit of the Council of Better Business Bureaus,
should consider developing nutritional standards for foods
that can be promoted to children. It is too early to tell
whether it will take that step.
In the absence of legislative measures, consumer
organizations in the USA have begun to use the judicial
system to push companies to make changes. This effort will
continue to be a major focus of these organizations. In
addition, consumer organizations will continue to educate
the public, to seek federal, state, and local legislation, and
to monitor the effectiveness of the self-regulatory process.
Food Marketing Works-regulatory Action is Needed
Ultimately, the United States Government needs to
implement legislation that will limit the marketing of foods
of low nutritional value and improve children's diets and
health. The Center for Science in the Public Interest urges
WHO to draft an international code of food marketing to
children to help facilitate progress at the national level.
Consumer Concerns and Activities
The marketing of foods high in fat, sugar and salt to
children undermines efforts to promote good dietary habits
and has long been an issue of concern to consumer
organizations globally. In 1996 Consumers International
published an international survey on television food
advertising, and in 2004 the organization published a study
on food advertising to children in Asia and the Pacific. The
2005 European Consumers' Organisation's nutrition
campaign focused on the need for more responsible marketing
150
of foods to children. The scale of the problem of obesity and

diet-related disease has become only too apparent in the last
few years. Tackling food marketing to children will not alone
solve this global epidemic, but it is an important element of
the multifaceted approach needed if the "healthy" choice is
to become the easy choice.
There is clear evidence from academic reviews that food
advertising and promotion influences children's food
preferences and choices. Research by consumer organizations
has highlighted the plethora of methods that can be used
to target children-everything from the use of cartoon
characters and celebrities on food packaging through to the
use of free toys, computer games, web sites and text
messaging.
While parents have ultimate responsibility for their
children's food choices, the way that foods are marketed
makes it more difficult for parents to influence their children's
choices. Food marketing is increasingly sophisticated and
integrated, making it difficult to keep abreast of the messages
that children are exposed to. All forms of advertising and
promotion of "unhealthy" foods must be tackled.
Some companies have recently made announcements
that they are adopting a more responsible approach to food
marketing to children. However, these approaches have
been limited and largely focus on only the youngest children.
The problem is global and so is the solution. Strong
action in this area by WHO, such as the development of an
international code, is needed to ensure that irresponsible
marketing practices are no longer tolerated, and that the
promotion of foods high in fat, sugar and salt to children
stops.
The International Baby Food Action Network works to
remove obstacles to breastfeeding through the adoption of
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independent, transparent and legallyenforceable controls

on the marketing of baby food. Public outrage about the
harm caused by promotion of breast-milk substitutes paved
the way for the development of the International Code of
Marketing of Breast-milk Substitutes (the Code) under the
leadership of WHO, which bans all promotion of breast-milk
substitutes. The Code was adopted by the World Health
Assembly in 1981 as a recommendation rather than as a
regulation. It is a "minimum requirement" for all Member
States to implement "in its entirety" and requires the baby
food industry to abide by it "independently of government
action". Progress on the Code is reviewed every two years
and new resolutions are passed which ensure that it keeps
pace with scientific knowledge and developments in
marketing.
The International Code of Marketing of Breast-milk
Substitutes
The baby food industry described the Code as
"unworkable" at its inception and over the years has issued
many weaker versions, condoning harmful practices. The
International Baby Food Action Network uses the Code and
subsequent relevant World Health Assembly resolutions as
a global benchmark for its monitoring, helping governments
to identify loopholes and to bring in effective controls. It is
the organization's experience that laws-especially those which
have a wide scope and include truly independent monitoring
and enforcement systems-are a much safer option than a
reliance on self-regulation, which is dependent on industry's
goodwill.
Seventy-five countries now have laws implementing the
Code and these are leading to increased breastfeeding rates
and reduced sales of substitutes. Countries without such
protection are inundated with aggressive promotion which
undermines efforts to protect health.
152
A key concern is the sponsorship by the food industry

of educational materials which blur the boundaries between
advertising, marketing and education.
The World Health Assembly resolutions on infant feeding
contain important safeguards relating to conflicts of interest
which clearly define roles for different stakeholders and
ensure that the appropriate professionals provide information
to parents. Through such sponsorship, companies gain the
trust of parents, children and teachers and influence policymakers and reposition themselves in society as providers of
"healthy" food.
SUMMARY AND CONCLUSIONS OF THE FORUM
A summary and some initial conclusions from the meeting
were presented. This was followed by a discussion. The
following points were made:
At present, most commercial promotion targeted at
children is for foods high in salt, fat and sugar and
there is clear evidence to show that this has a
detrimental effect on children's diets. This is shown
by the systematic review commissioned by WHO for
this meeting and by the Institute of Medicine Report,
which also shows that the strongest impact of
advertising on children's diet and nutritional status
is on those aged 2-11, but does not exclude influences
on older children.
The purpose of measures to address food promotion
is to improve children's diets and thus they
should be part of a broader approach to improving
diet and health, including measures to tackle the
problem of the supply of energy-dense foods and to
change consumer behaviour. The impact of any
measures on inequalities in health also needs to be
considered.
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Both statutory and voluntary/self-regulation are

currently being considered as responses to the problem
of marketing. However, selfregulation alone is not
sufficient. In assessing the usefulness of the two
options, it is important to think in terms of the public
health goal, which is to reduce the volume of
marketing to children and to minimize its impact on
children's diets.
Self-regulation is likely to be more effective if it
operates within a legal framework with incentives for
change. However, existing self-regulatory approaches
aim to ensure that several aspects of marketing
promotions (e.g. television advertising) are responsible
(i.e. legal, decent, truthful, honest). They do not
attempt to address the volume of advertising (or other
marketing practices) and they are not being monitored
in relation to their effect on children's diets.
Clear targets need to be developed at national level
and effective mechanisms need to be established for
monitoring both statutory and self-regulatory
approaches using clear criteria which incorporate
frequency and amount of marketing. Any measures
should consider all forms of marketing and should
anticipate new developments from the industry.
Cultural and national situations will influence the
decisions about what type of restrictions are
appropriate, although there is also a moral issue
concerning child protection and children's rights which
is relevant to an international approach. Public
awareness about the problem also needs to be raised
in some countries.
A global response is required to address the
transnational nature of promotion strategies (e.g.
cross-border television advertising). The growth of
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Who Technical Meeting for Catering Developments
marketing activities in emerging economies and

developing countries is of special concern and any
attempts to address the problem need to take account
of the ability of these countries to implement and
enforce the measures.
Any fines for breaking codes of practice should take
into account the annual turnovers of the businesses
involved and should be an adequate disincentive.
Maintaining the reputation of a brand might be a
sufficient incentive to most companies to avoid
breaking the rules. In case of a controversy about the
effects of an advertisement, the burden of proof should
lie with the advertiser rather than with the person
or organization complaining about the advertisement.
Independent government agencies should take
responsibility for setting clear targets and monitoring
progress. Further evidence is needed to determine
whether enforcement systems that rely on preclearance are more effective and cost-efficient than
systems based on monitoring.
The potential for nutrient profiling to support public
health professionals, government and industry should
be examined further. In addition, consumers need to
be provided with reliable and easy-to-understand
information about food. The role of the industry in
providing information to consumers needs to be
considered carefully.
There is a vital role for WHO in the protection of child
health through the development of guidelines and
international standards for marketing to children,
and in advocating effective action by governments.
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4
WHO TECHNICAL MEETING FOR
C ATERING D EVELOPMENTS
INTRODUCTION
The working groups concluded that there is a robust
evidence base to support the fact that exposure to the
commercial promotion of energy-dense, micronutrientpoor foods and beverages adversely affects children's
diets. A large body of literature supports this view, as
summarized in the background paper by Hastings et al, as
well as the 2006 report of the Institute of Medicine in the
United States.
The goal of any regulatory action should be to protect
children from marketing which adversely affects their diets
by substantially reducing the volume and impact of
commercial promotion of energy-dense, micronutrientpoor
food and beverages to children. Moderate increases in the
promotion of better foods are judged to be insufficient.
Three forms of rationale for taking action were discussed:
(i) evidence of harm;
(ii) a precautionary approach; and
(iii) protection of the rights of the child-all of which support
the need for action.
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Four broad policy options to address the problem of

commercial promotion of foods and non-alcoholic beverages
to children at national level were discussed and further
developed in the meeting recommendations-while
acknowledging that implementation would depend on local
circumstances. In addition, the need for international action
was underlined.
The meeting participants agreed to recommend that WHO
should develop guidelines to promote and support
national action to substantially reduce the volume and
impact of commercial promotion of energy-dense,
micronutrientpoor food and beverages to children. The
participants also agreed that WHO should take the lead in
the development of an international code on the commercial
promotion of food and beverages to children to address
issues such as cross-border television advertising and global
promotional activities.
RECOMMENDATIONS FROM THE TECHNICAL
MEETING
The experts gathered in Oslo, on 4-5 May 2006 to attend
the Technical Meeting on the, having considered the evidence
and experience from countries and different stakeholders,
made the following statements and recommendations. Aim
The aim is to protect children's health by improving their
diets through substantially reducing the volume and impact
of commercial promotion of energy-dense, micronutrientpoor food and beverages, a concept that can be further
refined by using nutrient profiling.
WHO should support national actions to substantially
reduce the volume and impact of commercial promotion of
energy-dense, micronutrient-poor food and beverages to
children; and consider the development of an international
code on the marketing of food and beverages to children to
157
address issues such as cross-border television advertising,

and global promotional activities, and to protect children in
countries where national action has not been fully
implemented.
Rationale
Diets high in energy, saturated fat, free sugars, salt
and low in certain nutrients are putting children at
risk of overweight and obesity and other diet-related
diseases which are increasing public health problems
worldwide.
The marketing and advertising of energy-dense,
micronutrient-poor foods and beverages to children
has been identified as one of the many factors
contributing to this in a series of expert consultations.
These include the 2002 joint WHO/FAO Expert
Consultation on Diet, Nutrition and the Prevention
of Chronic Diseases and the 2005 WHO Expert
Meeting on Childhood Obesity.
The Fifty-seventh World Health Assembly also
identified the issue of marketing to children in the
2004 Global Strategy on Diet, Physical Activity and
Health.
Addressing concerns about the marketing of food and
non-alcoholic beverages to children is consistent with
the obligations of countries in implementing the United
Nations Convention on the Rights of the Child, the
International Covenant on Economic, Social, and
Cultural Rights and the United Nations guidelines
for consumer protection.
A strong scientific rationale is available through the
robust science and research that links commercial
promotion of foods and beverages to poor diets in
children. The evidence clearly shows that:
158
- there is extensive food and beverage promotion

to children;
- children are aware of, appreciative of, and engage
with this promotion;
- this food promotion is overwhelmingly for energydense, micronutrient-poor foods and undermines
recommendations for a healthy diet;
- this food promotion has a deleterious effect on
children's food knowledge, attitudes, purchase
behaviour, and consumption.
Scope
Evidence shows that all children are affected by
marketing and therefore the current document would
apply to all persons aged under 18, following the
United Nations Convention on the Rights of the Child.
The age group of under 18 years may be further
segmented in order to formulate specific measures.
This will take into account:
- different countries' legal definitions of what
constitutes a child;
- age-related developmental differences in children's
comprehension of the nature and purpose of
marketing;
- educational settings;
- marketers' segmenting of child and adolescent
populations.
Marketing is defined as "an organizational function
and a set of processes for creating, communicating,
and delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders." The traditional
159
components are product, place, price, and promotion.

Marketing as referred to in this report includes the
promotion and/or the sale of food and beverages in
child-specific settings (e.g. schools, kindergartens, daycare centres, play areas, children's hospitals, etc).
Many of the existing regulations in countries
recognize that children under the age of about 13
years are more vulnerable to exploitation by
commercial promotions and thus have more stringent
regulations for this age group than for adolescents.
This is concordant with the literature on the
developmental transition to being less vulnerable and
gullible in relation to targeted marketing.
Commercial promotion should be defined as all forms
of communication activity designed to raise consumer
awareness in order to encourage recognition and
sales of a product. Examples include competitions,
point-of-sale displays, packaging, contests,
sweepstakes, free gifts, product placement,
sponsorships, celebrity endorsements, use of cartoon
characters, and communications using new media
such as cell phones and the Internet, as well as mass
media advertising, and using activities designed to
enhance brand recognition through image or lifestyle
without specifically identifying food or drinks. Health
and nutrition claims on products targeted to children
should also be considered as they may also be a form
of unwarranted commercial promotion. In addition,
parents should not be targeted in ways that could
damage children's diets. It is recognized that it will
be easier to regulate and enforce restrictions on the
use of some of these promotional strategies than others.
This report does not refer to the promotion of messages
and products as part of non-commercial social
160
161
marketing initiatives. This non-commercial promotion

of healthy food choices is to be encouraged.
to deal with other aspects of marketing (e.g. product,

price, place) not addressed in this document.
The action recommended in this document should be

considered as a continuum to actions aimed at
protecting breastfeeding in infants and young children
according to the International Code of Marketing of
Breast-milk Substitutes. In particular, policies at the
national and international level should be consistent
as far as commercial promotion of complementary
foods is concerned.
Increased population awareness and participation of

national governments and international agencies in
advocating actions to reduce the adverse impact of
commercial promotion is essential. It is especially
important to encourage children and youth groups to
familiarize themselves and act upon the issues implied.
Guiding Principles
Bold, innovative action at both national and global
levels is essential. Poor diets and diseases related to
them constitute a public health emergency.
National action is required and different models have
been successfully implemented. Strong support by
government agencies is essential.
Global action is necessary. Considering the
globalization of the food system, a standardized
international approach is required. Multinational
companies market products around the world and
many forms of marketing cross country boundaries.
It is important that global rules be generated and
that commercial promotions that target children across
country boundaries be addressed.
Constructive action can be implemented through both
statutory action and industry self-regulation. For the
purpose of substantially reducing the volume and
impact of commercial promotion of food and beverages
to children, self-regulation is not sufficient; it is
however a valuable supplementary strategy to ensure
promotions are legal, truthful, decent and honest and
The action recommended in this document should not

be seen as a stand-alone intervention. Its effectiveness
will be related to other positive or proactive
interventions aimed at promoting healthy diet and
lifestyle in children and young people.
National actions
Cultural, legal and regulatory climates differ from
country to country and there are likely to be various
ways of reducing the promotion of energydense,
micronutrient-poor food and beverages to children7.
Four policy options are suggested here. The first two
take a targeted approach specific to the commercial
promotion of energy-dense, micronutrient-poor food
to children and the remaining two adopt a more
comprehensive approach to achieving the same goal.
Rationale and implications of the various policy options
are suggested in Box 2 below.
A. Prohibiting promotional marketing of energydense, micronutrient-poor food products at
specified times, in specified settings, using specified
techniques or targeting specified age groups.
This option would reduce the times and settings
where energydense, micronutrient-poor food
promotion to children is most intense, the
162
techniques that are particularly persuasive or

difficult to understand, and for the age groups
that are the most vulnerable, for example by
providing a means of ensuring that schools and
children's television programmes remain
commercial free zones. It could also prohibit
particular techniques used to promote
energydense, micronutrient-poor foods and
beverages to children, such as toys and
collectables.
B. Prohibiting the commercial promotion of energydense, micronutrient-poor foods and beverages to
children.
This option would remove energy-dense,
micronutrient-poor food and beverage promotion,
not just from exclusively child-centred
environments and media-such as schools and
children's television programmes-but also from
environments that they share with adults such
as shopping malls and prime-time television.
C. Prohibiting the commercial promotion of all food
or drinks to children.
This option widens the net and removes all forms
of commercial promotion of food and drink to
children. Exceptions could be made for approved
public health campaigns promoting healthy diets.
D. Prohibiting all commercial promotion of any
products to children.
This option includes all products and protects
children from commercial exploitation in general.
All of these options may be combined with a regime
of product-related health warnings and nutritional
messages.
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Suitable enforcement mechanisms, that include

adequate penalties, should be established, such as
pre-clearance of advertising campaigns and
independent monitoring of complaints.
Monitoring the application of the policy options and
evaluating their affects on the volume and impact of
commercial promotion and on children's diet should
be performed.
Four Policy Options to Address Marketing to Children:
rationale and Implications
Option A-specified restrictions on the age groups targeted

and the times, settings and techniques used by advertisers
in the commercial promotion of energy-dense, micronutrientpoor foods and drinks.
This option is likely to have less of an impact on children's
exposure to the promotion of energy-dense, micronutrientpoor food products than the other alternatives.
However, it should be considered as a first step (where
other options are not feasible) as a means of reducing the
most intense exposure times and the techniques that are
particularly persuasive, and of protecting the age groups
that are the most vulnerable.
Option B-no promotion of any energy-dense,

micronutrient-poor foods or beverages to children
This option only seeks to restrict the promotion of the
specific foods and beverages that are considered detrimental
to children's diets.
The implementation of this option requires clear
identification of products that cannot be promoted, using
methods such as nutrient profiling. This approach could act
as an incentive for the food industry to develop healthier
products.
164
Option C-no commercial promotion of any foods or

beverages to children
This option is based on the view that children are best
informed about healthy eating by parents, schools and health
professionals rather than food industry protagonists. It avoids
classifying foods as "good" and "bad" and recognizes that the
vast majority of commercial promotions to children are for
energy-dense, micronutrient-poor food products. However,
this option would restrict the commercial promotion of more
healthy foods to children.
Option D-no commercial promotion of any products to

children
This is the broadest approach of all and is based on
children's right to a commercial-free environment. It prohibits
promotional marketing of any products specifically to children,
following models such as those being tried in Quebec (see
section 3.3.3) and parts of Scandinavia. This would be
concordant with the United Nations Convention on the Rights
of the Child and with consumer protection legislation
operating in many countries. It provides a degree of equity
between different industrial sectors, but consideration needs
to be given to issues such as "positive" marketing which
encourages healthy behaviour. It was recognized that this
approach may not be a realistic option for many countries.
It also requires acceptance by more players, including the
media and communication industries.
International action
In order to address the international nature of
commercial promotion of energy-dense, micronutrientpoor food and beverages, WHO should take the lead
in the development of an international code on the
commercial promotion of food and beverages to
children in association with international partners,
165
United Nations Agencies, Member States and other

