ATLAS SkillTech University
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60 SEATS

COURSE INSTRUCTOR

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Bhavin Parekh

Professor

BASIC INFORMATION

  • Lessons : 15 Week
  • Start Date : 29/07/2022

Bhavin is a passionate hospitality professional with over 20 years of in various industry verticals such as Hotel Operations, Hotel Management & Training. His corporate portfolio also extends into Facilities Management (Soft Services) with Infosys Technologies Limited and then as a General Manager-Administration & Projects for a pan-India chain of schools with 18 K-12 schools in his portfolio. He has also had a stint as a consultant (Infrastructure & Non-Academic) to K-12 schools pan-India during which he executed projects worth a book value of Rs. Two Crores. His passion for sharing his love for Food & Beverages with others brought him into Hospitality Education.

 

He has worked in the capacity of Faculty – Food & Beverage Service Operations & Management with hospitality schools of repute having academic affiliations with leading Swiss schools such as Kohinoor-IMI, Ecole Hoteliere at Lavasa, before moving to Atlas Skill Tech University. His areas of interest include Food & Beverage Cost Controls, Menu Planning & Designing, Menu Engineering, OPEX Budgeting & B.E.P. Analysis. A graduate in Physics from the University of Mumbai, his interest in Food & Beverage led him to pursue a Diploma in Hotel Management from Merit Swiss Asian School of Hotel Management now affiliated with Ecole Hoteliere, Passugg Switzerland and Diploma in Hospitality Management from the Education Institute of American Hotel & Lodging Association (AHLA). Bhavin is a product of the Intercontinental Hotels Group’s Corporate Training Program for South West Asia and has worked with IHG in India and with Hyatt Hotels in Muscat, Oman.

 

He has worked in multiple types of F&B operations from In-Room Dining to Coffee Shop to Discotheque to Banquets & Catering and Specialty Restaurants within the hotel framework. A Certified Hospitality Supervisor (CHS) from AHLA and a WEST Level 2 Certification Holder in Wines & Spirits he is currently working to earn the Certified Food & Beverage Executive (CFBE) Badge from AHLA. He enjoys good food, wine and whisky. He is currently treading the path of a foodpreneur with his own food venture Hungry Kya?

Course Description

Course Objectives

Having an inherent hospitable demeanor, good people skills and a passion of cooking and serving food are desirable traits, however, not enough to profitably operate and run a foodservice operation.

Though the entry barrier in terms of investment in the food business is low, the failure rate is alarmingly high. Globally, statistics indicate that 60% of the food businesses that start today will down their shutters within the first year of operation. Over the next 5 years, the closure percentage is 90% among food businesses that start today.

This course provides an insight into the business side (not restricted to commercials) of foodservice operations to reduce the failure rate.

The course commences by introducing the learner to various types of F&B establishments currently operating in the market and their unique characteristics; it provides guidelines for choosing the right location to set up your food business and gives pointers on menu planning & designing (applying human psychology in menu design and current menu trends).

All Food businesses today are witnessing cut-throat competition in their respective category and the operating margins are wafer-thin due to steadily rising inflation. In order to survive and profitably operate in such an inflationary competitive market scenario, it is important to understand the ‘numbers’ behind the business.   

Understanding the numbers behind the business begins with the process of benchmarking the primary cost of any food business which is ‘Food Cost’(FC). This course takes the learner through a series of sequential steps to arrive at the Standard Food Cost (SFC), specific to the food operation.

SFC becomes the upper threshold for the ‘Actual Cost’ (AC) of food that a food business can incur if it has to run profitably. Learners are also introduced to the other aspects of controlling the AC of food through back of the house functions such as Purchasing, Receiving & Stores.

Controlling and minimizing food costs presents one way to increase the profitability of the food business. The other is through Revenue (Money received through Sales of your product). The course introduces learners to product pricing techniques using several objective pricing methods, which ensures that the product is marked up on input costs based on desired profit.  

Aspiring Foodpreneurs are introduced to components of a business report with a special focus on elements such as revenue projections, preparing CAPEX and OPEX budgets, cashflow statements for securing external funding for their food business and to judiciously deploy the capital.

Other tools such as Break Even Point (BEP) analysis, Cost Volume Profit (CVP) analysis and continuous menu improvement to maximize profitability through Menu Engineering will equip Foodpreneurs in their successfully operating their food business.

The course also explores multiple business models for those Foodpreneurs with a low to medium risk appetite ensuring higher chances of success and / or minimizing personal financial losses.

The course is easily accessible and no prior knowledge of F&B is required, though it would be preferred. Secondary school mathematics would be essential to navigate the modules on ‘numbers’ in the business of F&B.

Lastly, a module on use of technology to assist in front end and back-end operations of the food business is mandated keeping in mind optimization of labour costs and tech savvy millennial & Gen-Z aspirants.

The course entails self-learning of F&B lingo which will increase the learners’ vocabulary by approximately 250 words.

 

Course Outcomes

  1. Identify various types of F&B businesses based on their unique characteristics.
  2. Classify Menus based on a) Pricing Structure; b) Meal Period
  3. Choose an ideal location for a Food Business.
  4. Plan & Design Menus and F&B facilities based on location and type of Food Business.
  5. Demonstrate the process of standardization and Benchmarking Food Cost.
  6. Control Actual Food Cost.
  7. Compute Selling Price of menu items using various objective Pricing Methods.
  8. Prepare revenue projections, CAPEX & OPEX budgeting, cashflow statements, BEP Analysis for a fictitious project for funding opportunities.
  9. Execute Menu Engineering on a sample menu to make it more profitable.
  10. Evaluate and select the best business model based on risk-appetite.

Course Syllabus

> The Problem Statement: Why do Food Businesses experience a high failure rate?

