F&B Management Flashcards
1
Q
When was the first banquet organized?
A
Roman times.
2
Q
Who wrote “Le Viandier”?
A
Guillaume Tirel / Taillevent
3
Q
When was “Le Viandier” written?
A
1310
4
Q
When was A la carte served in China?
A
Song Dynasty 960 - 1279
5
Q
What happened during the 17th century (first industrial revolution)?
A
Chefs cooked for the nobility at home.
6
Q
What marked the beginning of the “Grande Cuisine”?
A
Chefs cooking for the nobility at home.
7
Q
What is the name of the oldest restaurant?
A
Le Procope
8
Q
When did Le Procope open?
A
1636
9
Q
What happened in 1789 during the French revolution?
A
The chefs lost their jobs and therefore opened their own dining establishments.
10
Q
When was “Almanach des Gourmands” published?
A
1802
11
Q
When was the first menu created?
A
1834
12
Q
When was the first Michelin Guide published?
A
1900
13
Q
When was “Le Guide Culinaire” published?
A
1901
14
Q
Who wrote “Le Guide Culinaire”?
A
Auguste Escoffier
15
Q
What did the third industrial revolution in the 20th century lead to?
A
“Drive-in” restaurants
16
Q
What happened in 1980?
A
Molecular cuisine
17
Q
What does a PESTLE analysis examine?
A
Macro-environment.
18
Q
What does a SWOT analysis examine?
A
Micro-environment
19
Q
What does PESTLE stand for?
A
Political
Economic
Social
Technology
Legal
Environmental
20
Q
What does SWOT stand for?
A
Strengths
Weaknesses
Opportunities
Threats
21
Q
What are the three steps for Business marketing strategy?
A
1) Segmentation
2) Targeting
3) Positioning
22
Q
What are the four ways of segmenting a market
A
1) Geographic
2) Demographic
3) Psychographic
4) Behavioural
23
Q
Give examples of Demographic segmentation
A
Gender, income, occupation, education, religion, ethnicity, generation
24
Q
Explain psychographic segmentation
A
Lifestyle or personality characteristics.
25
Explain behavioral segmentation
Consumer knowledge, attitudes, uses of a product or response to a product. For example, buyers can be grouped according to the different benefits that they seek from a product, like when booking a hotel they are attracted by amenities such as a spa, room service, laundry service, etc.
26
What are the 3 factors to identify when evaluating different market segments?
1) Segment's size and growth
2) Segment's structural attractiveness
3) Company's objectives and resources
27
What are the four levels of marketing?
1) Mass marketing
2) Segmented marketing
3) Niche marketing
4) Micromarketing
28
What is mass marketing?
Ignoring market segment differences and targets the whole market with one offer.
29
What is segmented marketing?
Targets several market segments and designs separate offers for each.
30
What is Niche marketing?
Goes after one or more smaller segments or niches.
31
What is Micromarketing?
Customize their offers to meet the specific needs of individuals or local customer segments.
32
What does "Touchpoint" mean?
Any encounter where a customer and business interact and exchange information or provide a service.
33
What are the 4 main differentiations in terms of positioning?
1) Product differentiation
2) Service differentiation
3) Channel differentiation
4) People differentiation
5) Image differentiation
34
Examples of channel differentiation
User-friendly ordering app, super-efficient delivery system.
35
What is a value proposition?
A recap of the overall positioning strategy.
36
What are the four statements that should be in the value proposition
1) Target segment and its' needs
2) Name of restaurant
3) The offer
4) Competitive advantages
37
What is used to identify the differentiation of the company?
Touchpoints
38
What is a service blueprint?
A diagram that visually maps out all the related parties who participate in the service delivery.
39
What is the 3 purposes of a service blueprint?
1) To guarantee that the value proposition is true.
2) Design and redesign services
3) Enhance service quality and retain/attract costumers.
40
From what perspective is the service blueprint designed?
The customer's
41
What are the three steps that should be done before designing a service blueprint?
1) Identify which service process that should be in the blueprint and define the reason.
2) Select the customer segment
3) Associate the value proposition with the segment.
42
What are the 5 activities that are in the service blueprint?
1) Customer actions
2) Front-stage
3) Back-stage
4) Support activities
5) Physical evidence
43
Where on the blueprint does physical evidence go?
At the top
44
Where on the blueprint does the line of visibility go?
on top of "back-stage"
45
Where does the line of interaction go?
Between front-stage and customer action
46
What are the four "omnes principles"?
1) Price range
2) Price spread
3) Supply and demand
4) Promotional set menu
47
What should be the ratio between the highest and lowest price be in the price range?
2.5 and 3.
48
What are the three ranges of the price spread?
1) Low
2) Middle
3) High
49
What percentage should the number of articles be for each zone of the price spread?
Low = 25%
Middle = 50%
High = 25%
50
How is supply and demand calculated?
calculating average demand and average supply.
51
How is average demand calculated?
revenue / number of units sold
52
How is average supply calculated?
Sum of prices / number of items
53
What should be the ratio between average demand and average supply be?
0.9 and 0.99
54
Where should he promotions be placed on the menu?