stakeholders. The international code will provide the
basis for action at this level. The unique issues to be
addressed by the international code include:
- actions to address the transnational nature of
promotional strategies (e.g. cross border television
advertising, Internet);
- provisions for limiting the promotional activities
of companies irrespective of country;
- support to the design, enforcement and monitoring
of country action;
- monitoring and reporting on the activities of
transnational manufacturers and distributors that
are not amenable to monitoring at the local level
and provision of information to international
agencies.
The international code should build upon and support
activities taken by countries at the national level to
strengthen the overall effectiveness and impact of
various strategies to prevent the promotion of energydense, micronutrient-poor foods and beverages to
children. Activities undertaken at the national level
should be incorporated into the scope of the
international code to ensure that all activities are
complementary and mutually supportive. The
international code should specify precisely expectations
of participating countries and how these national
activities will be monitored.
The international code should also aim to build
capacity of countries where infrastructure to address
this issue is not already in place, both at the national
and local government levels, and also of civil society
and nongovernmental organizations. In addition,
166
there are several gaps in the knowledge and evidence

base on the effects of food promotions on children,
particularly in developing countries. More research
is needed in the area of the extent, nature and effects
of food promotions on children in developing countries.
The international code should be developed through
a consultative process facilitated by a public sector
body and signed by participating countries. Elements
of a future international code include:
- overall goal and purpose of the code;
- scope and principles;
- responsibilities of Member States;
- responsibilities of the commercial sector;
- responsibilities of civil society (support can be
provided to the civil society to carry out
independent monitoring);
- ensuring effectiveness;
- monitoring and evaluation of impact;
- provision for revisions.
Countries signing the international code will commit
to a core set of actions.
NEXT STEPS
The discussions in the Forum and the recommendations
from the Technical Meeting will be considered for future
WHO work to ensure that appropriate actions are taken to
protect children from inappropriate promotion of energy
dense, micronutrient-poor food and beverages. The
recommendations require discussion and assessment by WHO
with regard to their technical merit, financial implications
and appropriate roles for the Organization. Member States
167
need to be consulted in terms of the feasibility of these

recommendations and their commitment to undertake some
of the actions. After the assessment and consultation with
Member States, WHO plans to facilitate a process for the
implementation of the recommendations and relevant units
and programmes within the Organization are encouraged
to incorporate the recommendations into workplans and
secure the necessary funding.
The critical steps in the implementation of these
recommendations are:
Appropriate forums should be identified to discuss the
issue with Member States and ensure their commitment in
undertaking national actions and in supporting the
development of international guidelines. The Ministerial
Conference on Counteracting Obesity to be held in the WHO
European Region will have on its agenda a discussion of
these issues.
Further Development of National Actions
WHO will assess the feasibility for implementation of the
proposed national actions and develop them further. Tools
to assist countries may need to be developed, e.g. "model"
legislation, and technical assistance provided to Member
States on request. Technical assistance may be required to
draft appropriate legal frameworks for consideration by
Member States. These actions can be implemented as part
of national policies, plans and programmes for the prevention
and control of chronic diseases. Member
States are encouraged to take a stepwise approach to
implementation appropriate to their local circumstances.
National actions need to be supported by suitable
international actions.
Voluntary regulation can be an effective supplement to
national legislation and several self-regulatory models are
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Food and Beverage Outlets
in use in various countries around the world. These models

have been developed mainly by industry and the extent of
state involvement varies from country to country. If required,
"principles" of good practice in self-regulation can be further
developed and disseminated to Member States.
International Action
In view of the cross-border promotion of energy-dense,
micronutrient-poor food and beverages, national actions alone
are inadequate. International action is essential to ensure
an effective overall approach to limit that impact of promotion
of energy-dense, micronutrient-poor food and beverages to
children. The development of an international code will
require the approval of the WHO governing bodies.
169
FOOD
AND
BEVERAGE OUTLETS
DEFINITION
Food and Beverage (F&B) outlets are commercial
establishments offering eating and drinking facilities to
customers.
Meals can be prepared on the premises or bought in to
be consumed on site or to take away. Examples of F&B
outlets include Restaurants, Coffee Shops, Quick Service
Restaurants; Bars, Pubs, and Taverns.
MINIMUM REQUIREMENTS
BEVERAGE GRADING
FOR
FOOD
AND
Safety and Security

A high degree of general safety and security should be
maintained.
All reasonable precaution must be taken to secure the
personal safety of patrons and staff and prevent damage to
or theft of their possessions. Information on procedures in
the event of an emergency should be clearly displayed in
the F&B outlet (exit signs, etc).
There should be adequate levels of lighting for guest
safety and comfort in all public areas, including stairwells
and car parks.
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Cleanliness and Hygiene

A high standard of cleanliness should be maintained in
all parts of the establishment. Particular attention should
be paid to toilets, kitchen and food storage and preparation
areas.
Each F&B outlet must have a valid and current Certificate
of Acceptability to handle food-issued by the Environmental
Health Services Division of the local Department of Health.
This certificate must be valid for the current owner (the
certificate is issued in the name of the person in charge of
the establishment, when this changes a new certificate is
required).
The Certificate of Acceptability should be displayed in
a conspicuous place in the food premises-for public viewing.
Alternatively where the display is impractical a copy should
be made available on request.
Management should commit to a programme of optimum
hygiene covering all aspects of food handling. Vigilant and
competent supervision is essential (verbal and/or written
policy confirmation required).
With regard to hygiene, it is mandatory for each F&B
outlet to comply with the TGCSA Hygiene Checklist included
in the F&B Grading Criteria document. In addition, all
employees should be clean and appropriately groomed and
dressed.
Statutory Obligations
Premises are expected to comply with all relevant
statutory and national, provincial and local government
regulations. Assessors may request that relevant
documentation or proof of compliance be presented at the
time of the assessment. This includes, inter alia:
Provincial registration (if applicable);
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Business registration which entitles the establishment

to legally operate;
Public liability insurance;
Evidence of a smoking management policy;
Health, hygiene and food safety regulations (an
appropriate and valid hygiene certificate);
Liquor license (if applicable);
Compliance with national and local authority
regulations including (but not limited to);
o Fire safety certificate;
o Compliance with building regulations-in particular
with regard to accessibility.
Access
There should be no discrimination to accepting patrons
based on their race, citizenship or nationality, gender,
ethnicity, physical or mental condition, etc.
However, notwithstanding the above, management has
the right to refuse access in the interest of other users of
the establishment.
Establishments should be open on the days stipulated
by management and advertised as such. Appropriate service
and facilities should be available on all days that the
establishment is open (unless advertised otherwise).
Courtesy
The highest standard of courtesy should be shown to
patrons at all times.
Guest complaints should be dealt with courteously and
promptly (including those received via the Tourism Grading
Council's Consumer Feedback mechanism).
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Marketing, Reservations and Pricing
173
There should be friendly and efficient service appropriate

to the style of the establishment.
There should be appropriate signage (suitable to the

requirements of the market) to direct patrons to the main
entrance of the establishment.
All enquiries, requests, reservations, correspondence and

complaints should be handled promptly and courteously.
Paths under the control of the operator should be well

lit and directional signage should be provided.
It should be made clear to patrons what is included in

the prices quoted including service charges and other
surcharges.
Interior Maintenance
Prices for all meals and beverages served at the

establishment should be clearly displayed and/or presented
and available on request. Prices should include VAT.
Menus and wine lists, where appropriate, should be
clean and well presented and provide accurate descriptions
(where applicable) of the meals and beverages on offer.
Menus and wine lists may be presented verbally.
Full details of the establishment's cancellation policy
should be made clear to patrons at the time of booking.
Details of any in-house policies e.g. no smoking or no children
should be communicated at the time of booking.
Each customer should be provided, on request, with
details of payment due and a receipt of payment. The bill
should be clearly presented and well laid out.
Facilities and services provided by the establishment
should be described fairly and truthfully to all visitors and
prospective visitors, whether by advertisement, brochure,
website, verbal communication or other means.
BUILDINGS
Exterior
Grounds and gardens under the control of the operator
should be neat and appropriate. The exterior of the property
must be well maintained and in a sound and clean condition.
The interior of the building/s including all fittings, fixtures

and furnishings must be maintained in a sound and clean
condition and must be fit for the purpose intended.
All electrical equipment should be safely maintained and
in good working order.
F&B OUTLET AREAS
Reception Area
A clearly designated reception or "wait to be seated" area
should be provided. A moveable podium is also considered
appropriate.
Dining Area
A dining area should be provided which is available
during operating hours with appropriate seating.
Public Toilets
Public toilets should be provided for the use of patrons
(located within close proximity-these need not be the property
of the establishment). Ideally the toilets should not be
connected directly to the kitchen (refer to Hygiene
Regulations).
The number of sanitary conveniences provided per
member of staff and maximum number of patrons must be
in accordance with South Africa's Hygiene Regulations. All
toilets should be well maintained, clean and frequently
checked.
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At minimum a basin with running water, toilet, toilet

paper, liquid soap and a hand drying mechanism (clean
towel per user, paper towels, hot air dryer, etc) should be
provided. Toilet cubicles should be lockable.
Fabric towels for hand drying purposes may only be
provided if they are washed and replaced after a single use
(Hygiene Regulations).
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management/waiting staff must have adequate knowledge

of the different varieties on the menu.
Table Appointment: Table appointment: High quality
cutlery, crockery, glassware and linen. Appropriate table
cloths and placemats to be used.
Food and Beverage
Food Menu: Food menu should offer a variety of items:

entrees, seafood, poultry, meat dishes, salads, desserts, and
dishes for vegetarians.
All food and beverage should be hygienically stored,

prepared and presented.
Noise Levels: Entertainment/background music (where

available) should be set at the appropriate noise level.
Service
Table Spacing: There should be adequate space between

tables to ensure privacy for conversation.
Staff should demonstrate adequate levels of product

knowledge and provide efficient service.
Management and staff should be well trained, attentive,
polite and helpful. They should be dressed in clean, wellfitting clothes and be personally well-groomed.
ADDITIONAL REQUIREMENTS FOR GOLD AND
PLATINUM STAR OUTLETS
General
All Platinum Star outlets should have private guest
toilets located within the same property as the restaurant
and under the control of restaurant management.
Alternatively if only public toilets are available then the
Platinum Star outlet owner/manager should ensure that
these public toilets are continuously monitored and kept
clean.
Services
Table Reservation: All Gold and Platinum Star outlets
should offer a table reservation service. Wine List : A wine
list with a good selection of wines must be available and
GRADING CRITERIA FOR FOOD AND BEVERAGE

(F&B) OUTLETS
Each establishment wishing to be graded needs to comply
with the minimum criteria including the specified minimum
criteria per star grading. Thereafter the establishment will
be graded according to the criteria listed in this document.
The grading criteria have been developed based on guest
expectations. The criteria cover:
Building exterior
Internal fabric
Toilets
Menu and wine list
Food and beverage
Services and service
Housekeeping and cleanliness
A kitchen Hygiene (check list)
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Not all areas will be applicable to all establishments.

Where an area is not applicable it will not be graded and
will therefore not count in the overall grading score. This
means that F&B outlets will not be penalised for not having
a service or facility beyond the minimum requirements.
The grading assessor will award a score between 1 and
10 for each area assessed. The score will be based on:
The assessor's experience which will comprise a
balance between quality and condition (personal
preference and fashion should not have an influence)
Consumer feedback and comments.
The score for each standard is defined as follows:
Excellent
10
Very good
Good
Standard
6 or 7
Acceptable
Poor
3 or 4
Unacceptable
1 or 2
In the TGCSA Star Grading Scheme the highest marks

awarded, 9 or 10, reflect excellent quality together with
excellent condition. These standards have been set at the
highest levels possible to achieve.
Examples of all possible standards are provided in the
criteria. It is important to consider that these are examples
and guidelines only. The criteria are not exhaustive, rather
a guideline to steer assessors and property owners or
managers in the right direction in respect of scoring. In
addition, an establishment need not comply with all criteria
under a specific score in order to receive that score.
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REQUIRED OVERALL SCORE FOR EACH GRADING

BAND
Platinum Star Award

Overall score of
95%-100%
Items to score
9 or 10
No more than 2 items to score
Gold Star Award

Overall score of
84%-94%
Items to score
8 or more
All service elements to score
8, 9, or 10
Silver Star Award

Overall score of
71%-83%
Items to score
7 or more
8, 9 or 10
Bronze Star Award

Overall score of
50%-70%
No unacceptable items
Less than 3
Items to score
4 or more 5
6, 7, 8, 9 or 10
Exterior
Appearance of Buildings
10-9 New buildings, absence of weathering, fresh wellmaintained paintwork, an overall clean and "new"
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look. Older buildings-no unsightly staining and

well-maintained paintwork. Visible outbuildings
or annexes to be of a similar standard. Addition
of attractive architectural features, etc.
8 High quality maintenance of paint, stone or
brickwork although a certain natural weathering
may be present. All areas of paintwork to be in
sound condition. Some additional external features
to enhance appearance.
7-6 Paintwork, windows, drains, etc in good state of
repair, though not necessarily recent. No obvious
structural defects or damage. "Plain" architectural
features are acceptable.
5-4-3 Some areas of paint may be ageing and rather
weathered. Small defects, damage, cracks, etc. No
evidence of recent repairs, paintwork, etc.
2-1 Generally neglected buildings. Obvious structural
defects or damage. Flaking paint, illegible signs,
rotting wood.
Grounds and Gardens

All grounds and facilities including children's play
areas, etc under the control of management should
be evaluated in this section.
10-9 Evidence of systematic programme of maintenance
(excellent standard)-well-tended formal gardens
or attractive "natural" environment. Tidy
pathways. Attractive appearance throughout the
year. Well maintained driveway and entrance.
No disorder or rubbish and no evidence of litter.
Provision of garden furniture or architectural
features appropriate to the nature of the guests
attracted to the establishment.
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8 High standards of maintenance in formal gardens.

Pleasant and tidy appearance throughout the
year. No clutter or disorder around service areas.
Good driveway. Some architectural features
appropriate to the market.
7-6 No overgrown, tangled areas. Immediate
surrounds kept tidy and well maintained. Some
attempt to produce a pleasing effect with
interesting design. Uncluttered access to
establishment and pathways. No potholes in
driveway. Clear access.
5-4-3 Gardens and enclosed area around the
establishment are kept under control. Little
attempt at interesting design. Drive may have an
uneven surface. Domestic disorder kept to a
minimum.
2-1 Neglected and overgrown appearance. Badly
surfaced driveway with large pot-holes or puddles.
Rubbish and clutter visible. Disorderly
appearance.
Parking
10-9 Sufficient, marked parking bays in a secure
environment, within the grounds and within easy
walking distance of the entrance. Alternatively
plentiful and secure parking for vehicles close
(adjacent) to establishment. General public parking
facility with security provided.
8 Some organised, secure parking within the
grounds of the establishment. Overflow parking
outside grounds, in close proximity to
establishment with security provided.
Alternatively general public parking facility, fairly
close (but not adjacent).
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7-6 Some parking in secure environment but not

necessarily organised (not on property). Fairly
close proximity to the establishment.
5-4-3 Unorganised parking outside grounds with no
security, but in close proximity (e.g. on the
pavement or street outside establishment).
2-1 Owner vehicles taking up most of available
parking space. No parking available at the
establishment and parking is located a long
distance away. No control and no security
provided.
External Lighting and Signage (on property)

10-9 Very good external security lighting. Effective
and attractive lighting guiding patrons along
pathways on property. Use of lighting to enhance
appearance and highlight features. Good clear
signage, guiding patrons to the main entrance,
annexes, parking, etc.
8 Good security lighting in parking facilities and in
grounds. Sufficient lighting to guide patrons to
establishment and along pathways. Some attempt
at attractive lighting to highlight features. Clear
signage to guide patrons.
7-6 Some external lighting in important areas.
Pathways sufficiently lit to guide patrons. Signage
to guide patrons but perhaps not clear enough or
insufficient.
5-4-3 Ageing and limited signage. Limited external
lighting. Some security lighting. Difficult to
navigate along pathways at night. Lights shining
at eye level.
2-1 Poor or no lighting. Difficult to find to
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establishment, entrance and pathways. No

signage.
Internal Fabric: All reception rooms, bars, dining
rooms and eating areas accessible to patrons will be
evaluated under this section. Where different
standards are present, an average score will be
applied, unless there is significant difference between
the highest and the lowest score, in which case the
lowest score will apply.
Decoration
10-9 High quality wall covering (paint, tiles, wallpaper,
etc). Attention to detail. Thoughtful co-ordination
of patterns, colours and textures. If the dcor is
"plain" then the addition of high quality pictures,
objects d'art, etc. Although some "minimalist" styles
require less. All work should look professional
and be well executed.
8 High quality wall covering, but need not be in
excellent condition. Slight signs of wear and
tear (i.e. scratches, water splashes, finger marks,
etc). Room dcor may range from excellent to
good.
7-6 Competent, average quality wall coverings. Some
pictures in good frames. Attempt to co-ordinate
patterns and colours. No jarring mismatch of
colours and styles. Dcor may be some years old
but not obviously damaged, scratched, torn or
stained.
5-4-3 Ageing looking dcor, of average quality to begin
with. Amateur application of paint or wall paper.
Little attention to detail. Plain style with no
adornment. Some wear and tear, stains, marks,
etc.
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2-1 Low-grade materials poorly executed.

