The economics of buffet

After the completion of Tarang, the college festival of Lady Shriram, we in the organizing committee had some leftover dinner coupons, which a sponsor had given as prizes. A coupon entitled one to a free buffet at Delhi’s Taj Mansingh hotel. My friend Malavika Banerjee nee Ramachandran (now doing dignified stuff such as the Kolkata Literature Fest) and I hit the buffet like we had just arrived from a land struck by famine. We must have been disgraceful because the manager wanted to see our IDs and probably suspected that we stole the coupons. At IIM-Ahmedabad, we had a tradition of the “corpo dinner" towards the end of the course where each dorm went all trussed up, to a buffet restaurant and ate the place out of its business.

There’s something about buffets. It brings out a primal hungry beast in us.

In the US, there are “eat all you can" buffets which target customers of lower economic classes who are looking for a large cheap meal. What is interesting is that in India, no lower class person goes to a buffet serving restaurant. They cannot afford it as buffets are never served in modest dhabas but only in restaurants aimed at the higher socioeconomic classes. These are people who are not exactly starving, and yet they behave as if they are when the buffet is laid out.

Why do we eat so much in buffets? The most obvious reason is that customers feel they have paid a certain amount and they must get their money’s worth. Economists however say that’s foolish because whatever we have paid is a sunk cost and whether you eat little or a lot, the money has anyway been paid up. What the customer is trying to do is maximize his value, and he perceives value as a bursting stomach. It is a flawed perception because the enjoyment of a buffet is not only about quantity. We also choose a buffet for variety. A buffet is a smorgasboard of dishes cutting across cuisines and there are many types of entrees, mains and desserts to excite our palates. A buffet goes well with convivial group eating, especially when there are children. At Club Mahindra, guests are offered “fun dining" which is three buffets of breakfast, lunch and dinner. Kids and parents excitedly rush from the live pasta maker to the uttapam chef to the dessert section. So, it’s in fact not necessary to eat a lot to derive value from a buffet because by construct the buffet offers other benefits.

Yet people associate buffets with eating big. One 350 pound American has put up a YouTube video protesting against an eatery which threw him out because their economics went out of the window with the unexpected quantities he consumed. What are the economics of a buffet for a restaurant?

It’s quite like insurance which takes money from everyone by playing on their fears but expects only a few to die or have accidents during their policy term. Similarly a restaurant plays on our greed and lures us into the buffet hall where we think we have landed a deal. But patrons overestimate the amount of food they can consume which is exactly what the restaurant is betting on. If it prices a buffet for 1,000 and a hundred people eat, only 2 may eat for more than that value. The cost of each meal for the remaining guests will be a couple of hundreds, so on average the restaurant rakes it in through buffets.

Sometimes hotels strategically push buffets over a la carte. At Club Mahindra, the “fun dining" option offers three buffets at the price of one a la carte meal, so everyone chooses the buffet. The general manager of one of their Goa properties, S. Srikantan, explained to me last summer that they do so because in a resort, the number of guests are limited. Offering many a la carte options requires procuring and storing small quantities of several ingredients not knowing who will ask for what. It also makes the kitchen inefficient. If more people opt for a buffet, the restaurant can buy ingredients in bulk, use it and move on to the next day’s menu. I asked Srikantan, a hotel industry veteran, whether food in a buffet is fresh. His logical answer was that much of it has to be fresh because the menu changes everyday, (except, I assume, for standard restaurant practices such as making a common gravy and freezing it, etc).

Nutritionists are naturally against buffets saying that the excess fat and carb in a buffet makes a calorie dense, imbalanced meal and people invariably overeat. Monks cup their hands when asking for bhiksha (alms) because the stomach can hold at a time, only the amount of food that fits into two cupped hands. It’s hard to remember all this when mango kulfi, chocolate mousse and cheesecakes are winking at you from the dessert counter of a buffet. But it may help to know that you just can’t eat food worth the amount of money you paid for. The focus should therefore firmly be on the fun of pecking at many dishes. Wish someone had told us this when we were hitting the buffets as students and busting our seams.

Vandana Vasudevan is a Delhi-based writer on urban consumer and civic experiences. Your comments are welcome at toughcustomer@livemint.com

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The appeal of the buffet is pretty obvious. They provide guests an opportunity to sample new and innovative items and to choose those which tempt their palate; most guests enjoy the adventure of discovering new delicacies without having to pay for a whole portion.

Buffets add excitement by offering creative salads and appetizers, hot and cold dishes prepared at interactive stations and succulent desserts.

For the operator, buffets are just as appealing. Generally, the labor cost is much lower since all dishes are prepared ahead of time in bulk. The actual service period can be managed with fewer employees than an a la carte or plated banquet scenario. In addition, more guests can be catered in a given time period, enabling the operator to turn tables more frequently.

On the other hand, a buffet is only profitable if it sells well; ample leftovers can diminish the profit.

Pricing and portion control

Determining the food cost is one of the challenges of a buffet. It is very difficult to predict how much each guest will consume. In permanent buffets it is sometimes difficult to forecast the amount of guests for a meal period.

