Food and Beverage Management

LISENCING FRAMEWORK | FOOD AND BEVERAGE MANAGEMENT |

“Extending the Beverage Provision in Hotel”
The food and beverage department plays a pivotal role in a star hotel. Such a hotel can hardly be convinced of without food and beverage section. Star hotels worldwide have costly and gorgeous bars which earns them significant amount of revenue.
To extend the beverage provision of the hotel, there should be a strategy to procure and sell quality beverage at competitive price and serve the guests to their satisfaction in an ambient environment.
For achieving the goal one should having a fair knowledge of different licensing regulations to achieve a great sale of different kinds of beverages and customer satisfaction.

a) “The licensing framework and its implications on the hotel”. * Local licensing framework:
There were various licensing laws in the UK governing sale of liquor in the past. The ‘licensing Act 2003’ came into existence on 10 July, 2003, which “provides for a unified system of regulation of the activity of sale and supply of alcohols”. * Some aspects of the licensing Act 2003 are explained below:

i) Licensable activities and qualifying club activities.

a) “These activities are the sale by retail of alcohol, b) The supply of alcohol by or on behalf of a club to, or to the order of, a member of the club, c) The provision of regulated entertainment, and d) The provision of late night entertainment”.

ii) Licensing authorities:
The Licensing Act 2003 mentions the bodies which consist of licensing authorities. Each licensing authority, with the exception of those which cover the inner and middle Temples is required to establish a licensing committee of between ten and fifteen members and also describe the objectives which the licensing authorities must promote.
These objectives are: * “Public safety * The prevention of crime and order * The prevention of public nuisance * The protection of children from harm”.

iii) Each licensing committee is required to “determine and a publish a statement of its licensing policy every three years. The licensing authority must consult: * The police, * The local fire authority, * People who represent holders of various categories of licenses, * Representative of local business and residents”.

iv) This Act provides for four types of license namely: * Personal license * Club premises certificates * Temporary event notices * Premises license
“A premises license
This license authorizes a hotel to carry out licensable activities. It has details of operating conditions which requires the premises to carry out its operation in line with the licensable objectives. It lasts unless it is surrendered or revolved. It may be time if te applicant so requests”.

* Some aspects of regulations of premises licenses:
An application for a premises license needs to be made in prescribed form: An applicant for a premises license: * Will submit an operating schedule underlining curtain about activities to be carried out in the premises. * If represented against it by the police, the fire authority, the safety agency, or interested parties, the licensing authority will call for a hearing. After considering the hearing, the same authority may reject the application fully or partly or may attach some condition to the license. * Requires an appointment of an ‘authorized person’. * Requires a ‘designated premises supervisor’, a holder of personal license for the place where the premises license operates. * Identifies some categories of person, who, among others , may apply for premises license: * A person who is engaged or proposed to be engaged in a business involved on licensable activities in the premises. * Any individual aged at least 18 wishing to run a business on commercial basis involving the sale or supply of alcohol.

* Provide for some mandatory condition which among others are: * Every supply of alcohol must be made by a personal license holder or person by him. * In case a premises license is stolen, lost, damaged or destroyed, the premises license holder may apply for a copy to the license authority. * Unless granted for a limited period on the desire or the applicant, a premises license will last until it is surrendered or revoked. This will lapse if the holder dies, mentally incapable and insolvent, the company is dissolved. A license holder may voluntarily surrender a premises license.

* Some other aspects

* Unlike the previous regulations, the licensing Act 2003 dose not fix up the days or the opening hours when alcohol may sell by retail for consumption on or off the premises. The licenses themselves decide when to sell and when to close the sale. * Centrally set, fees for license, certificates etc are fixed on the basis of full cost recovery. * The license authorities have the power to suspend or revoke a license. They can also modify operating condition. * The police are empowered to close licensed premises to deal quickly with unruly behavior and excessive noise.

