Prepared By: Ritesh Chagetha

Table of Content
 Introduction
 Basic policies: Financial marketing, and catering
 Types of Customers
 Types of product menu
 Food production style
 Organization and staffing
 Control and performance measurement
Introduction
 Industrial catering also called ‘industrial Feeding’ and
‘Employee feeding’ may be described as the provision of
catering facilities at a place of work for use by the organization’s
employee.
 Today industrial catering facilities have emerged as an important
fringe benefit to employees particularly where highly subsidized
or completely free meals are still provided.
 The two main method by which catering may be organized in
such industrial situations are Direct management or
contracted out.
 Direct management is where the parent company chooses to
establish and operate the catering facilities itself.
 Contracted out involves the parent company employing a firm
of contract caterers to operate and manage the catering
department for them.
Contract caterers :-
 Contract caterers are individuals or firm who undertake the
responsibility of operating and controlling a company’s
catering facilities within that company’s guidelines for a
specified contract arrangement. Contract caterers are
usually engaged for a specific periods of time , after which
the contract may be renewed or dissolved as both parties
wish.
 Advantages and disadvantages of contract caterers:
 Advantages: 1 establishing and operating catering services
2 they can have a more professional approach than many of
those organizations who try to operate their own catering
facilities.
 .
3 This professional attitude and approach are
reflected in the standard of facilities provided and in
more effective cost control.
• 4 In addition to a well organized in catering
department, other financial benefits can accrue
because of the purchasing power of large contract
caterers, such as cost savings, products prepared to
company’s own specifications ,etc.
DISADVANTAGES IN EMPLOYING CONTRACT CATERERES
1 Unless a particular catering contractor firm is
recommended, or has a good reputation an unsuitable
contractor may be engaged unknowingly by a parent
company .
• 2 Should the catering facilities not reach the required
standards then the engaging company is not able to
make any necessary changes immediately but must
work through the catering contractors, that is, the
organization losses direct control.
• 3Finally a mangagement fee and /or a % of the
turnover is taken by catering contractors which would
not normally have to be paid by the present company
if it was operating its own catering service.
 The different variety of catering facilities available in an
industrial situation include
1 A Cafeteria
2 Coffee or Snack bar
3 Plated service restaurant
4 Silver service restaurant
5 Vending machines
6 Remote catering facilities (heated trolley)
7 Conference / Function facilities
Basic policies: Financial, marketing and catering

 Financial consideration:
Once a company has decided to provide catering service the financial policy
will determine the amount of money to be invested in the catering facilities.
Some companies consider the provision of a catering service as a valuable and
important contribution to the welfare of their employees and are proud of the
standards they achieve
Catering services in industry situations range from being provided completely
free of charge to those in which the total cost of the meals is passed on to the
customer.
Working within the limits set by the financial policies the size and variety of
catering facilities will be determined by the number of employees expected to
use the catering services.
catering services in industrial situations range from being provided completely
free of charge to those in which the total cost of the meal is passed on to the
customer. In between these two extreames a variety of pricing structures are
used some covering the direct food cost only others covering food and labour
cost. The extent to which price are subsidised by the parent company will
depend on its financial policy.
The trend today however is away for providing heavily subsidized catering facilities and
making them more self financing by requiring the customers to contribute more to the
costs.
The level of subsidy is probably the most influential factor, with a higher percentage of
employees using the amenities when they are free or highly subsidized ,than if they are not
Other factors are the location and accessibility of employees home to their place of work
The accessibility of the facilities in relation to all the organization's departments and offices
, as there are the distance and convenience factors to be considered . The siting of the
catering facilities should therefore be an important consideration at the initial planning
stage.
 Marketing consideration:

The trend towards industrial catering facilities becoming more customer

oriented, is reflected in the marketing attitude of these establishments.
In addition to advertising the amenities using posters, leaflets, etc. some
company now give new employees several days free meal tokens to encourage
them from the time they join the company to use the facilities; other
companies give away a certain number of free meal a tokens each month.
In the case of contract caterers business may be obtained either through word
of mouth advertising or direct advertising(selective mail slots/ business
magazines and circulars).
Marketing research in industrial catering can be particularly effective because
the potential market for the catering facility is often captive or semi-captive
and is therefore relatively accessible.
Market research may therefore be used to discover people’s attitude towards
the catering service and also if new facilities or changes are being considered a
similar type of survey may be used.
Feedback can be obtained from an organisation’s employees not only through
formalized surveys and questionnaires but also via channels within the
organisation such as staff councils and committees.
 Catering considerations:
 The catering policy will determine the standards of food and beverages
to be provided for the different levels of catering facilities ,such as a
higher percentage of fresh foods to be used in the silver services
restaurant than in the cafeteria.
 The catering policy in conjunction with the marketing policy will also
determine the other uses for the catering facilities. For example a large
industrial cafeteria may be used for welfare activities such as
retirement presentations and Christmas parties; it may also be used for
company meetings, lectures given by visiting speakers, etc.
 The trend today is away from providing separate catering facilities for
each of the different grades of staff in the organisation ; new industrial
catering facilities being built may be used by all grades of staff , major
exception to this , however , are executive dining rooms which are used
by senior management only and for entertainment purposes.

