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vi C O NTE NT S

13 Typical Storage Management Procedures 281

• The Objectives of Storage 282 • Key Words and Concepts 301
• What is Needed to Achieve Storage Objectives? 284 • Questions and Problems 301
• Managing the Storage Facilities 287 • Experiential Exercises 303
• Exercising Tight Control Over the Stock and • References 303
Analyzing the Value of Storage Management
Procedures 297

14 Security in the Purchasing Function 305

• The Need for Security 306 • Preventing Security Problems—Facilities and the
• Security Problems 307 Owner–Manager’s Role 318
• Preventing Security Problems—Suppliers • Key Words and Concepts 321
and Accounting and Inventory • Questions and Problems 321
Procedures 311 • Experiential Exercises 322
• Preventing Security Problems—Employees 315 • References 323

15 Fresh Produce 327

• The Importance and Challenges • Procedures for Receiving, Storing, and Issuing Fresh
of Purchasing Fresh Produce 328 Produce 348
• Primary Selection Factors 330 • Key Words and Concepts 354
• Size, Form, Packaging, and Related • Questions and Problems 355
Considerations 339 • Experiential Exercises 356
• Purchasing Fresh Produce 344 • References 357

16 Processed Produce and Other Grocery Items 359

• Management Considerations 360 • Procedures for Receiving, Storing, and
• Primary Selection Factors 366 Issuing Processed Produce and Other Grocery
• Size, Form, Packaging, and Related Items 382
Considerations 370 • Key Words and Concepts 384
• Supplier and AP Price Factors 377 • Questions and Problems 385
• Purchasing Processed Produce and Other Grocery • Experiential Exercises 388
Items 379 • References 388

17 Dairy Products 389

• Management Considerations 390 • Key Words and Concepts 407
• Primary Selection Factors 392 • Questions and Problems 408
• Size, Form, Packaging, and Related Considerations 398 • Experiential Exercises 409
• Purchasing Dairy Products 401 • References 410
• Procedures for Receiving, Storing, and Issuing Dairy
Products 403
 C ON TE NTS vii

18 Eggs 411
• Primary Selection Factors 412 • Key Words and Concepts 424
• Size, Form, Packaging, and Related • Questions and Problems 425
Considerations 416 • Experiential Exercises 426
• Purchasing Eggs 421 • References 426
• Procedures for Receiving, Storing, and Issuing
Eggs 423

19 Poultry 427
• Primary Selection Factors 428 • Key Words and Concepts 444
• Size, Form, Packaging, and Related Considerations 434 • Questions and Problems 445
• Supplier and AP Price Factors 438 • Experiential Exercises 447
• Procedures for Purchasing, Receiving, Storing, and • References 447
Issuing Poultry 439

20 Fish 449
• The Importance and Challenges of Purchasing • Procedures for Receiving, Storing, and Issuing
Fresh Fish 450 Fish 470
• Primary Selection Factors 451 • Key Words and Concepts 474
• Size, Form, Packaging, and Related • Questions and Problems 475
Considerations 461 • Experiential Exercises 476
• Purchasing Fish 466 • References 477

21 Meat 479
• Management Considerations 480 • Procedures for Receiving, Storing, and Issuing
• Primary Selection Factors 486 Meat 504
• U.S. Government Grades and Packer’s Brands 492 • Key Words and Concepts 509
• Size, Form, Packaging, and Related • Questions and Problems 510
Considerations 497 • Experiential Exercises 512
• Purchasing Meat 502 • References 513

22 Beverages 515
• Management Considerations for Beverage • Selection Factors for Nonalcoholic Beverages 541
Alcohols 516 • Procedures for Purchasing, Receiving, Storing, and
• Selection Factors 526 Issuing Nonalcoholic Beverages 545
• AP Price and Supplier Factors 532 • Key Words and Concepts 548
• Purchasing Beverage Alcohols 533 • Questions and Problems 549
• Procedures for Receiving, Storing, and Issuing • Experiential Exercises 551
Beverage Alcohols 535 • References 551
• Management Considerations for Nonalcoholic
Beverages 540
viii C O NTE NT S

23 Nonfood Expense Items 553

• Management Considerations—Types of Nonfood • Typical Nonfood Items—Permanent and Disposable
Expense Items 554 Ware and Utensils 567
• Management Considerations—Price and Supplier • Typical Nonfood Items—Fabrics and Paper Goods 572
Factors 559 • Key Words and Concepts 575
• Purchasing Nonfood Expense Items 561 • Questions and Problems 575
• Typical Nonfood Items—Cleaning and Maintenance • Experiential Exercises 577
Items 563 • References 578

