FNB Study Preparation

Temasek Polytechnic

Hospitality & Tourism Management

Management & Operations of FNB

Senior Year Exam Preparation

29/8/2013 1 Muhammad Hamizan Bin Roslan

Exam Format 4 short-answer questions (25m)

3 case study questions (75m)

29/8/2013 2 Muhammad Hamizan Bin Roslan

Lesson 1: Cost Control

29/8/2013 3 Muhammad Hamizan Bin Roslan

Cost Control

Alcohol Pouring Systems.

Mystery Shoppers.

POS Systems.

Requisition System.

Storage & Inventory Control.

Review Receipts.

29/8/2013 4 Muhammad Hamizan Bin Roslan

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 5 Muhammad Hamizan Bin Roslan

Food cost variation factors.

Customer Returns.

Mistakes in preparation/

wastages. Staff meals.

Free meals. Theft. Spoilage.

29/8/2013 6 Muhammad Hamizan Bin Roslan

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.

THEY WILL NEVER BE THE SAME.

29/8/2013 7 Muhammad Hamizan Bin Roslan

Lesson 2: Human Resource

29/8/2013 8 Muhammad Hamizan Bin Roslan

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 9 Muhammad Hamizan Bin Roslan

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 10 Muhammad Hamizan Bin Roslan

Pre-employment testing.

Medical Test. Technical Skills

Test.

Personality, ethical,

behavioral tests.

Tests look for balance and consistency.

Major tend in hiring practice.

Why conduct tests? To find the perfect / direct match for the job etc. 29/8/2013 11 Muhammad Hamizan Bin Roslan

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.

Behavior Modeling – interpersonal

skills and people handling.

29/8/2013 12 Muhammad Hamizan Bin Roslan

Step-by-step Training.

Easier to understand.

Summarized on a small card for easy reference.

Choose relevant method of training.

29/8/2013 13 Muhammad Hamizan Bin Roslan

Reviewing staff performance.

Why is this important?

Promotions, Incentive,

Increment. Differentiation.

Strengths & Weaknesses.

Additional Training.

Staff Loyalty.

29/8/2013 14 Muhammad Hamizan Bin Roslan

Terminating employment.

May give notice at anytime for either party.

One month for entry level. Two month for management.

No notice = pay equal amount of wages in lieu.

Employee absent for more than 2 days without contacting employer or employee not paid

on time = broken contract.

29/8/2013 15 Muhammad Hamizan Bin Roslan

Lesson 3: Marketing

29/8/2013 16 Muhammad Hamizan Bin Roslan

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 17 Muhammad Hamizan Bin Roslan

Place.

Good visibility.

Easy access.

Convenience. Curb side appeal.

Ample parking.

29/8/2013 18 Muhammad Hamizan Bin Roslan

Advertising – restaurant concept must be clear.

Food quality. Service. Menu variety.

Price. Atmosphere. Convenience.

Experience.

Benefit appeals used in advertising:

Traditional advertising gimmicks:

Humour. Sex

Appeal.

Family. Cute Kids.

Yellow Pages.

Mailing Lists.

Website.

In-house Marketing.

29/8/2013 19 Muhammad Hamizan Bin Roslan

How to reach to potential customers?

Radio. TV. Online.

Newspaper. Flyers. Billboards.

29/8/2013 20 Muhammad Hamizan Bin Roslan

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 21 Muhammad Hamizan Bin Roslan

Benefits and Be aware.

Benefits:

Be aware:

Build branding/ better image.

Free coverage of your

business.

Brings in people who normally

would not.

Helps recruitment of

new employees.

Choose the organization that suits your image.

Avoid political and controversial

issues.

Be pro-active about issues.

29/8/2013 22 Muhammad Hamizan Bin Roslan

Lesson 4: Revenue Management

29/8/2013 23 Muhammad Hamizan Bin Roslan

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 24 Muhammad Hamizan Bin Roslan

What figures used to measure success traditionally?

Profit. Food Cost.

Avg. Check.

Sales. Turnover.

29/8/2013 25 Muhammad Hamizan Bin Roslan

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.

Mar

gin

No. of Items Sold/ Popularity

29/8/2013 26 Muhammad Hamizan Bin Roslan

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 27 Muhammad Hamizan Bin Roslan

Physical rate fences and non-physical.

Physical Rate Fences

• Location in the restaurant.

• Location of the restaurant.

• View from table.

• Amenities like flowers, candles etc.

• Private dining area.

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).

29/8/2013 28 Muhammad Hamizan Bin Roslan

Lesson 5: Technology

29/8/2013 29 Muhammad Hamizan Bin Roslan

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.

Food & Beverage Costing Software.

Menu Management

/Engineering.

29/8/2013 30 Muhammad Hamizan Bin Roslan

Integration.

POS + Inventory. POS + Financial

Reporting. Costing + POS.

Menu Engineering + POS

Labour Management +

Financial Reporting.

Reservation System + Table Management.

Table Management + POS.

Purchasing + Financial

Reporting.

29/8/2013 31 Muhammad Hamizan Bin Roslan

Managerial and guest services.

Entertainment

• Music System – traditional and latest approach.

• Lighting System.

Quality

• DNA Technology for Seafood – assurance of genuine ingredients/ products.

29/8/2013 32 Muhammad Hamizan Bin Roslan

Lesson 6: Menu Design

29/8/2013 33 Muhammad Hamizan Bin Roslan

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. Pricing

strategy.

29/8/2013 34 Muhammad Hamizan Bin Roslan

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 35 Muhammad Hamizan Bin Roslan

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. Comfort level.

29/8/2013 36 Muhammad Hamizan Bin Roslan

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 37 Muhammad Hamizan Bin Roslan

Lesson 7: Concept

29/8/2013 38 Muhammad Hamizan Bin Roslan

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 39 Muhammad Hamizan Bin Roslan

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.

Smell.

Sound. In line with

concept.

29/8/2013 40 Muhammad Hamizan Bin Roslan

Type of dining concept.

Fast food. Casual. Family Style. Fine Dining.

Formal Dining.

Buffet. Brasserie/

Bistro. Café.

Coffeehouse. Bar/ Pub.

29/8/2013 41 Muhammad Hamizan Bin Roslan

THE END & GOOD LUCK ;)

29/8/2013 Muhammad Hamizan Bin Roslan 42