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Food & Beverages Management (VVN)

1. Explain the process of menu engineering , list its objectives.

Answer:

Menu engineering is an interdisciplinary field of study devoted to the deliberate and

strategic construction of menus. It is also commonly referred to as Menu Psychology.

Menu engineering is a step-by-step process through which management can

evaluate current and future menu pricing, design and content decisions. The menu
engineering approach requires that attention be focused on three critical elements:
-

1. Customer Demand - the overall number of customers served.

2. Menu Mix (MM) - an analysis of customer preferences in menu item selection

(related to demand elasticity).

3. Contribution Margin (CM) - an analysis of the contribution margin (gross profit) for
each menu item (related to price elasticity).

The menu-engineering concept requires management to orient itself to the number

of dollars that a menu contributes to profitability, not to merely monitor cost
percentages. A pricing strategy that is based solely upon costs and cost mark-ups
may be dangerously inaccurate and inadvertently be constraining a food service
operators ability to maximise revenues and profits.

Objective of Menu Engineering:

reduce portion size

revise purchase specifications
reduce complimentary food items
provide a la carte pricing as an alternative
increase staff productivity
improve operational controls
increasing customer demand
enhanced utilisation of current assets
larger menu item contribution margins

Fields of study which contribute most to menu engineering include:

 Psychology (perception, attention, emotion/eff ect)

Managerial Accounting (contribution margin and unit cost analysis)

Marketing and Strategy (pricing, promotion)

Graphic Design (layout, typography)

3. List and describe various steps that has to be carried to plan a food festival in
Hotel

Answer:

1. Planning

Start by designing concerning nearly everything. From organizing team, event

name, venue, date, time, projected sound and budget.

2. Style & Content

Build a layout of however your food pageant ought to look. Have your style
prepared on the paper. Style the brand, posters, banners, badges, T-shirts,
pamphlets, different promoting collaterals, tickets (Optional), websites and social
media content. Brand has to be recognizable and symbolizing food. Have a catchy
saying and build prepared the content on your promoting collaterals and support
documents (in case you're longing for sponsors). Use a theme and stick with the
color scheme for all the styles.

3. Staffing

Hosting a fortunate food pageant needs lots of individuals from volunteers to

mangers to security personnels all doing their job right. The quantity of event
management individuals and volunteers needed depends on the quantity of the
event.Conjointly there are a several event management firms facilitating trained
individuals for such events.

4. Organizing

This includes obtaining all things along. Distribution tasks to specific cluster of
individuals. You furthermore might need to at-most care of organizing the travel and
accommodation of the guest if any. Its vital to arrange food connected games.
There are specific game ideas for college students and completely different ones
for corporate. Therefore reckoning on your audience which of them to host.

5. Promoting & PR

Before moving into the nuances of promoting, recognize your audience. Perceive for
whom and why are you hosting the food pageant. This may build it easier to work
out wherever and the way to focus on your audience. Currently produce a promoting
message and post ads in social networking websites. Youll be able to choose the
intensity and volume of the web and offline ad campaigns reckoning on the
dimensions of the pageant. Associating with an eating place or restaurant or eatery
can profit for promoting the food pageant. Partner with an epicurean club or eating
place association, they will be excellent ambassadors for the event.Inform about the
event and also the details to the native news channel and newspaper which can
facilitate in promotions.

6. Supply

The required furniture and gadgets must be booked in advance for the festival.

7. Warm-up

Conducting a tune-up session for such an incident is extremely vital. Have the tune-
up one or two of days before the event. Within the tune-up session prepare all the
volunteers and also the food stall individuals to own a glance at the venue. This is
often to arrange everyone for the event day and avoid any quite issues which will
occur on the event day.

8. Event Day (execution)

Your day of the month has arrived. Create a list of the events to take place. Ensure
every department is appointed to explicit person or a bunch. Keep in mind at the
top of the day you're here to relish and build the event an unforgettable. Therefore
ensure you and your team works towards it.

4. Describe the different costs involved in F & B business

Answer:
Food cost may be defined as the cost of material used in producing the food sold. In
other words, it is the cost of food consumed less the cost of staff meals. The main
objects of food cost or material costing are:

To ascertain the food cost of particular item on the menu

To ascertain the total expenditure on food over a period of time.
To control cost, price, profit margins and provide information for formulating
an effective pricing policy.
To disclose faulty purchasing and inefficient storing.
To prevent pilferage and wastage.
To ensure customer satisfactions.
To bring cost- consciousness among the employees.
To reduce cost and improve quality.
To provide cost estimates to manager for developing budgets.
To assist manager in making control decision.
To evaluate pricing and establish future pricing.

