Intro to Food and Beverage Operations

1. The Food Service Industry
Food and & Beverage Management
Tuesday, May 19, 2009 1
Introduction to HOST 154 Food and Beverage Operations

2. Who am I?
• Dean Louie, Chef and Instructor
• Maui Community College
• Chef in Hotels and Resorts
• Restaurants in Guam and Hawaii
• Teaching for 10 years
• Bachelor’s of Art, Master’s in LIS, 2011
• Exploring faculty/student exchange in
China
• People, Travel, History and Food
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My background, credentials and family
Chinese-American born in San Francisco: Lived in San Francisco, Honolulu, Sacramento, Oakland, Saipan, Guam and Maui.
Background as an Artist and Printmaker. Chef for over 14 years.
Contact information on syllabus
dlouie@hawaii.edu deanlouie@me.com

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This is Maui!
Chinese Culture alive and intact in Maui
Beautiful Plants and flowers
Lots of beautiful ocean life
Food and Wine festivals
Great food and resources
Wonderful creative students at Maui Community College

4. Class Expectations
• Come to Class and Take notes
• Study and review lecture notes
• Please ask questions
• Ask for clarity
• Success in quizzes and exams
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Participate for credit
Names on Index Cards
Take 5 minutes; Introduce person on your Left
Smile, Stand and Speak Very Clear so we can all hear!
Name (English Name too)
Where are you from?
Why did you choose this major?
Where have you traveled and where would you like to travel?
One Favorite food?
Change!

5. Food and Beverage Operations
1.The Food & 6.Menus
Beverage Industry 7.Costing
2.Organization 8.Production
3.Fundamentals of 9.Service
Management 10.Sanitation
4.F&B Marketing 11.Layout & Design
5.F&B Nutrition 12.Financial MGMT
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Slide Presentations We will cover all of these major topics
Think about where you want end up. Concentrate on the topic and be ready to ask
questions:
Administrators and Operators- Organization, Management Marketing, Costing, Layout and
Design and Financial Planning
Tourism & Travel - Management Marketing, Financial Planning, Costing and Sanitation
Chefs and Restaurant & Catering Managers- Nutrition, Menus, Production, Service, Layout
and Design and Sanitation

6. Overview
• Commercial vs. noncommercial food
service operations & facilities
• Origins and development of food
service in hotels, restaurants, and
institutions
• Trends affect food service in the coming
years
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Commercial: For profit (seeks maximum returns, marketing, advertising, changing with trends and markets)
restaurants, fast food, food stands, airlines, hotels, catering
Non-Commercial : Non-Profit (low revenue, minimum returns and changes)
Prisons, schools, hospitals, factories, military

7. Commercial & Noncommercial
Food Service Facilities
• Commercial types:
1.Independents
2.Chains
3.Franchises
• Chains & Franchises:
– All franchises are part of a chain, but not
all chain restaurants are franchises
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Independent: Chinese obsessed with food! Young, talented and established Chefs opening their own rest
International Chains: McDonalds, KFC,
Franchise: Independent owners who agree and are contracted by law to follow set Corporate standards.

8. Advantages & Disadvantages of
Chain Restaurants
• Advantages:
– Ready access to cash and credit
– Ability to experiment without great risk
– Resources to hire staff specialists
– Greater access to useful comparative
financial information
• Disadvantages
– Bureaucratic rules and procedures can
slow response times to market changes
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9. 9
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Independent Restaurant-Magazine Ad in Lahaina Maui, Hawaii
Marketing Example for Menu magazine
Clearly Lists Restaurant contact information-Phone number, hours of operation, type of
restaurant, sample of menu, directions, website
Colorful photographs, Logo and designs, Quotations of others,
Identifies the Chef as owner and credentials by list of awards

10. Owning vs. Managing Franchise
Restaurants
• Advantages:
– Assistance in opening and operating the
business
– Franchisor-sponsored training and
materials
– Greater exposure and higher revenue
because of extensive advertising and
name recognition
– Lower costs due to volume purchasing
– Tested operating procedures
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Marketing and branding is strongest tool
Training, software and resources are usually factored in budget