Uncoordinated styles and colours. Noticeable wear
and tear, stains, splashes, scratches, tears, marks,
etc. Few pictures, graphics, wall hangings or works
of art (if any). Unsightly pipe work, exposed
wiring. Signs of damp.
Furniture and Furnishings

10-9 Excellent intrinsic quality and condition.
Furniture of sound construction, attractive
professional finish and detailing. Little or no sign
of ageing, wear and tear or ill-use. Full, well lined
curtains with appropriate accessories, in working
order. Or attractive and appropriate window
coverings. High degree of comfort, well-spaced
chairs of appropriate height for tables. Coordinated themed design. Spacious tables.
NB: Some excellent antique furniture may show
signs of "distress" which does not detract from its
excellence depending on the degree of
deterioration.
8 High intrinsic quality of materials may show some
signs of use. Alternatively new, good (instead of
excellent) quality furniture and furnishings. Some
contract furniture even when brand new will
only be "very good". Curtains to be full and
effective in retaining heat/keeping out light. Good
quality and attractive window coverings. All of
high quality but not necessarily the same design
though co-ordinated. Good sized tables.
7-6 Furniture which may have been "excellent" or
"very good", but through ageing, showing signs
of wear and tear. Alternatively, a medium quality
range of materials and construction in sound and
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useable condition. There should be no damage,

stains or fraying on furniture. No jarringly
uncoordinated styles-all furniture to be of a similar
standard. Window coverings showing slight wear
and tear. Average quality. Tables large enough
for uncluttered use. May be a mix of styles and
ages, but all in good condition. Design may take
precedence over comfort.
5-4-3 Furniture of average quality and in well-used
condition. Little co-ordination of styles, some slight
damage may be apparent, but all items capable
of use. Surfaces not well-maintained. Thin, short,
skimpy curtains. Some stains, marks on soft
furnishings. Maybe a mix of styles, ages, designs,
shapes and heights. Chairs not very comfortable.
Tables close together. Wobbles in tables and or
chairs.
2-1 Furniture of a low quality material, poor
construction, damaged, marked or scratched.
Uncoordinated styles. Thin, unlined curtains,
stained, worn upholstery. Inadequate table sizecluttered and inconvenient. Table cracked. Tables
or chairs very wobbly. Cramped, uncomfortable
layout.
Flooring and Ceiling

10-9 High quality fitted carpets (high percentage wool
content), good thick pile and underlay.
Alternatively excellent quality domestic carpeting,
fit for purpose. High quality wooden or tiled
flooring with high quality occasional rugs or mats.
Ceilings to be of an excellent quality, no sagging
or evidence of water leakage or seeping, marks
or stains.
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All of the above should be professionally fitted,

painted and in pristine condition.
8 High quality carpets beginning to show some
signs of ageing (flattening or wearing). No stains,
burns or marks, etc. Alternatively carpet with
higher percentage of man-made fibre but in new
condition. Wooden or tiled flooring in need of
buffing but with high quality rugs. Ceiling of
good quality, no sagging, evidence of water
leakage or seeping. Professionally fitted and
painted.
7-6 High quality carpet with flattening in areas of
most traffic but all in sound condition-some small
discolouration in places. Alternatively a cheaper
new carpet. Wooden or tiled floors a little scratched
in places. Ceiling of average quality, competent
job of application. Paintwork competently applied,
although not necessarily of a professional
standard.
5-4-3 Carpets showing considerable use-flattened spots,
bleaching by windows, some thinning.
Unprofessionally fitted with ripples, rough illfitting edges, thin or no underlay. (There should
be no holes, tears, burns of other defects that
render the carpet unsound). Vinyl or low quality
flooring. Chipped wooden or tiled floors. Poor
quality ceiling, amateurishly fitted, but no
evidence of sagging. Ceilings slightly stained
paintwork of a poor standard.
2-1 Carpets with distinct signs of wearing, visible
canvas or backing fabric, patches, stains,
discolouration, obvious seams. DIY fitting with
gaping joints, gaps between carpet and wall.
Several unmatched styles or newer carpets laid
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on top of damaged or worn-through older ones.

Wooden floors that have aged-now in need of a
new coat of varnish, with worn and stained rugs.
Missing tiles and obvious chips. Poor quality
sagging ceilings and evidence of water seepage.
Stained paintwork, old and amateurishly done.
NB: In all levels there may be a high quality
natural alternative to carpeting, tiles or wooden
floors. In these cases the intrinsic quality and
condition would be assessed, taking the style of
the property into consideration.
Temperature Control
10-9 Thermostatically controlled heating and or cooling
system capable of maintaining a comfortable room
temperature of between 18oC and 25oC in each
separate dining or eating room (climate
dependent). Appropriate to size and location of
room. Appliance in excellent condition and quiet.
In larger establishments an excellent score would
apply for ducted or air-conditioning hidden from
general view. In smaller establishments new
domestic, excellent quality heating or cooling
appliances are acceptable (free standing, wall or
ceiling mounted-fan, heater or air-conditioner).
In moderate climate, an adequate natural
ventilation system i.e. large opening doors and
windows may suffice.
8 Some ageing of excellent appliances. Good quality
and quiet wall mounted (visible) air-conditioners
could receive an 8 rating. In smaller
establishments, new, good quality domestic
heating or cooling appliances are acceptable (free
standing, wall or ceiling mounted-fan, heater or
air-conditioner). Good free airflow achieved
186
187
throughout dining or eating areas in moderate

climate.
Picture lights. Recessed spot lamps. Lighting

appropriate for the ambience.
7-6 Effective heating and or cooling provided in rooms

when appropriate. Not necessarily the most up to
date system. Large, slightly noisy, wall mounted
air-conditioners apply here. In a smaller
establishment good quality, not necessarily new
heating or cooling, freestanding appliance is
acceptable. Adequate free airflow in a moderate
climate.
8 Provision of more sources of light than is strictly

necessary i.e. more than just central lights. Able
to create an appealing dining experience. High
quality fittings, lamps bases, etc. with more
adequate spread of lighting for practical use,
though no sophisticated use of lighting "effects".
Lighting appropriate for the ambience.
5-4-3 Free standing apparatus able of maintaining a

reasonably comfortable temperature in room.
Ageing appliances. In a smaller establishment
low quality heating or cooling, freestanding
appliance in good condition is acceptable. Limited
free airflow in moderate climate. Room slightly
stuffy and or cold in winter.
2-1 Old low quality appliances. Hot or cold only
available close to appliance i.e. unable to maintain
a comfortable temperature throughout the room.
No heating or cooling system in extreme
temperature environment. Very limited free
airflow. No free airflow in moderate climate. Stuffy
room. Very cold in winter.
Lighting
10-9 Overall high standard of lighting providing
sufficient light for all appropriate purposes. Also
designed for good effect, showing off features,
rooms, corridors, etc. Lighting appropriate to create
the required mood. All lights and shades of high
quality manufacture and in excellent order. No
wobbly connections, burnt shades, flimsy bases
that fall over, etc. No harsh fluorescent tubes.
7-6 More than adequate room light. Good blend of

natural and electric light during day. Medium
quality fittings in sound condition. No burnt
shades, ageing lamps, etc. No extra lights for
effect.
5-4-3 Minimum lighting in room. Restricted natural
light. Fittings ageing, beginning to look scruffy.
Enough light for practical use, but nothing more.
No lighting provided for effect. Fittings dated,
ageing, discolouration. Stark, unattractive, harsh
lighting.
2-1 Low quality fittings in poor condition. Exposed,
fraying wires, wobbly fittings, loose plugs. Dim,
gloomy effect with dark areas. Glaring, irritating,
harsh fluorescent lights with no diffuser. Light in
inappropriate places. Poor natural light. Shades
burnt, scruffy, stained, etc.
Table Appointments
10-9 An emphasis on style and high quality (stainless
steel, silver, etc). All cutlery and crockery of a
high quality, matching and co-ordinated. No wear,
damage, cracks, chips, etc. Additional features
such as flowers, candles and candlesticks, coasters,
etc. Good quality linen or cloth napery. Large,
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fabric napkins. Tables all preset as per standard

etiquette. All unclothed tables or surfaces to be
in pristine condition. Equally high quality
accessories i.e. ice buckets, sauce boats, etc.
Provision of appropriate styles of cutlery and
crockery for different dishes.
8 Items of similar style and quality as above but
perhaps more limited in range, fewer glasses and
smaller napkins. Alternatively, high quality
crockery rather than high quality china. Fine
glass rather than crystal, good quality stainless
steel rather than silver, etc. Limited wear but no
damage (chips, imperfections, etc).
7-6 Middle to high range cutlery and crockery. Good
condition and main service matching. Accessories
of different style but good quality. Thick (multiply) paper or fabric napkins. Alternatively
sufficient quantities of large 1-ply serviettes
accompanied by a refresher towel or finger towel.
5-4-3 Cutlery and crockery of varying of styles and
quality (not intentional). Wear and tear (fading
of pattern or glaze) but no chips or cracks. Thin
(1-ply) but large paper napkins or well-used thin
linen napkins. No accessories. Sauces in bottles
or packets. Slight smudging on glasses, cutlery,
crockery.
2-1 Mismatched patterns. Cracks, chips, well-used
appearance. Low quality functional crockery.
Small, thin (one-ply) napkins. Sticky sauce bottles
on table. Cutlery, crockery, glassware obviously
dirty.
Atmosphere and Ambience

10-9 Harmonious combination of dcor and lighting.
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Spacious room and good layout of tables. No

intrusive noise or smells. Themes or designs may
add to the ambience. Music/entertainment to be
appropriate to the style of the outlet.
8 High standard of dcor and lighting. Perhaps
busy, with some background noise. Tables rather
close together. Smaller room. Atmospheric lighting.
Pleasant aromas.
7-6 Tables quite close but with sufficient space to
allow private conversation, staff and customers
can pass without inconvenience. A certain amount
of noise and activity from other areas.
5-4-3 Crowded tables. Awkward access. Difficult to have
private conversation. Intrusive noise and stuffy.
Strong smells.
2-1 Very crowded, cramped, uncomfortable. Loud
noise. Very stuffy. Impossible to have privacy.
Intrusive. Unpleasant smells.
Toilets: If toilets are only available off the premises
(for example, in shopping centres), management
of the restaurant should have control to ensure
safety and security.
Decoration and Flooring

10-9 Highest quality floor and wall coverings. Tiles
well fitted. Grouting in excellent condition. No
marks, stains, condensation damage. No peeling
wallpaper or flaking paint. Flooring well-fitted
and free from stain or water damage. Overall
attractive and high quality dcor.
8 Maybe high quality finish but not recent-some
signs of wear but all in good condition.
Alternatively, maybe recently decorated but not
190
with the highest quality materials, though a

competent and professional job. High quality floor
covering or tiles.
7-6 Not necessarily recently decorated though in good
condition. Some signs of wear. Standard quality
bathroom flooring. No stains or marks.
5-4-3 Lower quality materials, ageing and evidence of
poor standard of DIY. Very plain with no attempt
at adornment. Grouting discoloured. Tired, dated
style. Some stains and marks.
2-1 Very tired and old style. Damp or condensation
marks. Cheap very low quality finish,
unprofessionally applied. Sealant or grouting
mouldy, carpet rotting, smelly. Paintwork chipped,
flaking. Area around toilet discoloured, damp.
Smells.
Fixtures and Fittings

10-9 High quality, solid, well-made fittings in excellent
order and matching style. High quality finish.
Easy to use with responsive controls. Plenty of
hot water at all times.
8 Generally high quality fittings throughout, but
not necessarily new. All porcelain in good
condition-no cracks, crazing or dull finish, no
stains. Matching and co-ordinated styles.
7-6 Standard domestic range of bathroom fittings.
Maybe showing some wear but in good clean
condition.
5-4-3 Ageing fittings-dull finish to porcelain, chrome
wearing off. Fittings not matching. Out of date
style or colour, well used. Rough DIY grouting or
sealant.
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2-1 Stained or mouldy grouting or sealant. Cracked

washbasin or toilet. Ill fitted cheap plastic toilet
and cover. Discoloured plastic cistern. Plastic taps.
Loose or broken towel rail. Evidence of cigarette
burns, damage, etc.
Linen, Hand Drying Facilities and Accessories

10-9 Thick, heavy, fluffy hand towels with plenty of
pile (replaced after each use). Effective, efficient
and quiet hot-air hand dryers. Thick, good quality
paper towelling with easy to use dispenser.
Excellent quality liquid hand-washing soap.
Pleasant aroma. Extensive quantities of two-ply
toilet paper. Addition of accessories such as air
fresheners, flowers, hand cream to create a
pleasing environment.
8 Hand towels-linen not as high quality as found
above (replaced after each use). Slightly smaller
or thinner paper towels with easy to use dispenser.
Hot-air hand dryer not excellent (loud or less
efficient). Very good quality liquid, hand-washing
soap (not a bar of soap). Pleasant aroma. Sufficient
two-ply toilet paper.
7-6 Good quality paper towelling system but possibly
thin, small paper (disintegrates easily when wet).
Large and loud hot-air hand dryer. Adequate
quality liquid, hand-washing soap. Neutral aroma.
Adequate quantities of one-ply toilet paper.
5-4-3 Loose paper towels that are thin and disintegrate
easily. No dispenser. Slight unpleasant aroma.
Liquid soap in poor dispenser. Adequate quantities
of one-ply toilet paper.
2-1 Towels that are very thin, small, scratchy, old,
fraying, some holes, stained, faded. Low
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absorbency. Not replaced after each use. No hand

drying facilities. No soap. Poor, unacceptable
aroma. No toilet paper.
Lighting
10-9 Lighting effective for all purposes particularly at
washbasins and mirrors. Excellent lighting in all
cubicles (even when door is closed). Excellent
quality fittings. Recessed lights.
8 High standard of light fittings centre, main light
plus adequate light at washbasins and mirrors.
Possibly supplementary lights.
7-6 Centre light well positioned providing adequate
light, even in closed cubicles.
5-4-3 Dim centre light. Stark fluorescent tube on ageing
fittings.
2-1 Gloomy, badly placed, ageing, damaged light
fittings.
Menu and Wine List
Menu and Wine List Appearance

10-9 Excellent presentation appropriate to the market
(maybe verbal, temporary i.e. blackboard or
permanent). Attention to detail in all aspects of
print, layout and descriptions. Clear, informative
layout. Wines should be listed per cultivar.
Attractive design in excellent condition. No grease,
thumbprints, wine stains, written corrections, etc.
Wine set out in clear sections and all available.
All menus and wine lists clearly legible, given the
lighting in the restaurant. No incorrect spelling.
Words appropriately used to describe dishes and
wines. All verbal descriptions clearly, accurately
and eloquently presented.
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8 High standard of presentation. May show a little

wear, although not dirty. Where wines are not
available-they should be clearly marked. No
written corrections. Good, clear and accurate
verbal descriptions.
7-6 Clear layout but not top quality production. Clean,
not worn or grubby. Large majority of wines
available and those that are not, clearly marked
as such. Concise, "rattled off" but clear verbal
descriptions.
5-4-3 Basic but legible. Scrappy appearance, over-used,
stained. Many wines out of stock and not marked.
Vintages wrong. Verbal descriptions not totally
clear.
2-1 Dirty, dog-eared. Difficult to read. Wine list out
of date, bears little relation to what is available.
Unintelligible verbal descriptions.
Menu Content
10-9 Well-balanced menu. Excellent range of dish
options catering for different tastes and
requirements (i.e. vegetarian dishes should be
available). Variety of cooking styles available.
Excellent use of seasonal ingredients.
Complimentary range of starters, entrees and
desserts available. All dishes to be appropriately
described. Charges for dishes to be clearly detailed
and legible. Minimum charges, services charges,
payment terms, etc to be clearly detailed and
legible.
8 Good range and variety of dishes, covering at
least starters, mains and desserts (but not
considered to be excellent). Vegetarians considered.
Perhaps menu not quite as discerning as above.
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195
Good description of dishes. All charges clearly

described and legible.
within limited cultivar range. Good, standard

range of beverages.
7-6 Variety in dishes and cooking styles available-but

not extensive options. Some dishes with
appropriate descriptions. Charges are clearly
depicted.
5-4-3 Limited range of standard wines and beverages

available.
5-4-3 Limited range of dishes available and limited

options in terms of cooking style. Charges listed
but not that clear.
2-1 No variety. Only one cooking style available. Menu
illegible and unclear.
Wine and Beverage List Content

10-9 Sommelier or qualified, trained wine advisor to
assist diners with their wine choice. Knowledge
of in-stock and out-of-stock wines by year.
Excellent variety of wines and beverages
available. Wines from a variety of different
cultivars available. Excellent description of wines
available, (verbal or written) including year. A
variety of good quality wines available by the
glass. Excellent variety of beverages, liqueurs,
liquor, etc. Variety of different brands per type
of beverage.
8 Good range of wines from a variety of cultivars.
Good variety of appropriate beverages but
perhaps only one brand per option. Possibly only
local beverages (with limited international brands)
available. Good description of wines (verbal or
written).
7-6 Wines from a number of different cultivars
available but limited choices within each.
Alternatively good number of different brands
2-1 No variety and choice in beverages. Only

unbranded products available.
Food and Beverage
Meal Presentation
10-9 Well laid out on appropriately sized plate with
attractive and complementary garnish or display.
Pleasing combination of colours, textures, and
shapes. Extremely imaginative and exclusive in
concept and outstanding execution. Extreme
attention to care with attention on visual appeal.
Ingredients meticulously integrated with plate
design. Highest skill applied to meal presentation.
8 Obvious care and attention to detail with visual
effect but perhaps not with the highest degree of
skill. Tendency to standardise garnish or display.
Attention to food placement and design. Creative
and artistic use of garnishes. Selection provides
variety in texture, colour, substance, theme and
temperature.
7-6 Attractive. Neat arrangement on plate.
Complimentary garnishes to enhance overall
appeal.
5-4-3 Unadorned and straightforward. No attempt to
enhance appearance. Limited variety of colours
and textures. No careful arrangement.
2-1 Badly presented. Inappropriate garnish. Dull
combination. Lukewarm. Some drying out of food,
wrinkled skin on sauce. Incorrect temperature.
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Beverage Presentation
10-9 Appropriate glasses for all beverages. Beverages
presented, poured and displayed according to
internationally accepted etiquette and the guest's
specific request. Wide variety in beverage
presentation. Wide variety of different glass types
available. Guest's asked how they would like their
beverage presented. Cognisance should be taken
of changing styles in the F&B industry.
8 Some variety in different presentation styles for
beverages, but overall presentation techniquestandard. Presentation good, in appropriate
glasses. Wines stored and poured appropriately.
7-6 Beverage presentation standard, unexciting.
Overall good use of different glasses.
5-4-3 Limited range of different glass types. Some
attempt at basic etiquette.
2-1 Beverages presented in inappropriate glasses, tins,
etc. No knowledge of basic beverage presentation
etiquette.
Quality of Ingredients
10-9 Skilful use of finest, fresh ingredients. Wide
variety of different ingredients used. Preferably
all dishes made fresh, on-site (pre-prepared
ingredients and dishes are acceptable but quality
is important and it should be indiscernible from
freshly prepared). Could be simple style but with
great attention to detail and quality. Everything
prepared to the right degree.
8 High quality, fresh ingredients. No evidence of
the use of artificial enhancers and discernable
convenience items (i.e. pre-prepared in some
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manner, canned, frozen, pre-baked, preproportioned, individually wrapped, etc).

