Sample Management Paper on Food and Beverage Operations


The food industry has grown over the past years and the industry has had a very huge impact in the economy across countries (Archer, 2012). There have been a number of eateries and cuisine development over the past years to help in fulfilling and satisfying the food needs of the customers. This assignment report aims at developing a street food van business that focus on providing the customers with fast food products of their choice that they can indulge and enjoy themselves. Throughout this report reliable and accurate information will be used and it will be derived from books, journals and internet sources.

Task 1

1.1/1.3 Discussion of the three of the food production methods that include traditional, cook- chill, cook-freeze and sous-vide systems and comparison of the costs and staffing implications of each and example of where they may be found

Cook-Chill; this food production method ensures that food is well cooked and held at 70-750C or for 2 minutes. The chilling of the food then occurs within 30 minutes of food cooking and then the temperature is again reduced to 0-30C within the 90 minutes of cooking. The cooks ensure that the temperature of the food is maintained well throughout the storage and food distribution cycle until the regeneration occurs. In this system also the dishes can be stored while chilled for up to 5 days however once the food has been reheat it should be consumed immediately. The food should also be reheated at 70-75 0C and for at least 2 minutes or more for micro-biological reasons. Food can be prepared early and chilled and then reheated while needed and thus less staff is required on site to help with the reheating of the food. This food production system is suitable in hotel and restaurants where food is not been consumed fast as it is prepared and chilled.

Sous vide; this food production method entails placing food into a heat stable and in pouches or in high moisture barrier plastic bags (Bowen and Morris, 2009). Air is then removed in the food to help create a vacuum with sealing of the pouches. The pasteurizing cooking process then takes place and it is then followed by immediate chilling of the food at 0-30C within 90 minutes. The cook should then ensure that the food is stored within the temperature until it is required for consumption but it should be consumed within 5 days. The staffing and costs implication are very minimal as food is prepared and stored under the required temperatures for 5 days. It is suitable in food production firms that produce food for selling in pre-packed portions and the customers can buy take away so as to eat at their own time.

Cook-Serve; this is a traditional food production systems where the food is prepared and cooked in the kitchen and distributed immediately or at the appropriate temperatures to the customers either in plated or in bulk (Romeril, 2005). The staffing implications are higher in the cook-serve food production method as compared to the ready prepared foods. This is because in order food to be prepared immediately while needed there must be more staff on site to ensure that they is no delays. The cook and serve is suitable in simple restaurants with a large flow of customers as food is produced in huge quantities.

Analysis of the advantages and disadvantages’ of each of these different food productions for customers and for managers

Cook- Chill

Advantages; this food production method is very efficient to the catering managers as it results into low costs due to bulk buying and there is centralized purchasing (Rickly-Boyd, 2012). The customers are also able to receive their orders very fast as the food is prepared early and it requires to be reheated.

Disadvantages; food safety might be compromised due to temperature control and this is a disadvantage to the managers as it might be very costly in terms of food being spoiled it not properly stored. The food production method may become of disadvantage to the customers as the nutritional content might be affected as the food has to be stored under strict temperature.


Advantages; this food production systems provides with food that has extended shelf lives and thus it can be prepared in bulk (Plog, 2011). The health risks of this food production are very small as the manager has to ensure the temperatures are as low as 0.5C. The customers are able to have their food on time as it requires sometimes reheating.

Disadvantages; Sous Vide method requires the manager to be keen on microbiological safety and quality to help in making sure that the food is not spoiled very fast and this might be costly in terms of finances. To ensure that there is extended food shelf lives the managers should also ensure that good control of food and monitoring is done through the food manufacture and distribution process. Some of the nutritional content of the food that has been stored under the temperatures might be lost which is a disadvantage to the customers.


Advantages; this food production system allows for batch cooking which helps the catering managers to save on time and it helps in optimizing the food sensory characteristics’ as it is prepared close to the required time which also ensures that the food is fresh. The nutritional losses are very minimal which an advantage to the customers.

