Temasek Polytechnic Hospitality & Tourism Management Management & Operations of FNB Senior Year Exam Preparation
29/8/2013
Muhammad Hamizan Bin Roslan
1
Exam Format 4 short-answer questions (25m) 3 case study questions (75m)
29/8/2013
Muhammad Hamizan Bin Roslan
2
Lesson 1: Cost Control
29/8/2013
Muhammad Hamizan Bin Roslan
3
Cost Control Alcohol Pouring Systems.
Mystery Shoppers.
POS Systems.
Requisition System.
Storage & Inventory Control.
Review Receipts.
29/8/2013
Muhammad Hamizan Bin Roslan
4
Preventing physical theft/ controls. Lock back door.
Video Surveillance.
No bags in restaurant, provide lockers.
Cushion bar floors.
Have minimal stocks at hand.
Clear garbage bags.
Hire the right people. 29/8/2013
Muhammad Hamizan Bin Roslan
5
Food cost variation factors. Customer Returns.
Mistakes in preparation/ wastages.
Staff meals.
Free meals.
Theft.
Spoilage.
29/8/2013
Muhammad Hamizan Bin Roslan
6
Calculating food cost. Before Opening: Avg food cost % x forecasted revenue.
After Opening (in theory): Each item cost x no. of items sold.
After Opening (in actual):
Starting inventory + purchases – ending inventory. 29/8/2013
THEY WILL NEVER BE THE SAME.
Muhammad Hamizan Bin Roslan
7
Lesson 2: Human Resource
29/8/2013
Muhammad Hamizan Bin Roslan
8
Importance of a Job Description. • Examines in detail, the tasks and jobs to be performed. • Important document that creates understanding between employer and employee of the duties and responsibilities of each position. • Easy to develop training programmes. • Easy to conduct job appraisal. • Relate to advertisement – tasks, responsibilities, skills, abilities, experiences, qualifications. 29/8/2013
Muhammad Hamizan Bin Roslan
9
Organizing people and jobs. • Organized through functional roles. • Organization Chart – channel of communication, lines of authority, responsibility and accountability. • Organization Chart – maps out the lines of communication and relations between jobs.
29/8/2013
Muhammad Hamizan Bin Roslan
10
Pre-employment testing.
Medical Test.
Technical Skills Test.
Tests look for balance and consistency.
Personality, ethical, behavioral tests.
Major tend in hiring practice.
Why conduct tests? To find the perfect / direct match for the job etc. 29/8/2013
Muhammad Hamizan Bin Roslan
11
Importance of Training Produce desired behavior.
Develop service skills.
Gives confidence.
Reduces mistakes, prevent accidents.
Suggestive selling, upselling.
Better overall service for guests.
Staff Development.
29/8/2013
Behavior Modeling – interpersonal skills and people handling.
Muhammad Hamizan Bin Roslan
12
Step-by-step Training. Easier to understand.
Summarized on a small card for easy reference.
Choose relevant method of training. 29/8/2013
Muhammad Hamizan Bin Roslan
13
Reviewing staff performance. Why is this important?
Promotions, Incentive, Increment.
Differentiation.
Additional Training. 29/8/2013
Strengths & Weaknesses.
Staff Loyalty.
Muhammad Hamizan Bin Roslan
14
Terminating employment. May give notice at anytime for either party.
Employee absent for more than 2 days without contacting employer or employee not paid on time = broken contract.
One month for entry level. Two month for management.
No notice = pay equal amount of wages in lieu. 29/8/2013
Muhammad Hamizan Bin Roslan
15
Lesson 3: Marketing
29/8/2013
Muhammad Hamizan Bin Roslan
16
Core, Formal and Augmented Product. • Core Product – The basic function of a restaurant; to offer an enjoyable dining experience.
• Formal Product – The physical part of the product – physical aspects of the restaurant and its décor, level of service and entertainment, food and beverage.
• Augmented Product – Part of the product that is supplementary – acceptance of credit card, valet parking, table reservations, coat check, bottle storage. 29/8/2013
Muhammad Hamizan Bin Roslan
17
Place. Good visibility.
Easy access.
Convenience.
Curb side appeal.
Ample parking. 29/8/2013
Muhammad Hamizan Bin Roslan
18
Advertising – restaurant concept must be clear. Traditional advertising gimmicks:
Humour.
Sex Appeal.
Family.
Cute Kids.
Yellow Pages.
Benefit appeals used in advertising: Food quality.
Service.
Menu variety.
Price.
Atmosphere.
Convenience.
Website. In-house Marketing.
Experience. 29/8/2013
Mailing Lists.
Muhammad Hamizan Bin Roslan
19
How to reach to potential customers?
Radio.
TV.
Online.
Newspaper.
Flyers.
Billboards.
29/8/2013
Muhammad Hamizan Bin Roslan
20
Plan for community involvement – this is part of marketing your restaurant. Volunteer as company.
Provide food to events.
Give scholarships to students studying F&B.
Let fundraising groups use your space.
Donate profits from a day to charity.
Speak at schools or events.
29/8/2013
Muhammad Hamizan Bin Roslan
21
Benefits and Be aware. Be aware:
Choose the organization that suits your image.