24 Services 579
• Management Considerations 580 • Consulting, Financial, and Insurance Services 598
• General Procedures in Service Purchasing 584 • Key Words and Concepts 605
• Cleaning and Maintenance‐Related Services 585 • Questions and Problems 605
• Other Facilities-Related Services 590 • Experiential Exercises 607
• Advertising 593 • References 607

25 Furniture, Fixtures, and Equipment 609

• Management Considerations 610 • Financing the FFE Purchase 633
• General Procedures in FFE Purchasing 614 • Key Words and Concepts 639
• Primary Selection Factors 616 • Questions and Problems 640
• Operating Characteristics 620 • Experiential Exercises 642
• Cost and Service Factors 627 • References 642

Glossary 643
Index 675
 Preface

N icholas, the general manager of a large independent food-

service operation had recently decided to employ a variety of social media marketing
tools to build a regular customer base and keep it up to date with restaurant specials and events.
Dinner business had been steadily declining over the past several months. His marketing
campaign included a new Facebook page, offering half off meals through Groupon and a certif-
icate for $10 on Restaurant.com.
Business had been particularly slow on Monday nights. One Monday morning, he decided
to tweet his 600 followers that the restaurant would be offering 50 percent off on all entrees that
evening. He also posted this on his Facebook page. Around 5:30 p.m., Nicholas was pleasantly
surprised to notice a steady increase of walk‐in customers. Shortly thereafter, the restaurant filled
up and the wait for a table exceeded 45 minutes. While he smiled, Rachel, the restaurant’s pur-
chasing manager, approached him and said, “It sure would have been nice if you let me know
about your half‐off idea. I estimate that in about one hour, we will run out of food.” Nicholas
learned a very valuable lesson that evening—one that stuck with him for years—the importance
of the purchasing function in the hospitality industry.
This text is not written necessarily for those who wish to become managers or directors of
purchasing in the hospitality industry. It is written for those who will be involved with some
phase of purchasing throughout their careers, and as the preceding scenario illustrates, most indi-
viduals involved in the management of a hospitality operation will interact with the purchasing
function. In essence, this book is a purchasing book for nonpurchasing agents. It provides a com-
prehensive and understandable view of the activity, as well as its relationship to the management
of a successful operation.
Although the text is primarily written as the foundation of a hospitality purchasing course, it
is structured in a way that also acts as a comprehensive reference guide to the selection and pro-
curement functions within the hospitality industry. This structure is particularly evident in the
later chapters, which provide specific details on numerous categories of items and services com-
monly procured in this industry. Another reference attribute is the comprehensive glossary of key
terms used throughout the text and the detailed index that provides context to many hospitality
purchasing terms and concepts.

ix
x Preface

The text has a storied history, spanning numerous editions. In that time, we have maintained
the original objectives of the text, while keeping up to date with this evolving field. Along with
our staff, we spend thousands of hours on each new edition, ensuring that you are provided with
current information and insights into the purchasing field from both academics and industry
professionals.
Purchasing: Selection and Procurement for the Hospitality Industry, Ninth Edition is the
most comprehensive and up‐to‐date hospitality purchasing text on the market today.

ORGANIZATION OF THE TEXT

T his ninth edition of Purchasing: Selection and Procurement for the Hospitality Industry con-
tinues its successful recipe of balancing purchasing activities with product and information
from a management perspective. Moreover, each chapter is revised so that it includes the most
current concepts available, while providing even more in‐depth coverage of hospitality purchas-
ing. In essence, great care has been taken to maintain the integrity and readability of the original
text while modernizing the discussions of purchasing techniques and practices currently being
employed in the hospitality industry.
The text is divided into two parts. The first 14 chapters focus on the theory and application of
selection and procurement concepts. The chapters are structured in a way that allows the reader
to first gain insight into the typical organizational structure of a hospitality operation and the
integration of the purchasing function. A discussion of concepts then progresses to provide the
reader an expanding understanding of many of the facets of this complex, intertwined, and inte-
gral part of the industry. Along the way, the reader is provided numerous examples, questions, and
exercises to reinforce these concepts. Although the organizational structure of the first 14 chapters
provides an effective instructional path through hospitality purchasing theory, each chapter is writ-
ten with the insight that some may wish to reorganize their order and/or select only a few to read.
Because of this structure, the hospitality professional can also find significant value in this text by
using the detailed table of contents or index to identify a particular concept to refresh or learn.
The remaining 11 chapters focus on items and services commonly procured in the hospitality
industry. They are written in a modular and self‐contained manner, and their sequence can be
easily restructured by the instructor. Further, the hospitality professional can use these chapters
as a reference guide when procuring these items and services.
Although many of the theoretical underpinnings of the purchasing function have not
changed in the years since the text was created—product distribution channels and forces that
affect the price of goods remain relatively unchanged, and specifications and purchase orders are
still required to order these goods—the use of technology when implementing and maintaining
effective purchasing policies and procedures has changed drastically. To inform readers about
these changes, technology applications in the purchasing function are discussed throughout the
majority of the first 14 chapters that encompass purchasing principles. Chapter 2, “Technology
Applications in Purchasing,” also covers this topic in depth.
We have also significantly expanded the number of discussions and interviews with industry
executives who are purchasing experts. More than 25 experts discuss topics as diverse as the role
 What’s New for the Edition
xi