THE USUAL METHOD OF FOOD COSTING IS SUMMARIZED AS FOLLOWS:

Calculate the food cost of each item on the menuFood Cost and cost control tips bng

Control labour and overhead without attempting to apportion them to various item
produced.

The selling price of each dish is usually fixed by adding to its prime cost (food cost)
a certain percentage to cover wages, overheads and net profit.

Labour cost and overheads are not usually apportioned to the individual cost of dish
produced. It should be ensured that individual selling price of the dish will produce
sufficient income to cover the labour and overhead costs and achieve the required
net profit.

FORMULA OF FOOD COST:

FC= COST OF FOOD CONSUMED STAFF MEALS

OR,

FC= OS + (P PR) CS
FC= FOOD COST;

OS = OPENING STOCK;

P= PURCHASE;

PR= PURCHASE RETURN;

CS= COST OF STAFF MEAL

Total Cost: the total cost of food items is composed of three basic elements known
as element of cost. The difference of sales price and total cost of a product is known
as net profit. The opening cost may be classified as:

Food Cost or Material Cost (MC)

Labour cost (LC)
Overhead Cost (OH)

TOTAL COST= MC +LC+OH

Material Cost: material cost refers to the basic cost in food and beverage business.
The cost of material which enters into and become a part of product is known as
direct material. For example, use of ingredients in catering and flour in bread
making each of these materials, are classified as direct if the costs can be identified
with the product. In the food and beverage business material refers to four basic
costs:

Food Costs
Beverage Costs
Cost of Tobacco and Cigarettes
Cost of Sunday sales.

COST SHEET OR STATEMENT OF FOOD COST:

Cost sheet is a statement which provides for the assembly of detailed cost in
respect of a cost of unit. It is prepared to indicate detail cost of the total output or
products. It gives the cost per unit. The main advantages of cost sheet are:

It discloses the food cost of a dish and cost per unit.

It enable the management to keep a close watch and control over the
production
It provides a comparative study of the various ingredients.
It helps in formulating a usual production policy.
It helps in fixing up the selling price of the items produced.

5. Explain the methods of storing different types of alcoholic drinks in hotel,

also highlight the legal requirements.

Answer:

Be systematic and realistic as you consider the following 10 location points.

1. Style of operation.

Is your operation going to be formal and elegant? Or kicked-back and casual? Your
location should be consistent with your particular style and image. If your business
is retailing, do you want a traditional store, or would you like to try operating from a
kiosk (or booth) in a mall or a cart that you can move to various locations?

2. Demographics.

There are two important angles to the issue of demographics. First, consider who
your customers are and how important their proximity to your location is. For a
retailer and some service providers, this is critical; for other types of businesses, it
might not be as important. The demographic profile you have of your target market
will help you make this decision.

Then take a look at the community. If your customer base is local, does a sufficient
percentage of that population match your customer profile to support your
business? Does the community have a stable economic base that will provide a
healthy environment for your business? Be cautious when considering communities
that are largely dependent on a particular industry for their economy; a downturn
could be bad for business.
Now think about your work force. What skills do you need, and are people with
those talents available? Does the community have the resources to serve their
needs? Is there sufficient housing in the appropriate price range? Will your
employees find the schools, recreational opportunities, culture, and other aspects of
the community satisfactory?

3. Foot traffic.

For most retail businesses, foot traffic is extremely important. You dont want to be
tucked away in a corner where shoppers are likely to bypass you, and even the best
retail areas have dead spots. By contrast, if your business requires confidentiality,
you may not want to be located in a high-traffic area. Monitor the traffic outside a
potential location at different times of the day and on different days of the week to
make sure the volume of pedestrian traffic meets your needs.

4. Accessibility and parking.

Consider how accessible the facility will be for everyone who'll be using it
customers, employees, and suppliers. If youre on a busy street, how easy is it for
cars to get in and out of your parking lot? Is the facility accessible to people with
disabilities? What sort of deliveries are you likely to receive, and will your suppliers
be able to easily and efficiently get materials to your business? Small-package
couriers need to get in and out quickly; trucking companies need adequate roads
and loading docks if youre going to be receiving freight on pallets.

Find out about the days and hours of service and access to locations youre
considering. Are the heating and cooling systems left on or turned off at night and
on weekends? If youre inside an office building, are there periods when exterior
doors are locked and, if so, can you have keys? A beautiful office building at a great
price is a lousy deal if you plan to work weekends but the building is closed on
weekendsor they allow you access, but the air conditioning and heat are turned
off so you roast in the summer and freeze in the winter.

