CONTENTS

Food service institutions and management

• History
• Development
• Definition
• Importance
• Factors Affecting Development Of Food Service Institutions
• Principles, Tools And Functions Of Organizations
• Recent Trends In Food Service Institutions
Various types of food service institutions
• Commercial and non commercial
• Various institutions catering needs in different types of
handicapped personnels
• Various approaches in the management of FSI traditional –
system approach – MBO and TQM
 INTRO
• Food service institutions and companies are
responsible for any meal prepared outside the
home. This industry includes restaurants,
school and hospital cafeterias, catering
operations and many other formats
• The companies which supply operators are
called food service distributors.
 Restaurants

CAFETERIAS
Food
HOTELS, (SCHOOL
MOTELS
service
AND
institutions
HOSPITALS)

CATERING
OPERATIONS
 FOOD SERVICE
DISTRIBUTORS
• FOOD • KITCHEN
SERVICE • RETAIL UTENSILLS
OPERATORS • WHOLE • FOODS
CONSUMERS/
COMPANIES
FOOD INDUSTRIES
HISTORY AND DEVELOPMENT
• Food catering establishment which were known
since the 12th century in hangzhou, a cultural,
political and economic centre during chinas song
dynasty .
Ma yu ching’s bucket chicken house, was
established in kaifeng china, in 1153 AD, and still
serving up meals today…
 Tradition and
culture

Religious and
Globalization
fervour

Factors
affecting
Technological FSI Royal status
advancement

Social Industrial
changes development
 Principles
• A fundamental statement or truth providing a guide to
thought and action
• Principles are thus formulated on the basis of past
experiences of managers in related situations through a
process of recording mentally or in writing, the effects
of decisions taken in the past. Although no two similar
situations can be dealt with same manner, present
decisions can be based on the results of past decisions
taken under similar circumstances.
- George R. Terry
 Important principles which forms basic guidelines to managing
catering operations are:
 Division of work
 Authority and responsibility
 discipline
 Unitary command
 Unitary direction
 Individual goals subordinate to establishment goals
 Payment of remuneration
 Hierarchy
 Orderliness
 Loyalty and devotion
 Work stability
 Initiative
 Unity and
 Control
 Concept of
specialization
and the ability of
Principle of the staff
division of To make
work abilities more
efficient by
performing
each task
Size of the Division of work repeatedly till
prdn speeds up
establishments
and staff gain
increases the
confidence
division of
work also
increases
Prdn to service, Size of the
Owner or establishments
manager to increases the
cashier, accounts principle of
clerk purchasing division of work
manager. becomes more
applicable
 Position in the
organization
The chain of
command formally
laid out

Attributed to
persons Authority and responsibility
intelligence,
experience and the
sense of values he
holds
Some of the official authority may be
delegated along with the
responsibility a task carries, may also
dispersed or centralised in principle
 Punchuality

Obedience courtesy

Discipline

Adherence
Regulations
to rules

All of which are essential for

smooth functioning of
establishments where group
activities are involved and
directed towards common goals
 Loyalty to the senior in
command and to the
organization.

Unitary
command

Improves communication
and better understanding of Removes chances of
particular personalities confusiion
When more than one person gets different
instructions

Time gets
wasted

Division
Efficacy
drops of Work gets
disorganized

Loyalty
Performance
drops
 Unitary direction

Coordination of
No command Undirected or Confusion and
activities to
without multidirectional unachieved
achieve a single
direction goals goals
goal
 Individuals goals
subordinate to
establishment goals

Important for the

success of any
establishment
 Must be paid in order to
motivate people

Payment or Methods of payments

Should be impartial should be agreed
remuneration

Should satisfy employees

and the establishment
 Hierarchy

chain formed by staff placed at

different levels in an
organization

corresponds to the various

levels of management

Line, middle and top

management
 Working with
steam and other
fuels

Heavy
equipments

Handling
materials

Orderliness

Perishables need to kept for

different periods of time in raw,
partly prepared and prepared
forms
 Right man is in the right place at the right time

To avoid cross
contamination

Ensures safety Saves time

for all Orderliness looking for
concerned materials

And
equipment
when required
 Ensures
atmosphere at
work

Through
development
Loyalty Generates
of harmonious
relation at
and unified
attachment
work
devotion

to the
organization
and its
interests and
goals
Work stability

Minimized labour turnover creates a sense of

security and confidence in people leading to
better orientation at work

If it is not followed for any reason and cheep

labour is empoyed, the turnover increases.

