Food and beverage directors expect a pour cost of

183

C h a p t e r 4

Food and Beverage

L E A r N i N G o B J E C T i V E S

after reading and studying this chapter, you should be able to:

• Describe the duties and responsibilities of a food and beverage director and other key department heads.

• Describe a typical food and beverage director’s day.

• State the functions and responsibilities of the food and beverage departments.

• perform computations using key food and beverage operating ratios.

M04_WALK2761_07_SE_C04.indd 183 09/23/16 8:26 PM

184 Part i Introducing hospitality and Lodging

Food and Beverage Management In the hospitality industry, the food and beverage division is led by the director of food and beverage. he or she reports to the general manager (GM) and is responsible for the efficient and effective operation of the fol- lowing departments:

• Kitchen/catering/banquet • restaurants/room service/minibars • Lounges/bars/stewarding

Figure 4–1 illustrates a food and beverage organization chart. the position description for a director of food and beverage is both a job

description and a specification of the requirements an individual needs to do the job. In recent years, the skills needed by a food and beverage director have grown enormously, as shown by the following list of responsibilities:

• exceeding guests’ expectations in food and beverage offerings and service

• Leadership • Identifying trends • Finding and keeping outstanding employees • training • Motivation • Budgeting

LearnInG OBjeCtIve 1 Describe the duties and responsibilities of a food and beverage director and other key department heads.

Figure 4–1 • Food and Beverage Division Organization Chart for a Large Hotel.

Cooks Servers

Housemen

Creative Sales Associates

Servers

Bar Persons

Stewards Sous Chef

Services Manager

Captain Servers

Executive Chef

Catering Manager

Restaurant Manager

Chef Steward

Beverage Manager

Room Service Manager

Food and Beverage Director

Administrative Assistant

Asst. Food & Beverage Director

M04_WALK2761_07_SE_C04.indd 184 09/23/16 8:26 PM

chapter 4 Food and Beverage 185

• Cost control • Finding profit from all outlets • having a detailed working knowledge of the front-of-the-house

operations

these challenges are set against a background of stagnant or declin- ing occupancies and the consequent drop in room sales. therefore, greater emphasis has been placed on making food and beverage sales profitable. traditionally, only about 20 percent of the hotel’s operating profit comes from the food and beverage divisions. In contrast, the current acceptable profit margin from a hotel’s food and beverage division is generally con- sidered to be 25–30 percent. this figure can vary according to the type of hotel. For example, according to pannell Kerr Forster, an industry consult- ing firm, all-suite properties achieve a seven percent food and beverage profit (probably because of the complimentary meals and drinks offered to guests). It is interesting to note that U.S. hotels have fewer food and bever- age outlets compared to their asian and european counterparts. the reason is likely profit in the United States and culture in asia and europe where hotels are used more as meeting places and the bars and restaurants are well frequented by nonresidents.

a typical food and beverage director’s day might look like the following:

8:30 a.m. Check messages and read logs from outlets and security. tour outlets, especially the family restaurant (a quick inspection).

Check the breakfast buffet, reservations, and the shift manager.

Check daily specials.

Check room service.

Check breakfast service and staffing.

Meet the executive chef and purchasing director.

Meet executive steward’s office to ensure that all equipment is ready.

Meet banquet service office to check on daily events and coffee break sequence.

10:00 a.m. Work on current projects: new summer menu, pool outlet opening, conversion of a current restaurant with a new concept, remodeling of ballroom foyer, installation of new walk-in freezer, and analysis of current profit-and-loss (p&L) statements. plan weekly food and beverage department meetings.

11:45 a.m. visit kitchen to observe lunch service and check the “12:00 line,” including banquets.

Confer with executive chef.

Check restaurants and banquet luncheon service.

LearnInG OBjeCtIve 2 Describe a typical food and beverage director’s day.

M04_WALK2761_07_SE_C04.indd 185 09/23/16 8:26 PM

186 Part i Introducing hospitality and Lodging

1:00 p.m. Lunch in employee cafeteria with executive chef, director of purchasing, and/or director of catering to review any outstanding issues.

1:30 p.m. Meet with human resources to discuss current incidents.

