Unit Title: Food
Service Management
Unit Number: 25
Unit Level: Level 5
Presentation by:
Yili Zhao
y.zhao@nelsoncollege.ac.uk
Recap of P 3
SWTO PESTEL
Porters 5 forces Value chain analysis
Porters 4 Corners analysis
• Motivation
• Current Strategy
• Capabilities
• Management Assumptions
Product placement’s benefit:
1. Improved Brand Awareness
2. Instant Credibility
3. Interactive Channel
4. Less Blatant Advertising
5. Better Returns
Learning Outcomes
• Learning Outcome to be covered:
LO2: Evaluate operations management strategies within a given
food service context
•Pass Criterion P4 :
•P4: Managing human capital and resources in operations
and Property and resource maintenance processes
By The End Of Today, You Will:
Assessment Criteria (P4):
• Evaluate different management practices that
support successful business operations in food
service organisations
2.3 Managing human capital and resources in operations
What is human resource management?
• All organisations have people- they Human Resources (HR)
• Regardless of size of an organisation or the extent of its resources,
the organisation survives and thrives because of the capabilities
and performance of its people.
• Human Resources (HR) department is the part of the organisation
the deals with people.
• Human Resource Management (HRM) means acquiring
developing and supporting staff as well as ensuring they fulfil
their roles at work.
Functions of Human Resource Management
1. Staffing: this relates to the function of employee recruitment,
screening and selection performed within an organization or
business to fill job openings.
2. Training and development: this is a subsystem of an organization
which emphasize on the improvement of the performance of
individuals and groups.
3. Motivation: this refers to the way in which needs, desires, or
aspirations control or explain the behaviour of human beings
4. Maintenance: this aspect of HRM is concerned with protecting and
promoting the physical and mental health of employees.
What is customer satisfaction?
The degree of satisfaction provided by the goods or
services of a company as measured by the number of
repeat customers.
-Business Dictionary
Service Level means
A measurement of the performance of a system or service. The
service level is usually expressed as a percentage of a goal.
The higher the cost of the meal to the customer, the more
service the customer expects to receive.
How do you know your customer are happy?
CSAT is short for ‘customer satisfaction’ and is a
key performance indicator that tracks how
satisfied customers are with your organisation’s
products and/or services. (Qualtrics)
How CSAT is measured? How it works
How would you rate your overall satisfaction with the
[goods/service] you received today?
Respondents use the following 1 to 5 scale:
1. Very unsatisfied
2. Unsatisfied
3. Neutral
4. Satisfied
5. Very satisfied
picture source: pointillist
Branding in the food service business
• Brand is what gives a business its personality.
• While offering a good-quality product is important,
offering that product in the context of a strong brand is
like wrapping a gift with a bow—creating a full
experience for the recipient.
• A well thought-out brand creates an emotional
connection with customers and sets your business apart
from all the rest.
• Branding is important for a food service business
because it gives it the opportunity to establish brand
loyalty with its customers.
Brand expectations
• As consumers learn about your brand promise and develop
perceptions of your brand, they will hopefully try it.
• They’ll purchase it and have clear expectations for it based
on that promise and those perceptions.
• When your brand fails to meet consumer expectations for it,
consumers become confused.
• They’re disappointed and leave your brand behind in search
of another brand that does meet their expectations all the
time.
• You can’t try to meet consumer expectations for your brand
until you know what those expectations are.
• Don’t assume you know what your target audience thinks.
• Do the research and make sure you’re on the same page as
your paying customers, so you are able to meet their
expectations through every customer touch point.
Brand strategy
• This is a long-term plan for the development of a successful brand in
order to achieve specific goals, such as connection to consumer needs,
emotions, and competitive environments.
• A successful brand strategy should have the following components:
• Company purpose: what is your key motivation for establishing the
company? E.g. Tesla wants to be the most innovative technology
company in the world – but they’re also fuelled by an ambition to
transform the world with sustainable, electric power.
• Consistency: Once you’ve decided what’s driving your brand
forward, you need to stick to those underlying ideas religiously and
provide your customers with a consistent, familiar identity
• Emotional connection: f you can find a way to connect with your
customers on a deeper level, you can enhance engagement and
develop a more sustainable relationship for the long term.
• Employee Empowerment: Employee advocacy reinforces the
company culture and values that you rave about in your press
releases, and through your website “about” page, showing how
concepts can translate into real behaviours and campaigns.
Staffing levels in the food service industry
• Staff costs are some of the most significant outgoings
that food service businesses need to take care of.