This is very costly both in terms of the wage bill

and increased recruitment and administrative
costs, besides resulting in poor performance.
 Staffs are
allowed to
suggest
plans

Increases
Increases motivation
efficacy of the
staffs
Initiative

Helps to
Develops
raise
new idea
morale
 Develops
healthy team
Establish of spirit
smooth
communications
Spirit of group between people
work

Unity
 Good judgment
Chances of reaching
Encourage better set goals
use of resources

Control

Limiting the area of a control of a leader or supervisor

to cover the work of only five or six people having
related jobs, brings about greater efficacy

Span of control

Increase
Help in decision understanding
making between and with
people
 Functions of the Management

Functions of Basically the

Work harmoniously
management for activities which a
towards
any catering manager performs
organizational goals
operation to get people
 Functions of Management

Planning

Evaluating Organizing

Functions

Controlling Directing

Coordinating
 Planning
Manager scrutinizes the past performance

Reviews environmental changes, internal and external to

the organization and forecasts future trends

Sets the goals for the establishment and bases its

activities to achieving them

Planning process generally initiated by an awareness of

an opportunity or a problem, which can be foreseen in
the future

Establishment is scrutinized for its strength, weaknesses,

new objectives and goals are established on the basis of
certain assumptions
 Involves three main steps

First Second Third

Developing a blue print Setting goals or
Gathering information of the structure targets

To be achieved in
Arrangements of predetermined
Building, standards, spaces and activity period of time the
finances, staff needs, details that can be goals must be
food service conveniently related to a fairly
methods, type and translated into action accurate forecast of
number of customers from the information future events, since
desired collected they cannot be based
on absolute certainly
Planning results of which
It is also a continuous
are transcribed on paper
process taking place at all
for references as the
levels of management
activities proceed

Helping the activities of the

establishments proceed as
realistically as possible
towards goal in constantly
changing environments
 The planning for
building, equipment
etc., is therefore done
for five, ten or fifteen
Customers
years
expectation in their
attitude towards
food Bcoz frequent
reconstruction and
Difference changing of equipment
is not possible

Being perishable in Goals concerning the type

nature of facility to be offered
can be set for a longer
periods

Period of time to set

Services they goals (covers six
offered Type of goods months to a year in
terms of food
production goals)
 Purposeful

Satisfaction Creative

Goal
setting

Cost
Orderly
effective

Productive
Short term Medium term Long term
NOW 1-5 YEARS 5-10- 15 YEARS

Plan number of customers Gross profit margins Production targets

Service patterns Purchase procedures Capital investment

Equipments Equipment needs labour policy

Staff duties Maintenance Staff training

Menus Customer staff relation Diversification

Financial statements Research market

Menu extension Operations

 Objectives of planning
• Forecasting the number of customers accurately
• Judging expectations of customers through familiarity with their
food habits, religious and cultural backgrounds and economic
status which refers knowing their purchasing powers, timings and
manner of eating and expectations from the food service.
• Determining the margin of profit required to cover all costs taking
into account inflationary trends, menu composition, taste of
customers and so on.
• Establishing profit policy (one costs are calculated) in the light of
financial constraints like tax requirements, subsides in the form of
free meals in the form of employees or subsidised overheads
• Knowing staff skills for production and service
 Advantages of planning
• It helps to minimize time wasting activities, involving waiting for
instructions or ingredients because of last minute purchasing, leading to
indefinite cycle of uncertainties of what is to be done next
• Helps to see future possibilities making managers alert to changes in
trends that may effect the activities of the department
• Helps to organize and integrate activities in proper sequences, match
jobs skills and increase overall efficiency by helping to see
interrelationship of the various activities in the light of total objectives
of the organization and of individuals
• It eliminates confusion if the plan is communicated well to those
involved in its implementation
• It provides an important basis for control through budgeting of time,
energy, space and money, while forming targets for achievement.
• It helps managers at all levels to direct their subordinates effectively
towards the goal, with every step forward in the direction, job
satisfaction and confidence develop
 Organizing
• Once the plan have been set each area of the plan
need to be set into practice. In the catering field
each area of activity revolve around the production
cycle, service areas, profit planning and record
keeping
• Department manager has to translate into clear cut
activities
 Each activity is
broken down into
specific action
units