2:30 p.m. Check messages and return calls. telemarket to attract catering and convention business.

Conduct hotel daily menu meeting.

3:00 p.m. Go to special projects/meetings.

5:30 p.m. tour cocktail lounges.

Check for staffing.

review any current promotions.

Check entertainment lineup.

6:00 p.m. Check special food and beverage requests/ requirements of any vIps staying at the hotel.

tour kitchen.

review and taste.

8:00 p.m. review dinner specials.

Check the restaurant and lounges.

a food and beverage director’s typical day starts at 8:00 a.m. and ends at 8:00 p.m., unless early or very late events are scheduled, in which case the working day is even longer. Usually, the food and beverage director works Monday through Saturday. If there are special events on Sunday, then he or she works on Sunday and takes Monday off. In a typical week, Saturdays are used to catch up on reading or specific projects.

the director of food and beverage eats in his or her restaurants at least twice a week for dinner and at least once a week for breakfast and lunch. Bars are generally visited with clients, at least twice per week. the director sees salespersons regularly because they are good sources of information about what is going on in the industry and they can introduce leads for business. the director attends staff meetings, food and beverage meetings, executive committee meetings, interdepartmental meetings, credit meetings, and p&L statement meetings.

to become a food and beverage director takes several years of experi- ence and dedication. One of the best routes is to gain work experience or to participate in an internship in several food and beverage departments while attending college. this experience should include full-time, practi- cal kitchen work for at least one to two years to master the core concepts, followed by varying periods of a few months in purchasing, stores, cost control, stewarding, and room service. Stewarding is responsible for back- of-the-house areas such as dishwashing and issuing and inventorying china, glassware, and cutlery. Stewarding duties include maintaining cleanliness in all areas. additionally, a year spent in each of the following work situations is helpful: restaurants, catering, and bars. after these departmental experi- ences, and once you master the core competencies, you can likely serve as

M04_WALK2761_07_SE_C04.indd 186 09/23/16 8:26 PM

chapter 4 Food and Beverage 187

a department manager, preferably in a different hotel from the one in which the departmental experience was gained. this prevents the awkwardness of being manager of a department in which the person was once an employee and also offers the employee the opportunity to learn different things at dif- ferent properties.

▶ check Your Knowledge

1. What are the skills and responsibilities of a food and beverage director?

2. Describe a food and beverage director’s day.

Being hired as the pot washer for the Old Homestead Country Kitchen at the early age of 15 hardly seemed to herald the beginnings of an auspicious career in the hospitality industry. But to George Goldhoff, with his high energy and natural leadership skills, he had found the perfect environment in which to excel. The sense of family and camaraderie between the staff members and the interaction with guests, mixed with the intensity of performance and dead- lines, have never lost their appeal. Excellence in service would become his lifelong pursuit.

Fast-forward 20 years. As director of food and beverage at Bellagio of MGM Resorts In- ternational in Las Vegas, George was responsible for the quality assurance, personnel devel- opment, and financial performance of 17 restaurants and 10 bars, with 3,000 employees and more than $200 million in revenues. As one of the original members of the opening team for the Bellagio, George drew from his extensive and varied food and beverage background to

make the Bellagio’s opening a success. George earned his B.S. degree in hotel, restaurant, and travel administration from the University of

Massachusetts, a big accomplishment for a young man without a high school diploma who was often character- ized as wild and rebellious. It was a revelation, an awakening of his potentials and the realization that he could accomplish great things. This accomplishment instilled in George the self-confidence in his abilities and the tech- nical skills necessary to achieve his goals. His introduction to corporate culture was as an assistant front-office manager and Hyatt corporate trainee in Savannah, Georgia.

Upon completion of his training, George moved to Tahoe in 1988, where he was able to combine his love for restaurants and sports. An all-around athlete, he pursued speed skiing competitions at the highest levels. George’s ambitions led him to The Plaza Hotel in New York, where he started as an assistant beverage director. At The Plaza, George immersed himself in his new position with his usual high-voltage energy and infectious enthusiasm. Within six months, he was promoted to manager of the stately Oak Room, the youngest manager in the restaurant’s 90-year history. Within a two-year period, he was promoted to managing four of The Plaza Hotel’s five à la carte restaurants.

i n t r O d u c i n g g e O r g e g O L d h O F F

president and CeO of pure Canadian Gaming, alberta, Canada.