7-6 Mixture of fresh ingredients and high quality
pre-prepared ingredients for meal components.
Limited evidence of convenience items.
5-4-3 Basic ingredients, including use of convenience
items. Low quality food.
2-1 Poor quality ingredients, poorly prepared. Dried
out.
Texture and Flavour

10-9 Interesting textures with layers and depth of
flavour. Perfect flavour of different ingredients
discernable. Perfect balance of a complex range
of different flavours and textures. Texture and
flavour according to menu specifications and
guest's specific requests. Correct and appropriate
textures. Pleasant aroma.
8 Correct texture of main ingredients. Well-balanced
flavours. Appropriate flavours are discernable.
Pleasing aroma.
7-6 Good and appropriate flavour. Correct texture of
main ingredients.
5-4-3 Basic blend of flavours. Imbalance of flavours.
2-1 Inedible. Unacceptable flavour and or texture.
Bland, no flavour. Incorrectly cooked. Badly
flavoured too much salt, burnt, etc. Unpleasant
aroma.
Culinary Skill and Temperature

10-9 Flawless and meticulous execution of all cooking
methods. On a par with international culinary
trends. Variety of cooking techniques applied to
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dishes. All menu items are prepared from scratch

and in-house (pre-prepared ingredients or dishes
should not be discernable from fresh, in-house
preparation). With the exception of classic dishes,
food is prepared in a manner that is highly
imaginative and adventurous. Classic dishes
correctly and expertly executed. Food served at
the appropriate temperature. All dishes cooked
correctly.
8 Advanced degree of culinary skill evident
throughout. Variety of cooking techniques
efficiently executed. Food correctly cooked. Food
served at the appropriate temperature.
7-6 Adequate culinary skill. Correct cooking
techniques applied. Food served at the appropriate
temperature.
5-4-3 Average to limited degree of culinary skill evident.
Incorporates limited variety of cooking techniques.
Incorrect temperature, slightly too hot or too cold.
2-1 No culinary skill evident. Food at incorrect
temperature, too hot or cold. Cooking techniques
incorrectly applied.
Sundries
10-9 Appropriate range of sundries e.g. breads,
condiments, sugars, butters, herbs, spices, etc as
per the character of the establishment. Clean,
easy to dispense cruets, at least half full. Excellent
quality. Covered after-dinner sweets and
toothpicks of excellent quality.
8 Good quality and appropriate range of sundries.
Clean, easy to dispense cruets. Good quality
(covered) after dinner mints, sweets and
toothpicks.
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7-6 Limited range of good quality sundries.

Alternatively good range of standard quality
sundries. Clean cruets.
5-4-3 Inappropriate sundries, but quality acceptable.
Limited range of sundries as would typically be
expected. Some standard sundries absent. Difficult
to dispense cruets
2-1 No sundries. Dirty, sticky condiment, salt and
pepper dispensers, etc. Empty cruets. Stale bread.
Uncovered sweets and toothpicks.
Services and Service
Reservations
10-9 Efficient and helpful telephone reservation. All
details taken down and checked and all necessary
information about the establishment given (i.e.
booking policy, licensed, minimum charges,
corkage, smoking, children, dress code, etc). May
call to confirm or provide written or SMS
confirmation. Overall personalised approach to
reservation. Prompt service.
8 Reservation dealt with promptly and all necessary
information taken and provided. High degree of
telephone etiquette evident. Guest information
confirmed for accuracy. Thanks patron for calling.
7-6 Reservation dealt with fairly well and all
necessary information taken and provided.
5-4-3 Name taken. Minimal information given. Casual
approach to bookings.
2-1 Name not taken. Surly, off-hand phone manner.
Failure to properly record booking. Failure to
answer telephone or return messages. Information
not available.
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Welcome, Attitude and Seating

10-9 Courteous greeting from maitre d' or someone of
similar authority. Patrons addressed by name.
Warm friendly smile. Helpful attitude. Help with
provision of information about the establishment.
Orientation provided. Attempt to establish a good
rapport and show willingness to please. Patrons
offered use of pre-dining area. Patrons shown to
table and seated. Table preset per reservation.
Management of queue efficiently and effectively
handled (time provided is adhered to, list kept upto-date, friendly and pleasant attitude). Charges
from lounge or bar are transferred to dining room.
Menus and wine lists presented promptly.
8 Courteous greeting by host or hostess. Personal
assistance provided as appropriate. Cheerful
demeanour and attitude. Patrons shown to table
and given necessary information. Encouraged to
ask if anything else required. Menus provided
promptly. Extra place settings removed.
7-6 Greeting from host or hostess. Offers a seat in
waiting area if seating is delayed. Pleasant
appearance. Willingness to help when asked.
Casual guidance to table or self-seating. Menu
and wine list presented at appropriate time.
5-4-3 Unenthusiastic welcome, just doing the job. Limited
assistance from staff. Menu not presented
promptly. Queue not managed efficiently-time
taken is significantly longer than indicated.
2-1 Off-hand behaviour. Clear indifference to patrons,
irritation at being asked for anything. No greeting.
Menus not presented or presented at the door.
Queue poorly managed, not kept up-to-date, name
left off the list, time not adhered to, etc.
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Management Efficiency
10-9 Prompt, thorough acknowledgement of guest
comments or complaints. Management
confirmation of guest experience. Patron needs
anticipated. All guest comments, complaints
handled at management level. Complaints
handled promptly and courteously. Management
identification of problems that may arise. An
excellent dining experience would be an evidence
of management efficiency (often behind the scene).
8 Good responses to any requests, but patron needs
aren't anticipated.
7-6 All requests dealt with pleasantly.
5-4-3 Rather unwilling response to any requests.
2-1 Off-hand manner. Marked reluctance to give any
help. No manager present.
Meal Service
10-9 Cheerful, friendly, polite, well-trained staff. Wellinformed about food and wine. Extensive menu
knowledge, including how dishes are prepared.
Thorough knowledge of specials. Appropriate
description of menu and specials provided. All
descriptions presented in a clear tone and at an
appropriate pace. High standard of personal
cleanliness. Prompt and efficient service. Correct
cutlery and glasses supplied for each meal. Good
judgement on timing of courses and drinks. Any
further needs responded to. Guest needs
anticipated. Polished, professional manner. Plates
are only cleared when all meals are finished (or
if guest requests plate to be cleared). All food
should be presented simultaneously to correct
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guest specifications. Internationally accepted high

standard of serving etiquette and protocol to be
observed.
8 Well-motivated, willing, helpful, attentive staff
that shows evidence of aspiring to an excellent
standard, but may fall a little short. Could benefit
from more training.
7-6 Willingness to be helpful and attentive. More
enthusiastic than polished, but trying to do their
best. Would benefit from further training. Staff
always present and respond helpfully when asked.
5-4-3 Low skills but basically pleasant. Informality
bordering on inefficiency. Not really interested,
but respond in reasonably helpful way to requests.
Conversely well skilled and trained but lacking
social skills, arrogant, insensitive. Staff difficult
to locate at times. Do what they are asked without
enthusiasm. No rapport. Little interest. Stacking
of plates at the table. Stretching across the table
to access plates, etc.
2-1 Off-hand, indifferent, unskilled staff. Slow service.
Disinterest. Inefficient staff missing for long
periods of time. No willingness to be helpful.
Ignoring customers they are serving. Little product
knowledge. Stacking of plates on the table.
Wine and Beverage Service

10-9 Sommelier or trained advisor present. Drinks
correctly served and presented. All bottles opened
correctly at table and service etiquette followed.
Top ups offered. Beverages served from left and
cleared from right. If necessary partially full
bottles to be stored in ice-bucket. Remove all empty
bottles and ice-buckets. Canned drinks opened at
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the table, request if guest would like their drink

poured. Attention to detail, patrons' glasses kept
half full at all times. No need for patrons to
request for top-ups or help themselves. Efficient,
courteous service.
8 Some slight lapses in beverage etiquette. Attempt
at excellent standard.
7-6 Overall good service, but lapses in serving
etiquette. Patron needs not anticipated. Service
slightly slow.
5-4-3 Patron needs not anticipated. Patrons fill own
wine glasses. Wine offered for tasting but no
knowledge of wine or other standard serving
etiquette evident.
2-1 Server with no wine training or knowledge. Bottle
held between knees when opened. No taste poured
for the patron. Beverages not presented to table.
Payment and Departure

10-9 Waiter/waitress anticipates when patron wants
the bill. Clear, legible, correct and well-itemised
bill presented in a folder (consistent with theme).
Bill typically accompanied by some form of
complement such as mint or speciality candy.
Server quickly, efficiently and discreetly handles
settlement. Waiter/Waitress and Maitre'd willingly
acknowledge patron's departure. Use of patron's
name in all acknowledgements. All payments
handled at the table.
8 Server anticipates when patron wants the bill or
reacts quickly to patron request. Clear, legible,
correct and itemised bill presented in a folder
(consistent with theme). Bill typically accompanied
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205
by some form of complement such as mint. Server

quickly and efficiently handles settlement. Server
and greeter willingly acknowledge patron's
departure.
dusting. All surfaces, high and low, dust free, no

cobwebs. Table surfaces well-polished, no smears.
Ashtrays clean. Everything tidy and well
arranged.
7-6 Bill presented on a plate, in a folder or on a tray

upon request from patron. Server and greeter
willingly acknowledge patron's departure.
7-6 High level of cleanliness. Pre-dinner area may

have "lived-in" feel.
5-4-3 Bill presented after meal or upon request. Pay at

cashier. Server handles payment with limited
enthusiasm. Server briefly thanks patrons or says
farewell.
2-1 Bill not presented after meal or upon
request. Repeated request for bill. Incorrect
charges or items on bill. No farewell on departure.
Unacceptably slow processing of bill and payment.
Bill presented in a dirty, unacceptable folder.
Housekeeping
Public Areas
Includes all general public areas visible to patrons
such as open kitchens and work areas, pre-dinner
areas, patios, gardens, pavements, etc but
excluding the eating/dining areas.
10-9 All well cleaned and vacuumed. All surfaces, high
and low, dust free, no cobwebs. Table surfaces
well-polished, no smears. Ashtrays clean. No
fingerprints or smudges on windows or glass doors.
No fingerprints on door plates, light switches, etc.
Flowers fresh and well arranged. Newspapers,
books, etc up to date and tidy. Overall excellent
standard of cleanliness evident and neat
appearance.
8 Generally very good level of vacuuming and
5-4-3 Clean but with some dust on high and low

surfaces. Personal clutter. Dying plants, flowers.
Smears on surfaces.
2-1 Generally neglected housekeeping-carpet badly
vacuumed, floors dirty. All surfaces dusty.
Cobwebs, dead insects. Evidence of pests. Dead/
wilting plants or flowers. Ashtrays full and dirty.
Dirty glasses, cups on tables.
Dining and Eating Rooms

10-9 Excellent standard of cleanliness in all areas no
evidence of previous meal. Efficient cleaning and
vacuuming. Tables always set to highest standard.
Waiter station neat and orderly. Restaurant fully
set when not in use complete with flowers, crockery
and cutlery. During meal times vacated tables
are cleared, cleaned, provided with fresh linen
(neat and tidy). Crumbing of tables executed
flawlessly.
8 Generally high standard of cleanliness no dust,
etc. May be some clutter.
7-6 Always tidy and clean in time for beginning of
meal service. Generally good standards of dusting,
tidiness. Some tables remain unset during meal
service but have been cleared and cleaned.
5-4-3 Not always at it's tidiest. Bottles, glasses, menus
on surfaces. Generally clean but may be some
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dust on high or low surfaces. Pot plants and

flowers neglected. Crumbing of tables poor, crumbs
dropped onto the floor.
A general smart, well-groomed appearance.

Sleeves and trousers the right length. Clothing
fresh and well ironed. Hair clean and under
control. Hands and fingernails clean. Standard of
dress uniform throughout serving staff. Polished
shoes. Uniform appearance, quality and type
consistently applied across all staff
2-1 Dusty, crumbs on carpet, surfaces smeared, ring

marked, dead or dying flowers. Untidy piles of
menus etc scattered around. Marks, stains on
tablecloths, dirty ashtrays. Dirty cutlery and
crockery on tables.
8 Approaching excellent, but lacking the final touch.

Perhaps some items a little ill fitting. All clothing
clean. Standard of dress uniform throughout
serving staff. Excellent standard of personal
cleanliness and grooming.
Public Toilets
10-9 Fastidious attention to hygiene. All surfaces
gleaming. Clean, fresh smell. High level of
efficiency. Toilets, including access area to toilets
are kept clean throughout use of restaurant. Lots
of toilet paper available.
8 Generally very high standard, but perhaps one
or two slight lapses.
7-6 No evidence of dust, hairs or grime. Surfaces all
clean. Floor clean, vacuumed and free from dust.
5-4-3 Generally clean but lacking attention to detail.
Dust on low and high surfaces and in inaccessible
places.
2-1 Low standard of housekeeping dust on all surfaces.
Long term encrusted grime in inaccessible places,
dirt and hairs on floor, in corners. Flooring around
toilet stained, smelly. No toilet paper. Toilet paper
on floor, blocked toilets, leaking toilets, etc.
Appearance of Staff
The nature of the establishment will be
taken into account as formality may vary
significantly.
10-9 Clean, neat, appropriate clothes that fit properly.
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7-6 A noticeable attempt to be smart. No stains, tears,

etc but dressed for comfort rather than smartness.
All clothing clean. Very high standard of personal
cleanliness and grooming.
5-4-3 Clothes starting to look worn, rumpled, lived in,
but basically clean. Hair a bit uncontrolled.
2-1 Clothing dirty, stained, frayed, holed. Dirty shoes.
Hands and fingernails grubby. Hair unwashed
and out of control. Unshaven. Personal hygiene
lacking.
Additional Requirements for Gold and Platinum Star

Outlets
General
All Platinum Star outlets should have private
guest toilets located within the same property as
the restaurant and under the control of restaurant
management. Alternatively if only public toilets
are available then the Platinum Star outlet owner/
manager should ensure that these public toilets
are continuously monitored and kept clean.
208
Determining Food and Beverage Standards
209
Services
Table Reservation: All Gold and Platinum Star
outlets should offer a table reservation service.
Wine List : A wine list with a good selection of
wines must be available and management/waiting
staff must have adequate knowledge of the
different varieties on the menu.
Table Appointment: High quality cutlery, crockery,
glassware and linen. Appropriate table cloths and
placemats to be used.
Food Menu: Food menu should offer a variety of
items: entrees, seafood, poultry, meat dishes,
salads, desserts, and dishes for vegetarians.
Noise Levels: Entertainment/background music
(where available) should be set at the appropriate
noise level.
Table Spacing: There should be adequate space
between tables to ensure privacy for conversation.
6
DETERMINING F OOD AND
B EVERAGE S TANDARDS
Developing standards (levels of expected performance)
is part of the process of controlling food and beverage costs.
Standards specific to the property's current plans will better
indicate problems (variances from planned costs) than will
standards adopted from industry averages or standards
developed from the property's past operating statistics.
The usefulness of control information can be increased
by establishing standards for each revenue center within
the food and beverage operation. For example, instead of
computing a standard food cost covering all outlets, a property
might establish separate standard cost levels for its coffee
shop, dining room, room service, and banquet operations.
An advantage of this alternative is that each outlet can be
evaluated separately based on its own set of anticipated
costs.
However, food and beverage managers realize that as
a standard becomes more specific, more time is required to
develop and monitor it. The longer the time needed to collect
information on which to base the standard, or later to measure
actual results, the less practical managers may judge the
task; and as a result, the less likely they may be to undertake
the control activity. In addition, the more complex the
210
development of standard costs becomes, the more likely the

task will be met with resistance by those who must collect
the information.
Therefore, an ideal control system must strike a balance
between the time and effort spent developing the control
system and the usefulness of the results the system provides.
Simplified, timeand cost-effective systems for determining
food and beverage standards are offered in this chapter. The
principles for establishing standards are the same regardless
of whether the property is commercial or institutional, large
or small, fast food or gourmet, hotel or restaurant. Managers
in any kind of operation who want to develop in-house food
and beverage standards can use the procedures discussed
in this chapter.
Systems for developing food and beverage standards
must begin with the menu. The menu should be designed
to implement the property's marketing plan as it relates to
the food and beverage operation. Because it establishes
which food and beverage items will be served, the menu is
the most basic and important control tool. Once a menu is
created, five standard cost tools can be developed:
Standard purchase specifications.
Standard recipes
Standard yields
Standard portion sizes
Standard portion costs
STANDARD PURCHASE SPECIFICATIONS
A purchase specification is a concise description of the
quality, size, weight, count, and other factors needed to
describe a desired item. The specified factors should be
described in sufficient detail to properly guide the company's
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suppliers and receiving personnel in the delivery and receipt

of the desired products.
Management should establish standard purchase
specifications based on menu requirements and the operation's
merchandising and pricing policies. Once developed, standard
purchase specifications should be given to those responsible
for purchasing, the property's suppliers, and receiving
personnel. In this way, all of the parties involved in ordering,
supplying, and receiving will have the necessary written
guides to permit the operation to consistently obtain the
quality and kind of food and beverage items desired.
In addition to providing a knowledge of what is required
by the operation, standard purchase specifications offer
several other advantages:
Fewer products may be required. Analyzing the menu
may suggest ways to duplicate product use (use an
ingredient for several menu items) so that fewer
ingredients have to be purchased.
Reduced purchase costs are possible if proper quality
items are purchased. Developing purchase
specifications based on the needs of the menu means
that the property will not have to pay a higher price
for a product of greater quality than necessary.
If purchase specifications are properly established,
more than one supplier will likely be able to quote
prices and compete for the operation's business.
The development of specifications involves time and effort.
Time is needed to create the specifications and then to
monitor the need for changes as the operation's business
evolves. Furthermore, their use will create increased duties
for the receiving staff. Finally, since specifications establish
the minimum quality expected, over time they may become
the maximum quality that will be purchased. However,
212
considering the many advantages to the use of purchase