Evolved from the financial and marketing policies.
To define the main objectives of operating the food and
beverage facilities describe the methods by which such
objectives are to be achieved.
It usually include-
1. Type of menu- eg. Table d’hote, a la carte, fast food.
2. Type of customer- eg. High spending executives, low
spending female whopper, short stay hospital patient.
3. Beverage provision- necessary for the operation.
4. Food quality standard- eg. Flesh, frozen, canned, etc. and the
grade of produce to be used.
5. Method of buying- eg. By contract, quotation, cash-and-carry,
etc.
Types of Customers
In industrial catering situations the customers using the facilities are mainly the
organization employees with few firms allowing their services to be used by general
public.
In a large company situations for example, this allow the senior management to use the
executive dining room, the middle management to use the waiter service restaurant and
the cafeterias, coffee bars etc for the clerical and administration staff to use.
Customers in industry situations require a meal of good standard and good quality, at an
acceptable price and one that can be comfortably consumed in the amount of time they
have available for their meal.
The ASP of customers in industrial catering will depend on the type of catering facilities
and to what extent the service is subsidized. Some companies supply meals completely
free, others make a nominal charge.
Where the catering service is provided completely free, this usually includes foods and
non-alcoholic beverage only, if employees wish to purchase alcoholic beverage that may
be available, this must be paid for by the employees themselves.
Types of product menu
 In an industrial situation for example, the cafeteria menu may consist of two or
three starters, including fruit juices and soup, two or three main dishes for
example, fish, meat and a vegetarian dish, in addition a wide range of salad and
snacks are nearly always available and two or three desserts usually including
ice-cream and cheese.
 The table d'hôte menu offered in a waiter service restaurant and the a la carte
menu in a silver service restaurant would also be comparatively limited.
 In industrial situations the menu is usually changed daily.
 In addition to offering different standards dishes daily, special diet foods and
beverages may be introduced such as low calories or vegetarian food; The
industrial caterer should be able to take advantage of special discounts on
foods from the food suppliers and pass the benefits on to the customers in the
form of lower prices and by doing so increase the facilities uptake.
 An attempt should be made to try to achieve a reasonably relaxed atmosphere
in the dining room thus encouraging customers to feel refreshed after their
meal.
Food production style
 The conventional cook-serve method of food production is still
the most widely used for serving all the different types of outlets,
for example cafeterias, restaurants, vending machines etc.
 where the conventional kitchen is supplying a plated or silver
service restaurant, however, then the food is either pre-
portioned directly on to the customer’s plate in the kitchen or on
to serving salvers or platters.
 The cook-chill method and to a lesser extent cook freeze, are
being used in the industrial sector.
 Cook-chill has a particular application in industrial sites such as
factories which have a main administration\office block
 With the cook-chill method the food is prepared in a central
production area and may then be transported to finishing
kitchens where it is reheated and served.
 The high volume of standardized dishes in the majority of
industrial catering establishments lends itself to the use of
convenience foods particularly in the cafeteria-type outlets
which may be catering for several thousand employees over any
one meal period.
 Main production area the cooking equipment is mainly of the
heavy industrial type, for example large convection ovens,
brattpans, fryers, steamers ,etc.
 The clearing away of soiled dishes at the end of each meal period
is critical.
 In the sector of the industry conveyor belts and carousels may be
used to remove the trays of dirty utensils from the food service
area, such as a cafeteria, to the dishwashing area.
 Food service style

The most widely used method of food service in industrial catering today is the self
service cafeteria.
Second to the self service arrangements is the plated method of food service in which the
customer’s food is plated in the kitchen and brought to their table by a waiter.
The use of the silver service is again restricted in this instance to mainly senior
managements only.
Other food service style are used in industry catering establishment although these are
usually for a specific occasion for example, buffet self service arrangements for a function
etc.
The use of the silver service is restricted to mainly senior management only. The use of
vending machines has increased during recent years.
Where large number are being catered for, the time for meal periods will usually allow for
more than one sitting. Seat turnover may therefore be quite crucial as some employees
will only have a limited meal break in which to consume their meals and return to their
place of work .because of this time constraint the slowest points of cafeteria or other food
service arrangement should be critically studied and improved upon where possible.
the methods of payment used in industrial catering situations include the
following:- *Cash payment
after the meal has been collected but before it is consumed for example,
cafeteria arrangements.
* By purchasing tokens up to a certain value before the meal to be exchanged
in one of catering outlet.
*Cash payment after the meal has been collected or served to the table and
consumed, for example waiter service restaurants.
*By using an ‘electronic money’ such as girovend, in order to eliminate the
handling of cash. All employees of an organization are issued with a card which
is precoded by the company’s in-house control unit. Once the card has a
monetary value the card holder is able to make purchases from any of the
system’s operated till or vending machines. Digital displays on the units show
the current card balance and the amount being spent ; on completion of the
purchase the new card balance will be shown.
Organization and staffing
 The staffing of the catering department in industrial firm is usually organized in one or
two ways. First, it may be along the line of other departments in the firm using the same
basic staff hierarchy structure or second, it may be an autonomous department within
the organization with its own staffing and management hierarchy.
 The size of the catering department and the staffing organisation necessary are
determined by the size of the industrial catering facilities . A large industrial firm
employing several thousand employees , for eg. May have a catering department of
approx. 150 staff comprising food production and service staff and the management
team.
 The organization of the catering department will depend on the number and variety of
catering facilities provided but where there is more then one type of facility each outlet
would usually have its own restaurant supervisors or managers.
 Overseeing both the production and service areas is the catering manager who is mainly
responsible for the financial aspects of the department as well as the standard the service
and who would liaise with the chef and restaurant manger on such matter as budgeting
and costing, menu formulation and selection and so on.
 The concept of facilities management is also becoming widespread
in the industrial sector whereby the catering contractor not only
organize and manage a companies catering requirements but also
arrange of other needs depending on the client. This may include
such areas as cleaning, housekeeping and laundry, security
buildings and maintenance, gardening and waste disposal.
 The provision of uniform for catering staff also helps individually
employee to identify with the organization for which they work,
whether it is the parent company directly or a catering contractor.
In the latter case most catering contractor are keen to provide
uniform for their staff because it promotes the companies image
and increases the contractors profile in the industry.
 It is important that the catering department is represented on the
companies staff committees and council. This enables a two way
flow of information to take place, with any department in the
company able to express their views regarding the catering facilities
allowing the catering department to answer any suggestion,
problems that may be put forward to them.
Control and performance measurement