(continued)

M04_WALK2761_07_SE_C04.indd 187 09/23/16 8:26 PM

188 Part i Introducing hospitality and Lodging

Kitchen a hotel kitchen is under the charge of the executive chef or chef in smaller and medium-sized properties. this person, in turn, is responsible to the director of food and beverage for the efficient and effective operation of kitchen food production. the desired objective is to exceed guests’ expecta- tions in the quality and quantity of food—its presentation, taste, and portion size—and to ensure that hot food is served hot and cold food is served cold. the executive chef operates the kitchen in accordance with company policy and strives to achieve desired financial results.

Some executive chefs are now called kitchen managers; they even serve as food and beverage directors in midsized and smaller hotels. this trend toward “right-sizing,” observed in other industries, euphemistically refers to restructuring organizations to retain the most essential employees. Usu- ally, this means cutting labor costs by consolidating job functions. For exam- ple, Michael hammer is executive chef and food and beverage director at the 440-room hilton La jolla torrey pines. Mike is typical of the new breed of exec- utive chefs: his philosophy is to train his sous chefs, sous being a French word meaning “under,” to make many of the operating decisions. he delegates order- ing, hiring, and firing decisions; sous chefs are the ones most in control of the production and the people who work on their teams. By delegating more of the operating decisions, he is developing the chefs de partie (or stations chefs) and empowering them to make their own decisions. as he puts it, “no decision is wrong—but in case it is unwise, we will talk about it later.”

In 1993, he realized one of his dreams—the opportunity to work with the legendary Joe Baum—managing the famous Rainbow Room in Rockefeller Center. George’s commitment to service, the evident pride he takes in his work, and his high standard of ethics earned him praise from Joe Baum as being his best maître d’ ever. In 1997, he left the Rainbow Room to enroll in the MBA program at Columbia University. With the same self- confidence, resourcefulness, and ability to focus on multiple tasks, George, not surprisingly, took first place in Columbia’s Business Plan competition and was the recipient of the prestigious Eugene Lang Entrepreneurial Initiative Fund. Armed with his MBA degree and newly acquired business skills, he was ready for his next adven- ture. George went on to become General Manager of Gold Strike Casino Resort and is now President and CEO of PURE Canadian Gaming Corp., based in Edmonton, Alberta, Canada.

For George, it’s all about service. Excellence in guest satisfaction and a genuine concern for his staff and coworkers have been his guiding principles. The ability to instill in those around him the desire to strive beyond and stretch past their comfort zones is just one of his leadership characteristics. George has great expectations for himself and those around him and is not afraid of hard work. In fact, he works with a passion. The long hours and the intensity do not faze him. His adaptability to different situations, his ability to relate to a variety of personalities and temperaments, and his keen sense of humor serve him well both in front and back of the house. With his winning smile and straightforward demeanor, George sets his sights on a promising future and the many adventures ahead.

i n t r O d u c i n g g e O r g e g O L d h O F F (Continued)

LearnInG OBjeCtIve 3 State the functions and responsibilities of the food and beverage departments.

M04_WALK2761_07_SE_C04.indd 188 09/23/16 8:26 PM

chapter 4 Food and Beverage 189

Mike spends time maintaining morale, a vital part of a manager’s responsibilities. the kitchen staff is under a great deal of pressure and frequently works against the clock. Careful cooperation and coordination are the keys to success. he explains that he does not want his asso- ciates to “play the tuba”—he wants them to conduct the orchestra. he does not hold food and beverage department meetings; instead he meets with groups of employees fre- quently, and problems are handled as they occur. Controls are maintained with the help of software that costs their standard recipes, establishes perpetual inventories, and calculates potential food cost per outlet. today, executive chefs and food and beverage directors look past food cost to the actual profit contribution of an item. For example, if a pasta dish costs $3.25 and sells for $12.95, the contribu- tion margin is $9.70. today, there are software programs such as Cheftec that offer software solutions for purchas- ing, ordering, inventory control, and recipe and menu cost- ing; Cheftec plus offers perpetual inventory, sales analysis, theoretical inventory reports, and multiple profit centers.