of the broker, handling waste, green purchasing opportunities and responsibilities, and energy
cost considerations, to name a few. We hope that these short stories provide even more insight
into this complex and rapidly evolving field.

WHAT’S NEW FOR THE EDITION

M any important changes and additions have been made to Purchasing: Selection and
Procurement for the Hospitality Industry to make the text even more useful. Among the
most significant changes are the following:

• The former Chapter 6—The Organization and Administration of Purchasing—is

combined with former Chapter 7—The Buyer’s Relations with Other Company
Personnel. This revision builds on the importance of staffing, training, directing, and
overall administration of the purchasing function.
• The former Chapter 10—The Optimal Price—is combined with Chapter 11—The
Optimal Payment Policy. This new chapter, “Determining Optimal Purchasing Prices
and Payment Policies,” more accurately reflects the interrelationship between price and
payment policies.
• Industry Insights throughout the text have been updated. More than 27 discussions and
interviews with industry executives are interwoven throughout. These stories include
insights that provide insider information about current and future trends related to pur-
chasing. All are written by experts in the purchasing field, providing perspectives of the
future of purchasing, novel approaches to procurement, and new techniques for calculat-
ing the amount of products to purchase.
• Chapter 1 now includes definitions of the concepts of supply chain management and
logistics. Chapter 2 has been updated to include more information on purchasing tech-
nology. Technology applications in purchasing—such as online ordering and group pur-
chasing organizations—are addressed in chapters throughout the text.
• There is much more discussion of sustainability, green practices, and corporate social
responsibility throughout the text. We also added substantial new information about
organic and natural products in product chapters where appropriate.
• Chapter 4 contains new information on ethical concerns and procurement laws, such as
the Food Safety Modernization Act.
• The updated glossary contains hundreds of purchasing‐specific terms and detailed defi-
nitions. This glossary is a vital reference for students and those already working as pur-
chasing professionals.
• New, revised, and updated illustrations and photographs of concepts, companies, and
products relating to the purchasing function have been included.
• The end‐of‐chapter Questions and Problems have been updated and are now organized
with the problems at the end to make it easier for instructors to decide which to assign to
their classes. There are now Experiential Exercises for each chapter.
xii Preface

FEATURES

P urchasing: Selection and Procurement for the Hospitality Industry, Ninth Edition is a
learning‐centered textbook that includes several pedagogical enhancements in an effort to
help the reader quickly acquire and retain important information.

• Each chapter begins with a Purpose section, which provides several learning objectives.
These objectives, written using Bloom’s Taxonomy of Educational Objectives – Cognitive
Domain, direct readers’ attention to the major headings and important themes discussed
throughout the chapter.
• Industry interviews and insights are interspersed throughout all chapters of this text.
Some of the interviews are “day‐in‐the‐life” features that demonstrate how a typical pur-
chasing agent functions day‐to‐day, whereas others are detailed discussions of specific
areas within the purchasing function and how the purchasing agent makes an impact on
decisions made for the benefit of the hospitality organization.
• At end of each chapter, a list of Key Words and Concepts provides the reader with an
additional resource to assist in the retention of important topics. Readers can review these
terms to ensure that they have grasped all relevant information from the chapter. Further,
all Key Words are available in the glossary at the end of the text.
• The Questions and Problems section can be used for classroom discussion or assigned to
students as homework. The accompanying Instructor’s Manual provides detailed answers
to each of these questions.
• Most chapters also include a References section. Along with citing sources of information
within the chapter, these entries provide additional articles, websites, and texts should the
reader wish to explore further particular topics.
• All chapters include Experiential Exercises. These allow the reader to actively learn about
the function of purchasing through hands‐on activities and projects.

