Discuss about the Food and Beverage Management.
The food and beverage management is essential to the modern hotel management. Moreover, this concept has a lot of responsibilities. The managers should be concerned with the process of planning in order to set up goals, deciding on the direction to lead the organization, and making off the roles as well as policies (Cousins, Foskett and Gillespie, 2002). Additionally, the managers should consider how to realize on these goals, and who you are going to assign to achieve on these aims. It is the work of the managers to motivate the employees in order to lead the organization towards a set direction and understand of these goals.it is the work of the managers to take control of the performance of the workers to ensure they behave in the coordination with the organization direction and the goals. The report, focusses on the Bellini Italian restaurant where the managers want to use his leadership skills towards rejuvenating on the restaurant and increase on the business (Mukherji, 2006). The aim of the report seeks to answer certain questions such discussion of the Francesco strategy of all you can eat and how this would affect the average spending statistics for the week on the restaurant food cost percentage. Moreover, discussion of the critical information that would be monitored over the week for measuring on the result of the strategy. Lastly, to critically analyze on how one would investigate on the problem and what strategies to implement in order to grow on the profitability of the restaurant.
Francesco’s strategy of “all you can eat”
All you eat strategy is also referred to as buffet. The average food spend for the Bellini Italian restaurant is 36.15 dollars and the average beverage spend is 18.80 dollars. The buffet is expected to cause 28.90 dollars per adults and children at 12.50 dollars on Monday, Tuesday, and Wednesday. Judging from this figures, one could clearly identify at all you can eat approach on these 3 days lowers the average cost of food spent during the week (Davis, Lockwood. Pantelidis and Alcott, 2013). The percentages of the food is usually stand for the ration of the food sales which is devoted to the food expenses. Simply the food expense percentage is the meals cost divided by the sales of the meals (Mukherji, 2006). Before the launching off the all you can eat approach the typical food devote as 36 .15 dollar, and standard beverage spend was $ 18 .80 .under this condition the restaurant food cost percent was 32% (Cousins, Foskett and Gillespie, 2002). Nevertheless, after the analysis the food Average Spend might lower after the inception of the approach of all you can eat. As the restaurant guarantees in conveying more client on Monday, Tuesday and Wednesday there is need to have additional workers, in turn this could increase the labor expense (Walker and Walker, 2012). Consequently, as there would be much more consumer for the buffet, there could be a lot more wastes that could increase the expense of the food. The cost of the food percentages in the restaurant will increase after the emergence of the all you can eat approach.
Critical information to be monitored over the next few weeks to measure the results of this strategy.
The contribution margin highlights the amount that is left after the cost of meals of the items on the menu continues to be deducted from the items selling price. Furthermore, the contribution margin is the sum that a menu items results in paying for the expenses such as the labor costs consequently creating of the profit (Riley, 2005). To illustrate this take an item which is sold at 7 .35 dollars and cost of food for this item is $ 2.73 (AbuKhalifeh and Som, 2012). The contribution margin might be calculated as follows: the selling price- food cost= the contribution margin $7 .35-$2 .73=4 .62 dollars (Mukherji, 2006). Contribution margins of buffet could possibly be fewer than those of the la carte restaurant.
The overall impact on the sale volume and profitability
In the restaurant there would be more customers on Monday, Tuesday and Wednesday and the food cost should be higher than before (Walker and Walker, 2012). The contribution margin of the buffet will be lower than those of the La carte. Nonetheless, on the all you can eat strategy it promises to bring more customers into the restaurant on weekends and there would be more consumption on the food and the beverage. It would be expected that the overall profitability could probably rise in the future.
The amount of food prepared daily for the buffet and how to deal with carry overs and waste
When the buffet was introduced in the restaurant there is no need to prepare a lot of foods. The restaurant rather need to make trials and if it succeeds on the buffet it could add others latter (Miller, Hayes and Dopson, 2002). The waste and the leftovers were previously thrown away, nowadays, the consumers are encouraged to recycle ad reuse them for example they could put these scraps and leftover into separate cans so that they could be collected.
Customer visitation and perception
The customers today are not just buying the products and services in the restaurant they are expecting the experience and value. When the client comes to the restaurant to get the buffet they are not just for that, but how comfy are the chairs, the great smells, and trendy people (Davis, Lockwood, Alcott and Pantelidis, 2012). On the entrance of the restaurant there could be a worker to welcome the customers and guide them to their tables. The room should look nice, clean and comfortable to the customers to be able to relax and have a splendid time. The buffet should be arranged nicely and labelled for ease access by the client rather than asking what are the meals to the workers. The things to monitor should be appearance of the restaurant, and the reaction as well as the feedback of the customers in order to know if the buffet is valid. Comparison of the number of the customer to the previous number before the introduction of the buffet would be essential to know the cost of food and the sales.
Analysis of issues differently and how to develop overall profit for restaurant.
Bellin Italian restaurant has have bad performance especially on the mid-week period. In the case above I would approach the problem facing the business in a whole different perspective rather than the one employed above. First I would need to understand the aspect of the sales versus the revenue. These concepts look the same but they are entirely different. Sales entails the number of unit of food that are sold in our case (Miller, Hayes and Dopson, 2002). The income is the total amount generated from the sales. Understanding these concept helps to keep in mind the plan sales strategies to strike on the right balance for the needs of the business. What is affecting the restaurant mostly is less sales during the mid-week and consequently the revenues generated from the total sales are little. The next step is to define on the various strategies to use to handle the problem. One of the main reason for the business why it is suffering on less sales could be high prices on the items sold (Miller, Hayes and Dopson, 2002). The strategy to employ could be review on the pricing strategies. The food items have sensitive prices and most of the cases the customers are selective. There is need to review on these prices through finding out what competitors are charging and raise or lower on the prices but based on the goals (Mukherji, 2006). If the restaurant lowers the price they would increase in sales and consequently higher revenues would be generated to make up for the lower margins. On the other hand, raising the prices could create a higher perceived value on the minds of the consumers and increases your margins. Additionally, if the revenues are raised they could also increase on the revenue without increasing the sales. It is imperative to find a balance on the right price without affecting the overall goals of the organization. I would also employ the strategy of building relationship with the customers. The more individuals you interact with and build relationship with they get to promote the services, and products through provision of referral to their friends and colleges consequently more sales and revenue for the business (Mukherji, 2006). Customers could act as a marketing tool to their friends or families if they received excellent services and food items from the restaurant.
The essay talks relating to the introduction of most you could eat strategy particularly in the certified a la carte restaurant, due to their previous awful company performance .Francesco has been concerned for the restaurant why it was quiet during the mid-week period. With the introduction of the new strategy the cost of food percentage would go up and the labor cost would also go up. Nonetheless, it may introduce more consumers especially in the weekdays. The restaurant could also see a rise in the profitability in the future.
The strategy used in this case has concentrated on the performance as well as profitability of the restaurant. Later on, there is certainly need to consider a lot more environmental aspects in the food and beverage business. In this instance there may be lots of waste and leftovers that would be incurred due to all you can eat strategy.
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