each action unit is

allotted to a
manageable group of
Work load people for authority
delegated to a group
leader for task
performance
Organizing

Adequate Staff
resources allocation
 Directing
Planning Organizing

Mental effort
on the part of
the manager

Directing
 Instructing

Reviewing Guiding

Directing

Teaching Supervising
 Binding
Unifying

harmonising

Coordinating

- Henry fayol
 Planning Organizing
Controlling
•Kitchen Spaces
Performance
•Service area Work Directing
Standards
• Equipment Staff Staff
Materials
• policy Facilities Work
Methods
purchasing Service Customer
Costs
safety Safety etc
External forces
profit

Evaluating
Products
People
Resource use
Procedures
Customers tastes
Environmental forces etc.,
 Controlling
• Gives the right direction to activities
• Food service establishments are constantly
surrounded by a changing environment consisting
of helping and hindering forces as far as
achievement is concerned by controlling the
hindering forces therefore by making use of helping
forces, goals can be achieved. Constant monitoring
is necessary
 HINDERING FORCES

Rising Structural
Establishment Food damage
prices
Men shortage staff Goals
Materials strike Customer
Money
Food Better Satisfaction
Time
glut equipment Profits
Procedures
Cordial staff Good
Equipment
relations management

HELPING FORCES
 Cont…
Helping forces increase when managers make the best use
of natural forces like
• A favorable crop,
• Good weather,
• Holiday time to attract customers,
• Motivate staff,
• Invest better equipment and
• Provide a safe healthy and
• Happy environment
• Same time hindering forces need to be counteracted as
soon as it rises inorder to ensure that activities proceed
towards their original goals
 Pinpointing areas
of deviation
Comparing
Determining the
results with
reasons for the
standards
deviations
expected

Components taking correcting

Measuring actual actions so that
process of control goals can be
process achieved
 Evaluating
• Evaluating is a measure of seted goals have been
achieved
• Evaluation is done by periodically by the manager
himself or by his supervisor
• A process of self judgment or evaluation as one
moves towards set goals helps to ensure success
• If it is done at the end of the project, it can only
have a theoretical function
 Areas of evaluation in catering
establishments
 Staff appraisal – staff need to be evaluated with the help of
rating scales designed to judge
a) A person’s knowledge and understanding of his work
b) The quality of the performance in terms of its being
unsatisfactory or understanding
c) A person’s compatability, dependability, awareness regarding
safety, cleanliness etc.,
d) A person’s integrity, loyalty in terms of willing cooperation
with co-workers to help achieve organizational goals
e) Health status
Work appraisal
a) Evaluating kitchen and service area.
b) Evaluating jobs for deciding on areas requiring
mechanization for speed of work
c) Degree of lighting and ventilation
d) Evaluating structures for necessary maintenance jobs
e) Analyzing ergonomic aspects of the work
environment
f) Evaluating methods of serving, washing and clearing
to estimate the amount of breakage
 Evaluation of profitability (Sales, costs and
profits)
a) Pilferage of food from stock
b) Prices too high
c) Cooking method inappropriate, giving inadequate
portions.
d) Menu planning unsuitable to cost structure of the
establishment
e) Excessive wastage in preparation inadequate
weighing facilities or supervision in the production
cycle
 Food Product Evaluation
a) Sensory
b) Objective method and
c) Chemical estimation
 Tools of food
service management
• Developed by the managers in the
past is used as an aid to effective
management
• It can be used for both operational
and management levels
Factors for preparation of organization chart
(basic tool)