SUPPLEMENTS

A completely revised Instructor’s Manual (ISBN XXXX) accompanies this book; it provides
several syllabus examples, teaching suggestions, test questions, answers to the book ques-
tions, and term projects. It can be obtained by contacting your Wiley sales representative. If
you don’t know who your representative is, please visit www.wiley.com, click on “Resources
for Instructors,” and then click on “Who’s My Rep?” An electronic version of the Instructor’s
Manual is available to qualified instructors on the companion website, at www.wiley.com/
college/feinstein.
Revised and updated PowerPoint slides are also available to students and instructors on
the companion website. These graphically rich presentations are classroom tested and pro-
vide a detailed outline of each chapter. They can be easily modified to suit any instructor’s
preferences.
 Acknowledgments
xiii

The Test Bank for this text has been specifically formatted for Respondus, an easy‐to‐use
software for creating and managing exams that can be printed to paper or published directly to
Blackboard, Canvas, Desire2Learn, eCollege, ANGEL, and other eLearning systems. Instructors
who adopt Purchasing: Selection and Procurement for the Hospitality Industry, Ninth Edition,
can download the Test Bank for free. Additional Wiley resources also can be uploaded into your
Learning Management System (LMS) course at no charge. To view and access these resources
and the Test Bank, visit www.wiley.com/college/feinstein, select Purchasing: Selection and
Procurement for the Hospitality Industry, Ninth Edition, click on the “visit the companion
sites” link.

ACKNOWLEDGMENTS

T he authors would like to thank the following individuals for their continued assistance in
developing and refining this text:
Audrey Alonzo for research and writing assistance.
Tanya Ruetzler for her work on updating the Instructor’s Manual.
Ryan Kirk‐Bautista for providing student input and research assistance.
Abigail Lorden at Hospitality Technology Magazine
Robert Grimes at Constrata Tech
Glenn Millar at Red Rock Capital Management
Danny Campbell at Cannery Casino Resorts
Camille Godwin‐Austen at IHOP
Robert Hartman at Robert Hartman Consulting
Mark Mignogna at Sysco
Jerry Burawski at Lake Tahoe’s Squaw Valley USA
Rebecca Kohn at San Jose State University
John Howeth at the American Egg Board
Joe Micatrotto Jr. at MRG Marketing and Management, Inc.
George Baggott, Baggott Consulting, Ltd., formerly at Cres Cor
Lisa Hogan at Santa Monica Seafood
Seth Larson at Newport Meat Company
John Smith and Drew Levinson at Wirtz Beverage Nevada
Wayne Bach at Four Queens Hotel and Casino
Dennis Lambertz at Nevada Food Brokerage
Robert Lindsay at House of Blues, Live Nation Entertainment
Mark Kelnhofer at Return on Investments
Mark Perigen at the USDA, AMS, Livestock, Poultry, and Seed Program
xiv Preface

Don Odiorne at the Idaho Potato Commission

Daniel Celeste at University of Nevada, Las Vegas
Mark Lawson, Bill Leaver, and Jeff Bradach at Nevada Beverage Company
Sara Janovsky at Open Table
‐‐‐‐‐
JoAnna Turtletaub, James Metzger, and Julie Kerr at John Wiley & Sons.
 CHAPTER

1
THE CONCEPTS
OF SELECTION
AND PROCUREMENT

The Purpose of This Chapter

After reading this chapter, you should be able to:

• Define several terms associated with selection and procurement.

• Distinguish among different types of hospitality operations, and describe
purchasing functions within those operations.