* Offences
The following activities, among others, constitute offence under the Act. Ignorance of these offences will impede a manager’s function and duties.
A few of them are: * Unauthorized licensable activities (section 136) * Exposing alcohol for unauthorized sale (section 137) * Keeping alcohol on premises for unauthorized sale (section 138) * Allowing disorderly conduct on licensed premises etc (section 146) * Sale of alcohol to drunk person . * Obtaining alcohol form a drunk person (142) * To keeping smuggled goods (section 144) * Admitting un accompanied children under 16 to certain premises (section 145) * Selling alcohol by retail on and moving vehicles (section 158) * Furnishing false statement made for the purpose of this Act (section 158)
(Part 7 of the licensing Act 2003)

* Implication of licensing regulation
In this age of high –tech technology when business operation are conducted within moments though electronic online system, processing of application for a beverage license rather a longer time. Granting such a license by the licensing committee is also equally time consuming.

b) “Developing the drinks and wine list to achieve higher income and customer satisfaction, including non-alcoholic drinks”. * Developing drink Menu /List

To extend the beverage provision of the hotel assistant manager has to focus on the sale tools of beverages, a primary requirement contribute to their sale. These tools are:

1. Beverages menus 2. Creating right and cosy ambience and décor in the room 3. Selling of popular and quality drink at competitive price.
The common and main tools are the menus, popular and quality beverages themselves. To carry out the program of extending beverages provision the assistant manager must consider the following: * When customer are on the premise at hotel bar or restaurant, they look for: * An attractive and appropriate menu. * Good food and beverages in soothing and ambient environment.

* The beverages menus
The beverages menus inform customers what drinks they have available and their cost. By presenting a well planned and nicely prepared menu, an atmosphere is created to target sale of alcohol to the customers and achieve a margin of profit. Therefore, it is very important to plan and present an appropriate menu so as to make the customers touch the menu with a sense of satisfaction that easily leads him to his choice. Using correct language and setting right location of the items in the menu, the management may skillfully entice customers to select their items comfortably.
To carry out the strategy there is a need to fix up basic menu criteria that consists of the following factor: * General presentation
General presentation of a menu identifies the image of the hotel. The following aspects of a menu are very important which should be: * Attractive * Clean * Easy to read * Complementary * Responsive to current awareness * Well designed

* Menu content The content of a menu is very important. The for beverage provision the menu needs to be prepared and presented in the style and with features as discussed below:

* Language
The language of menu must be I line with the type of operation. If prepared in foreign language, it must be simple and accurate so that customers can easily choose items of their preference.

* Accuracy The menu needs conveying the right price of the items and their availability. customers do not like wasting their time. So the menus must be accurate about pricing and availability. * Pricing Attractive and competitive, correct pricing of an item of food or alcohol is key to the extension program. Recasting the present price structure is essential to target sale at comparative price. * Sales mix
Sales mix refers to composition of total sales as between main food and beverages. Designing a menu with potential sales mix of items the customers may select is important. If the sales mix is not satisfactory it will be hard to cover the costs of food and which eventually may fail the operation.

* Layout of the menu
It should neither be too short or too long. The length of the menu should be as such as will adjust itself to the liking and need of the customers, who prefer short and attractive menus.

* Types of beverages menus
Beverages menus are grouped as * Wine menus * Bar menus * Room service beverage menus * Special promotion beverages menus

* Bar menus:
These are two types, such as, large display of beverage menu and the small printed menus. The former should be displayed at the back or to the side of the bar while the later be available on the bar or on the table of the bar.

* Room service beverage menus
Depending on the standard of the hotel and the level of room service offered, these should be quite expensive to entice the customers.

* Special promotion beverage menus
It is essentially a promotion menu. This relates to advertising sale of a particular beverage either free or at a special price during an event.