11. Owning vs. Managing Franchise
Restaurants (cont.)
• Disadvantages:
– Franchise contracts restrict style
• methods of operation
• products served
• services offered
• décor
• furnishings
– Franchise contracts usually favor the
franchisor
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Cannot be as creative or change marketing style if business slumps
Restrictive in changing menu and suppliers

12. Contract Management in
Noncommercial Facilities
• Advantages:
– Large management companies have more
resources to solve problems
– A ability to negotiate better deals with
suppliers
– Greater efficiency & lower overall cost
– Allows food service to be operated by
experts, rather than institution
administrators
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Flexibility at a price
Can often create resources and innovation while institution cannot

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US Management Service Contractor-SODEXO
Has contracts and contacts in US and internationally
Able to adjust to many different styles of operations
Sets high standards fiscally and operationally
Software, training and experts help solve challenges

14. Contract Management in
Noncommercial Facilities (cont.)
• Disadvantages:
– Management companies can affect the
institution’s public image
– Some people feel that profit-making
operators do not belong in noncommercial
settings
– The institution may become dependent on
the management company
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Sometimes hard to gain acceptance from public and others
May not always fit seamlessly into the overall plans of the institution
May not be able to achieve high goals

15. Origins & Development of
Food Service
• Hotel Restaurants
– Early inns, shelters for travelers
– Church hospices, monasteries
– Hotel restaurants today are integral parts of the
profit plan
• Freestanding restaurants
– English coffeehouses
– The soup called le restaurant divin
– Chain, drive-ins, quick-service, drive-throughs,
food courts, curbside service, grocery &
convenience stores
– Home delivery, fax order, e-mail order
– Home replacement meals
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Originally restaurants were offered after the French Revolution in late 1700ʼs
Since royalty hired Chefs they were now out of work and set up roadside inns and cafes for travelers

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The “Bund” turn of the century.
Located near Temple of Town God, Yuyuan in Shanghai, Shanghai Old Restaurant is one
of the earliest restaurants serving local Shanghai cuisine. It started out as a small mom-
and-pop cook shop named “Rongshun Guan” in the Tongzhi Period of the Qing Dynasty
1865-some 140 years ago. The facilities in the restaurant are as old as the restaurant
itself. The tables and chairs are all “old-fashioned”, and time has taken its toll on the
bowls, plates and chopsticks. Guzheng performances are available in the lobby
downstairs.

17. Origins & Development of
Food Service (cont.)
• Noncommercial facilities
– Robert Owen - “the father of industrial catering” –
employee “eating rooms” around 1815 in NYC
– Boarding houses for workers
– Growth of business food service programs
through WWI &WWII
– Florence Nightingale -first dietitian & modern
hospital administrator
– American Dietetic Association
– Critical role of nutrition in hospital and school food
service
– School tend to use cafeteria service
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90% meals in early 1900 were still on farms.
After Industrial Revolution in 1930-1950 dining out grew to massive proportions.
Now many families in America dine out once a week.
Eventually evolved into concepts of Mc Donaldʼs and KFC
What do you think is the next trend in Fast Food?

18. Tuesday, May 19, 2009 18
Hawaii has a uniques culture and history of Hospitality that has morphed (transitioned) with BIG tourism dollars...
and the Pineapple is the international symbol of Hospitality... after becoming such a large identity of Hawaii AG
Now we are seeking ways to address sustainability with Eco-Tourism since AG is waning

19. Trends likely to affect food
service
• Meal solutions
• Greater competition between restaurants and
grocery stores
• Growing emphasis on value-cost relative to
quality
• Entertainment in casual dining
operations-”eatertainment”
• Growing presence of convenience stores,
use of co-branding
• Changing menu items
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What do you think?
Itʼs a Shrinking world!
Internet, global viruses, changing markets interlinked
Have a great idea that can be translated and marketed internationally?
Yahoo, Google, Microsoft and You Tube did!

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Exciting Field of F & B!

21. Intro Review
Introduction Review
• 3 Main types of F & B
• Commercial and Non-Commercial
• Differences depend on management
and expertise style
• Early Origins
• New trends emerging with popularity,
dietary need, global exposure....
• And Sustainability!
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– Independents, Chains,
Franchises