Organization
chart

Activity Decision Relation

analysis analysis analysis

Explains the subordinate to superior relationships

Lines of decision making authority that exists in an establishment
 Organization structures

• A vertically structured food service

organization
• Vertical and horizontal
organization structure
A vertically structured food service organization
(down the line)
Catering
manager

Assistant
manager

Kitchen and
dining supervisor

Head cook

Assistant cook

Unitary worker
Vertical and horizontal organization
structure
Catering Assistant
manager manager

Kitchen Dining
supervisor supervisor
cashier

Head cook Chief

steward

Assistant cooks
Waiters

Unitary
workers
Organization level Tools used responsibility
Kitchen production and service Job description, job specification, Actual production and serving
time and work schedules, staff food sheets
duty list/ rotars menus

Line management Job analysis sheets, production Overall supervision of kitchen

plans, staff rotas, sales analysis, and service points, issue from
records, cyclic menus, leadership stores, directing, coordinating and
style controlling, preparing staff duty
lists and staff requirements,
ordering food and materials

Middle management Plans for staffing menus, records Planning profitable menus
price lists, inventory records, order arranging for parties , preparing
sheets, standard cooking sheets, budgets
budget statements etc.,

Top management Plans for sales, purchase, Setting goals, policy making for
recruitment, expansion etc., man power, planning introducing
decision making, leadership etc., technology, planning for profits,
diversification etc.,
Types of Foodservice
 What is Foodservice?
• A food and beverage business prepares,
packages, serves, and sells or provides food
for people to eat.
• These are also referred to as foodservice.
• Foodservice can be large or small.
• They can be found in hotels, cruise ships,
schools, hospitals, airlines, trains, and even
employee cafeterias.
 Ways to Categorize Foodservice
• Customers often categorize foodservice by:
– Price
– Self Service versus Sit Down
• The industry categorizes foodservice by:
– Commercial
– Non commercial
• Institutional
• Foodservice within a consumer business
 Commercial Foodservice
• Consists of food and beverage businesses that
compete for customers
– Olive Garden, McDonalds, Dunkin’ Donuts, Chilis,
On the Border, etc.
• Can be categorized by:
– Quick Service
– Full Service
– Catering
– Hotel and Club
 Quick Service
• Quick service restaurants provide customers
with convenience, speed, and basic services at
lower prices.
• Customers usually help themselves and carry
their own food to their tables.
• They have fewer employees than other
restaurants.
 Quick Service
• Fast food restaurants generally have a counter
where you place your order, pay for it, wait for it,
pick it up, and either take it with you or carry it
back to your table. Many have drive through
service as well. Menu items can be prepared in
3-5 minutes and most have smaller dining rooms.
• Cafeterias are food services where food is
displayed along a counter or serving line.
Customers walk along the line and ask the server
to serve them and then they carry their tray to
the table.
 Quick Service
• Buffets consist of food displayed on tables.
Servers keep displays stocked with food and
customers walk around and serve themselves,
then take their food to the table.
• Carryout restaurants specialize in preparing
food for customers to take with them to eat
home or elsewhere. They may provide very
little seating. These include delicatessens,
grocery stores, and pizza places.
 Full Service