Benefits:
Build branding/ better image.
Free coverage of your business.
Brings in people who normally would not.
Helps recruitment of new employees.
Avoid political and controversial issues.
Be pro-active about issues. 29/8/2013
Muhammad Hamizan Bin Roslan
22
Lesson 4: Revenue Management
29/8/2013
Muhammad Hamizan Bin Roslan
23
What is revenue management? “The application of information systems and pricing strategies to allocate the right capacity to the right customers at the right place at the right time.� 29/8/2013
Muhammad Hamizan Bin Roslan
24
What figures used to measure success traditionally?
Food Cost.
Profit. Sales.
29/8/2013
Avg. Check.
Turnover.
Muhammad Hamizan Bin Roslan
25
Margin
Understand causes and examine each step – star, dog, horse and puzzle. PUZZLE – low in popularity, high in contribution margin, difficult to sell but make high profit when sold.
STAR – extremely popular, high contribution margin, flagship/ signature menu items.
DOG – low in popularity, low in contribution margin, difficult to sell and make little profit when sold.
HORSE – high in popularity, low in margin contribution, sell well but don’t increase revenue.
No. of Items Sold/ Popularity 29/8/2013
Muhammad Hamizan Bin Roslan
26
Menu Engineering. Psychology – perception, attention, emotion/effect.
Managerial Accounting – contribution margin and unit cost analysis.
Marketing & Strategy – pricing and promotion.
Graphic Design – layout, typography.
29/8/2013
Muhammad Hamizan Bin Roslan
27
Physical rate fences and non-physical. Physical Rate Fences
Non-Physical Rate Fences
• • • •
• Specific dates or times of day – lunch, happy hour, premium days (public holidays, valentine day etc.). • Affiliation (credit card holders). • Frequent Diner. • Party Size (two for one specials).
Location in the restaurant. Location of the restaurant. View from table. Amenities like flowers, candles etc. • Private dining area.
29/8/2013
Muhammad Hamizan Bin Roslan
28
Lesson 5: Technology
29/8/2013
Muhammad Hamizan Bin Roslan
29
Functions of different systems. Reservation System.
Table Management System.
POS System.
Wireless POS System.
Liquor Control System.
Labour Management.
Web-based Video Surveillance System.
Financial Reporting.
Purchasing and Inventory Control.
29/8/2013
Food & Beverage Costing Software.
Muhammad Hamizan Bin Roslan
Menu Management /Engineering.
30
Integration. POS + Inventory.
POS + Financial Reporting.
Costing + POS.
Menu Engineering + POS
Labour Management + Financial Reporting.
Reservation System + Table Management.
Table Management + POS.
29/8/2013
Purchasing + Financial Reporting.
Muhammad Hamizan Bin Roslan
31
Managerial and guest services. Entertainment
Quality
• Music System – traditional and latest approach. • Lighting System.
• DNA Technology for Seafood – assurance of genuine ingredients/ products.
29/8/2013
Muhammad Hamizan Bin Roslan
32
Lesson 6: Menu Design
29/8/2013
Muhammad Hamizan Bin Roslan
33
Factors that influence menu planning. Target market.
Competition.
Capabilities of cooks.
Equipment capacity and layout.
Physical design and layout of restaurant.
Seasonality of ingredients.
Children.
29/8/2013
Pricing strategy.
Muhammad Hamizan Bin Roslan
34
Capabilities of cooks, equipment capacity. Higher skill levels = higher pay. Work with what you have, or hire what you need? Do you have the equipment to produce the item? Do you have enough preparation space or storage space?
29/8/2013
Muhammad Hamizan Bin Roslan
35
External factors that build perceived value. Amount of product.
Quality of product.
Reliability and consistency of product.
Uniqueness of product.
Product options and choices.
Service convenience.
Reliability and consistency of service. 29/8/2013
Comfort level.
Muhammad Hamizan Bin Roslan
36
Pricing in the restaurant business – pricing factors.
Don’t put prices in order.
Don’t line them up in a column. Provide other information to help customer decide. De-emphasize the price.
29/8/2013
Muhammad Hamizan Bin Roslan
37
Lesson 7: Concept
29/8/2013
Muhammad Hamizan Bin Roslan
38
What is a concept? • Concept is everything that affects how the guests view the establishment. • Concept is also everything behind the scenes that affect how the operation will be run. • A concept must be clear. 29/8/2013
Muhammad Hamizan Bin Roslan
39
Ambience. • Look and feel of a place that evokes a unique atmosphere or mood and makes people to come and stay around – this will affect experience. Lighting.
Interior and Exterior Design. Sound.
29/8/2013
Smell.
In line with concept.
Muhammad Hamizan Bin Roslan
40
Type of dining concept. Fast food.
Casual.
Family Style.
Fine Dining.
Formal Dining.
Buffet.
Brasserie/ Bistro.
CafĂŠ.
Coffeehouse.
Bar/ Pub.
29/8/2013
Muhammad Hamizan Bin Roslan
41
THE END & GOOD LUCK ;)
29/8/2013
Muhammad Hamizan Bin Roslan
42