Controlling costs is an essential part of food and beverage operations and, because labor costs represent the most significant variable costs, staffing becomes an important factor in the day-to-day running of the food and bever- age locations. Labor cost benchmarks are measured by covers-per-person-hour. For example, in stewarding, it should take no more than one person per hour to clean 37.1 covers. Mike and his team of outlet managers face interesting chal- lenges, such as staffing for the peaks and valleys of guest needs at breakfast. Many guests want breakfast during the peak time of 7:00–8:30 a.m., requiring organizations to get the right people in the right place at the right time to ensure that meals are prepared properly and served in a timely manner.

at the hilton La jolla torrey pines, executive Chef hammer’s day goes something like the following:

1. arrive between 6:00 and 7:00 a.m. and walk through the food and bev- erage department with the night cleaners.

2. Check to make sure the compactor is working and the area is clean.

3. Check that all employees are on duty.

4. ask people what kind of challenges they will face today.

5. Sample as many dishes as possible, checking for taste, consistency, feel, smell, and overall quality.

6. Check walk-ins.

7. recheck once or twice a day to see where the department stands pro- duction-wise—this helps reduce or eliminate overtime.

8. approve schedules for food and beverage outlet.

9. Keep a daily update of food and beverage revenues and costs.

10. Forecast the next day’s, week’s, and month’s business based on up- dated information.

11. Check on final numbers for catering functions.

The executive chef of a large hotel manages the kitchen and may not do much cooking—mostly administration.

M04_WALK2761_07_SE_C04.indd 189 09/23/16 8:26 PM

190 Part i Introducing hospitality and Lodging

Financial results are generally expressed in ratios, such as food cost percentage—the cost of food divided by the amount of food sales. a simple example is the sale of a hamburger for $1.00. If the cost of the food is $0.30, then the food cost percentage is 30 percent, which is about average for many hotels. the average might be reduced to 27 percent in hotels that do a lot of catering. as discussed later in this section, in determining the food and beverage department’s profit and loss, executive chefs and food and bever- age directors must consider not only the food cost percentage, but also the contribution margin of menu items. the contribution margin is the amount contributed by a menu item toward overhead expenses and is the difference between the cost of preparing the item and its selling price.

another important cost ratio for the kitchen is labor cost. the labor cost percentage may vary depending on the amount of convenience foods pur- chased versus those made from scratch (raw ingredients). In a kitchen, the labor cost percentage may be expressed as a food sales percentage. For example, if food sales total $1,000 and labor costs total $250, then labor costs may be expressed as a percentage of food sales by the following formula:

Labor Cost

Food Sales , therefore

$250

$1,000 = 25% labor cost

Labor management is controlled with the aid of programs such as timepro from Commeg Systems. timepro is a time, attendance, and schedul- ing package that provides an analytical tool for managers and saves time on forecasting and scheduling.

an executive chef has one or more sous chefs. Because so much of the executive chef’s time is spent on administration, sous chefs are often respon- sible for the day-to-day running of each shift. Depending on size, a kitchen may have several sous chefs: one or more for days, one for evenings, and another for banquets.

LearnInG OBjeCtIve 4: Perform computations using key food and beverage operating ratios.

Based in Minneapolis, Carlson’s brands and services employ about 100,000 people in nearly 150 countries and territories.1 Formerly led by Chairman Marilyn Carlson Nelson and now led by her daughter, Chair Diana Nelson, Carlson continues to build on a cornerstone set by Marilyn’s father, Curtis Carlson, over 75 years ago: developing long-lasting relationships with clients.

The history of Carlson is one of the classic business success stories in the American free- enterprise system. Starting in 1938 with merely an idea and $55 of borrowed capital, entrepreneur Curtis L. Carlson founded the Gold Bond Stamp Company in his home city of Minneapolis, Minnesota. His trading stamp concept, designed to stimulate sales and loyalty for food stores and other mer- chants, proved to be right for the times and swept the nation in a wave of dramatic growth.