specifications relative to the few disadvantages, it should be
clear they are a critical standard cost control tool. It is only
through carefully developed and rigidly enforced
specifications that the operation can help assure that the"
right" quality product is consistently available for production
and service. Remember, however; use of standard purchase
specifications will not, alone, guarantee that products of the
correct quality will be received unless effective receiving
control procedures are in use.
STANDARD RECIPES
A standard recipe is a formula for producing a food or
beverage item. It provides a summary of ingredients, the
required quantity of each, specific preparation procedures,
portion size and portioning equipment, garnish, and any
other information necessary to prepare the item. The
advantages of standard recipes are equally relevant in both
food and beverage preparation.
The primary advantage of following a standard recipe
is that, regardless of prepares the item, when it is prepared,
or to whom it is served, the product will always look, cost,
and taste the same. The consistency in operations provided
by the standard recipe is at the heart of all control, and
many marketing, systems.
Note that this recipe yields 60 portions, each with a
standard portion size of 6 ounces. The" Amount" column on
the left margin can be used to adjust the yield to a larger
or smaller quantity. To aid in portioning, the recipe's
"Procedure" column specifies that a #60 scoop (which equals
60 level scoops, or servings, per quart) should be used. Note
also that the recipe clearly indicates baking time, temperature,
and the exact procedures for preparing the menu item.
There are several other reasons to use standard recipes in
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addition to the advantages of consistency in appearance,

cost, and taste:
When managers know that the standard recipe will
yield a specific number of standard-size portions, it
is less likely that too many or too few items will be
prepared.
Since standard recipes indicate needed equipment
and required production times, managers can more
effectively schedule food production employees and
necessary equipment.
Less supervision is required since standard recipes
tell the employees the quantity and preparation
method for each item. Guesswork is eliminated;
employees need only follow recipe procedures. Of
course, managers should routinely evaluate the
quality of items produced and ensure that standard
recipes are followed correctly.
If the chef is ill or the bartender doesn't show up, a
product can be produced if a standard recipe is
available. Granted, inexperienced employees will be
slow and may make mistakes. However, if the recipe
is in the head of an absent employee instead of on
a standard recipe card or available for printout,
management will be in an even more awkward
position.
Many persons think about the importance of standard
recipes for food production; as suggested above, however,
they're also critical to control the consistency (quality and
cost) of beverages. Today in the U.S. it is critical that standard
recipes specifying ingredient and portion sizes of alcoholic
beverages be available in consistent use. Liquor liability
concerns often arise when standard recipes are not available
and or when standard portion controls are not in use. It is
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always necessary to be able to verify the actual quantity of

alcohol (not just number of drinks!) that has been consumed
by a guest.
Using a standard recipe does not requite that the recipe
be physically in the work area during production times.
After a cook prepares a menu item several times, or a bartender
mixes a drink several times, he or she will-remember
ingredients, quantities, and procedures. It would obviously
be impractical if, before preparing a drink, a busy bartender
had to refer to a standard recipe. A standard recipe must
always be followed and must always be available, but it does
not always need to be read.
DEVELOPING STANDARD RECIPES
Developing standard recipes does not require throwing
out existing recipes and starting over. Rather, it often requires
standardizing existing recipes according to a series of steps.
Select a time period for standard recipe development. For
example, you may choose to standardize three recipes at
each weekly cooks' meeting, or spend one hour each week
with the head bartender to develop standard beverage recipes.
At these meetings, ask the cook or head bartender to talk
through the preparation of the item.
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portions are needed for busy times, recipes should be

designed to yield these servings.
List all ingredients in the order they are used.
Decide whether to use weights or measures or both.
Weighing is always more precise than measuring, and
it is just as practical to weigh liquids, flour, etc., as it is to
measure them. Avoid confusion by using consistent
abbreviations throughout all the standard recipes you are
developing.
Whenever possible, express all quantities in amounts
that are practical for those preparing the item. For
example, convert all measures into the largest possible
units. Change 4/8 cup to 1/2 cup, four cups to one
quart, or three teaspoons to one tablespoon. At this
point you need to be sure that the proper equipment
is available. It does little good to specify a three-ounce
quantity when an accurate measuring scale is not
available. Also, when applicable, recipes should be
developed that call for standard-size pans and other
equipment.
Record the recipes in a standard format that will be

helpful to those preparing the items. For example:
Record procedures in detailed, concise, and exact

terms. Avoid ambiguous statements. For example,
what does" one cup whipping cream" mean? Does it
mean one cup of cream that has been whipped or
does it mean one cup of cream that must be whipped?
When mixing is called for, tell how to mix (by hand
or by machine) and provide the exact time and speed
if a machine is used. State the size and type of
equipment and small wares such as pans or bowls
needed and always list exact temperatures, cooking
times, and other necessary controls.
Decide on the desirable yield. If 25 portions of a food

item are normally prepared for slow periods and 60
Carefully consider potential sanitation problems which

can arise in each step of recipe production; note these
What are the ingredients and how much of each

ingredient is needed? What are the exact procedures? What
are cooking/baking temperatures and times? What portioncontrol tools are, or can be, used? On what plate or in what
glassware is the item served? What garnish is used? Doublecheck the recipe by closely observing the cook or bartender
as the item is actually prepared.
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and incorporate food handling precautions directly

into the recipe. For example, if the operation uses a
hollandaise sauce (this sauce is potentially hazardous
and is highly susceptible to contamination by
microorganisms), a last step in the recipe for
hollandaise sauce might state: "Hollandaise sauce is
a potentially dangerous food which can become
contaminated by microorganisms; always prepare in
small batches and do not hold on the serving line for
more than one hour."
Provide directions for portioning. Indicate the type
and size of the serving dish. Also, indicate portioning
equipment, such as ladle or scoop, and specify the
expected number and size of portions. Be sure all
required portioning equipment is available for use.
If garnishes or sauces are needed, these should be
listed.
After the standard recipes have been recorded, share
them with other production staff. Solicit their ideas about
accuracy and possible refinements. Finally, test the recipes
to be certain that they yield products of the desired quantity
and quality. After successful testing, the recipe may be
considered standardized. Despite the advantages of using
standard recipes, there may be some difficulties encountered
in implementing them. Cooks or bartenders, for example,
may feel that they can no longer be creative in the kitchen
or behind the bar. They may resent the need to put things
down on paper. Other difficulties may be related to concerns
about time. It takes time to standardize existing recipes, and
it takes time to train production employees to precisely follow
them.
These concerns, however, are minor when compared to
the points already noted in favor of using standard recipes.
In addition, managers can minimize difficulties with
217
implementing standard recipes by explaining to employees

why standard recipes are necessary and by involving them
in developing and implementing the recipes.
STANDARD YIELDS
The term yield means the net weight or volume of a food
item after it has been processed and made ready for sale to
the guest. The difference between the raw or "as purchased"
(AP) weight and the prepared or "edible portion" (EP) weight
is termed a production loss.
In general, there are three steps in the production process.
The first step is preparation, which includes such activities
as meat trimming and vegetable cleaning. The second step
is cooking. Holding, the third step includes the portioning
of those products that have not been preportioned. A "loss"
can occur in any of these steps.
A standard yield results when an item is produced
according to established standard production procedures
outlined in the standard recipe. They serve as a base against
which to compare actual yields. For example, if the standard
purchase specifications are adhered to and a meat item is
properly trimmed, cooked, and portioned, the actual yield
should closely approximate the standard yield.
DETERMINING STANDARD YIELD
Standard yields are determined by conducting a yield
test. Ideally, everything that does not have a 100 percent
yield should be tested. (Examples of items with 100 percent
yield [100 percent edible portion] are some portion-controlled
products such as meats and those convenience foods that
only need to be plated.) However, from a practical standpoint,
yield tests are typically performed only on high-cost items
or on lower-cost products used in large quantities.
218
The yield from a product depends upon several factors,

including the grade, original weight, and preparation and
cooking methods. Therefore, it is helpful for a food and
beverage purchaser to compare the yields for similar products
from different suppliers. It may be possible to substitute a
raw product with a lower cost per unit that provides a yield
similar to that of a higher cost product, without compromising
the operation's quality standards.
Since the AP weight is already known, the meat must
next be weighed when it is removed from the oven after
cooking. By subtracting the cooked weight from the original
weight, you can determine the loss in cooking-in this example,
an average of 3 pounds, 14 ounces per beef rib. Next the
fat cap and bones must be removed, and the remaining meat
weighed. This is the edible portion or servable weight-in this
example, an average of 11 pounds, 3 ounces per beef rib.
Subtracting the edible portion (servable) weight from the
cooked weight indicates that the loss in carving and bones
averaged 5 pounds, 3 ounces.
COST PER SERVABLE POUND
Once the edible portion (servable) weight is determined,
a cost per servable pound can be determined. To find the
cost per servable pound, first establish the yield percentage.
The yield percentage (sometimes called yield factor) is the
ratio of servable weight to original weight and is calculated
by dividing the servable weight by the original weight
(normally both weights are expressed in ounces; there are
16 ounces in one pound), and multiplying by 100 to change
the decimal to a percentage.
The cost per servable pound is the information needed
to calculate standard portion costs, discussed later in this
chapter. One can make a similar calculation to determine
the total AP quantity needed once the yield percentage is
219
known. Assume that 50 8-ounce edible portions of beef ribs

in the above example are required for a banquet and that
there is a 55.25 percent yield. What quantity of beef ribs
will be needed to yield the 25 pounds (50 portions at 8
ounces per portion) that are requested?
The cook will have to prepare approximately 45.25 pounds
(724 ounces divided by 16 ounces per pound) to yield the
25 pounds that are needed.
THE COST FACTOR
The cost factor is a constant value that may be used to
convert new AP prices into a revised cost per servable pound,
assuming that the standard purchase specifications; standard
recipe, and standard yield remain the same. The cost factor
is obtained by dividing the cost per servable pound, calculated
as part of the yield test, by the original AP cost per pound.
STANDARD PORTION SIZES
Each food and beverage standard recipe indicates a
standard portion size. This is the fourth standard cost tool
for ensuring consistency in operations. Because a given
menu item or drink will be the same size each time it is
portioned, no guest will get a larger or smaller portion or
a stronger or weaker drink. The benefit is twofold: portion
costs for the same food and beverage items will be consistent,
and the guest will always receive the same value for the
dollars he or she spends.
Value is the relationship between price and quality.
Basing the selling price of the food or beverage item, at least
in part, upon its cost will help to establish a fair selling price,
or value, from the guest's perspective. Assume that an
operation does not provide a standard portion size. On one
occasion, a guest may receive a very large portion-a great
value. Returning at a later time, the same guest may receive
220
221
a smaller portion at the same selling price-a lesser value and

a disappointment for the guest. Consistency, then, in terms
of value perceived by guests, is a primary advantage of
standard portion sizes.
of ground beef increases, the new cost is entered into the

menu management system and all recipe costs in which
ground beef is an ingredient are automatically adjusted to
reflect the price increase.
Portion control tools must be available and used every

time a recipe or beverage is prepared. Portion control tools
include such items as weighing and measuring equipment,
ladles and scoops to portion food, jiggers and shot glasses
for beverages, or automated beverage-dispensing equipment.
For example, no costs are included for salt and pepper.
Employees must know about portion sizes in order to

follow them. Required portion sizes from each standard
recipe should be posted in production areas for cooks and
bartenders to refer to. In addition to these lists, some
operations use pictures of each item. When these are posted
in serving line stations, employees can see how the item
should look or how it is placed on the plate.
STANDARD PORTION COSTS
After standard recipes and standard portion sizes have
been developed, a standard portion cost-the fifth standard
cost toolcan be calculated. A standard portion cost is, simply,
the cost of preparing and serving one portion of food or one
drink item according to the standard recipe. The process of
establishing this cost is called pre-costing.
A standard portion cost is determined by dividing the
recipe's total ingredient costs by the number of portions the
standard recipe yields. For example, if the cost to prepare
a recipe is $75.00 and it yields 50 portions, then the standard
portion cost for one item is $1.50 ($75.00 + 50 portions).
The prices for ingredients listed in standard recipes can
be obtained from current invoices. Today, many operations
use computerized precosting systems to keep the per-portion
cost of standard recipes current. For example, if the price
To arrive at the total cost of each ingredient, the amount

of the ingredient is multiplied by the cost per unit. For
example, the total cost of fish fillets is calculated as follows:
Amount x Cost/Unit = Total Cost
22 lb, 8 oz x $4.85 = $109.13
(rounded)
The total ingredient cost for preparing 60 portions of fish
fillet amandine according to the recipe is $119.50. The portion
cost for this menu item is calculated at the bottom of the
worksheet:
Total Cost
----------------------------------------------------------- -= Standard Portion Cost
Number of Portions
$119.50
--------------------------- = $1.99
60
Therefore, the standard portion cost-the cost to prepare
one portion according to the recipe-is $1.99. Changes in the
yield of a standard recipe that occur because of a change
in the portion size will affect the standard portion cost.
Anytime the portion size is altered, a new standard portion
cost must be calculated.
CALCULATING STANDARD DINNER COSTS
Many food service operations combine individual menu
items to create dinners or other meals that are casted, priced/
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223
and sold as one selection (although some operations such as

cafeterias offer items a la carte-each item individually priced).
The cost of each item listed on the standard dinner cost
worksheet is obtained from pre-casted standard recipes for
each menu item. The costs of items offered as part of the
dinner are totaled to arrive at the dinner cost of $4.14.
other dinner items to arrive at a revised standard dinner

cost. Increasingly, computerized menu management systems
are used to update the costs of menu items. These systems
are also used to calculate possible food costs when managers
consider changing menu prices.
Because the vegetable varies from day to day (the term"

du jour" for vegetable means" of the day," and because
guests have choices in the potato, dressing, and juice
categories, it would take an impractical amount of time to
determine the standard dinner cost for all the different
dinner combinations that are possible. For the categories in
which the guests have a choice, managers can choose the
cost of the most popular item in the category to determine
the dinner cost.
CALCULATING
BEVERAGE
For example, if baked potatoes are chosen most often by

guests, then the portion cost of baked potatoes might be used
when calculating the standard dinner cost. It is also possible
to select the item with the highest portion cost in a category
and use this when determining the standard dinner cost. In
addition, managers can track the actual number of each
item chosen for several days, and then calculate an average
cost that can be used when determining the standard dinner
cost. Regardless of the method used, planners should be
aware of the item cost which is used in calculating the
standard dinner cost.
Then, when additional items are considered, they can
better assure that the per portion cost of the new item will
be in line with that used in earlier cost calculations. The
worksheet provides four more columns for calculating the
standard dinner cost when the standard portion costs of
items change (due to a change in an ingredient's price on
the item's standard recipe). When this occurs, the new
standard portion cost is added to the unchanged costs of the
STANDARD
PORTION
COST:
Establishing a standard drink cost for beverages is

relatively simple because usually there are few ingredients.
A standard recipe form, such as the one shown in Exhibit
8 for a Manhattan, can provide space for listing ingredient
costs and calculating the standard drink cost.
Most alcoholic beverages are sold by the liter rather than
by the ounce. Therefore, because recipes and bar equipment
typically use ounces as a unit of measure, it is usually
necessary to convert liters to ounces before making recipe
extensions or costing calculations.
Since there are four columns in this section, three
ingredient price changes can be noted before a new standard
form must be used in this manual system. As with the food
costing procedures noted above, computerized systems make
this process quick and easy. How are ingredient costs
calculated? To determine the cost of the rye whiskey used
in the Manhattan, for example, the price of the bottle of rye
whiskey first must be divided by the, number of ounces in
the bottle to obtain the cost per ounce:
$
9.65 (price per liter bottle)
Cost per Ounce = 0$.286
33.8 (ounces per liter bottle) (rounded)
When calculating a bottle's cost per ounce, some beverage
managers deduct an ounce or so before dividing to allow for
224
evaporation or spillage. This will increase the cost per ounce.