 In order to measure the performance of a catering department standard must be laid

down against which actual result may be measured.
 Standard should be documented in the form of policies which contain the objectives of
the organization in providing the catering facilities and the parameters within which the
catering department must function , documented in the form of budgets.
 The menus for the respective outlets must be reviewed and if possible weekly or monthly
cycle menus may be introduced.
 The sales and cost of the catering service must be itemized for each outlet.
 The cost incurred by the catering department would include some or all of the following
food cost, wages and salaries, cleaning materials, maintenance, replacements of
equipments, fuel cost, decoration and refurbishing charges and so on.
 In addition to producing detail financial accounts attention should also be given to the
every day controller of the catering department.
 Where possible stocks of food and beverages should be kept to a minimum for a number
of reasons.
 The control cycle is a complete at the end of the service period when a sales
reconciliation has been compiled comparing actual consumptions with the quality of
food produced by the kitchen; this information is usually documented on a sales
reconciliation sheet which can then be sent to the food and beverage control department.
MEASUREMENT OF PERFORMANCE OF
CONTRACT CATERERS
 The measurement of performance by a client of the catering contractor is something
which may be done periodically but should always be reviewed well in advance of the end
of the current contract period , so that should the present contractor be found unsuitable
, time would be available to seek out a new contractor.
 The measurement of performance would include the following:-
1) Relationship: A satisfactory business relationship during the period of the contract
between the client and management of the catering contractor.
2) Cost to the client: The maintenance of the operation within the agreed prescribed
limits for e.g.. For food cost, this could have been agreed on per head of employee, or
per employee served basis.
3) Price paid for raw materials: The price paid for all food and beverages items to be
seen to be of an fair level. Comparisons of price paid would easily be made against
published prices of major wholesalers and price indices published in major trade
journals. The level of discount given by catering contractor for food and beverages
items is usually only a small percentage of what the contractor receives, and it is for
this reason that the client need to monitor the prices paid as suppliers will willingly
inflate prices and then discount them to the contractor to an agreed level.
4) Maintenance of standard of product: The standard of
product achieve by the contractor on a day to day basis,
should be at least of an consistent level. This can be
measured by the number in type of comments received often
from a users committee and by the percentage of uptake by
the employees.
5) Maintenance of hygiene standard: the standard of
hygiene set by the client and achieved by the contractor
should be as high as in operationally practical.
6) The ability of the contractor to provide extra services:
This could be the provision of backup facilities by the
contractor for such things as providing a kitchen and
restaurant design service, providing technical advice on
energy saving, providing a customer satisfaction survey and
analysis etc. as well as being up to date with current trends in
modern business practice, catering trade practices etc.
 The performance of contract caterers can be measured against the
standards detailed the client contract. There are various types of contracts
which may be employed , either individually or as a combination.
 Traditionally the ‘ cost-plus’ contract has been the most popular
arrangement whereby all costs relating to the catering service are met by
the client and in addition a management fee is paid to the contractor.
 Fixed price contracts involve the client paying a set price for the catering
service and require the caterer to undertake some financial risk, because if
they underestimate the cost of the service they bear the excess financial
burden.
 Performance guarantee contracts ensuring costs do not exceed a certain
amount, for eg. A client may only subsidize labour and overheads, the
caterer being responsible for the other costs.
 Partnership contracts nvolve the client and caterer agreeing on the
partnership ratio and then sharing the subsequent costs and revenue of the
catering service.
 Concessionary rent contracts require the contractor to pay a rental fee to the
client in order to operate the catering service ; this may be based on a
percentage of profit or turnover or be a fixed amount.