c) “The pricing policy for the new drink list”.
More presenting attractive and well designed menus may not boost up beverage sale. Significantly important is adapting correct pricing policy. The beverage market is very competitive. Economic recession worldwide has to some extent the situation.
The number of pubs has gone down but investment in the development of new premises has increased. Pubs, clubs and bars sector is largest employer in the world. The sector is very competitive. Considering the realities, the assistant manager therefore lays emphasis on the following aspects regarding pricing. * Pricing
The price should include the operation cost, setting up cost, the cost of electricity, gas, washing, cleaning, the fixed cost such as staff cost, rates, loan payment, mortgages and VAT.
The pricing should be based on the target market of the operation. Pricing also determines the type of clientele the operation has. A premium price demands not only a high quality drink but also high quality service, furnishing, décor, ambience or entertainment.
The product and service, as received by the customers, must match the value of the money they spend, regardless of what the price may be.
Pricing policy should attract customers even through by lowering profit. Pricing should be targeted to work a promotional tool. Offering special lunch or dinner with alcoholic drinks and offering wine on discounts to target group of users should be made for larger sale.
The hotel management should aim at maximizing the number of customers. They should target the customers, they believes, they will have. The physical design of the premises, the human resources, the products themselves and the styles of service should meet the expectation of the customers.
To maximize numbers of customers, gaming, betting, casino lotteries should be installed. Incidence of investment necessary in this regard should be included into beverages pricing.
Cost of storage and control of beverage should invariable from a part of price. d) “Purchasing, storage and control of beverage stock”.

* Purchase of beverage stock
To sell any beverage profitably largely depends how it is procured, stored and preserved from damage, miss use and theft. Therefore the hotel management should adapt the following policy in relation to beverage purchase. * Purchase
The hotel tied up with a brewery company like bass, white bread and brains. Beers may be procured from the parent company and other beverages from nominated suppliers.
The drinks should be sometimes procured from nominated suppliers in bulk quality as to achieve significant discount. When beverage can be bought from a parent company at lesser price than supplier’s it should be bought from them.
The hotel being a part of national chain, the purchase of all business is conducted by the purchasing department which should independently choose any suppliers it likes by negotiating maximum discount * An item wise strategy for purchases of alcohol is as follows

* Breweries
Breweries are national, regional or local microbrewery. The hotel, even if tied to any brewery, should retain its option to source its purchase independently. When non-tied they can buy from any source by negotiating discount. * Cash and carry
Specialist supermarket, cash and carry sells in bulk. The hotel may use them in emergency following normal practice:

* General wholesaler
The hotel may purchase alcohols or wines with competitive price from big wholesalers which buy from overseas and keep stock of beverage in their large warehouses. * Wine wholesaler
Like a general wholesaler, a wine wholesaler is specialized in supplying better quality wine. They can also sell premium spirits like Avery’s of Bristol. They may be used to procure wines for customers having higher socio-economic profile and disposable earning. Wines seller like Matthew Clark may be used as a significant source. * Brokers
They specialized in sales usually from a specific region. To sell to both small and big operations. Both of them may use the brokers when needed and convenient. Purchasing from brokers through complex with cost factors, should be used during expediency. * Agency distributor
As often cheaper and s they also offer after service they should be another source for beverage purchase. They are large wholesalers, often having licenses to manufacture international brands within UK.

* Storage and control of beverage
Procuring beverage at competitive price with satisfaction discount is an important skill in revenue earning from alcohol sale. Equally important is how the procured beverage are stored, preserved and their movement is controlled. If beverages are not properly stored, they will deteriorate and also may be stolen. This direct affects investment and revenue earning. As consumed by customers by customers food and beverage should be stored, preserved, maintained in a manner that they remain fit for humans consumption.

The following factors in storing and controlling the beverage stock should be taken care of in relation to: * Sprits, liquors and some types of wine which have shelf lives. * Application of food safety Acts to control hazardous substances and beverages. * Cleaning of beers pumps and lines area as supplied through them. * The storage area should be clean as dry damp condition can harm label, cartoons etc. * Lightning should be low (40watts maximum). The beer storage should be 13 to 14 degree Celsius while a wine storage should have a temperature of 13 degrees. A significant variation let us say 3 to 4 degrees either way can effect deterioration. * All storage areas of all kinds of beverage should always be kept clean, tidy and be swept and washed. Empty containers must not be kept in the same place with the new stock as they are likely to accumulated bacteria from open containers. * A financial involvement in the wet stock being big, security aspect of stock should be taken care of. Access to storage record and movement of stock both internally and externally should be controlled, specific and designated. * Beverage beyond expiry dates cannot be sold. So it should be a regular practice to examine ” the best before system on line information on stock control, electronic bar management, rapid order system point of sale , application of appropriate technology for control of beverage stores all these are effective control method of beverage stock .