International food beverage management the structure of vitality restaurant will be clearly shown in detail of each item, thereby conveying the our understanding

Therefore, our restaurant focuses on creating a green space to bring a sense of comfort to customers and focus on the decoration of food and drinks but also not forget to develop the qua

Course Code FOHO1024

Course Name International Food & Beverage Management

Student name Phan Pham Ky Duyen - S3548406

Nguyen Minh Khanh - S3740962

Nguyen Tran Xuan Vy - S3634760

Nguyen Tu Anh - S3651509

Le Quang Tue - S3699883

Assignment due date January 12, 2020

Group Report (30%) Date of submission January , 2020

Group Report (30%) File(s) submitted 01

Number of pages 2534

I Introduction

Today, there are many restaurants and cafes created with many different concepts

so the competitive market is extremely large In order to have a firm position in this market, a new and enforceable concept is essential

In the spirit of bringing nature closer to the urban residents, we create a restaurant

“Vitality” in the concept of a miniature forest in the heart of the city Besides, customers can enjoy fresh and organic food and drinks imported directly from the farms in Dalat, which has a cold climate and it is suitable for growing and keeping fresh vegetables

In this report, the structure of Vitality Restaurant will be clearly shown in detail of each item, thereby conveying the our understanding of the infrastructure as well as the plan to build a professional restaurant Moreover, this report outlines the reasons and factors why we determine this restaurant's structure and design, how we clarify customer access with health regulation compliance

II International Setting

Vitality restaurant is inspired by the green living trend of young people today It is also the tendency of the whole world to protect the environment Moreover, the business model of cafes and restaurants has never shown signs of going down:  The

2019 NCDT involved surveys with a nationally representative sample of 2,815 people who reported drinking a beverage other than water within the past day (Brown N, 2019) Besides, the restaurant will use a perfect combination of nature, people and modern equipment As a result, the restaurant already has a large portion of the potential customer market, mainly young people

Today, the customers tend to experience the restaurant space and decoration rather than focusing on delicious food Therefore, our restaurant focuses on creating a green space to bring a sense of comfort to customers and focus on the decoration of food and drinks but also not forget to develop the quality of them Moreover, customers will order the items at the reception, which is called self-service and the order is plated up in the kitchen and brought out by customer (Smyth J, 2014) and then they can go to the desired table position to enjoy their dish Moreover, we also create the amount of nutrition in a smoothie bowl

With the concept of connecting between nature and modern life, many trees will be planted directly in the restaurant's lobby Tables and chairs are designed like logs to create an open space like a tropical forest Besides, a part of the cup will be made of glass to show the restaurant's modernity and environmental friendliness

III Restaurant Differences

Vitality in the Food & Beverage industry is a service-based business, which means that we not only deliver good products to our customers, but also provide our services through understanding our customers' needs and preferences currently (Wirtz, Lovelock & Chew 2012)

Menu Design

Vitality Restaurant firstly deliver American taste in dividing into five different categories so that it can easily for customers make many decisions and attract them

to enjoy the unique flavor smoothies bowls of American Food & Beverage style In terms of juices, freshly-made juice are made from scratch We offer a wide range of either tropical or winter fruit that suit the taste of many target customers Consistent without theme of healthy eating, we would not add preservatives or artificial sweetening to our drink For our dessert choice, we mainly provide dessert that has

a yogurt base We believe that yogurt will be a good alternative to cream for its fermentation process and low in fat content A wide range of fruit are also added as natural flavorings to our yogurt choice In order to attract a wide range of customers coffee and tea are also added to own menu for people who want an energy boost for

their monday work We use the cult favorite traditional Vietnamese coffee that suits most Vietnamese taste Meanwhile, the current nationwide favorite lemongrass peach tea with the rich-in-omega chia seeds are also added for additional nutritional value

The menu type of Vitality Restaurant is Coffee House of Table d'hote that we provide customers the fixed price on the dishes With a wide range of ‘smoothies bowl’ choices in a variety of prices from $75 to $95 per dish in different categories Although our beverage brings more American spirit through unique bowls, we also make some our drinks distinct with traditional coffee Each section of smoothies bowl

is seem to show dish name with ingredients below The brand name of the restaurant is ‘Vitality’, which means 'Spirit', we would like to bring the customers the best delicious dishes from organic and non-chemical products