Be sure theres ample convenient parking for both customers and employees. As
with foot traffic, take the time to monitor the facility at various times and days to
see how the demand for parking fluctuates. Also make sure the parking lot is well-
maintained and adequately lighted.
5. Competition.

Are competing companies located nearby? Sometimes thats good, such as in

industries where comparison shopping is popular. You may also catch the overflow
from existing businesses, particularly if youre located in a restaurant and
entertainment area. But if a nearby competitor is only going to make your
marketing job tougher, look elsewhere.

6. Proximity to other businesses and services.

Take a look at what other businesses and services are in the vicinity from two key
perspectives. First, see if you can benefit from nearby businessesby the customer
traffic they generatebecause those companies and their employees could become
your customers, or because it may be convenient and efficient for you to be their
customer.

Second, look at how they'll enrich the quality of your company as a workplace. Does
the vicinity have an adequate selection of restaurants so your employees have
places to go for lunch? Is there a nearby day-care center for employees with
children? Are other shops and services you and your employees might want
conveniently located?

7. Image and history of the site.

What does this address say about your company? Particularly if youre targeting a
local market, be sure your location accurately reflects the image you want to
project. Its also a good idea to check out the history of the site. Consider how it's
evolved over the years.

Ask about previous tenants. If youre opening a restaurant where five restaurants
have failed, you may be starting off with an insurmountable handicapeither
because theres something wrong with the location or because the public will
assume your business will go the way of the previous tenants. If several types of
businesses have been there and failed, do some research to find out whyyou need
to confirm whether the problem was with the businesses or the location. That
previous occupants have been wildly successful is certainly a good sign, but temper
that with information on what type of businesses they were compared to yours.
8. Ordinances.

Find out if any ordinances or zoning restrictions could affect your business in any
way. Check for the specific location youre considering as well as neighboring
propertiesyou probably dont want a liquor store opening up next to your day-care
center.

9. The buildings infrastructure.

Many older buildings don't have the necessary infrastructure to support the high-
tech needs of contemporary operations. Make sure the building has adequate
electrical, air conditioning, and telecommunications service to meet your present
and future needs. It's a good idea to hire an independent engineer to check this out
for you so you're sure to have an objective evaluation.

10. Utilities and other costs.

Rent composes the major portion of your ongoing facilities expense, but consider
extras such as utilitiestheyre included in some leases but not in others. If theyre
not included, ask the utility company for a summary of the previous years usage
and billing for the site. Also find out what kind of security deposits the various utility
providers require so you can develop an accurate move-in budget; however, you
may not need a deposit if you have an established payment record with the
company.

Case Detail :

Daksh wanted to start a casual dinning restaurant cum bar in Noida. But has
negligible knowledge about the business as he has done MBA in Marketing only. He
approaced a Bank for loan, where the manager asked for a detailed proposal and a
feasilbity study report for the business. Assume that you are friends with Daksh and
he approaced you to get an advice. he asked you various questions out of these
questions three queries are being asked to you in this following section. respond so
that Daksh can prepare a good feasibility report and get loan from the bank

1. what are the legal requirements in terms of licences, clearances and

registerations required for starting a casual dinning restaurant cum bar.

Answer:
 The restaurant and bar format require more licenses and approvals than any other
restaurant format. A minimum of eight licenses is required for your restro-bar to
open.
These are-
Liquor License
Shop Establishment License
Police Eating House License
Local Municipal Authority License
FSSAI License
Fire Safety Certificate
VAT Registration
Other licenses required are Music License, Certificate of Environmental Clearance
and License from the Fire department. Among all, liquor licenses, FSSAI license, VAT
registration and local municipal health licenses are the most important one to start
the restaurant operations with. The rest can be applied for once the bar cum
restaurant is operational and can be procured in next two to three months. The total
cost of licenses can be around Rs 10 lakhs.

2. Detail about the menu that will be served, serving style and theme of
restaurant

Answer:

Menu:

Serving style: lounge cum restaurant will serve a mix of different cuisines with a
focus on Indian fare, all with an interesting touch. Expect to see a whole lot of
interestingly named dishes such as Bheja Fry, Baby Doll (salad), Ande Ka
Fanda and Langda Tyagi (burger). The icing on the cake is that Puri aims to
showcase molecular gastronomy with this venture, so Mojito Spheres will be given
to all guests as a welcome shot to help them know and understand this concept
better.