Since 1.5 ounces of rye whiskey are used in a Manhattan,
the ingredient cost for rye whiskey is $.43: $.286 X 1.5
ounces = $.429, or $.43 (rounded).
The costs of the rye whiskey and the other ingredients
used to make the Manhattan are added together and the
total drink cost ($.530) is recorded at the bottom of column
5. This figure is then transferred to Line B at the top of the
recipe.
Line C at the top-of the recipe indicates the drink cost
percentage. The drink cost percentage expresses how much
of the drink sales price (recorded on line A) the drink cost
represents. The drink cost percentage is calculated by dividing
the cost of the drink by the drink's selling price and multiplying
by 100. The drink cost percentage for the Manhattan in the
sample recipe is calculated as follows:
$.530 (drink cost)
Drink Cost Percentage = $4.00(sellingprice)
= .133 (rounded) X100= 13.3%
Special Standard Cost Tools for Beverage Control The
five standard cost tools-standard purchase specifications,
standard recipes, standard yields, standard portion sizes,
and standard portion costs-are necessary to establish
performance standards for both food and beverages. However,
two additional standard cost tools are important to the
beverage operation: standard glassware and standard ice
size.
Standard Glassware: Glassware obviously affects
portion size, quality, and perceived value. In too small a
glass, highballs made with mixers such as soda, tonic, or
water will be too strong since less mixer can be added to the
standard portion of liquor.
225
Conversely, in too large a glass, the drink will taste weak

since the greater amount of mixer dilutes the standard
portion of liquor. Therefore, the standard drink recipe should
specify a standard glass size, which should be determined
when the beverage recipe is standardized. A standard
glassware review sheet, should be posted in the work area.
The same style and size of glass should be used every time
the drink is prepared. This means, of course, that sufficient
quantities of all necessary glassware must be available at
all times.
Glassware is also important in marketing to help carry
out an atmosphere theme and to influence the appearance
and presentation of the drink. However, while glassware
affects presentation (marketing) concerns, it is wise to limit
the number of different glasses in inventory. For example,
the same glass might be used for ice water, soft drinks, milk,
and highballs. If this can be done, problems with the costs
of glassware, storage space behind the bar, and training
time for bartenders and servers may be reduced.
Standard Ice Size: It is easy to ignore the effect of ice
size on drink quality. Although any size ice is suitable for
most food service purposes, drink standardization must
consider ice cube size. Bigger cubes leave more empty space
in the glass because they do not clump together as smaller
cubes do. This space must be filled with something. In a
liquor-only drink, such as a martini, the amount of beverage
appears smaller, unless a larger portion is served.
In a mixed drink, the drink will be diluted by adding
more mix. On the other hand, small cubes or shaved ice fill
up a glass more completely before a beverage is added, but
both melt more quickly. Therefore, a delay in serving or
consuming the drink may create a diluted taste. Management
must therefore consider its operating procedures to determine
the proper size of ice cubes for the operation.
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Computer Applications: Recipe Management Software

Recipe management software maintains three of the most
important files used by an integrated food service computer
system: an ingredient file, a standard recipe file, and a menu
item file. Most other management software programs must
be able to access data contained within these files to produce
special reports for management.
Ingredient File
An ingredient file contains important data about each
purchased ingredient. Ingredient file data generally include
ingredient code numbers and descriptions, as well as each
ingredient's:
Purchase unit and cost per purchase unit
Issue unit and cost per issue unit
Recipe unit and cost per recipe unit.
A sample ingredient cost list produced from some of the
data contained in an ingredient file. This report is useful for
detailing unit expenditures at current costs and monitoring
relationships among various product units (such as purchase,
issue, and recipe units of the same ingredient). Some
ingredient files may specify more than one recipe unit. For
example, the recipe unit for bread used for French toast is
by the slice; the recipe unit for bread used for stuffing may
be by the ounce.
The initial creation of an ingredient file and the
subsequent file updates (daily, weekly, monthly, etc.) are
often challenging tasks for many food service managers.
However, the benefits of an ingredient file often outweigh
the cost of creating and maintaining the file. When the
ingredient file can be accessed by other management software
programs (especially by inventory software), ingredient data
can easily be transferred (rather than re-inputted) to
227
appropriate management software programs. Since other

management software programs rely on data maintained by
the ingredient file, it is important that data contained in the
file are accurate. If errors are made when initially entering
data, all subsequent processing will be unreliable and system
reports will be relatively worthless.
Standard Recipe File
Computers can assist in generating standard recipes by
simplifying many of the calculations needed. Numerous
software programs that calculate recipe quantities based
upon estimated unit sales and then print the standard recipe
are available.
Standard recipe conversion information generated by
recipe management software. The software converts recipe
ingredient amounts to weights and then to ingredient costs.
It can also determine nutritional information for an entire
meal (or other period) and define applicable preparation
areas (for example, whether ingredients are to be issued or
delivered to specific workstations).
Some recipe management software programs provide
space within standard recipe records for preparation
instructions (also referred to as assembly instructions) that
are typically found on standard recipe cards. This can be a
useful feature when the number of portions yielded by a
particular standard recipe has to be expanded or contracted
to accommodate forecasted needs.
For example, if a standard recipe is designed to yield 100
portions but 530 portions are needed, it may be possible
(depending on the particular menu item) to instruct the
system to proportionately adjust the ingredient quantities.
A recipe for 530 portions can be printed that includes
preparation information, thus providing a complete plan for
the new recipe's production.
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229
Few restaurants purchase all menu item ingredients in

ready-touse or preportioned form. Some ingredients are made
on the premises. This means that the ingredients within a
standard recipe file may be either inventory items or
references to other recipe files. Recipes that are included as
ingredients within a standard recipe record are called subrecipes.
the menu item file to produce various sales analysis reports

for management. When menu items, prices, or tax tables
need to be changed, the menu item file is accessed and
appropriate changes are entered according to procedures
indicated in the user's manual provided by the system's
vendor.
Including sub-recipes as ingredients for a particular

standard recipe is called chaining recipes. Chaining recipes
enables the food service computer system to maintain a
single record for a particular menu item that includes a
number of sub-recipes. When ingredient costs change, recipe
management software programs must be capable of
automatically updating not only the costs of standard recipes,
but also the costs of sub-recipes that are used as ingredients
in other standard recipes.
STANDARD FOOD COSTS
Menu Item File

A menu item file contains data for all meal periods and
menu items sold. Important data maintained by this file may
include the menu's identification number, descriptor, recipe
code number, selling price, ingredient quantities for inventory
reporting, and sales totals (by unit).
This file also stores historical information about the actual
number of items sold. Generally, after a meal period, the
actual number of menu items served is manually entered
into the menu item file, or automatically transferred from
an electronic cash register (ECR) or point-of-sale (PaS) system
through an interface to the restaurant management system.
This data can be accessed by management or by
sophisticated forecasting programs to project future unit
sales, determine the number of ingredient quantities to
purchase, and schedule needed personnel. In addition,
computer-based sales analysis applications access data in
The best sources of information to use as the basis for

establishing standards are the property's operating budgets
developed for a current fiscal period and in-house
measurements that consider potential costs matched with
anticipated revenue. The remainder of this chapter discusses
this second method of establishing standard costs. Standard
costs can be implemented after the standard cost control
tools for the food and beverage operation discussed earlier
in this chapter have been developed. When standard food
costs are known, management is able to compare the cost
of food with the revenue it generates. There are several
ways to measure food cost. One way expresses costs in terms
of total dollars spent on food per day, week, or year.
The more common method of measuring food cost in
commercial food and beverage operations is the food cost
percentage. This expresses cost as a percentage of food
revenue and is calculated by dividing food costs by food
revenue and multiplying by 100. In institutional, non-pricing
operations, the food cost percentage often measures food cost
differently by expressing it as a percentage of total operating
expenses rather than as a percentage of revenue. In all
cases, the standard food cost percentage represents the
planned food cost percentage against which actual food costs
are measured.
The procedure to calculate food cost percentage begins
by first establishing all standard cost tools: standard purchase
230
specifications, recipes, yields, portion sizes, and portion costs.

With these tools, the standard food cost for each item is
developed following the process discussed earlier.
Next, a time period for a trial study must be selected.
Over this trial period, accurate sales information for each
menu item is collected to calculate an overall standard food
cost. The longer the time period for the analysis, the more
accurate the information. A practical and reasonably accurate
method for calculating standard food costs involves the use
of the worksheet illustrated in.
Each menu item is listed on the left side of the form. If
an item is offered for sale individually, such as soup or
eggplant appetizer, it is listed separately on the worksheet.
If it is sold as a dinner or in combination with other items,
such as seafood or steak, it is combined with the dinner.
Since actual food cost is calculated across all meal periods
(properties do not determine actual food cost separately for
breakfast, lunch, and dinner) the worksheet should list all
menu items.
SALES HISTORY INFORMATION
The information necessary to determine standard food
cost may come from actual sales records citing the number
of each menu item sold during one or more prior periods.
If a sales history has been kept, the total number of each
item sold can easily be transferred to the worksheet.
If there is no record of past item sales (for example, if
an entirely new menu is introduced), items sold must be
tallied daily during the study period. An accurate tally of
the number of each a la carte and complete meal item sold
during the trial period must be made. The information may
come from an analysis of the guest checks created each day
during the study period or from a management report
generated by most electronic cash registers or point-of-sale
231
systems. The worksheet has space for only 16 days. Because

accuracy increases as the number of days increases, two or
more forms can be used to tally item sales for at least one
month.
By recording this information on a worksheet, total sales
(number of units) and total food costs for the trial period can
be easily tracked. With this information, an overall food cost
percentage can be figured. Because each food item is likely
to have a different food cost percentage, calculating the
overall food cost involves determining a weighted average
food cost. Items with a high food cost raise the average food
cost percentage; items with a low food cost reduce it. It is
this weighted average food cost that will be used as the
standard against which to measure actual food costs.
1. The item sales price is the actual selling price of each
menu item as printed on the menu.
2. Total food revenue represents the total revenue
expected from sales of the individual menu items. In
the first example, 223 servings of soup were sold at
90 cents each, resulting in a total revenue of $200.70.
Actual revenue may be less than expected revenue.
Differences could be due to theft, to errors in
processing sales information, or to inaccurate counts
of the number of items sold.
3. Item food cost is the standard portion cost. If the item
is sold individually, this figure can be taken from the
pre-casted standard recipe. If the item is a grouping
of menu items, such as a New York strip steak dinner,
then the figure can be transferred from the standard
dinner cost worksheet.
4. Total food cost is the total cost of all food used to
produce the number of items sold. For example, the
223 servings of soup each had a standard food cost
of 32 cents. The total food cost, then, is:
232
5. The food cost percentage is calculated by dividing the

food cost by the sales price and multiplying by 100.
The standard food cost percentage for the soup is:
While the standard food cost percentage for each
individual item is of some interest, one more step is
needed to arrive at the overall standard food cost
percentage.
6. To calculate the standard food cost percentage against
which to compare actual food costs, the sum of the
total food cost column is divided by the sum of the
total food revenue column and multiplied by 100. In
the example in Exhibit 14 the standard food cost
percentage is calculated as:
$11,892.84 100 = 35.64%; $33,370
The effort needed to calculate an overall standard food
cost percentage can be simplified by using one of the many
electronic spreadsheet programs available for a personal
computer. The number of each menu item sold can be entered
on a daily basis. The computer can calculate total revenue
and total costs along with the item's standard food cost
percentage and the overall standard food cost percentage.
CALCULATING STANDARD COSTS PER MEAL
One final comment about developing standard food costs
must be made. Properties offering more than one menu,
such as lunch and dinner, must decide whether to develop
standard food costs by meal or across all meals. If by-meal
food costs are desired, calculations for each meal must be
done on a separate worksheet. There are two advantages
to a separate listing. First, when food cost standards are
separated by meals, it is easier to compare any differences
between standard and actual costs.
Second, since corrective action can focus specifically upon
the meal period contributing, higher than expected food
233
costs, the reasons for losses can more quickly be identified

and brought under control.
There is, however, one serious disadvantage to overcome
when standards are established for each separate meal period.
To effect control, actual food costs must also be assessed
separately for each meal. Even with the use of point-of-sale
equipment, the process of determining how much of each
food item is used for breakfast, lunch, or dinner is very timeconsuming.
For example, a manager might know the cost of food that
should have been used during a meal period (number of
items sold times each item's standard food cost). But if some
food was wasted or improperly portioned during preparation,
the actual cost of food used would be greater than that
determined from the tally of sales. Many food and beverage
managers, therefore, find it more helpful to spend time
identifying problems common to all meal periods, such as
ineffective purchasing, receiving, storing, and issuing, or
problems in production and service, rather than searching
for problems applicable to a specific meal period.
DEFINING EXPECTED FOOD COSTS
The standard food cost percentage is one of the most
important tools of the control process. It becomes the
manager's goal since it defines expected food costs. If actual
food costs are close to this goal, the management team is
probably doing a good job. If, on the other hand, actual food
costs are greater than standard food costs, there may be
problems within the operation.
The manager should first check to see if the sales mix
has changed since the information was collected to determine
the standard food cost. For example, it may be that more
items with higher food cost percentages are being sold. This
is a common reason that total food costs and food cost
234
percentages are higher than expected. If this is not the

cause, the manager must analyze the food service operation
to determine where corrective action is needed.
235
To that end, system manufacturers often include software

to generate an ideal cost as part of their ECR or POS
systems. With computerized systems, the process of
determining ideal costs is relatively simple.
IDEAL COSTS BASED UPON ACTUAL SALES MIX

To this point, we have discussed the development of
standard food costs that are based upon historical sales mix.
We have noted that when actual costs do not approach
standard costs, one reason may be that the sales mix for the
period under study is different from the sales mix at the time
the standard food cost was calculated.
The concept of ideal cost addresses this problem. An ideal
cost is based on the actual number of each menu item sold.
After each meal period or at the end of a day, the actual
number of each item sold can be multiplied by its per-portion
standard food cost to arrive at the expected cost for serving
that number of the item. When this process is completed for
all menu items and the expected costs are added together,
an ideal cost for the meal period or day can be determined.
This data is, in turn, summed for each successive meal
period or day to generate an ideal food cost for the entire
time period (such as month) for which actual costs will be
assessed.
Because an ideal cost is based on the actual number sold,
it provides a more accurate basis of comparison against
actual food cost. This gives management an opportunity to
effect control closer to the time of production and service.
For an ideal cost system to be effective, standard recipe
costs must be kept current. This means that management
must maintain up-to-date information about ingredient
purchase costs and continually recalculate (pre-cost) standard
recipes. The need for a large amount of computation suggests
that ideal cost may be best implemented using a computerbased system.
STANDARD BEVERAGE COSTS

Standard beverage costs are calculated for exactly the
same reason as standard food costs. The manager wants to
establish a goal-a base of comparison-against which to
measure actual results of the beverage operation. The
standard beverage cost becomes the goal. The steps in
calculating standard beverage costs are:
Establish all standard cost tools: standard purchase
specifications, recipes, yields, portion sizes, portion
costs, glassware, and ice.
Select a time period for the analysis. As with standard
food costs, more time and effort spent on determining
standard beverage costs will generally produce more
accurate cost calculations. However, no system can
provide data with 100 percent accuracy. The best
time schedule will allow observation of all phases of
the beverage operation, including both slow and busy
times, or shifts with high, low, and/or regular prices.
At a minimum, the review should cover two or three
weeks in succession. Operations with several beverage
outlets need a longer observation period for sales to
reflect an average volume and a variety of drinks
served.
Inform all affected staff members-bartenders, food
and beverage servers, and others-about the study.
They will want to know:
a. The reason for the study-to determine cost
expectations for accounting, record keeping,
management, and control purposes.
236
b. Why the study is important-management wants

to assess how well the beverage program is
operating.
c. What's in it for them-the results of the study will
help staff members know what's expected of them,
and cost savings may be shared with the staff.
237
e. Revenue from all drinks served must be collected.

Management must approve all complimentary
drinks. Personnel must save all drinks returned
because of mistakes. Special precautions to
minimize the possibility of guest" walkouts" and
errors in guest checks should be used.
d. Implications of the study-results of the analysis

have no bearing on employment status; no one's
honesty or competency is being reviewed or
questioned.
Before the study begins, take careful inventory of the

quantity of liquor behind the bar.
e. Procedures for the study-there will be minimal,

if any, disruption in on going operations.
Record any beverages transferred from the bar and

any food transferred to the bar.
Set rules for the study period, emphasizing that during

the trial study employees must very carefully follow
all standard procedures. The purpose is to ensure
that accurate and reliable information is collected.
Calculate the standard beverage cost. Close

supervision and efficient operations during the study
period should yield a reasonably accurate standard
beverage cost. That is, with continued use of the
standard cost tools, a lower beverage cost percentage
most likely could not be achieved without measures
such as raising prices, reducing portion sizes, or
revising basic operating procedures.
a. Standard beverage recipes are to be used

whenever drinks are prepared.
b. Portion control tools (shot glasses, jiggers) and
standard glassware are to be used in preparing
every drink.
c. Management personnel might work behind the
bar whenever possible during the study to better
assure that required procedures are followed
consistently.
When not working the bar, managers should
carefully supervise operations to ensure
compliance with all standard operating procedures.
d. At the beginning of each shift, the manager should
remind personnel that the property is involved in
the beverage study and that careful compliance
with all procedures is important.
Maintain a record of the cost of all liquor issued to

the bar during the trial study.
As with the standard food cost percentage, the standard

beverage cost percentage is a goal that managers of the
beverage operation should work toward. There are, of course,
many factors that affect actual practice.
For example, errors may occur, control of the beverage
operation may gradually become looser, or changes in policy
may require revised procedures. These and similar factors
reinforce the value of recalling the standard beverage cost
percentage when examining actual operating results. The
beverage manager should understand that when actual
beverage costs exceed standard beverage costs, a problem
may exist.
238
Key Terms
Adjustment Factor: The number by which the amount
of each ingredient indicated in a standard recipe is multiplied
in order to increase or decrease the recipe's yield, determined
by dividing the desired yield by the original yield.
Chaining Recipes: Including sub-recipes as ingredients
for a particular standard recipe. This enables the food service
computer system to maintain a single record for a particular
menu item that includes a number of sub-recipes.
Cost Factor: A constant value that may be used to
convert new" as purchased" (AP) prices into a revised cost
per servable pound, assuming that the standard purchase
specifications, standard recipe, and standard yield remain
the same. The cost factor is determined by dividing the cost
per servable pound by the original" as purchased" (AP) cost
per pound.
Cost per Servable Pound: Information needed to
calculate standard portion costs, determined by dividing the"
as purchased" (AP) price by the yield percentage as a decimal.
Food cost percentage-In relation to commercial food and
beverage operations, food cost percentage expresses cost as
a percentage of revenue and is calculated by dividing food
costs by food revenue and multiplying by 100; in relation
to institutional food and beverage operations, the food cost
percentage expresses cost as a percentage of expenses and
is calculated by dividing food costs by total operating expenses
and multiplying by 100.
Ideal Cost: A method of calculating standard food costs
based on the actual number (sales mix) of each menu item
sold during a day or meal period; the actual count of each
item sold is multiplied by its per-portion standard food cost
to arrive at the expected cost for serving all portions of the
item.
239
Ingredient File: An electronic record that contains

