Foodservice Management Fundamentals delivers critical information to help students learn how to position, manage, and leverage a successful foodservice operation. The compilation of management practices, tools, and techniques illustrates essential approaches to all segments of the foodservice industry. The overarching goal throughout the text is to focus on management-related topics that, when addressed with creativity, strong analytical skills, capable interpersonal skills, and operational acumen lead to a positive bottom line.

Today, foodservice management requires a variety of skills and abilities, including creativity, analytical skills, interpersonal skills, and operational acumen. As foodservice industry revenues increase, so the number of college programs featuring foodservice-management courses in nutrition, dietetic, food science, and hospitality management programs has grown.

PREFACE ix

Acknowledgments xiii

About the Authors xiv

PART 1: THE FOODSERVICE INDUSTRY 1

CHAPTER 1 THE FOODSERVICE INDUSTRY 3

History 4

Segmentation 11

Industry Statistics 15

Managerial Implications 16

CASE IN POINT: The College Experience 17

CHAPTER 2 THE FOODSERVICE BUSINESS 21

What Makes the Foodservice Business

Unique? 22

Key Characteristics 22

Trends 23

Business Lifecycle 23

Understanding the Marketplace 25

Value from the Customers’ Perspective 28

Managerial Implications: Maximizing Opportunities in the Competitive Marketplace 33

CASE IN POINT: Restaurant No. 2 35

PART 2: THE MENU 39

CHAPTER 3 MENU PLANNING AND DEVELOPMENT 41

Philosophy 42

Planning 43

Menus in Onsite Foodservice 50

The Art of Menu Development 65

Sustainability in Menu Planning 66

Managerial Implications 69

CASE IN POINT: The Handwritten Menu 71

CHAPTER 4 RECIPE STANDARDIZATION, COSTING, AND ANALYSIS 73

Recipe Standardization 74

Recipe Costing 83

Recipe Analysis 84

Managerial Implications 85

CASE IN POINT: Recipe, What Recipe? 88

CHAPTER 5 MENU PRICING 91

Pricing Approaches 92

Menu Psychology 95

Extending Menu Philosophy 104

Menu Engineering 105

Managerial Implications 107

CASE IN POINT: The $47 Burger 108

PART 3: THE FOODSERVICE OPERATION 111

CHAPTER 6 FACILITIES PLANNING, DESIGN, AND EQUIPMENT 113

Planning 114

Design and Layout 118

Equipment 124

Corporate Responsibility 126

Managerial Implications 127

CASE IN POINT: Trash Cans 130

CHAPTER 7 FOOD SANITATION AND SAFETY 133

Foodborne Illness 134

Biological, Chemical, and Physical

Hazards in Food 138

Foodborne Illness Prevention 140

Workplace Safety 149

Material Safety Data Sheets (MSDS) 151

Managerial Implications 152

CASE IN POINT: Food Safety at the Nursing Home 156

CHAPTER 8 SUPPLY CHAIN MANAGEMENT 159

Purchasing 160

Distribution Channels 163

Supplier Selection 165

Methods of Buying 168

Forecasting 169

Managerial Implications 173

CASE IN POINT: Purchasing in University Dining

Services 176

CHAPTER 9 FOOD MANAGEMENT 179

Receiving 180

Storage Management 185

Inventory Management 189

Production Management 198

Managerial Implications 201

CASE IN POINT: The Automotive Plant 203

PART 4: GENERAL MANAGEMENT 207

CHAPTER 10 FINANCIAL MANAGEMENT 209

Accounting Overview 210

Financial Statements 215

Analyzing Financial Statements 223

Cost Concepts 228

Budgeting 230

Managerial Implications 234

CASE IN POINT: You Can’t Take Percentages to the Bank 236

CHAPTER 11 CUSTOMER SERVICE 239

Style and Philosophy 240

Measurement 248

Quality and Standards 253

Service Failure and Recovery 256

Managerial Implications 258

CASE IN POINT: Pineapple or Pickle—Who’s to Say? 259

CHAPTER 12 MARKETING 263

The Science of Marketing 264

Social Marketing 265

Strategic Marketing 265

Service Marketing 271

Marketing and Unit-Level Operations 272

Branding 274

Managerial Implications 276

CASE IN POINT: The Entrepreneurial Baker 278

CHAPTER 13 HUMAN RESOURCE MANAGEMENT 281

What Is the Job? 282

Finding, Hiring, and Keeping the Best People 287

Staffing and Scheduling 295

Compensation 298

Managerial Implications 300

CASE IN POINT: New Employees or New

Motivational Techniques? 302

CHAPTER 14 LEADERSHIP AND MANAGEMENT 305

Leadership’s Evolution 306

Leadership versus Management 311

Supervision 315

Leadership Development 318

Ethics 318

Managerial Implications 321

CASE IN POINT: Daphne’s Dilemma 324

PART 5: ADVANCED MANAGEMENT 327

CHAPTER 15 INTERNAL CONTROL 329

Why Is Internal Control Necessary? 330

Conditions Conducive to Fraud and Embezzlement 333

General Principles 334

Identifying Employee Theft 341

The Best Deterrent 343

Managerial Implications 344

CASE IN POINT: Pennies, Nickels, and Dimes 346

CHAPTER 16 OPERATIONAL ANALYSES 351

Revenue Management 352

Cost-analysis Techniques 358

Operational Analysis Techniques 359

The Pareto Principle 363

Managerial Implications 364

CASE IN POINT: Sales and Labor 368

CHAPTER 17 BEVERAGE MANAGEMENT 371

Beverage Industry Overview 372

Responsible Beverage Alcohol Service 377

Beverage Control 381

Staff Training 388

Managerial Implications 390

CASE IN POINT: The Fake ID 393

CHAPTER 18 THE FUTURE OF THE FOODSERVICE INDUSTRY 395

Lessons from the Past 396

Forces for Change 398

Predictions by Segment 402

Technology in 2050 407

CASE IN POINT: The Traditional Family-style

Restaurant 411

INDEX 415

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