Through the years, Carlson diversified into hotels, travel, and other related businesses. In the 1960s, Carlson and several other partners collectively bought an interest in the original Radisson

c O r P O r a t e P r O F i L e

Marilyn Carlson nelson, Former Chairman and CeO, Carlson

M04_WALK2761_07_SE_C04.indd 190 09/23/16 8:26 PM

chapter 4 Food and Beverage 191

Under the sous chefs is the chef tournant (relief cook). this person rotates through the various stations to relieve the station chef heads. these stations are organized according to production tasks, based on the classic “brigade” introduced by escoffier. the brigade includes the following:

Sauce chef, who prepares sauces, stews, sautés, and hot hors d’oeuvres

roast chef, who roasts, broils, grills, and braises meats

Fish chef, who cooks fish dishes

Soup chef, who prepares all soups

Cold larder/pantry chef, who prepares all cold foods: salads, cold hors d’oeuvres, buffet food, and dressings

Banquet chef, who is responsible for all banquet food

pastry chef, who prepares all hot and cold dessert items

vegetable chef, who prepares vegetables (this person may be the fry cook and soup cook in some smaller kitchens)

Soup, cold larder, banquets, pastry, and vegetable chefs’ positions may be combined in smaller kitchens.

▶ check Your Knowledge

1. What is a food cost percentage, and how is it calculated?

2. What is a contribution margin?

3. how is labor cost percentage calculated?

Hotel in downtown Minneapolis. Eventually, Carlson became sole owner of the hotel brand and expanded it around the globe.

Among the names in the Carlson family of brands and services are Radisson Hotels & Resorts, Park Plaza Ho- tels & Resorts, Country Inns & Suites by Carlson, Park Inn, Quorvus Collection, Radisson Blu, Radisson Red, and Carlson Wagonlit Travel.

Carlson Worldwide encompasses 1,370 hotels in 150 countries and territories, and is the world’s leading Travel Management Company. Under the banner of Looking Forward, Vision 20/20 has goals of creating sustain- able businesses, driving growth, and building shareholder wealth. Vision 20/20 has the strategic objectives of developing the right talent; fostering a culture of innovation and collaboration; creating customer bright spots; and delivering results.

In addition to global business success, Carlson is also recognized as a top employer by receiving numerous workplace awards and recognitions and is among the leadership in responsible business practices for people, community, and environment.

A pastry chef decorating a cake.

M04_WALK2761_07_SE_C04.indd 191 09/23/16 8:26 PM

192 Part i Introducing hospitality and Lodging

Food Outlets a hotel may have several restaurants or no restaurant at all; the number and type of restaurants varies as well. a major chain hotel generally has two restaurants: a signature or upscale formal restaurant and a casual cof- fee shop–type restaurant. these restaurants cater to both hotel guests and to the general public. In recent years, because of increased guest expectations, hotels have placed greater emphasis on food and beverage preparation and service. as a result, there is an increasing need for professionalism on the part of hotel personnel.

hotel restaurants are run by restaurant managers in much the same way as other restaurants. restaurant managers are generally responsible for the following:

• exceeding guest service expectations • hiring, training, and developing employees • Setting and maintaining quality standards

Chef Jose Martinez apprenticed with three legendary, three-star Michelin French chefs and restaurateurs: Joël Robuchon at Restaurant Jamin in Paris; Alain Senderens, a founder of New French cuisine; and chef Michel Guérard at Les Prés d’Eugénie at Eugenie les Bains, France. Chef Martinez was awarded his own Michelin star for Maison Blanche in Paris, and then moved his family to Longboat Key, Florida, where La Maison Blanche is now among the best restau- rants in the United States.

Chef Martinez arrives between 9:00 and 10:00 a.m. and does paperwork in the mornings. He orders and organizes supplies for the kitchen and meets with local farmers and small suppliers who, he says, understands his needs better than the large companies. He also works on the wine list by talking with suppliers and ensuring a good pairing with the menu items. By late morning he is planning and organizing the mise en place requirements for the evening dinner. At 1:00 p.m. he welcomes staff and gives their assignments. Chef Martinez always remembers that he must

be able to do and be responsible for everything. There is no separation between owner and staff in this size of restaurant.