• The balance of ensuring that you have the right number
of staff to deliver a successful service and full customer
satisfaction, while avoiding salaries so large they
negatively impact cash flow, is not easy.
• Every food service business is different and the number
of staff you’ll need will vary depending on your service,
location and the type of business you have.
Examples of the Staffing levels in the food service
industry
• A self-service restaurant: Demands on staff are lower for a
self-service restaurant as food isn’t being cooked to order
and plates aren’t being delivered to tables.
• Typical numbers might be 1 server, per shift, for every 12
tables and 4 back of house staff for every 50 customers
across the same time period.
• Seated but casual dining: Customers expect more in the
way of service if they’re not helping themselves and you’ll
need more staff per customers to make sure that you keep up
with the logistics of orders and clearing.
• 1 server for 5 – 6 tables per shift and 4 back of house staff
per 50 tables is a balance that can work quite well.
• Fine dining: When you’re offering fine dining then you
need to be far more attentive with more servers out front
and more staff in the kitchen.
• 1 server for every 3-4 tables per shift and 6-7 back of
house staff per 50 customers can be a good ratio.
• In addition to the staff who make the service work you
may also need cleaners, a sommelier, a maître d’, a
cashier and various different types of chef depending on
your establishment.
• The more high-end the offering, the more people you
need to employ to make the whole experience feel
effortlessly enjoyable for the customer.
Types of staff in a food service business- Restaurant
For a restaurant to run effectively, several types of
restaurant employees are required. For example:
• Management: a manager is required to oversee operations
and ensure the quality of food, and customer experience is
consistent in the restaurant
• Chef: Every restaurant requires a person in charge of cooking
the food.
• Servers: Whether you have a fine restaurant or a fast-food
establishment, the food needs to go from the kitchen to the
customer.
• Miscellaneous: Depending on type of restaurant, other staff
members could be delivery driver, cashier etc.
Marketing strategy in food service
3 distinct strategies a food service business should focus on:
• Brand positioning: It is essential to create a good brand
image and position the brand as to what it stands for in the
minds of the customers.
• Product packaging: Customers always judge the product by
their packaging, irrespective of the type of product on offer.
• USP: The unique selling point (USP) of a product is what sets
the product apart from the others, and this is the most
significant potential most investors see in a business. For
example, the brand M&M milk chocolates melt in the mouth
and not in the hands. It builds the brand image of the product
in the minds of the customers
Costs management in food service
• Cost management is the process of effectively planning and
controlling the costs involved in a business.
• There are 4 distinct steps in cost management. They are:
• Resource planning; In the initial phase of any project the
required resources to complete the project activities need to be
defined.
• Cost estimating: This is done to predict how much it will cost
to perform the project activities.
• Cost budgeting: The budget gives an overview of the periodic
and total costs of the project.
• Cost control: Cost control is concerned with identifying and
reducing business expenses to increase profits
Rota management in food service
• Food service business relies on lots of hourly/part-time
staff so rota management is a vital part of human
resource management here.
• This becomes especially relevant during particular
seasons when more customers are expected.
Skills and competencies in food service
• The level of skill required for jobs in a food service
business depends on the role occupied
• Entry level: Entry-level employment usually requires no
particular skills or experience. E.g. hosts/hostesses
• Skilled workers in the hospitality industry are those who
actually carry out the tasks needed for a food service operation
to be successful, so they would have undergone professional
training or apprenticeship programs
• Supervisory roles: Individuals working in this role need to be
experienced in the industry and can effectively organize and
motivate other skilled workers.
Belbin Team roles
• Belbin is about celebrating — and
making the most of — individual
differences. Each of us has the
potential to make a valuable and
positive contribution to the team.
• Belbin allows you to discover the
behavioural strengths and
weaknesses of the individuals that
you work with.
• Belbin helps you build highperforming teams, maximize
working relationships, and enable
people to learn about themselves.
• Belbin makes it easier to engage
and develop the talent that is
already around you.
Class Activity
• Why is customers
satisfaction important?
• If you are the manager of
the restaurant, how can
you ensure your customers
are happy?
2.4 Property and resource maintenance processes
• There are various facilities required to operate a food
service business.
• Each food service business vary in the nature and
number of facilities it requires. For instance, a fast food
joint will require a service counter.
• These facilities need to be maintained, refurblished and
kept in good working order to enable the business
function effectively, and project a good image to the
customers.
