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Food and Beverage Service Basics
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Point of Sale (POS) System
A digital system used to record, track, and manage sales, inventory, and customer data in food and beverage operations.
Menu Engineering
A data-driven approach to analyze a restaurant’s menu performance and profitability by categorizing items based on popularity and contribution margin.
Food Cost Percentage
A profitability metric that calculates the cost of ingredients (food cost) divided by the revenue that those ingredients generate (menu price) expressed as a percentage. Formula:
Inventory Management
The process of ordering, storing, tracking, and controlling food and beverage products to ensure an adequate supply without excessive oversupply.
Table Turnover Rate
A measure of how many times a table is occupied by different parties during a service period, highlighting the rate at which customers are served and tables become available.
Upselling
The technique of encouraging customers to purchase more expensive items, upgrades, or add-ons to generate additional revenue.
Cross-selling
A sales technique used to suggest related or complementary items to a customer who is already committed to making a purchase.
Reservation Management
The system or process used by an establishment to track and manage table reservations and customer seating preferences.
Food Safety Management
Implementation of guidelines and procedures to ensure that food is handled, prepared, and stored in ways that prevent foodborne illness.
Beverage Cost Percentage
An essential metric for the beverage service industry that represents the cost of beverages sold divided by the corresponding sales revenue expressed as a percentage. Often used to manage profitability. Formula:
Yield Management
A pricing strategy based on understanding, anticipating, and influencing consumer behavior in order to maximize revenue from a fixed, perishable resource (such as restaurant seats or hotel room inventory).
Customer Relationship Management (CRM)
Building and managing long-term relationships with customers by collecting and analyzing data on customer interactions and preferences.
Supply Chain Management
The oversight of materials, finances, and information as they move from supplier to manufacturer to wholesaler to retailer to consumer in the process of providing products or services.
Service Blueprint
A detailed map or diagram that displays all the customer touchpoints with a company, highlighting where the company and customer interact throughout a service process.
KPIs for Service Quality
Key Performance Indicators (KPIs) specific to service quality including customer satisfaction scores, net promoter score (NPS), and average resolution time.
Open Table Management
A way of managing restaurant tables to balance walk-ins and reservations, maximizing occupancy and ensuring an efficient dining experience.
Job Rotation
A staff management practice where employees rotate through a variety of positions within the organization to learn different skills and provide cross-training.
Contribution Margin
A measure of the profitability of various items on the menu, which is the selling price per unit minus the variable cost per unit. Formula:
Waste Reduction Techniques
Strategies used in food service to minimize waste production through inventory control, portion control, and efficient food usage.
Food Pairing
The process of combining foods together that complement each other in flavor, which can enhance the dining experience and create more appealing menu options.
Allergy Awareness
Recognizing and understanding the dangers of food allergens and implementing procedures to safely serve guests with food allergies.
Revenue per Available Seat Hour (RevPASH)
A metric used in the food and beverage industry to calculate the revenue generated per available seat per hour, helping to assess operational efficiency. Formula:
Seasonality in Menu Planning
The practice of adjusting the menu throughout the year based on the availability of seasonal ingredients to ensure freshness and optimize costs.
Non-alcoholic Beverage Trends
The emerging patterns and preferences in consumer demand for non-alcoholic beverages, which can inform product selection and development.
Customer Feedback Systems
Mechanisms used to collect, analyze, and respond to customer opinions and suggestions regarding their service experience.
Suggestive Selling
A sales technique where staff suggest additional products or services to customers, often with the aim of enhancing their dining experience and increasing sales.
Dish Development Process
The sequence of steps from concept to execution in creating new dishes or updating existing ones, often involving testing, cost analysis, and staff training.
Sensory Analysis
A scientific discipline that applies principles of experimental design and statistical analysis to the use of human senses for evaluating consumer products.
Digital Menu Boards
Electronic displays used to present menu options, promotions, and nutritional information, often used in quick service restaurants for flexible menu management.
Eco-Friendly Practices
Sustainable methods of operating that minimize the environmental impact of food and beverage services, such as reducing waste, conserving energy, and using biodegradable products.
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