important data on each purchased ingredient, such as
ingredient code number, description, purchase unit, purchase
unit cost, issue unit, issue unit cost, and recipe unit cost.
Portion Control Tools: Items such as weighing and
measuring equipment, ladles and scoops to portion food,
jiggers and shot glasses for beverages, or automated
beverage-dispensing equipment. These tools must be
available and used every time a recipe or beverage is prepared.
Pre-costing: The process of determining the costs of
ingredients used in a standard recipe to arrive at a standard
portion cost for one item yielded by the recipe.
Production Loss: The difference between the raw or
"as purchased" (AP) weight and the prepared or "edible
portion" (EP) weight.
Purchase Specification: A concise description of the
quality, size, weight, count, and other quality factors desired
for a particular item.
Standard Dinner Cost Worksheet: A format for
determining standard food costs for all items that are
combined in a menu selection.
Standard Food Cost Percentage: The planned food
cost percentage against which actual food costs are measured.
Standard portion cost-The cost of preparing and serving one
portion of food or one drink item according to the standard
recipe.
Standard Portion Size: The quantity (for example,
weight, number of ounces or cost) of a menu item to be
derived from a standard recipe.
Standard Recipe: A formula for producing a food or
beverage item. The formula provides a summary of
ingredients, the required quantity of each, specific
240
Training and Employment
241
preparation procedures, portion size and portioning

equipment, garnish information, and any other information
necessary to prepare the item.
Standard Recipe File: An electronic record that contains
recipes for menu items. Important data included are recipe
code number, recipe name, ingredients, preparation
instructions, number of portions, portion size, cost of
ingredients, menu selling price, and food cost percentage.
Standard Yield: Results when an item is produced
according to established standard production procedures
outlined in the standard recipe; for example, if the standard
purchase specifications are followed and a meat item is
properly trimmed, cooked, and portioned, the actual yield
should closely approximate the standard yield.
Sub-recipe: A recipe that yields an "ingredient" such as
sauce which is used for another recipe. Yield-The net weight
or volume of a food item after it has been processed and
made ready for sale to the guest.
Yield Factor: See yield percentage. Yield percentageThe ratio of servable weight to original weight, calculated
by dividing the servable weight by the original weight and
multiplying by 100 to change the decimal to a percentage.
7
TRAINING
AND
E MPLOYMENT
Since the 1970s, France and the United States have

carried out a veritable transfer of competences in the hotel
and catering trade. France has exported its gastronomical
expertise and received in return, not without a certain
resistance, hotel and catering chains from which it has
learned new management methods and a new approach to
service in numbers. Today, the chains are improving their
positions in both countries. The main growth expected in
France is that of the fast-food outlets, but at the very time
that these are slowing down in the United States in favour
of restaurants offering table service at moderate prices.
France, which is still largely dominated by a tradition
of self-run enterprises in the hotel and catering trade, will
probably undergo an increase in the share of salaried jobs,
especially in supervisory, management and marketing
functions. The American advance in this area thus permits
us to take a prospective look at employment, while recognising
France's advance in the constitution of the different
occupations and hotel management training.
EMPLOYMENT PROSPECTS IN THE HOTEL AND
CATERING TRADE
Hotel and catering jobs offer considerable employment
possibilities for a young labour force which, with little
242
experience, often places its career hopes on specialised

training. In fact, such jobs, which are so attractive to the
young generation, are frequently found in structures less
prestigious than the palaces or five-star restaurants of the
candidates' dreams. In addition, they do not offer longer
term career opportunities, in the form of a real employment
or profession, to more than a tiny proportion of these young
people. From this point of view, the United States, where
a distinction is made between odd jobs, regular employment
and professions within the hotel and catering trade, permits
a prospective look at the activity in France.
RESTAURANTS AS THE SECTOR'S MAIN
EMPLOYER
In France, the number of hotel and catering jobs is
generally underestimated owing to the large number of
canteens, which are run by private and especially public
operators. Indeed, France is the European leader in the
field, with 40 percent of the turnover for food consumed
outside the home, but this sector, known as 'institutional
food service', is not very visible in statistical breakdowns
since it is generally classified not with the hotel and catering
sector but with hospital, school, prison, military and other
activities.
If institutional food service is reintegrated into the hotel
and catering industry, the profession represents nearly one
million jobs. More than one-third are found in restaurants,
including three-quarters in 'traditional-style restaurants'
and one-quarter in 'fast food'. One-third of these jobs are
carried out in canteens and only one-fifth in hotels or other
accommodations.
In the United States, the same statistical operation leads
to an estimate of nearly ten million hotel and catering jobs.
Three-fourths are found in restaurants, where table service
is less widespread than in France, with the result that such
243
jobs are evenly divided between what are defined as 'fullservice restaurants' and 'limited-service eating places'.
Canteens, moreover, account for only a small proportion
of the jobs and 13 percent of the turnover for meals eaten
outside the home. Indeed, only one-tenth of companies with
more than one hundred full-time employees offer eating
facilities to their personnel, and the other canteens often
provide only a basic service to a needy population, notably
elderly persons and school children identified as
undernourished. The hotel trade, meanwhile, which is much
less developped than catering, offers even fewer employment
opportunities than in France: proportionally, the United
States has 2.6 times fewer hotels (and 1.5 times more
restaurants) than France. On the other hand, going to
restaurants is more widespread among Americans, who eat
an average of one out of every five meals outside their
homes, which is nearly twice as often as the French.
In France, 25 percent of hotel and catering personnel
are self-employed, compared to fewer than 5 percent in the
United States. Catering remains largely perceived as an
opportunity open to all age groups, without significant capital
and without diploma requirements. Anyone can open a
restaurant, as in the United States, where only some states
require a basic training course in hygiene. The growth of
hotel and restaurant chains in France is gradually extending
salaried work, however, and may thus come to limit the
opportunities for creating an independent activity.
AN INDUSTRY SEGMENTED BETWEEN
PROFESSIONS, REGULAR EMPLOYMENT AND
ODD JOBS
The French hotel and catering industry is characterised
by a high turnover and a workforce that is largely young
and unskilled. In this respect, it tends to take its inspiration
244
from the American model, where a third of the population

has worked in a restaurant at one time or another. It is
mainly composed of operating personnel who are often in
contact with customers and thus essentially recruited on the
basis of behaviour assessment.
In the hotel industry, the majority of jobs involve
cleaning, sometimes delegated to specialised companies, and
personal services such as hostess-desk clerk, porter, doorman
or bell captain. It is possible to arrive at supervisory or
managerial posts through internal promotion, but highlevel jobs are increasingly reserved for those with specialised
diplomas in business, accounting, management, company
strategy and so on. The career prospects for operating
personnel are thus often limited, especially in receptiondesk
functions, where the hotel trade is above all a sector for
initial labour-market entry before professional reorientation.
Catering is also a two-tiered sector. The cooks, however,
notwithstanding their subordinate role, often have real
possibilities for advancement. It is true that cooking is still
largely the work of skilled personnel, with diplomas or
experience, unlike table service and the bottom-level hotel
jobs, which involve a personnel that is often very young
(under 25), unspecialised and employed on a part-time basis.
The Americans, meanwhile, long counted the hotel
industry, as an essentially non-specialised activity, within
the cleaning and personal services sector, while 'food services'
were attached to retail trade. Since 1997, hotel and catering
activities are included in the same service sector, under the
heading 'accommodation and food services'. This change is
more indicative of a concern for harmonising international
statistics sources than a real linking of the two trades.
Nonetheless, the management of the workforce in hotel and
catering activities is fairly close to that practised in France:
apart from supervisory personnel, generally holding diplomas
245
and employed full time, only competences in culinary

production are really recognised. American employers even
tend to maintain a three-tiered management of operating
personnel.
Two distinct populations occupy the subordinate posts:
on the one hand, a considerable student population in need
of work to help pay for costly studies, generally in contact
with customers and employed on a part-time, hourly basis,
and, on the other hand, a population essentially consisting
of minority groups who hold the less prestigious full-time
jobs such as cleaning or caretaking in the hotels or
dishwashing, basic cooking or baking in food services.
Only major hotels and gourmet restaurants seek
personnel with a good level of general training for jobs as
waiters or other service posts, while insisting that this
personnel is 'educated but not skilled' in relation to the job
held. They also require their cooks, whose expertise is
recognised, to have a specialised diploma.
The occupation of cook is nonetheless becoming more
commonplace in the United States. The restaurant chains
in particular, whose menus are often developped around a
single theme, can rely on standardised work which permits
the rapid learning of limited techniques. Thus, the proportion
of jobs for short-order or fast-food cooks is sharply increasing
and now equals that of traditional cooks.
This category-based management of the workforce reflects
the coexistence of different kinds of jobs:
o about one-fifth treated as skilled professions and
centred on culinary production;
o one-fourth full-time jobs, including the subordinate
positions that basically involve minorities;
o a majority of odd jobs for students, more numerous
in restaurants than hotels.
246
If the spread of odd jobs still seems unlikely in France

because of the relatively small number of students who
work, the downgrading of certain jobs relating to the
profession of cook and their opening to unskilled labour is
underway, notably among large employers in urban areas.
TWO SYSTEMS OF TRAINING FOR A SINGLE
EMPLOYMENT STRUCTURE?
French hotel training, mainly taking its inspiration from
the luxury hotels, grew out of a large number of specialities
basically intended to satisfy a prestigious, independent hotel
and catering trade. Over the past thirty years, it has been
restructured around basic specialisations: cooking, table
service and hotel management. Recently, moreover, its level
has been improved to meet the management needs of hotel
chains and catering companies providing a service that is
often standardised but more diversified in terms of the range
of chains, and thus reaching a larger clientele.
Hotel education remains dominated by an artistic ideal,
however-and this is the case as of the initial levels of vocational
training, which begin around the age of fifteen (certificat
d'aptitudes professionnelles [vocational aptitude certificate,
CAP] and brevet d'tudes professionnelles [vocational studies
certificate, BEP])-which may explain the frequent
dissatisfactions of cooks when they actually enter the labour
market.
At present, France and the United States have the same
proportion of high school graduates: 62 percent of a given
age group. But the American educational system is more
orientated to the recognition of higher-education diplomas.
In the hotel and catering trade in the United States, there
is no real professional recognition for low-level operational
specialities such as cleaning, service or assembly cookery
(which consists of carrying out simple food preparations on
247
the basis of semi-prepared products from the foodprocessing

industry). Specialisations come into play after the first two
or four years of higher education and are thus more limited:
they deal only with culinary arts and hotel management.
They are generally recognised in terms of job status-with
more full-time posts and more attractive wages-and better
career prospects. Certain hotel schools subsequently propose
narrower specialisations in management, distinguishing, for
example, independent hotel management from that of chains
or restaurant management from that of canteens, while
these options do not yet exist in France.
These two educational systems correspond, however, to
a comparable employment structure in both countries. With
the exception of gourmet cooking, the traditional activity in
the sector remains fairly indifferent to high-level diplomas
and privileges on-the-job training. On the other hand, the
hotel and restaurant chains have a great demand for
highereducation graduates. Such chains are, moreover, more
widespread in the United States, where they represent 27
percent of the restaurants and 20 percent of the hotels and
employ half of the industry's employees. In France, fewer
than 4 percent of the restaurants and only 7 percent of the
hotels belong to chains. The essential part of the restaurants'
activity is thus still carried out in an artisanal context,
within SMEs. Only the canteens generally belong to very
large structures, with several thousand salaried employees
each.
In both countries, chains and large employers generally
have a stronger union presence and often provide better
employment conditions, with possibilities of advancement to
supervisory and management posts. In France, however,
independent of these advantages, working for chains which
offer such run-of-the-mill services is viewed as so socially
degrading and technically deskilling that they often have
difficulties in recruiting professional cooks.
248
Attached to the image of gourmet cooking, French

professionals are less sensitive to objective working conditions
than to the socially prestigious nature of the services
provided. In a trade that counts above all on its artisanal
features and the personal involvement of individuals, the
orientation towards canteens or hotel and restaurant chains
tends to be seen as a 'comfortable' choice-but also one that
cannot be reversed. On the other side of the Atlantic, it is
simply seen as a passing chance in the context of constant
professional mobility.
In the United States, the economic recovery of the late
1990s saw the average unemployment rate fall to around
4 percent, as compared to 9.6 percent in France (August
2000). Sometimes confronted with a shortage of labour,
American employers have lowered their demands for
qualifications.
They turn, for example, to retired or unemployed
individuals seeking work to compensate for inadequate
income and also employ large numbers of young people
(one-fourth of the employees in the American hotel and
catering industry are under twenty years old). This
phenomenon remains quite limited in France, where only
10 percent of the 15-19 age group works, as compared to
50 percent in the United States. It is thus not certain that
France's hotel and catering trade will follow the same evolution
as that of the United States, which provides odd jobs to
students, low-skilled employment to a needy labour force
and a few professions with real prospects for career
advancement.
Nonetheless, in France as well the profession seems to
be having difficulties recruiting young, low-skilled personnel,
to whom it often offers inferior employment conditions and
few possibilities for career advancement. In the face of a
labour force which is less 'flexible' than in the United States,
249
it would seem to be lacking in attractiveness and, above all,

to have difficulties in keeping its employees.
It does not always give clear indications to young people
about the content of hotel and catering jobs and their middleterm prospects and has yet to adopt less irregular working
hours or offer better recognition of experience in the trade
and employees' involvement in their work. From the
educational system onwards, this sector is too often described
as a prestigious artisanal and artistic activity rather than
as an efficient commercial activity serving a broad public.
BRIEFING
In Chile, higher technical education is open to high
school graduates and is offered by three different institutions:
university, vocational institute or technical training centre.
Each of these bodies is authorised to grant its own diplomas,
without coordination among them. All students pay for their
courses and tuition costs are roughly the same regardless
of the institution, but loans are available only to students
enrolled in State universities. Each institution is responsible
for its admissions choices.
There is a general feeling that the system functions with
great obscurity, if not inequality, in relation to students,
their families and the companies which use their services:
o access to a higher-education diploma is held to offer
protection against unemployment and favour social
mobility, but higher technical education suffers from
an inferior social image;
o students choose orientations without knowing the
likely effects of their choices, which are based on
supposed reputations and opportunities, while the
cost of the studies often constitutes a considerable
sacrifice for their families.
250
Chile: Longitudinal Survey of Exits from Higher

Technical Education
o employers are seeking qualities of initiative, autonomy
and adaptation, which higher education does not
always provide, while the technical competences
expected may be at a lower level;
o the directors of the higher technical education
institutions would like the diplomas they grant to be
better recognised both officially and socially.
The Ministry of Higher Education is planning an overall
reform of the system but, in line with the recommendation
of the World Bank, is waiting for advice from an employment
observatory on the paths to be promoted.
In this context, Creq, the French Ministry of
Employment and Solidarity and the University of Marnela-Valle participated in a seminar on "Higher Education
and Labour-Market Entry of Young Graduates" held in
Santiago on 15-17 September 2000.
This meeting brought together experts from Chili, other
Latin American countries and France. Representatives of
the Chilean Ministry of Education presented the results of
a survey of two thousand graduates exiting the highereducation system between 1995 and 1999. This survey,
carried out by telephone, is representative at the level of
Chili's main regions and covers graduates of the three cycles
of higher technical education as well as graduates of full
higher education programmes.
It thus offers the first statistical findings on the
opportunities for young graduates in the Chilean labour
market. It notably brings out sharp disparities between
university and non-university streams, as well as those
between technician training and full training programmes,
in terms of both access to employment and remuneration:
251
while university graduates come out quite well, the schoolto-work transition of those exiting vocational institutes and
technical training centres is much more problematic. Among
university graduates, moreover, those coming from the former
public universities generally encounter less unemployment
than graduates of the other private universities. These results
will be consolidated by those of a postal survey carried out
among five thousand graduates from the class of 1995.
New Publications and Special Events
2 Jean-Paul Cadet, Laurence Diederich-Diops,

Dominique Fourni, Chirstophe Guitton
The arrival of sixty thousand assistant educators in the
schools since autumn 1997 through the "New Services, Youth
Jobs" programme raises three groups of questions for the
Ministry of Education:
o To what extent do the activities assigned to the
assistant educators prefigure new functions likely to
become permanent?
o Does the integration of assistant educators give them
a particular identity in relation to teaching and
administrative personnel and can this serve to modify
the practices of the latter?
o What is the impact of the assistant educators'
experience within the school system on their chances
of labour-market entry, given that they are not
supposed to remain in this function beyond the five
years of their Youth Jobs contract? Some initial
responses and resulting recommendations are provided
by the first phase of a study, which combines the
results of a panel survey of three thousand assistant
educators and analyses of activities based on the
ETED (typical job studied in its dynamic) method.
252
2001/02 Manpower Survey of the Catering Industry Job

Descriptions for Principal Jobs in the Catering IndustryCatering Establishments other than Chinese(Some of the
job titles may not be identical to those used in your
establishment. But if the jobs have similar or related functions,
please treat them as the same and supply the required
information in the questionnaire.)
C.N. Job Title
personnel records and fringe benefits;

manages cash flow, loan and money
changer; supervises the credit
department, general accounting, cashier,
income audit, costings sections; arranges
LCs for the company's purchases and
liaises with suppliers.
108
Purchasing
Manager
113
Marketing Manager Plans, organizes, directs and controls the

marketing functions; reviews market and
sales analysis to determine local and
overseas market requirements; coordinates public relations activities
relating to sales promotion.
119
Executive Chef/
Sous Chef
Establishes standards of food quality and

preparation; develops new menus; coordinates with other departments on food
selection and storage; supervises
performance and discipline of kitchen
staff; carries out inspection and
maintenance of the kitchen set-up;
prepares cost lists and requisitions on
market items.
121
Food and Beverage

Manager/Senior
Assistant Food
and Beverage
Manager
Plans, organises, directs and controls

operation of food and beverage facilities;
analyses operation costs and closely
liaises with purchasing manager;
determines payroll and operating costs
so as to establish food and beverage
prices; makes improvements in service
procedures and guest relations; organizes
special food and beverage promotions and
festivals; makes contacts with clients
regarding functions; co-ordinates with
executive chef in menu planning and
staffing, studies market trends by visiting
other establishments.
Job Description
MANAGERIAL AND PROFESSIONAL LEVEL

101
General Manager/
Managing Director
Assumes the total responsibility of

managing of hospitality establishment,
usually with other managers/executives
as direct subordinates; implements the
company's policies and their objectives
with a view to achieving them.
102
Executive Assistant Takes charge of the overall daily

