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Food and Beverage Service Basics

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Point of Sale (POS) System

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A digital system used to record, track, and manage sales, inventory, and customer data in food and beverage operations.

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Menu Engineering

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A data-driven approach to analyze a restaurant’s menu performance and profitability by categorizing items based on popularity and contribution margin.

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Food Cost Percentage

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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:

Food Cost Percentage=Total Food CostTotal Revenue×100\text{Food Cost Percentage} = \frac{\text{Total Food Cost}}{\text{Total Revenue}} \times 100

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Inventory Management

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The process of ordering, storing, tracking, and controlling food and beverage products to ensure an adequate supply without excessive oversupply.

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Table Turnover Rate

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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.

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Upselling

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The technique of encouraging customers to purchase more expensive items, upgrades, or add-ons to generate additional revenue.

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Cross-selling

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A sales technique used to suggest related or complementary items to a customer who is already committed to making a purchase.

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Reservation Management

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The system or process used by an establishment to track and manage table reservations and customer seating preferences.

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Food Safety Management

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Implementation of guidelines and procedures to ensure that food is handled, prepared, and stored in ways that prevent foodborne illness.

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Beverage Cost Percentage

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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:

Beverage Cost Percentage=Total Beverage CostTotal Beverage Sales×100\text{Beverage Cost Percentage} = \frac{\text{Total Beverage Cost}}{\text{Total Beverage Sales}} \times 100

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Yield Management

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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).

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Customer Relationship Management (CRM)

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Building and managing long-term relationships with customers by collecting and analyzing data on customer interactions and preferences.

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Supply Chain Management

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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.

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Service Blueprint

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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.

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KPIs for Service Quality

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Key Performance Indicators (KPIs) specific to service quality including customer satisfaction scores, net promoter score (NPS), and average resolution time.

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Open Table Management

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A way of managing restaurant tables to balance walk-ins and reservations, maximizing occupancy and ensuring an efficient dining experience.

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Job Rotation

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A staff management practice where employees rotate through a variety of positions within the organization to learn different skills and provide cross-training.

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Contribution Margin

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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:

Contribution Margin=Selling PriceVariable Cost\text{Contribution Margin} = \text{Selling Price} - \text{Variable Cost}

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Waste Reduction Techniques

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Strategies used in food service to minimize waste production through inventory control, portion control, and efficient food usage.

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Food Pairing

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The process of combining foods together that complement each other in flavor, which can enhance the dining experience and create more appealing menu options.

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Allergy Awareness

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Recognizing and understanding the dangers of food allergens and implementing procedures to safely serve guests with food allergies.

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Revenue per Available Seat Hour (RevPASH)

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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:

RevPASH=Total RevenueNumber of Seats×Number of Hours\text{RevPASH} = \frac{\text{Total Revenue}}{\text{Number of Seats} \times \text{Number of Hours}}

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Seasonality in Menu Planning

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The practice of adjusting the menu throughout the year based on the availability of seasonal ingredients to ensure freshness and optimize costs.

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Non-alcoholic Beverage Trends

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The emerging patterns and preferences in consumer demand for non-alcoholic beverages, which can inform product selection and development.

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Customer Feedback Systems

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Mechanisms used to collect, analyze, and respond to customer opinions and suggestions regarding their service experience.

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Suggestive Selling

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A sales technique where staff suggest additional products or services to customers, often with the aim of enhancing their dining experience and increasing sales.

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Dish Development Process

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The sequence of steps from concept to execution in creating new dishes or updating existing ones, often involving testing, cost analysis, and staff training.

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Sensory Analysis

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A scientific discipline that applies principles of experimental design and statistical analysis to the use of human senses for evaluating consumer products.

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Digital Menu Boards

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Electronic displays used to present menu options, promotions, and nutritional information, often used in quick service restaurants for flexible menu management.

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Eco-Friendly Practices

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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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