Theme: One of a unique dining concept where one is served delicious food, but in
complete darkness. With this, people get to learn a lot about the lives of the visually
impaired. The experience is further enhanced with a shaking bridge. While colorful
ambiance and candle light dinners have turned into a clich these days, Taste of
Darkness is something hitting the graph rapidly. As soon one enter the restaurant,
his or her cell phones and all other accessories in the pocket that emit light will be
taken away. Yes, all these things will be confiscated. A guide will take him to this
unique restaurant where he will savor food without seeing it. they will be provided
walking sticks that will help in you in reaching inside. At Taste of Darkness, one can
assure them self some great food. So, its just meal and complete darkness.
3. what is financial analysis for such project, what are its objectives and points
covered in it.

Answer:

Financial analysis (also referred to as financial statement analysis or accounting

analysis or Analysis of finance) refers to an assessment of the viability, stability and
profitability of a business, sub-business or project.

It is performed by professionals who prepare reports using ratios that make use of
information taken from financial statements and other reports. These reports are
usually presented to top management as one of their bases in making business
decisions. Financial analysis may determine if a business will:

Continue or discontinue its main operation or part of its business;

Make or purchase certain materials in the manufacture of its product;

Acquire or rent/lease certain machineries and equipment in the production of

its goods;

Issue stocks or negotiate for a bank loan to increase its working capital;

Make decisions regarding investing or lending capital;

Make other decisions that allow management to make an informed selection

on various alternatives in the conduct of its business.

1. Grain spirit which is redistilled and flavored with juniper is called

C gin

2. mojito and bloody mary is an example of

B cocktail

3. Russian service is

C an example where food is served through counters

4. service is considered to be intangible as

D it is people's effort

5. it is not true for fast food outlets

A they offer lot of variety

6. It is a menu analysis model

A Bayou and Bennett Model

7. Bar control is achieved by

only by tallying the sales with the current inventory

B physical checking of the inventories and matching with registers

asking the bar attendant to submit inventory and sales report

by computerized monitoring

8. The percentage of total space alloted for kitchen in a restaurant should be

A 30%

9. it is not considered while designing restaurant

D skills of staff

10. It is the characteristic about the stars items in menu engineering

B high profitablity , high popularity

11. Hayes & Huffman Model's formula for calculating net profit for menu item

D Sales of menu item (cost of food + fixed costs + variable costs) = net profit for
menu item.

12. Upselling refers to

A selling high price food items to customers to increase the guest check.

13. Number of dishes in a menu depends.

B type of food service outlet

14. catering establishment for hostel of school is an example of

B welfare catering
15. it is not a type of menu

A karavate de chef

16. usual contribution of F & B operations in profit margins of hotel operations is

A 20-25%

17. forecasting sales of restaurant based on the house count is

D house count average

18. the time frame of long range budget is

C 5 years

19. it is not an example of selling expense

D cost of material

20. for food service outlets like pizza hut and dominos, it is not direct cost

D cost of lubricant used in baking machine

21. cost of training for new employees is an example of

B direct cost

22. Bar control is achieved by

only by tallying the sales with the current inventory

B physical checking of the inventories and matching with registers

asking the bar attendant to submit inventory and sales report

by computerized monitoring

23. it is the task of receiving department

B to ensure receiving of goods as per purchase order specification

24. marginal cost is the cost

B required to produce one more unit of product

25. for setting a fast food outlet the most significant factor out of all is

D right location

26. it shouldn't be done while handling and serving red wine

D wine should be served at room temperature in a suitable glass

27. it is an example of direct material

material with a negligible cost

B primary packaging material

service cost

consumables

28. cost of straight drink is calculated by the formula

cost of bottle/ total number of standard portion obtained from it

cost of bottle / portion size in ml

C amount of beverage served in ml x number of portions sold

cost of bottle/ number of portions sold in a day

29. fulform of KOT is

C kitchen order taken

30. cost incurred to make one additional unit of a product is called

D marginal cost

31. fulform of GAAP

B Generally Allowed Accounting Principals

32. Menu Engineering Model is developed by

D Kasavana

33. moment of truth can be defined as

A all interaction between service provider and cutomer that helps in evaluating th e
quality of service

34. while selecting an equipment for kitchen it is a factor to be considered

D a), b) and c)

35. items in a menu which has high demand but low profit is known as

C plow horse

36. items in a menu which has low demand but high profit is known as
B puzzles

37. items in a menu which has high demand and high profit is known as

A star

38. It is not a factor that has to be considered while planning a F & B outlet

B price of raw material

39. For a fine dining restaurant the recommended space required/ seating

C 20 square feet

40. For a casual restaurant the recommended space required/ seating

8 square feet

10 square feet

C 15 square feet

20 square feet

We Also Provide SYNOPSIS AND PROJECT.

Contact www.kimsharma.co.in for best and lowest cost solution or
Email: amitymbaassignment@gmail.com
Call: 9971223030