Manager/Club
operations and management of the
Manager
hospitality service establishment.
105
Personnel Manager Formulates and supervises the

implementation of personnel policies,
procedures and regulations; maintains
amicable staff relations, may design and
carry out training programme for
employees of an establishment.
106
Training Manager
Plans and implements effective training

programmes for all levels of staff; coordinates and controls internal and
external training; advises management
on
training
and
management
development trends; acts as course leader
in specific training programmes; provides
counselling for employees; determines the
effectiveness of training activities.
CATERING ESTABLISHMENTS OTHER THAN CHINESE

107
Chief Accountant/
Controls budgets and expenditure,
Controller/Financial company financial policies and procedures,
Controller
contracts and licenses, senior executive
253
Plans, organizes and controls purchase

and stock of food commodities for sale or
internal consumption according to supply
and demand trends.
254
125
126
Pastry Chef
Restaurant
Manager
Supervises the pastry cooks in the

preparation of all doughs, pastries, cakes,
sweets petit fours, sugar decorations and
butter carvings; able to operate all
machinery in pastry and bakery room,
maintains quality standard set by
executive chef.
Manages and co-ordinates the activities
of the restaurant and trains staff to
ensure prompt and courteous services;
recommends menu and dishes to clients.
127
Specialty Chef/Cook Plans, designs and supervises the

(e.g. Japanese, Thai, preparation of exotic cuisines and
Indian, Vietnamese, different national food specialities.
Korean, Singaporean,
Malaysian)
130
Others (M)
guest/patrons; responses to accounts

disputes and queries; prepares accounts
receivable report.
206
Store Supervisor
Supervises and co-ordinates the work of

the fast food outlets staff; assumes the
management responsibility of a fast food
establishment; oversees the training of
new staff; handles guest complaints.
207
Audit Supervisor/
Paymaster
Audits and processes the payments of

the companys disbursements; prepares
expense analysis and other reports on
suppliers invoices and monthly
statements; keeps all records relating to
payroll; prepares and remits payroll
reports; and compiles all tax returns.
208
Head Cashier
Trains all food and beverage cashiers;

issues guest checks daily to all F & B
cashiers and follows-up on missing
checks; picks up cashiers daily reports at
the close of each shift; arranges cashiers
for other banquet functions.
228
Beverage/
Bar Manager
Ensures bar is equipped with supplies

and correct liquor brands are served;
maintains prescribed profit margin;
supervises maintenance of bar and service
equipments; prepares work schedules and
checks on staff performance.
229
Captain/
Service Supervisor
Takes orders from guests and delivers

orders to kitchen; may carve meats and
prepare flambe dishes at table; advises
on the selection of wines and serves them.
231
Gardemanger
Supervises preparation of all cold foods;

responsible for table and food decorations;
checks function sheets and menus daily
for distribution of work loads to helpers;
ensures that all required food item for
each outlets are ready in time; keeps
professional records of recipes and
working methods.
SUPERVISORY AND TECHNICIAN LEVEL

201
202
203
Personnel Officer
Training Officer
Recruits, interviews and hires employees

for the hotels; counsels, transfers and
dismiss employees based on appraisal of
supervisors. Counsels and advises
department heads regarding personnel
problems.
Trains new or existing employees;
performs periodic reviews on trainees
progress and recommends actions based
on appraisals; maintains supplies of
training materials; participates in
discussions regarding the adoption of new
or improved training methods and/or
materials.
Accounts Supervisor Audits and processes the payments

(e.g. payable/
of all the establishments disbursements;
receivable)
prepares expense analysis and other
reports on suppliers invoices and monthly
statements; keeps a record system of all
amounts due to the establishment from
255
256
248
Public Relations/
Sales Supervisor
Promotes the sale of food and beverage

items for groups/parties/individuals;
checks sales figures, stock and customer
preferences; supervises sales persons.
254
Maintenance
Supervisor/
Technical
Supervisor
Inspects the establishments premises;

checks on the electrical/mechanical plant
and equipment; contacts outside
contractors regarding repair and
maintenance works or renovations.
256 Chief Security Officer Informs department heads concerned of

any necessary procedures on internal
security matters; liaison with police
department, arranges staff safety
training and fire drill tests; security
screening of new employees; investigates
all incidents and thefts within the
premises.
257
258
263
Food and Beverage Supervises cost control and inventory

Controller/
taking; reviews purchase requests for food
Cost Controller
and beverage; provides management with
information regarding operational costs;
prepares forecasts and analysis on all
cost reports; makes random inspections
on all supplies to the hotel.
Public Relations
Officer
Liaises with media; handles publicity and

photographic assignments; prepares press
releases in both English and Chinese;
liaises with sales executives and cover
other duties assigned by the management.
performs different types of cookery and

meal preparation; checks stocks in his
location in kitchen area; may specialize
in sauce, soup, roast, butchery, fish, cold
cut and vegetable.
307
Engineering
Craftsman
308
Others
301
Baker/Pastry Cook
Prepares cakes, pastry and desserts for

during the day time and bread and loaf
during night time; supervises work of
apprentice pastry cooks.
302
Cook
Checks daily and weekly menus; operates

utensils and crockery used in kitchen;
Maintains and repairs all necessary

mechanical and electrical engineering
works of a catering establishment.
CLERICAL LEVEL
401
Accounting Clerk
402
Food and Beverage Cashier Records all food and beverage

sales at the time of meal and that charges
and timely remitted to the front office for
posting to the ledger by the front office
cashier; prepares cashiers daily report.
408
Food and Beverage Checks and maintains cold and dry store,
Storekeeper
wine cellar, silverware and glasses
inventories and store records.
409
General Cashier
410
General Office Clerk Performs clerical duties of a general

nature such as copying, compiling, filing
and recording information.
411
General Storekeeper/ Checks all merchandise entering the

Store and
premises and their proper documentation;
Receiving Clerk
maintains par stocks in storeroom;
informs management of the storage
situation for expensive items.
412
Personnel Clerk
Others (S)
CRAFTSMAN LEVEL
257
Performs a variety of routine calculating,

posting, recording, filing and typing duties
in an accounts department.
Corrects all daily receipts, provides

changes for all cashier; makes daily bank
deposits and prepares a daily accounting
of cash; acts as a petty cash disbursing
agent.
Assists in implementing personnel

policies and functions; processes
258
413
416
Purchasing Clerk/
Quality
Control Clerk
application forms from prospective

employees and arranges interviews; keeps
staff records.
511
Junior Waiter/
Junior Waitress/
Barboy/Bar Porter
Collects food from kitchen, cleans up

table and changes linen, knows all items
on menu.
Follows up purchase orders and

requisition requests; helps expedite
delivery, verifies of invoices and freight
charges; maintains a library of
catalogues, price and reference data;
performs a variety of routine calculations,
posting and recording; assists in cost
control and inventory taking; makes
random inspections on all supplies for
the outlet.
512
Cleaner/
Dishwasher/
Kitchen Helper/
Steward/
Pantry Helper
Washes crockeries by hand and by

machine, sweeps the floor and wipes
clean stainless steel counters in
kitchen; disposes garbage; cleans stove
and top of exhaust fans.
513
Bartender/Barman/ Follows specified drink and cocktail

Soda Fountain
receipts by free pouring jigger quantities;
Captain
checks on supplies of wines and spirits;
prepares daily supply requisition for bar
managers approval.
514
Receptionist/
Hostess/
Waiter/Waitress
Serves guests in assigned station under

supervision of a captain, prepares table
setting and removes dishes; knows all
menu items; keeps good guest relations
and extend personalized service.
520
Wine Steward/
Sommelier
Pushes for beverage sales; takes care

of the wine and liquor stocks in the
restaurant; has good knowledge of wine
and advises guests on selection; serves
wine at the required temperatures.
526
Other (O)
Others (C)
OPERATIVE LEVEL
504
506
507
Security Officer
259
Regular patrol in premises; conducts full

enquiry on incidents occurred; ensures all
items found in the premises are properly
recorded and kept safety; checks all exists
and back staircases. Carries out guard
duty; patrols the premises entrances and
passageway in the rear service area;
provides protection to VIP guests on
managements instruction.
Telephone Operator Processes local and overseas calls,

provides wake-up call service; keeps close
communication between executives;
provides directory service for guests;
follows proper procedures for handling
emergencies.
Uniform and Linen Controls supply and distribution of all
Attendant/
house linen; checks on inform supply;
Cloakroom
stores and controls replacement of
Attendant
household supplies; keeps up-to-date
stock records; checks and repairs staff
uniform/house linen, provides service to
guests when required; repairs curtains
and drapes.
SECRETARIAL AND OTHER MINOR STAFF LEVEL

601
Secretary
Takes dictation and transcribes letters,

reports and memos. Answers telephone,
screens calls and takes messages.
Prepares replies to routine enquiries,
maintains
daily
calendar
and
appointment schedules and receives
personal callers.
602
Steno/Typist
Performs stenographic and related

secretarial duties.
603
Office Assistant/
Messenger/Runner
Handles odd jobs and run errands

of the general office.
604
Others
260
Bibliography
261
Judi, Radice: Restaurant & Food Graphics, Glen Cove,

PBC International, 1994.
Medlik, S.: Managing Tourism , Oxford, ButterworthHeinemann Ltd., 1991.
B IBLIOGRAPHY
Michael, John: Principles of Hospitality Law,

Cassell, 1999.
Alfred, H.: Hospitality Design for the Graying Generation:

Meeting the Needs of a Growing Market, New York,
Wiley, 1996.
Auguste, E.: Escoffier Cook Book: A Guide to the Fine Art
Cookery, New York, Crown, 1969.
Berry, A., Jarvis, R.: Business Accounting for Hospitality
and Tourism, London, Chapman and Hall, 1995.
Bryson, McDowell: Concierge: Key to Hospitality: A Training
Manual, New York, Wiley, 1992.
Charles, G.: International Dictionary of Food & Cooking,
Chicago, Fitzroy Dearborn, 1998.
Clark, Mona: Interpersonal Skills for Hospitality Managers,
London, Chapman Hill, 1995.
Dennis, J.: How Consumers Pick a Hotel: Strategic
Segmentation and Target Marketing , New York,
Haworth Press, 1997.
Donald, M.: Customer Service in the Hospitality and Tourism
Industry, Englewood Cliffs, Prentice Hall, 1994.
Eberts, Marjorie: Careers in Travel, Tourism, and
Hospitality, Lincolnwood, VGM Career Horizons, 1997.
London,
Norman, G.: Hotel, Restaurant, and Travel Law: A Preventive

Approach, Albany, Delmar Publishers, 1993.
Petty, Keown, Scott, and Martin: Basic Financial
Management, Prentice Hall, 1993.
Robert, H.: Managing Hospitality Human Resources, East
Lansing, Educational Institute of the American Hotel &
Motel Association, 1997.
Rocco, M.: An Introduction to Hospitality Today, Orlando,
Educational Institute, 1998.
Rosemary, E.: Managing Employee Relations in the Hotel
and Catering Industry, London, Cassell, 1995.
Swarbrooke, J.: Marketing Tourism, Hospitality and Leisure
in Europe, London, International Thomson Business
Press, 1996.
Thomas, F. : Introduction to the Hospitality Industry, New
York, Wiley, 1995.
Thomas, F.: Introduction to Management in the Hospitality
Industry, New York, Wiley, 1995.
Timothy, R.: Cases in Hospitality Management: A Critical
Incident Approach, New York, Wiley, 1995.
Miami,
Ware, Richard: How to Open Your Own Restaurant: A

Guide for Entrepreneurs, New York, Penguin Books,
1991.
Gisslen, Wayne: Professional Cooking, New York, Wiley,

1999.
Zupan, J.M.: The Distribution of Air Quality in the New

York Region, Baltimore, Johns Hopkins University Press,
1973.
Elio, C.: The Hospitality Law Desk Reference,

Southern Beverage Journal, 1994.
Hubert, B.: A Host of Opportunities: An Introduction to

Hospitality Management, Chicago, Irwin, 1996.
262
Advantages, 7, 9, 25, 105,

211, 212, 213, 216,
232, 247.
Advertising, 7, 9, 17, 22,
73, 97, 101, 115, 117,
118, 119, 120, 121,
124, 125, 126, 127,
128, 129, 130, 131,
132, 136, 137, 138,
139, 140, 141, 142,
143, 144, 145, 146,
147, 148, 149, 150,
152, 153, 156, 157,
159, 163, 165.
Atmosphere, 34, 188, 225.
B
Bakery Industry, 95, 96.
Beverage Distribution, 42, 45,
46.
Beverage Innovation, 47, 56,
57.
Beverage Outlets, 169, 235.
Beverage Presentation, 196.
Biscuit Industry, 74, 96, 97.
Bread Industry, 95, 96.
Business, 2, 5, 7, 9, 10,
11, 13, 14, 15, 16,
18, 20, 21, 22, 23,
263
128, 129, 131, 134,

150, 151, 154, 156,
164, 167, 168, 210,
211, 214, 234, 252.
Distribution, 42, 43, 45, 46,
73, 75, 76, 84, 88,
96, 101, 109, 110,
113, 140, 255, 258.
I NDEX
A
Index
25, 26, 28, 29, 31,

32, 33, 36, 37, 39,
40, 42, 43, 44, 45,
46, 47, 48, 49, 50,
54, 56, 57, 58, 59,
60, 61, 71, 107, 109,
136, 152, 163, 171,
195, 231, 259.
C
Catering Business, 7, 11, 39.
Catering Management, 1, 65,
69.
Catering Operation, 15, 19,
32, 67.
Catering Trade, 241, 242,
246, 248.
Company, 4, 16, 17, 20, 21,
26, 29, 33, 42, 47,
48, 49, 50, 51, 52,
53, 54, 57, 58, 59,
60, 99, 137, 244, 252.
D
Development, 47, 48, 49,
57, 58, 59, 67, 68,
69, 71, 78, 81, 82,
84, 90, 92, 93, 103,
107, 112, 114, 117,
118, 121, 122, 123,
E
Employment, 65, 69, 82, 84,
92, 236, 241, 242,
243, 246, 247, 248,
250.
F
Food Marketing, 125, 126,
128, 129, 130, 136,
137, 138, 144, 145,
147, 148, 149, 150.
Food Processing Sector, 71,
78, 85, 90.
Food Products, 79, 81, 83,
84, 88, 91, 98, 133,
140, 161, 163, 164.
Food Safety, 39, 44, 42, 44,
45, 61, 62, 63, 65,
67, 70, 78, 89, 102,
140, 171.
Food Specifications, 66.
I
Industry,
42,
48,
53,
60,
74,
79,
10,
43,
49,
54,
66,
75,
80,
32,
45,
50,
55,
71,
76,
81,
33,
46,
51,
57,
72,
77,
82,
34,
47,
52,
58,
73,
78,
83,
84, 85, 86, 87,

90, 91, 92, 94,
96, 97, 99, 100,
102, 103, 104,
106, 107, 108,
110, 111, 112,
114, 120, 121,
126, 127, 128,
132, 134, 135,
140, 141, 142,
145, 146, 147,
151, 152, 153,
160, 164, 168,
209, 242, 243,
247, 248, 252.
89,
95,
101,
105,
109,
113,
125,
129,
139,
143,
148,
154,
196,
244,
L
Leadership, 21, 50, 51, 63,
151.
M
Maintenance, 65, 173, 178,
179, 253, 255, 256.
Management, 1, 9, 12, 16,
17, 18, 19, 20, 22,
24, 26, 27, 28, 29,
31, 36, 39, 40, 43,
44, 45, 46, 48, 49,
50, 52, 57, 58, 60,
61, 62, 64, 65, 67,
69, 70, 73, 84, 176,
177, 180, 181, 184,
194, 205, 206, 213,
218, 220, 223, 230,
232, 235, 236, 237,
238, 239, 241, 244,
245, 246, 247, 250,
251, 253, 254, 255,
256, 257, 258, 259.
264
Marketing, 12, 15, 33, 45,

57, 73, 75, 78, 82,
84, 89, 93, 94, 100,
102, 107, 115, 116,
117, 118, 119, 120,
121, 122, 123, 124,
125, 126, 128, 129,
130, 131, 132, 134,
135, 136, 137, 138,
139, 140, 141, 142,
144, 145, 146, 147,
148, 149, 150, 151,
152, 153, 154, 155,
156, 157, 158, 159,
160, 161, 163, 164,
172, 210, 212, 225,
241, 253.
Meal Presentation, 195.
137, 139, 192, 193,

195, 196, 225.
Products, 37, 45, 47, 71,
72, 73, 74, 76, 77,
79, 80, 81, 82, 83,
84, 86, 87, 88, 89,
91, 92, 94, 95, 98,
99, 102, 103, 104,
110, 112, 121, 126,
132, 133, 135, 137,
140, 147, 148, 159,
160, 161, 162, 163,
164, 195, 211, 212,
216, 217, 218, 247.
Project, 14, 15, 31, 57, 60,
64, 134, 228.
Projection, 80, 91, 92.
Reservations, 172, 199.

Restaurants, 8, 10, 68, 127,
169, 228, 241, 242,
243, 245, 247.
Nature, 11, 95, 101, 113,

125, 127, 139, 153,
158, 164, 165, 166,
178, 206, 248, 257.
O
Opportunity, 6, 46, 58, 59,
122, 123, 145, 234,
243.
Organizations, 24, 45, 46,
47, 72, 117, 120, 125,
138, 144, 146, 147,
149, 150, 166.
P
Personal Management, 27, 31.
Presentation, 36, 52, 54,
S
Security, 7, 24, 33, 124,
169, 179, 180, 189,
256, 258.
Stress Management, 27.
T
Tea Industry, 105, 106,
Technology, 32, 33, 45,
82, 83, 86, 94,
104.
Time Management, 16,
28, 29, 36.
107.
71,
103,
27,
265
C ONTENTS
Preface
1. Introduction to Off-Premise Catering Management
2. Food and Beverage Distribution
3. Marketing of Food and Non-alcoholic Beverages
1
42
115
4. Who Technical Meeting for Catering Developments 155

5. Food and Beverage Outlets
169
6. Determining Food and Beverage Standards
209
7. Training and Employment
241
Bibliography
260
Index
262
BASICS OF C ATERING
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