In the middle of the price range, based on the price spread.
55
What is the formula for analysing the sale volume of one item?
Number of one item sold / average sale of all products
56
What is the other word for profitability?
Contribution margin.
56
What is the formula for the Contribution margin?
Sale price - food cost
57
What are the four categories of the sale mix?
1) Plow Horse
2) Dog
3) Star
3) Puzzle
58
What does the plow horse represent?
High popularity and low profitability.
59
What changes should be considered for the plow horse?
Increasing the price, change ingredients or change portion sizes to boost margin.
60
What does the dog represent?
Low popularity and low profitability
61
What changes should be considered for the dog?
Take the item off the menu
62
What does the star represent?
High popularity and high profitability
63
What changes should be considered for the star?
Modest price increase
63
What does the puzzle represent?
Low popularity and high profitability.
64
What should be considered for the puzzle?
Highlight or reposition to increase sales volume.
65
What are the five core elements of employee engagement?
1) Meaningful work
2) Supportive management
3) Positive work environment
4) Growth opportunities
5) Trust in leadership
66
What is the service-profit chain model?
Links profit and growth to loyalty, satisfaction and value by establishing relationships.
67
What are the two KPIs that measure HR efficiency regarding costs and employee satisfaction?
1) Employee attendance
2) Turnover
68
What are the two categories of financial tools?
1) Financial statements
2) Financial projections
69
What does financial statements show?
The past
70
What does financial projections show?
The future
71
What is the report of financial statements?
Profit and loss statement
72
What are the other two names for profit and loss statement?
P&L or income statement.
73
Who creates the financial statement?
The GM or accounting department.
74
What does the P&L show?
Revenues, costs, and expenses.
75
How often is the P&L done?
Monthly basis at the end of each month
76
What are the two financial projection reports?
1) Profit and Loss Budget
2) Profit and Loss Forecast
77
What are the budget and forecast used for?
Establish a plan for where management wants to take the company
78
What does the budget provide?
By budgeting potential revenue, the company can set financial goals and allocate different expenses throughout the year.
79
When is the budget set?
Yearly basis at the beginning of each year.
80
Why are the goals made from the budget not always attainable?
Changing market conditions
81
Who creates the forecast?
The F&B manager
82
What does the forecast contain?
Estimations of short-term financial outcomes.
83
How is the forecast prepared?
Examining previous financial data and surveying the external environment.
84
When is the forecast done?
The beginning of each month.
85
What changes can be made from the forecast?
Production, staffing and inventory levels.
86
What are the two most common metrics used to track revenue?
1) Average spend
2) Revenue mix
87
How is average spend calculated?
total revenue / number of customers
88
What is the purpose of revenue mix?
Understanding where the revenue comes from. Which segment of the company contributes to the total revenue?
89
How is revenue mix calculated?
(total segment revenue / total F&B revenue) * 100
90
What is the most common metric to track attractiveness?
Capture rate
91
What is capture rate?
The portion of customers that uses an outlet compared to the total customers available
92
How is the capture rate calculated?
(Number of customers / Number of available customers) * 100
93
What does KPI stand for?
Key performance indicator
94
What are the two main types of KPIs?
1) Lagging indicators
2) Leading indicators
95
What is a lagging indicator?
Analyses what has already happened.
96
What is a leading indicator?
Analyse what will potentially happen in the company in the near future.
97
Easy to identify, measure and compare but hard to influence?
Lagging indicators.
98
Easy to influence but hard to measure?
Leading indicators
99
What are the 6 implementation steps of KPIs?
1) Clarify the main goal
2) Identify specific and measurable lagging KPIs
3) Track regular objectives through leading KPIs
4) Communicate KPIs to the team
5) Follow up by measuring the actual performance versus the expected one.
6) Take action to improve the business.
100
What are the three work spaces?
1) Floor (customers)
2) Kitchen
3) Technical area
101
What are the ratios of the work spaces?
Floor: 50%
Kitchen: 25%
Technical area: 25%
102
How is the number of possible customers calculated?
Room area / RIC ratio
103
Formula for projecting the sales per service?
Number of customers * average bill
104
What are the three main components in a P&L statement?
1) Revenue
2) expenses
3) Profit
105
What is the formula for profit?
Revenue - expenses
106
What two costs goes into the prime costs in a P&L statement?
1) Cost of goods sold
2) Labour expenses
107
What's the acronym of Cost of Goods Sold?
COGS
108
What is the formula for prime costs?
COGS + labour expenses
109
What is components of operating expenditure?
1) Direct operating expenses. Expenses directly involved in serving the customers: employee uniforms, glassware, supplies, menus etc.
2) Other expenses. marketing fuel, gas, repairs, rent insurance etc.
110
What is the acronym for operating expenditure?
OPEX
111
Formula for F&B cost?
(COGS / Total revenue) * 100
112
Formula for gross profit?
Total sales - COGS = Gross profit
113
What does F&B costs show?
Percentage of revenue and is the portion of sales spent on food.
114
What does gross profit show?
Profit made from sales after deducting cost of goods sold.
115
Formula for Net profit/loss?
Gross profit - (labour costs + opex)