> An introduction to the Food Business

> Areas of focus to reduce the failure rate Benchmarking Costs Monitoring Actual Costs Means of Controlling Costs Generating Revenue

> Types of F&B businesses and their unique characteristics which help identify it

> Comparative of Operational Parameters for each type of F&B outlet Table T.O. Ratio Staff to Guest Ratio Average per Cover (APC) Food Cost %

> Classification of Menus based on Pricing structure and their unique characteristics ALC TDH

> Classification of Menus based on Meal Timing and their unique characteristics Breakfast Lunch Dinner Snacks

> Specialty Menus and their characteristics Children’s Menu

> Matching menus to outlets and vice-versa based on the characteristics of each

> Demographics

> Minimum Population Needed to Support the Concept How to ascertain potential market size: Downtown Area Suburban Area

> Visibility & Accessibility Checklist

> Other favorable parameters for a Food business

> Who is responsible for planning the menu?

> Impact of Geographic Location & Demographics on the Menu Location

  • Downtown (Commercial)
  • Suburban (Residential) Parameters of Impact
  • ALC or TDH? - Cyclic or Static?
  • Operational Meal Periods
  • Potential Clientele
  • Ethnic Concerns
  • Religious Concerns

> Operational elements impacting the menu and the menu impacting the operational elements of the Food Business

> Menu Designing (Using Psychology in Menu Design)

Copy

  • Course Category
  • Heading
  • Menu Item Listing
  • Sub-Heading
  • Menu Item Descriptive
  • Supplementary Merchandising Copy

Sequence

  • Font & Font-size
  • Layout
  • Format
  • Placement
  • Artwork
  • Contrast
  • Paper
  • Cover

> Menu – Start Point

  • Using the 9-Point HACCP Control Cycle to demonstrate how the menu plays a vital role in the design of the facility

> Elements that Resonate with the menu

  • Interior
  • Exterior
  • Staff Uniforms
  • Table-ware & Table peripherals
  • Types of Service effected
  • Guest to Staff Ratio

> Elements of Dining Area Layout

Types of Tables, Seating & Capacity

  • Best Table Mix
  • Sample Dining Area Layout
  • Guest Traffic Flow Simulation
  • Service Traffic Flow Simulation

 

> Elements of the Back Area Layout for a Food Business

  • Receiving Bay
  • Storage
  • Sections of a typical kitchen – Using Bubble Diagram
  • Dish-washing Bay
  • Kitchen & Service Staff Traffic Flow – Simulation
  • Customizing Kitchen Design based on Menu – Example: QSR, Indian, Italian, Chinese, TDH Menu , ALC Menu

> The Need for Standardization

> The Process of Standardization Developing

  • Standard Purchase Specification
  • Developing Standard Yield for various ingredients used (Edible Portion Weight)
  • Writing recipes in a Standardized format
  • Computing the total cost of the recipe for a given number of portions and per portion size
  • Scaling Up and Scaling Down Recipes using Adjustment Factor (A.F.)
  • Standard Portion Control Tools
  • Standard per Portion Cost

> Menu Mix (M.M.) %

> Impact of M.M. % on SFC%

> Computing SFC for a Food Business – Daily, Weekly, Monthly, Yearly

> Why is Food Cost (or Beverage Cost) always expressed as a percentage?

> Defining Contribution Margin (C.M.)

> What is the true measure of profitability – C.M. or Food Cost%

> Defining Actual Food Cost (AFC)

> Source of AFC

> Comparing AFC vs. SFC & its Implication

> Controlling AFC through Back of the House (BOTH) functions such as Purchasing Receiving Stores

Computing Menu Item Base Selling Price (B.S.P.) Using Objective Methods

> Graphical Representation of B.E.P. and interpretation

> Mathematical equation for B.E.P. and its application

> C-V-P Analysis

> Business Projection using MS-Excel

> Sources of Funding

> Franchising as a Business Model

> Defining Profitability > Defining Popularity > Applying Menu Engineering & Menu Item Classification in 2 x 2 Matrix > Evaluating Stars, Puzzles, Plough Horse, Dogs and taking corrective action > Graphical representation of Menu Engineering and Interpretation

> Challenges in starting a Food Business in Mumbai (15 min.) > Operational challenges (15 min.) > Focus areas – Cost Control (15 min.) > Changing consumer preferences and dynamics (15 min.) > Q&A (60 min.>

Course Assessment

There will be multiple formative internal assessments. These internal assessments will be a mix of group & individual assessments, enabling learners to work as a cohesive team as well and also individually. The internal assessments presents the learners with an opportunity to apply the theoretical concepts learnt in the classroom in live environments outside the boundaries of the classroom; enabling them to identify, name, classify, compute, suggest, design, critique and more, various elements across the broad spectrum of Food & Beverage operations.

The internal assessments will have well-defined timelines for submission and maybe followed by a Faculty-Learners interaction (for group activities only), which will be a part of the assignment evaluation.

There will be only one final assessment which is summative and will be faculty-guided. This will be in the form of a group presentation accompanied by a project report. This will be evaluated by an external inter-disciplinary panel. The formative assessments executed by the learners will form the basis of this summative assessment in which learners are to present a proposal to start their own Food Business with a unique concept and execute a Break Even Point Analysis for the same. The project report will be in the form of a Business Plan which the learners will create.

The aim of this exercise in its entirety is to secure funding from an investor or bank for the proposed Food Business. Note: For each assessment, there is an assessment brief which will state the purpose of the assessment, list the relevant modules on which the assignment is based and what is expected of the learner. Each assignment will also be accompanied by a marking rubric which will enlist the parameters on which the learners will be graded and also criteria for marking. It is advised that students read the marking rubric before they attempt any assignment / project to ensure that they cover all the criteria on which they will be graded.

Internal Assessment

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