1
2 C HA P TE R 1 The Concepts of Selection and Procurement

INTRODUCTION AND PURCHASING, SELECTION,

AND PROCUREMENT DEFINITIONS

T here is not a single job in the hospitality industry that does not involve purchasing in one
way or another. A flight attendant must keep careful inventories of bottled water and soft
drinks to know how much to request for restocking. The manager of a hotel must be able to
find the best price for sheets and pillows in a reasonable quantity for her size of operation. An
accountant for a hotel chain must know enough about the company’s purchasing agreements to
take advantage of discounts based on timely payments. An event designer must know the current
price for flowers and décor so that he can make appropriate recommendations in the guest’s price
range. These are just a few of hundreds of scenarios where purchasing plays a critical role in the
hospitality industry. Think about it for just a moment; it is the person in charge of purchasing
who spends the majority of the money made by a hospitality operation, and it is this person’s
skills and knowledge that significantly assist in achieving profitability in an operation. It could
easily be said that purchasing is one of the most important functions in any hospitality operation.
This book has been designed for those students who expect to have careers in the hospitality
industry, but we realize not everyone will specialize in hospitality purchasing.
We emphasize the managerial principles of the purchasing function and intertwine the
purchasing function with the other related management duties and responsibilities that the
hospitality operator faces on a day‐to‐day basis.
This book includes enough product information so that you can easily prepare the product
specifications required to select and procure an item if necessary, but also includes information
on related purchasing activities, such as bill paying, that most purchasing agents do not per-
form. The typical hospitality manager eventually becomes involved with many of these related
­activities.
We also incorporate a great deal of information on technology applications related to the
purchasing function that will enable a hospitality student to learn the technological aspects
of procurement. Similarly, in areas where appropriate, particularly the specific product chap-
ters, the concepts of sustainable and green practices and organic and natural products will be
addressed.
It is our goal that wherever your career takes you within the hospitality industry, you will be
adequately prepared to interact with the selection and procurement functions of an operation.
With this in mind, we begin our discussion of selection and procurement for the hospitality
industry.
For most people, the term purchasing means simply paying for an item or
purchasing Paying for a
service. For hospitality professionals, this meaning is far too restrictive because
product or service.
it fails to convey the complete scope of the buying function. For our use, the
selection Choosing from
among various alternatives.
terms selection and procurement better define the processes involved.
Selection can be defined as choosing from among various alternatives on
a number of different levels. For example, a buyer can select from among several competing
brands of chicken, various grades of chicken, particular suppliers, or fresh and processed chicken
 Introduction and Purchasing, Selection, and Procurement Definitions 3

products. One person, generally referred to as a buyer or purchaser, may not procurement An
perform all these activities or make all these choices at one time. But they may orderly, systematic
be involved in most of them at some level. exchange between a seller
and a buyer. The process
Procurement, as opposed to selection, can be defined as an orderly, of obtaining goods and
systematic exchange between a seller and a buyer. It is the process of obtaining services, including all
goods and services, including all the activities associated with determining the activities associated with
determining the types of
types of products needed, making purchases, receiving and storing shipments, products needed, making
and administering purchase contracts. purchases, receiving and
storing shipments, and
Procurement activities are the nuts and bolts of the buyer’s job. Once buyers
administering purchase
know what is needed, they set about locating the suppliers who can best fulfill contracts.
their needs. Buyers then attempt to order the correct amounts of products or
services at the appropriate times and best prices, see to it that shipments are timely, and ensure that
the delivered items meet company requirements. A host of related duties surrounding these activ-
ities include: being on the lookout for new items and new ideas, learning the production needs
of the departments they serve, appraising the reliability of suppliers, identifying new technologies
for procurement, and so on.
Not all operations have full‐time buyers. Many have managers and supervisors who do the
buying in addition to their other duties. To these employees, buying means more than what
the term procurement by itself implies. These employees must also be aware of the relationship
be­tween purchasing and the other activities in the hospitality operation.
Because there are so few full‐time purchasing agents in our field, a textbook that focuses
solely on hospitality buying principles and procedures or product identification, although use-
ful to some, would unnecessarily restrict operating managers and supervisors in hospitality. For
example, it is not enough to simply know how to procure chicken. The typical operating man-
ager must also consider what form of chicken to purchase, as well as whether or not chicken
should even be on the menu.

■■ Supply Chain Management

In today’s complex world, even the term procurement does not reflect the supply chain
management Process
full range of activities that are involved in obtaining the products and ser- encompassing the planning
vices necessary to accommodate our hospitality guests. A much wider con- and management of all
cept is that of supply chain management. The Council of Supply Chain activities involved in
sourcing and procurement,
Management Professionals (CSCMP) defines supply chain management in conversion, and all logis-
the following way: “Supply chain management encompasses the planning tics management activities.
and management of all activities involved in sourcing and procurement, sourcing Procurement
conversion, and all logistics management activities.” These may sound like practices aimed at finding,
evaluating, and engaging
big words, but in essence supply chain management means that businesses suppliers of goods and
are concerned with knowing and coordinating everything starting with ­services.
where the product is made or grown, to how it moves through distribution conversion Converting
channels (discussed in Chapter 3), to how it is handled within the business, supplies into ­finished
products.
and how it is utilized by the end‐user, our hospitality guest. Supply chain
4 C HA P TE R 1 The Concepts of Selection and Procurement