Disadvantages’; the managers has to pressure the staff to prepare the food fast in situations where there are different orders required from the customers and this might result into poor quality foods (Munhurrun and Naidoo, 2011). The customers might wait for a longer time due to food being prepared and delays from the kitchen staff because of many orders.

1.1/1.3 Discussion of the table service and self service systems and including comparison of the costs and staffing implications of each and example of where they may be found

Self-service system; in this service the customers or diner usually pay and then pick up their own orders at the counters in the restaurants (Morrison, 2008). The waiters in the site usually stay in their station counters to help in taking the orders and they do not go round as food is self-service. The cost and staffing implication are very minimal as restaurant or café requires fewer waiters to help taking orders and not with food distribution thus lowering the labour costs. The system can be found in fast food restaurant and cafes.

Table service system; this type of food service involves the waiters taking care of a table or a group of tables with guests ranging from 10-12. The dishes are usually shared and this makes the guests to feel more relaxed. The food that is served is pre-order and thus the waiters do not worry about taking orders. The staffing costs are very high as the restaurant must have enough staff to help with the serving of the customers at the same time. This type of food service can be found in the casual dining restaurants and in the high-end restaurants.

Analysis of the advantages and disadvantages’ of each of these food service systems for customers and for catering managers

Self Service system

Advantages; the customers have to serve themselves through paying and picking their order and this minimises the delays they might be likely to encounter from the waiters. The managers are able to ensure quality foods and standard customers’ service is achieved as the work of the waiters is to take orders while in their counter station and not moving around taking orders.

Disadvantages; the customers expect to be served quickly and thus food has to pre-prepared and this might result into loss food sensory quality and characteristics. Customers are likely to encountered long queues during rush hours which can be stressful and tiring (Lui and Var, 2003). The manager has to ensure that food is prepared in bulk to meet the needs of the customers and sometimes they might incur losses due to over budgeting and having less customers coming to the restaurant to purchase.

Table service system;


The manager is able to ensure that customers are served on time as the waiters largely focus on serving the customer fewer dishes and clearing of the tables. In the table service the customer on the other hand usually feel more relaxed as it involves communal sharing of the order food.


The food serving system requires the manager to have very many skilled staff to help with the serving of the customers as different tables requires to be served almost at the same time (Lockwood et al., 2006). This in turn results into increased staffing costs as many waiters need to be hired to help with the orders. The manager has also to ensure that coordination in the kitchen is good as food has to be served to the customers while fresh and at the same time and this might be very stressful to them.

1.2 Discussion of the factors which will affect your choice of menus and recipes for the proposed street food van

There are several factors that influence how recipes and menus are formed and planned. When planning for the recipes that factors that needs to be considered include the following;

Staff and equipment costs and availability of the ingredients; In order for one to come up with the choice menus and recipes the staff cost has to be taken into consideration as some recipes require specialized staff to help with production (Fosters, 2002). The organisation has to ensure that the costs of the equipments are within the budget and the ingredients to be used in the chosen recipes are readily available.

Food Costs; the food prices have rapidly gone up and this is likely to affect choice of menu  and recipe prices as some foods are too costly as compared and thus the choice of the above menu due to affordability considering it is a start up business.

Targeted customers; this is another factor that will influence the choice of menus and recipes that the street food van will use. This is because different customers usually have different nutritional requirements and also preferences.


The cook serve  food production system will be suitable for the street food van as it allows for batch cooking which will help saving time and also helps in optimizing the food sensory characteristics’ as it is prepared close to the required time ensuring that the food is fresh. The nutritional losses are very minimal which will be an advantage to the customers. The self service system will also be suitable for the business as it will involve customers serving themselves through paying and picking their order.

Task 2


A firm’s financial statements usually play a very crucial role as they provide very important information concerning the financial health of the company (Dale and Beardsell, 2009). The financial statements also help in decision making and they help in pointing out which part of the organization operation that gives the best return on investment. The different financial statements that analysed include the income statement, cost statements, sales records and procurement records.