Restaurant's atmosphere

Vitality is being determined as a friendly, fresh and green restaurant to compete with among other brands Specifically, the cost is one of the crucial perception of quality

of customers Since, Vitality creates comfortable and relaxing space that deserves the cost customers pay Vitality brings to the customers not only high quality food and services, but also unique atmosphere from nature They will taste the value of our restaurant We use 100% natural materials, say no with plastic as the key aspects to create our reputation of building eco-friendly environment when customers come here Furthermore, Vitality follows green and minimalist style, we keep the restaurant simple and neat but also still classy and luxurious About the music, we choose soft and ballad music to affect the customers' moods deeply That will not pretty monotonic to be bored and also not noisy to distract our guests when they enjoy our meals and their conversation Vitality hopes to meet customer expectations including visual theme, music, atmosphere that can bring customers back who love to stay and enjoy our efforts to give value to them

Restaurant’s floor plan

Vitality has two main parts including kitchen area and dining room Our kitchen consists of the area which is in the back for storing and processing the ingredients, meanwhile, the front will be the place for receiving customers’ orders The dining room of Vitality is designed with a capacity of 50 seats including camping area which

a group of 3 customers can experience a feeling of camping in the “forest”, the table-area which the customers can choose to sit under the “tree” or normal tables according to their number of friends, besides, Vitality also has a bar area where customers can see the process of preparing and decorating a dish with their own eyes while enjoying their drinks or salads

IV Profitability and feasibility

1 Inventory management

a Standardised recipe

According to Shaffer (2010), the standardised recipe is the set of steps to carry out the task, particularly here is dishes, with measurement and preparation time of ingredients, are exactly specified With those details, the quality of the final products will be ensured, moreover, food cost and inventory will be under controlled Because

of those reasons, each dish in the Vitality’s menu has a standardised recipe with detail set of preparation steps

Figure 1: Standardised recipe of the dish “Spring bowl”

b Ordering

As mentioned above, the main ingredients of Vitality are fruits and vegetables which must be always fresh to guarantee the quality and safety of the drink and food that also play a vital role in building positive brand image to generate the good business’s reputation Therefore, to keep the ingredients continually in fresh condition, just-in-time ordering method (JIT) is applied to Vitality’s operation

JIT ordering system is a similar concept of JIT production which the required product will be ordered and produced necessary quantities at the right period of time (Takahashi et al, 2004) By using the JIT ordering, inventory needs to be managed strictly in quantity and quality Each ingredient must be planned in detail based on the recipe to know the exact amount for a portion Besides, the number of customers visiting the restaurant every day also should be noted to measure then order sufficiently the ingredients

Figure 2: Ordering list

The sheet above is a part of Vitality’s ordering checklist By following the ingredients listed out in the standardised recipes, the restaurant can easily estimate the required

quantity of each ingredient and order suitably to prepare for serving the expected number of customers in the period of time

c Storing

According to Hernandez (1998), to store the food efficiently, the labels must be put

on the package of each ingredient as soon as possible after completing the receiving process, labels can help to determine the current condition of ingredients by written expiration dates Basing on that, the staff can apply “first in, first out” method which the old items will be used first to avoid later wastage if they are out-of-date Because Vitality uses temperature-sensitive food including fresh fruits, vegetables and meat, the suitable temperature of the fridge or freezer should be thoroughly noticed Labels with names, expiration date have to put on each ingredient Besides, temperature control is vital, hence, the storekeeper must be trained and have knowledge of suitable temperature to store different food categories as well as skills to arrange them in order according to the labels Moreover, the checklist including the current quantity of each ingredient is the must-have form to manage the inventory effectively

d Issuing

Estimating the demand of customers for each day of the week is necessary to issue and prepare sufficiently ingredients There are some foods such as chicken breast or seafood require the preparation time and have to use in a day, thus, with the right estimation of demand, the food can be prepared well with good quality When any amount of ingredients is issued to use, the quantity of issuing need to be noted in the checklist which is used in storing process to keep track of the inventory

e Wastage management

In fact, the JIT ordering method helps us to minimize the wastage However, wastage is still unavoidable in any F&B businesses Therefore, finding a way to handle wastage is important In Vitality, the damaged vegetable is planned to collect and send to farms who will compose them to organic fertilizer

2 Revenue management

a Cost control

Food cost is considered as a variable cost which is unstable due to the fluctuation of price due to seasonality, especially tropical fruits The difference from suppliers is also an element contributing to the variance of food cost in Vitality As mentioned, Vitality uses organic fruits which have been limited in terms of local suppliers, moreover, there are some other fruits such as blueberry needed to be imported that makes the food cost even higher Therefore, to control the food cost, Vitality uses tracking lists including an inventory list to check the purchasing and issuing process,

the standardised recipes to calculating the ingredients accurately (Figure 1 ) and the sales history to keep track of the sales volume and analyse the profitability of the business (Wrisley, 1983, pp.96-98)