The afternoon is entirely devoted to preparation for the completion of the mise en place. This is a routine opera- tion with a lot of discipline. The discipline is necessary to execute the mise en place correctly. At 5:00 p.m. the staff have their dinner before the opening at 5:30 p.m., when everything must be ready to go!

Chef Martinez’s philosophy is: “There is no alternative to excellence.” And he adds, “Capturing excellence in a dining experience begins and ends with the food. I have great respect for the production of food and the privi- lege bestowed on me being able to use it and apply my talent and focus on creating the most excellent product possible.”

a d aY i n t h e L i F e O F c h e F j O s e M a r t i n e z

Chef-Owner, La Maison Blanche, Longboat Key, Florida

M04_WALK2761_07_SE_C04.indd 192 09/23/16 8:26 PM

chapter 4 Food and Beverage 193

• Marketing • Banquets • Coffee service • In-room dining, minibars,

or the cocktail lounge

• presenting annual, monthly, and weekly forecasts and budgets to the food and beverage director

Some restaurant man- agers work on an incentive plan with quarterly perfor- mance bonuses. hotel res- taurants present the manager with some interesting chal- lenges because hotel guests are not always predictable. Sometimes they will use the hotel restaurants, and other times they will dine out. If they dine in or out to an extent beyond the forecasted number of guests, problems can arise. too many guests for the restaurants results in delays and poor service. too few guests means that employees are underutilized, which can increase labor costs unless employees are sent home early. a restaurant manager keeps a diary of the number of guests served by the restaurant on the same night the previous week, month, and year.

the number (house count) and type of hotel guest (e.g., the number of conference attendees who may have separate dining arrangements) should also be considered in estimating the number of expected restaurant guests for any meal. this figure is known as the capture rate, which, when cou- pled with historic and banquet activity and hotel occupancy, will be the res- taurant’s basis for forecasting the number of expected guests.

Most hotels find it difficult to coax hotel guests into the restaurants. however, many hotels continuously try to convert foodservice from a nec- essary amenity to a profit center. the royal Sonesta new Orleans offers res- taurant coupons worth $5 to its guests and guests of nearby hotels. another successful strategy, adopted by the hotel plaza athénée in new York, is to show guests the restaurants and explain the cuisine before they go to their rooms. this has prompted more guests to dine in the restaurant during their stay. at some hotels, the restaurants self-promote by having cook- ing demonstrations in the lobby: the “on-site” chefs offer free samples to hotel guests. progressive hotels, such as the Kimco hotel in San Francisco, ensure that the hotel restaurants look like freestanding restaurants with separate entrances.

Café at the Paris Casino and Hotel in Las Vegas.

M04_WALK2761_07_SE_C04.indd 193 09/23/16 8:26 PM

194 Part i Introducing hospitality and Lodging

F O c u s O n L O d g i n g

Gracious hospitality

Catherine Rabb, johnson and Wales University

I find great pleasure in seeing a well-managed hotel handling full occupancy, special events, and busy dining rooms with seemingly effortless grace. How welcoming it is for the traveler or for the guest at a special event to be served by professionals who embody the true spirit of gracious hospitality.

What the guest doesn’t see is the complex network of interlocking relationships and intensive training necessary behind the scenes to make each day successful at any hotel. It has been said that hotels need to be like ducks—appearing to glide effortlessly along the surface, while paddling like the devil underneath! Every person in our operation is a critical component of our business. We sell food and beverages in a variety of ways, but in hospitality operations, the interaction with the guest becomes part of the product, with no room for returns if service is defective. We are only as good as our last meal, our last event, or our last contact with a guest. Service itself is the product.

As you will learn in this chapter, many different departments and people with diverse skills must work together efficiently. Hotels of different sizes and styles exist, so some operations need more people, and some need less, but for all hotels a dedication to providing the best available services and products is critical. This diverse group of people must work together to create a service product whose appearance is seamless. The coor- dination of people, talents, schedules, and needs is a complex ballet of intricate steps choreographed to create a seamless whole. A successful operation needs the talents of every member of the staff and welcomes the varied skills, energies, and ideas that their team brings to the table. Everyone, from the newest part-time employee to the manager, needs to be at the top of his or her game to reach the goal of service excellence.