For the case study attached produce a written report (1500 words) to be presented to the management of the restaurant.
Think about including the following in your report:
• Identify the key aspects of strategic food and beverage management that are used by The Lime and Sombreros Tapas Bar and what can be improved to maintain the success of the business.
• Evaluate the operational and economic characteristics of The Lime and Sombreros Tapas Bar.
• Apply pricing and profitability concepts (menu engineering) for The Lime and Sombreros Tapas Bar and suggest ways of improving the sales/profits of the business.
• Analyse and apply advertising strategies that could be used to improve business, especially if it is decided to expand the business
The Lime and Sombreros Tapas Bar
The Lime and Sombreros Tapas Bar is a 55 cover restaurant that has been operating for one year. The restaurant was a huge success amongst the locals and the management often had to turn down bookings and turn away walk-in customers, especially during Friday and Saturday nights. Furthermore, the restaurant service area is mostly uncovered with only enough room for 25 covers inside. After the first year of operations, the management team held a meeting to decide the future of the restaurant. With a £100,000 loan, the restaurant could be extended to 100 covers with 65 covers protected from the elements during the winter months. With an average customer spend of £15 and an estimated occupancy averaging 75% throughout the year, the team had to decide if the expansion was worth the loan. Loan Interest was at 7% per annum and restaurant gross profits for the first year were around 10%. Furthermore, the expansion would need the restaurant to remain closed for at least 20 to 30 days. The restaurant management team also realised that their tapas food menu may need rethinking, as some of their unique recipes are now appearing on some of the other restaurant menus. However, they have no idea how to start making any decisions, so they hire you as a consultant to help them with ideas. You are given an extract of the menu for the month of October together with prices and food costs as well as the number of items sold during the month of October.
Selling Price £
Food Cost £
Number of October sales
Traditional Spanish omelette filled with potatoes, peppers and onion (V)
Green chilli peppers mixed with soft cheese, stuffed in a deep fried crispy coating (V)
Pimentos con Queso
Sweet baby red peppers stuffed with soft cheese (V)
Croquetas de Manchego
Croquettes of Spanish goats cheese, paprika, chives, thyme and parsley (V)
Champinones al ajillo y crema
Fresh button mushrooms in cream, white wine and garlic (V)
Deep fried potatoes topped with a spicy, red chilli, bacon and tomato sauce
Deep fried potatoes topped with a Canarian mojo verde salsa
Deep fried, fresh chicken wings
Chorizo al Pimentos
Spicy Spanish sausage in a tomato, pepper and onion sauce
Lamb and Lambs kidney stew from the Extremadura region, superbly spiced with red peppers, paprika and white wine
Spanish meatballs served with a tomato and green bean sauce
1.1.3 Weighting/Contribution to the Module Mark
1.1.4 Learning Outcomes Assessed by the Task
Appraise key management issues in food and beverage management relevant for the leisure, business, and corporate industries.?
Evaluate and comment on the challenges and current issues related to food and beverage management.
Analyse and evaluate theories and models related to hospitality, food and beverage management.
Apply theories and models of food and beverage management to service delivery.
Compare and contrast different academic viewpoints to develop a reasoned argument.
Communicate effectively in writing.
Demonstrate a professional understanding of the provision of customer service.