To calculate the price for a buffet, the cost of each item on the menu should be verified, especially new dishes.  Established items that have proved to be cost effective should be reviewed periodically. The total cost for the buffet is added up after all the items have been considered. This is the estimated pre-cost of the buffet. This amount, however, assumes that every guest will have only one portion of each item. Reality oftentimes looks different; not every guest takes one portion of each item. Therefore, the total pre-cost figure is only a guideline helping to determine the price. It still needs to be verified at the end of the buffet.

The portion sizes on buffets should be less than half the size of a la carte portions. Large portions increase waste, and high-cost entrees are consumed in greater amounts. Giving guests the opportunity to taste small portions of each item will encourage them to try the less costly dishes.

A subtle food-cost control measure is to pre-plate more expensive items. Not only does it help to reduce waste and over production; it also provides a touch of elegance. On the other hand, pre-plating can drastically increase the labor cost; to ensure quality, well-qualified staff is required to arrange nice looking plates. An oftentimes overlooked aspect of portion control on a buffet is the size of serving utensils. Time and again, large kitchen spoons and ladles find their way to the buffet line, leading to significant waste. Designated serving utensils contribute to the proper portion control.

Food served on smaller trays and platters may have to be replaced more frequently, but it does convey the message that there is not an endless supply and will guide the guest to take only one or two selections rather than over-fill their plates. Serving food in smaller serving vessels also provides the opportunity for more variety. 

Controlling costs

Controlling buffet costs isn’t easy. Implementation and follow through of strict rules is critical. This way, costing becomes easier to overview and less intimidating, allowing the operator to establish a good profit margin.

Holding a higher-ranking employee accountable for each step of the production and service will help keep costs in line. Clear and simple directions to the employees, written rather than verbal, are essential to avoiding miscommunication, which can result in over- or underproduction. Maintaining accurate and up-to-date logs of the day-to-day operation helps in making decisions whether to retain or reject a certain dish based on its profitability. Food cost is not the only factor; labor costs for preparation as well as for service, showmanship and equipment costs play an important role in the pricing of a buffet as well.

The equipment

Equipment must be capable of keeping food safe and at the correct temperature. Equipment also serves to highlight the food. Real marble is an ideal display base for cold foods, helping to maintain a cold temperature while being appealing to the eye. Oftentimes unconventional serving vessels are used to present food. Sushi can be presented on oversized bamboo mats. Southeast Asian stews and curries add a tropical feel to the buffet when they are presented on banana leaves. The theme of the buffet often determines the equipment and serving vessels. Chinese food can be very appealing if presented in decorative woks or clay pots. Classical French food benefits from being displayed on traditional silver platters.

Where food temperature is concerned the trend is toward integrated burners and heat-plates to hold food in attractive dishes. For simple catering situations, however, chafing dishes still come in handy. To hold cold food, integrated refrigeration is the ideal solution; if not available, insulated crocks, bowls and hotel pans work, some featuring double walls with a refrigerant gel. Frozen overnight, they hold a temperature of less than 40°F for up to eight hours.

The beauty of a buffet is quickly damaged once the guests start assembling their plate. To counter this, consider using smaller trays, perhaps with separators. Change trays frequently so they look fresh and attractive. To break the monotony, use trays and plates in a variety of shapes, sizes and colors. Decorative risers and colorful table clothes reflecting the theme, the occasion or the event add a third dimension to the buffet. Attractive enhancements such as sculptures made from ice, butter or chocolate beautify it.

Interactive stations, where dishes are prepared to order, require special equipment. If there are no integrated burners in the station, portable gas burners can be used. The better choice is induction cook-tops. Since there is no flame, there’s little chance of injury. They heat up fast, cool down quickly and are cost effective and energy efficient

Food safety

One of the most important aspects of any buffet is food safety, a constant challenge for the foodservice industry. It is paramount to be aware of and comply with new and changing sanitation regulations. Implementing and enforcing a rigorous cleaning and sanitation schedule verified with up-to-date logs is a good beginning. Ideally, all foodservice workers are certified in food safety to encourage personal responsibility.

The temperature danger zone, between 41°F and 141°F, is another very important factor of food safety. In this temperature range, pathogens can multiply rapidly and spoil most items high in moisture and low in acidity. Keeping the food out of this range is essential; as per food safety authorities, the upper limit of exposure time at temperatures between 41° and 141° is four hours.

Hot food for buffets is often kept hot for extended periods; the temperature should be checked and documented by a staff member on a regular basis. An infrared thermometer is a convenient tool for that, but it only measures surface temperature. To verify internal temperatures of whole roasts and the like, you need a probe thermometer.

Glass shields, installed above the food, are a good way to keep food safe, especially from accidental sneezing.

By controlling the actions of everyone involved in the buffet preparation and presentation, you can minimize risks and ensure optimum safety. The responsibility of foodservice operators is to provide the guest with a great meal and a unique experience as well as to ensure the well being of the customer.              

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