2.1 Discussion on how to plan the financial statements e.g. budgets, sales records, variance analysis and dishing costing sheets to help manage the street food van

There are various types of financial statements in food and beverages that can be used to help in keeping track on the success of the business and they include the costs statements, procurement records, sales records and income statements (Bowell and Morris, 2009). The income statement is one of the most crucial financial statements as it helps showing the actual company figures. The cost statements usually shows the expenses or costs that the company has incurred while the procurement records on the other hand helps in keeping track of what the business has procured when and how. The sales record shows the sales that the company focuses in accruing over a specified period. All the financial statements are very important as they help in tracking the revenues and expenses of the street-food van business. Through the incorporation of the financial statements the organisation will be able to have an in depth analysis on how the business is doing and whether it is making profits and it is efficient.

2.2 Menu for the street-food van

(Cost in USD)

Cheese burger———————–35

Veggie burger———————–35

Blue burger————————–45

Double cheese burger————–69


Sweet potatoes fries—————–35

Mixed fries—————————30


2.2 Explanation of what needs to be considered while calculating the selling price for the dishes on the menu in addition to the costs ingredients’ e.g. net and gross profit, sales mix, special orders

In order to set the best menu prices for the street food van the seasonal ingredients prices will be adjusted from time to time and the highly volatile foods on the above menu will be set at the market prices. To help in preventing the spoilage and to maintain maximum freshness all produce and the ingredient in all the multiple dishes will be used (Archer, 2012). I will ensure that I have mixed both the high costs and low cost items on the menu to assist in targeting both the average and high income earners. The costs and the menu prices will be reviewed from time to time and the non-monetary factors will be considered while setting the prices. The inventory purchased will be included while calculating the total food expenses.

The selling price will entail adding the expenses and subtracting the inventory to determine the food costs. Once all the ingredients’ have been analyzed that will be used in the different dishes the total will be divided by 0.35 so as to get the minimum cost that will be charged. For example the cheese burger will be as follows; the ingredients’ of the salad, baked potatoes and vegetable will cost £4 and chicken filet will cost £3 thus totalling to £7. When the £7 is divided by 0.35 the minimum cost will be £20.

Gross profit; It is the difference between the organisation’s sales revenues and the cost of goods sold.  The sales revenue is £40,000- costs of goods £20000= £20,000

Net Profit; this is the actual amount of revenues or profit that the street food van will generate after all the expenses have been deducted (Leiper, 2009). It will involve taking the gross profit and subtracting it from all the expenses incurred such as taxes, overhead and interest payments. The gross profit target is £20,000 and the expenses will include; rent and utilities of £4500, labour £5000, taxes and interest expense £500 then the net profit will be £20,000-£214000=£10000

Net Profit Margin; both the net profits and net revenues are required in order to get the net profit margin and in this case the sales revenue anticipated is £50,000 and the net profit is £10,000 thus its £ 10,000divided by 50000 multiplied by 100=20%

2.3 Analysis of how to plan to control the purchasing, receipt and storage of food and beverages for the street-food van

Purchasing of the foods and ingredients that will be used in the production of the street food van will be done in a procedural away. The purchase of the equipments, dishes and other resources will also be done in an organised manner. Once the item to be purchased has been identified I will ensure that I have made a requisition and the prices have been sought out from the various suppliers in order to ensure potential suppliers have been selected. I will ensure that the purchasing options have been observed in relations to the best suppliers that will be supplying all that will be needed to make the street food van business a success.

The price of the products that will be bought will be critically analysed before the purchase is made. Once the purchase has been initiated then the specific delivery dates and payment options are agreed upon and then the purchases are then delivered and received. A receipt is then issued to ascertain that the goods have been delivered and the invoicing process starts (Loannides, 2003). The purchased items once delivered they will be stored and then used as required. The purchasing process will be done in a more systematic manner to ensure that the right goods and equipments have been bought at the best price and that they are of high quality. I will ensure that the purchasing process is efficient and effective so as the business can run in a smooth way.


There are various types of financial statements in food and beverages that can be used to help in keeping track on the success of the business and they include the costs statements, procurement records, sales records and income statements. Purchasing of the foods and ingredients that will be used in the production of the street food van will be done in a procedural away. The purchase of the equipment, dishes and other resources will also be done in an organized manner.



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