• A full service restaurant is a restaurant in

which customers are seated at a table, give
their order to a server, and are served food at
a table.
 Full Service
• Fine dining restaurants emphasize the highest
quality of service, ingredients, and atmosphere.
There are many more employees per customer.
These restaurants are usually smaller and have
seatings at certain times. Most have professional
chefs on staff.
 Full Service
• Casual dining restaurants include all full
service restaurants that are not in included in
fine dining.
– Single Item Restaurants
– Family Restaurants
– Ethnic Restaurants
 Full Service
• Single Item restaurants choose to specialize in
a single item of food such as pizza, steak,
pancakes, or seafood. They may serve other
foods as well, but their focus is on a single
food.
• Family restaurants cater to families and
emphasize variety and comfort. They have
extensive menus and usually offer comfort
foods and traditional American dishes. Some
have developed into chains.
 Full Service
• Ethnic restaurants specialize in an ethnic
cuisine. Examples include Italian, Chinese,
Ethiopian, Indian, Japanese, Mexican, Spanish,
and Thai.
 Catering
• Catering is a provision of food and service for
a special event that usually involves feeding a
large number of people at one time.
• Catering is often done for business events and
social events.
• Catering can be divided into 2 types:
– On premise
– Off premise
 Catering
• On premise catering takes place at the
caterer’s place of business, such as a banquet
hall with a kitchen, hotel, or restaurant.
• Off premise catering occurs when the event is
help away from the caterer’s place of
business, such as at churches, country clubs,
picnics, businesses, and private homes.
 Hotel and Club Foodservice
• Hotels provide a variety of food and beverage
services such as:
– Bar in the lobby
– Family style restaurant
– Elegant fine dining restaurant
– Sandwich service by the pool
– Room service
– Catering
 Hotel and Club Foodservice
• Private clubs were developed to meet the
social and leisure needs of their members.
• Examples of clubs:
– Country, City, Yacht, Military, Health, Beach, etc.
• Membership is often invitation only and one
must pay annual fees.
• Most clubs operate at least one dining room
and have extensive catering facilities.
 Institutional Foodservice
• Institutional foodservice consists of
foodservice provided to customers in an
institution, such as a school, hospital, military,
or prison.
 School Foodservice
• Consists of meals that are served to students
who attend school. It contributes to students
health and well being to help students learn
better.
 Health Care Foodservice
• Foodservice that takes place in hospitals,
nursing facilities, and assisted care residences.
• Some are served in a customer’s room and
some are served in a dining hall.
• It is important that the food served meets all
the calories and nutrients that a patient needs
to restore and maintain health.
 Business Foodservice
• Foodservice provided in a business for the
convenience of people who work at the
business, such as an employee cafeteria in an
office building or factory.
 Foodservice Within a Business
• A food and beverage business located in a
consumer business.
• It is often offered as a convenience to the
customer.
• Categorized by:
– Recreation
– Retail
– Transportation
 Recreation Foodservice
• Includes all foodservice offered as a part of a
recreation business, such as sports arenas,
zoos, movie theaters, and museums.
• Can range from fast food, to quick service, full
service, and even fine dining.
 Retail Foodservice
• Includes all foodservice offered as a part of a
retail store or shopping center.
• Can be found in malls, individual retail stores,
bookstores, grocery stores, gas stations, and
convenience stores.
• Are mainly fast food restaurants, but some full
service restaurants can be found in malls and
shopping centers.
• Example: Food Courts and Rainforest Café in
Grapevine Mills Mall
 Transportation
• Transportation foodservice can be divided in 2
categories:
– Foodservice During Travel
• Airplane food, dining on long distance trains and
foodservice on cruise ships
– Foodservice in the Station
• Restaurants in airports and railroad stations. Usually
are quick serve, but some are not.
 Various institutions catering needs in
different types of handicapped personnel

• Organizational responsibility
• Accomodation
• Training
• Hiring
• Benefits for employers
• Benefits for employees
 MBO
• Management of food production and service
became a combination of certain cultural factors
adapted to the contemporary world, both through
its own inertia and its relevance to the organization
and its environment.
• Peter Drucker was the first to use the Management
by Objectives or MBO approach for management
planning and evaluation, in situations where goals
of managers were set to be achieved within a
predetermined time frame.
 Traditional approach
• Traditional management was based on the
rule of thumb principle which assumed that
whatever food and drink was prepared and
offered to the customer would be sold
because food is a necessity for survival.
 five basic relationships between
people
• Master - subject
• Husband - wife
• Parent - sibling
• Self - friends
• Franchiser - franchisee
 TQM
• Total Quality Management or TQM is a
concept that fosters continuous overall
improvement at all levels of production and
service in an establishment.
• This approach emphasizes a systematic,
integrated and consistent organizational effort
involving all resources at hand whether
human or material