• Repairs of the properties must also be scheduled with
relevant periods fully considered. For e.g. Repairs can be
scheduled during low, rather than peak periods.
On-going refurbishment to maintain and project a public
image
What is refurbishment?
Refurbishment is the process
of major maintenance and
minor repair of an item, both
aesthetically and
mechanically.
Some examples: Before VS After
The Chelmsford KFC on Broomfield Road
Pizza Express Sheffield Meadowhall
Why refurbishment is important
in Food service?
-Ideas to Improve Customer Value
• Customers: New customers will be attracted to a renovated establishment, and
old customers will be excited to see the transition and updated features, menus,
staff and look of the space.
• Staff: If the space is dysfunctional, it will contribute to challenges in execution
and operations for the staff. Moving around and providing a quick and efficient
customer service by the staff depends a lot on the layout and the design. Part of
the renovation should be hiring new staff and staff training. If there are people
on the team that are not excited about change it may be time to part ways.
• Management: Although the renovations will require a lot of time, capital, and
effort, it will reap great returns for the management, if executed properly.
Management will be able to implement new policies and guidelines that will
ease up a lot of tasks with a newly renovated space.
There may be many reasons for refurbishment, including:
➢In line with modern standards, improving the kitchen
facilities
➢Or remodelling the front of house to reflect today’s food
trends and fashions.
➢To improve the overall experience of customer
➢Use Space More Efficiently
➢Improve Energy Efficiency
➢Boost Employee Performance
Repairs scheduling through peaks and troughs
• Timing is everything. Don’t wait until your list of repairs
is several pages long. Typically, restaurants require a
facelift every five years to keep up with the times and
continue attracting customers.
• To prevent losing too much business, consider
renovating during the “slow season,” if your restaurant
has one. If your restaurant doesn’t have a slow season,
you can arrange to have a majority of the contracting
work done at night, during non-business hours. This
lowers your risk of turning customers off with any noise
or messy renovations and keeps your operation running
smoothly
Staffing and roles in maintenance
• A number of approaches can be used to engage staff in a
food service organisation for maintenance purposes.
They are:
• In-House: Here, the technicians who perform
maintenance are direct employees of the company
• Combined In-House/Contract Staff: Here, the inhouse staff performs most of the maintenance, but
contractors perform certain maintenance tasks such as
service on air conditioners
• Complete Contract Maintenance: Complete
contracting maintenance staff includes all craftsmen
engaged specifically to do the maintenance job.
Internal providers in food service
• Internal providers are service providers that are
embedded in a business.
• For instance, a food service organisation may be part of
a larger business conglomerate with specialised
departments such as IT, Finance HR etc.
• In this case, the IT department can provide services
required by various businesses in the conglomerate to
reduce cost
External providers in food service
• These are the opposite of internal providers where the
services are provided from external source(s).
• Here, it may be a different business specialised in an
area where the food service requires help in.
• An example may be in the area of maintenance of the
escalator
Buy versus lease options
• A lease option is an agreement that gives someone who
rents a property a choice to purchase the rented property
during or at the end of the rental period.
• It also precludes the owner from offering the property
for sale to anyone else.
• When the term expires, the renter must either exercise
the option or forfeit it.
• A lease option is also known as a lease with the option to
purchase.
• Buy option is where the property is obtained outright in
exchange for payment.
Return on investment (ROI)
• This measures the gain or loss generated on an
investment relative to the amount of money invested.
• The formular for calculating return on investment is:
Net Income / Cost of Investment
• Example: An investor purchases property A, which is
valued at £500,000. Two years later, the investor sells
the property for £1,000,000.
• ROI = (1,000,000 – 500,000) / (500,000) = 1 or 100%
Next Week’s lesson Learning points
P5
• Importance of Corporate Social Responsibility (CSR)
and environmental awareness in food
• Impact of ethical practices
Any Question?
Reference:
• CHON, K. and MAIER, T. (2010) Welcome to Hospitality: An
Introduction. 3rd ed.Delmar, New York: Cengage Learning.
• HANNAGAN, T. (2008) Management Concepts and Practices.
5th ed. Harlow: Pearson.
• HILL, A. and HILL, T. (2012) Operations Management. 3rd ed.
Hampshire: Palgrave Macmillan.
• PAYNE-PALCIO, J. and THEIS, M. (2016) Foodservice
Management: Principles and Practices. 13th ed. Harlow: Pearson.
• REYNOLDS, D. and McCLUSKY, K. (2013) Foodservice
Management Fundamentals. Chichester: John Wiley & Sons Inc.