management integrates supply and demand management within and across companies. Supply
chain activities focus on product development, sourcing, production, and logistics, as well as
the information systems needed to coordinate these activities. The CSCMP advocates that
supply chain management is successful when the goal of getting the right product to the right
customer at the lowest costs is achieved.
logistics management
The concept of logistics management, which is part of a company’s
The part of the supply supply chain, involves the movement of products and services to the cus-
chain management that tomers. The CSCMP defines logistics management as “that part of the
plans, implements, and
controls the efficient, supply chain management that plans, implements and controls the efficient,
effective flow and storage effective flow and storage of goods, services and related information bet-
of goods, services, and ween point of origin and the point of consumption in order to meet cus-
related information bet-
ween point of origin and tomer requirements” (p. 1). From the definition, the core idea of logistics
the point of consumption management is to meet customers’ needs through optimizing movement
in order to meet customer
of products and services within the company. Some activities in logistics
­requirements.
management include controlling the flow of goods into the operation and
out to the guest, sourcing and procurement, planning and customer service at strategic, tacti-
cal, and operational levels.1

■■ Technology
Today, operating managers must also deal with technology that has revolutionized how buyers
and suppliers procure products and services. This technology enables purchasing managers
to complete complex procurement functions online with a few clicks.
e‐commerce Refers to
transactions done online. Transactions done ­electronically are commonly referred to as e‐commerce, for
B2B e‐commerce
electronic commerce. B2B e‐commerce is the term used for business‐­to‐business
Online interaction bet- electronic transactions, and B2C e‐commerce refers to business‐to‐consumer
ween businesses. Typically e‐commerce. Amazon.com, for example, relies on B2C e‐commerce to sell its
involves the sale and pur-
chase of merchandise or products to consumers. B2B e‐commerce that focuses specifically on procure-
services. ment activities is referred to as e‐procurement, for electronic procurement.
B2C e‐commerce Examples of companies that make e‐procurement applications available to a wide
Online interaction between variety of industry ­segments include Perfect Commerce, Ariba, and Sterling
businesses and consumers.
Typically involves the sale
Commerce (a subsidiary of IBM).
and purchase of merchan- These companies have successfully revolutionized the way procure-
dise and services. ment is conducted. One major company that focuses on the development
e-procurement Ordering of e‐­procurement applications in the food industry is iTradeNetwork
products and services from
(ITN). Companies such as Aramark, Sodexo, CKE Enterprises, Subway,
various purveyors online.
Alternately, ordering these Smash Burger, and PF Chang’s, rely on ITN’s supply chain solutions to
things from a particular streamline their selection and procurement functions.2 Avendra, one of the
vendor who provides pro-
prietary software to the
largest procurement ­ services companies,3 has primarily focused on devel-
buyer, who is then allowed oping e‐­procurement applications for hotels. The company was formed by
to enter the vendor’s ClubCorp USA, Inc., Fairmont Hotels & Resorts, Hyatt Hotels Corporation,
electronic system.
Marriott International, Inc., and Six Continents Hotels.
 Purchasing Functions in Different Types of Hospitality Operations 5

SUSTAINABILITY AND CORPORATE SOCIAL

RESPONSIBILITY

N o purchasing textbook can be relevant today without including the

importance of sustainability and corporate social responsibility.
Whether referring to an independent restaurant that buys produce and meats
sustainability The
ability to not harm the
environment or deplete
natural resources.
from local farms or a corporation, like Marriott, whose core values and
corporate social respon-
­heritage statement includes “Serve our World,” hospitality companies must sibility The practice of
evaluate the effect of all their practices on the environment, people, and the a company self-regulating
global economy. We will discuss these concepts in more detail in the chapters the effect of their prac-
tices on the environment,
detailing the forces that affect purchasing, supplier considerations, and pur- people, and the global
chasing specific types of products. economy.

PURCHASING FUNCTIONS IN DIFFERENT TYPES

OF HOSPITALITY OPERATIONS

T he hospitality industry includes three major segments (see Figure 1.1). The
first segment is commercial hospitality operations—the profit‐oriented
companies (see Figure 1.2). The second is the on‐site segment, which used
commercial hospitality
operations Profit‐­
oriented company.
to be commonly known as i­nstitutional—those facilities that are operated on noncommercial
a break‐even basis. The third is the military segment—those operations that hospitality operations
Another term for on‐site
include troop feeding and housing, as well as the various military clubs and or military hospitality
military exchanges that exist within military installations. The second and third operation.
segments are collectively referred to as noncommercial hospitality operations.
The following types of operations are generally ­considered part of the commercial segment:

• Hotels
• Motels
Types of
• Casinos Hospitality
Operations
• Resorts
• Lodges
• Spas
Commercial Noncommercial
• Quick‐service (limited‐service, casual s­ervice, or
fast‐food) restaurants
• Table‐service (full‐service) restaurants
Profit-Oriented On-Site Military
• Snack bars Operations Operations Operations

• Food courts
• Taverns, lounges, and bars
F I G U R E 1 . 1 A major segment outline of the
• Cafeterias hospitality industry.
6 C HA P TE R 1 The Concepts of Selection and Procurement

• Buffets
• On‐premises caterers
• Off‐premises caterers
• Vending‐machine companies
• Ice cream parlors and stands
• In‐transit foodservices (e.g.,
cruise ships and airlines)
• ontract foodservice com-
C
panies, which typically oper-
ate in plants, office buildings,
day care facilities, assisted care
facilities, senior care facilities, FIGURE 1.2 An example of a commercial hospitality operation.
©atmoomoo/Shutterstock
schools, recreation centers,
hospitals, and sports centers
• Convenience stores with foodservices
• Supermarkets with foodservices
• Department stores and discount stores with foodservices

The following types of operations are generally considered part of the noncommercial divi-
sion of the hospitality industry:

• Employee‐feeding operations
• Public and parochial elementary‐ and secondary‐school foodservices
• College and university housing and foodservices
• Transportation foodservices, such as the Meals on Wheels program
• Hospitals
• Assisted living facilities
• Extended‐care facilities
• Clubs
• Self‐operated community centers, such as senior centers and day care centers
• Military installations
• Camps
• Public institutions, such as the foodservices in some government facilities
• Adult communities
• Correctional facilities
• Religious facilities
• Shelters
 Purchasing Functions in Different Types of Hospitality Operations 7

In Chapter 6, we offer a detailed discussion of the purchasing functions franchises A business

found in the various types of hospitality operations. In this introductory chapter, form where the owner
however, we provide you with sufficient understanding to get you started. When (franchisor) allows others
(franchisees) to use his or
we discuss t­ raditional hospitality operations, we think first of the independent her operating procedures,
operation. In addition, those in the trade usually group the independent name, and so forth, for
a fee.
operations according to size: the small, medium, and large independents.
The other major type of hospitality operation includes the multiunits and
the franchises.

■■ The Independent Operation

The small independent, such as a local Chinese restaurant or a bed and breakfast inn, is typi-
cally run by an owner–manager, who usually does all the buying for the business. He or she also
oversees the other related purchasing activities, such as receiving deliveries and paying the bills.
The medium‐sized independent generally involves more than one person in the purchasing
function. Usually, the general manager coordinates the various activities that other management
personnel perform. For instance, he or she typically coordinates the purchases of department
heads, such as the dining room manager who needs china and glassware, the bartender who requires
alcoholic beverages, and the chef who needs food. The general manager also oversees other related
purchasing activities.
The large independent, such as a hotel, implements the purchasing function in much the
same way that the medium independent does, except that it may employ a full‐time buyer. This
buyer purchases for the various production departments, such as housekeeping, maintenance,
engineering, and foodservice. Alternately, a designated employee from each
of these departments may be doing the purchasing; for example, a hotel may executive steward
Oversees cleaning crews.
employ an executive steward to order supplies and to supervise the sanita- Typically also has pur-
tion crew. Often the large independent operation has a full‐time food buyer, chasing responsibilities
for things such as soaps,
a beverage buyer, and a buyer who purchases equipment and other nonfood
chemicals, and other
supplies. A purchasing vice president or an equivalent official may or may not cleaning supplies. May also
supervise these three buyers. The buyers are, almost certainly, supervised by a control the china, glass,
flatware inventories, and
management person. single‐use (paper, plastic,
In the past, small and medium‐sized businesses may have had a tough time etc.) ­products.
competing in the same markets as larger companies. This was mainly because
these smaller businesses had to pay higher prices for many of the products that they procured
because they were not afforded the same discounts as large companies (we talk more about these
discounts in Chapter 6). However, e‐procurement has leveled the playing field in many instances
by enabling these smaller hospitality companies to procure products at more competitive prices
and, therefore, to be more competitive pricewise with larger hospitality operations. Today,
hospitality buyers can select and procure goods and services from suppliers and distributors all
over the world.
An idea addressed more completely in Chapter 6 is co‐op buying, a concept that enjoys popu-
larity among some independent hospitality operations, particularly some foodservice operations.
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The text on this page is estimated to be only 28.58%
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066 SIR ORFEO: ADAPTED FROM THE MIDDLE ENGLISH