Figure 3: Sales history of a week

By recording the weekly sales, Vitality can know which days a week the capacity is in excess to plan the appropriate strategy to balance and increase sales volume in days which did not reach the KPI For example, on Tuesday, there are only 15 covered seats which lead to profit is quite low, thus, Vitality can plan to have promotion programs such as happy hours or buy 2 get 1 for only Tuesdays

b Menu engineering

According to Lebruto et al (1997), menu engineering is an analysis tool that classifies menu items in categories of popularity and contribution margin by analysing each item’s sales volume, cost and selling price Vitality continually builds menu engineering every month as a tool to evaluate the customer preference and profitability among items of each menu sections

Figure 4: Menu engineering of Organic Smoothies section

c Cost management

To manage the cost effectively, besides control the food cost, Vitality also needs to critically administer the operational cost which will reflect the performance of the business At the beginning, we invest a budget of $44,000 to start up Vitality, therein,

$20,000 will be planned to purchase equipment and the cafe’s decoration, therefore, there are remaining $24,000 which is cash on hand for Vitality to operate the business

Figure 5: Income statement of 2 quarters

After the first quarter (3 months), the Vitality issued the income statement which showed the loss of $3,381.Thus, at that time the investment had already been

$38,762 because the cash on hand must cover the loss to continually operate Vitality Fortunately, in the Quarter 2, thanks to the great investment in digital marketing in the last quarter The business performance is improved with the profit of

$4,819 That makes the return on investment is 12.43%, thus, if we keep this level of profitability, Vitality will be expected to reimburse the investment of $38,762 in 3 years

V Hygiene & Food Safety

Hygiene and food safety seems to be one of the top responsible and priorities in F&B industry, as it's an elements influences on the reputation of the F&B business and make sure to be safe for customers If a business has any incidents of safe food, it will destroy the business' image and damage the revenue It can be worse when the image and the news will be spread on social media, and then reaching into large amount of customers Moreover, the business will face the customers' health, it can lead to legal issues and further problems

To serve well both the best taste and the safest meal, Vitality restaurant has followed standard process of getting raw materials, prepared it before serving to final customers These criteria are used to the first step of the restaurant process In the stage of purchasing that ingredients and materials are provided by suppliers Vitality consider to choose the best aspects in order to maintain the taste of food and safe food including materials, reliable suppliers, ingredients in food as well as how well processed and delivered to the Vitality restaurant The process of quality checking will be considered again and recorded by Vitality's staffs when they receive the food

materials in the restaurant After that, they will be split up the different types of categories in terms of using specific storage methods Furthermore, they will check food in the storage weekly to make sure there are no expired, problem of food or wrong ingredients in food In the next part, preparation stage, ingredients will be reviewed and rechecked by chefs before cooking

According to food safety (FoodSafety.gov, 2020), the number of people who get food poisoning is rising a lot, the healthy people can also be spread out the bacteria because of food poisoning Additionally, the other main source can be from contamination that food handling process Consequently, businesses have to consider this hygiene before serving to the customers, it also reflects a good business operation The key part in process consisted of how good the staff training

is in personal hygiene, awareness and skills The staffs need to be trained carefully like washing hands after going to the restroom, taking out the trash or touching some part of the body because the virus can spread out by these actions Doing these things strictly will help us secure the hygiene, keep food safety and increase Vitality's social responsible image

VI Ethical and sustainability management

1 Labor practices

VN labor law decrees that “organizations can schedule employees for no longer than

8 hours a day and 48 hours of work a week.” (Sample 2019, slide 9) Therefore, our restaurant requires 48 hours / week for full-time employees and 24hours/week for part-time ones Besides,we will manage the quantity of employees because Vitality is still a small and new restaurant We would rather recruit multi-tasking staffs They can control their time, find ways to enhance job performance and give us more good solutions to overcome difficulties

2 Diversity in the workforce

Workforce diversity means “a reference to ethnic, religious, gender, national, or cultural diversity” (Sample 2019, slide 27) We assume that the diverse human resources bring competitive advantages for us by providing many ideas and initiatives; diversify the operation network and increase the efficiency of using talents But it also has a negative impact on the restaurant's operations because it