BY EDWARD EYRE HUNT
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©rfeo
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r ©rfeo tfje Jflibbie BY EDWARD EYRE HUNT CAMBRIDGE

ob^eratt MCMX
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MAR 91959 Copyright, 1909 By E. T. E. Hunt All rights

reserved First edition, December, 1909 The University Press,
Cambridge, U. S. A.
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Sntroimctton SCHOFIELD, in his " English Literature from

the Norman Conquest to Chaucer," 1 writes as follows: " In Celtic
tradition there were kings as well as queens of the Otherworld, and
they too were known to cast loving eyes on mortals. In ' Sir Orfeo '
we have an unusually happy embodiment of this conception in a
story where it had originally no place. In the hands of a clever poet
the ancient tale of Orpheus and Eurydice became a genuine lay of
Britain, not simply because it was fashioned by him in the same
metre and style as the lays on native themes, but because he
transformed it in spirit 1 London and New York, The Macmillan
Company. 1906. pp. 184 ff, [V]
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throughout to accord with British notions of fairyland. "

From Hades, evidently, the scene of the old classical story has been
transferred to fairyland ; the king of the Celtic Otherworld is
substituted for Pluto. References in Chaucer's Merchant's Tale to *
Pluto, that is king of fayerye,' and in Dunbar's * Golden Targe ' to '
Pluto, the elrich incubus, in cloak of green/ attest the familiarity of
the mediaeval English and Scotch with this new conception of the
lord of the dead. Certain other classical stories (e. g. Pyramus and
Thisbe, and Narcissus) were dealt with in old French poems
sometimes called lays ; but no one of them presents the peculiar
situation in * Orfeo,' where the Celtic spirit has quite dispossessed
the ancient and permeated the whole account. "The French lay of
Orpheus, from which ' Orfeo ' is translated, is now lost ; but we have
references enough to it in other works to es[vi]
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tablish its previous existence. One, in the French prose

romance of Lancelot, is of unusual interest. King Bademagus, we
read, * was seated in an arm-chair of ivory, which was very
beautiful, and before him was a harper who played (natoit) the lay
of Orpheus; and it pleased the king so much to listen that there was
no one who dared say a word/ " I am indebted to Professor W. H.
Schofield for permission to quote the foregoing paragraphs and for
encouragement in the preparation of this little volume; to Dr. K. G. T.
Webster for interpretations of difficult phrases, although the
restrictions of metre have occasionally forced me to disregard them;
and to Professor L. B. R. Briggs for his kindly critical judgment of the
verse. E. E. H. Stoughton Hall, Cambridge, December tenth, 1909.
[Vii]
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*E often read with new delight The lays that clerks would
have us know, For lays there are that sing aright Each wondrous
thing of long ago: Some are of weal, and some of woe, And some of
joy and gentle mirth, And some of guile and treacherous foe, And
some the strangest haps of earth; Some are of jests and ribaldry,
And some there are of fairy lore; But most of all, as men may see,
They sing of love and trials sore. In Britain in the days of yore The
harpers writ that men should praise The gallant deeds that were
before — Of such the Britons made their lays. [1]
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And that we all should featly hold In heart the mirth of

elder days, Some took their harps and gaily told Of olden loves in
tender lays. I know not all their subtle ways; I tell the little that I
know; So hearken, lords, your poet prays, And I will sing of Orfeo.
Sir Orfeo, a king was he, And in his time a mighty man, Stalwart and
strong and masterly, A kind and courteous Christian. To King Pluto
his lineage ran, His mother from Queen Juno sprung; Men called
them gods when time began For lofty deeds they did and sung.
Orfeo most of any king Loved a harper and his lay; Every harper
there might sing, Honoured if he chose to stay. [2]
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And the king himself would play, Singing with a merry

mind. And, as all the gleemen say, A better harper none could find.
None before him was, I trow, Or in after days will be Held the peer
of Orfeo When he struck his harp. And he Who could hear that
minstrelsy Would have deemed his spirit were Housed in Heaven,
such melody Was it, and such joy to hear. Thrace they named his
stout demesne, Then the strongest of cities; With him dwelt his
gracious queen, Called the Lady Heurodis, Fairest of all fair ladies;
Naught surpassed her gentleness, Full of love and courtesies; None
can tell her loveliness. [3]
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And in the merry month of May When day is fraught with

happy hours, When wintry storms have passed away, And every field
is full of flowers, When clustered blossoms deck the bowers, And
morn is made to spend in sport, Sweet Heurodis went from her
towers With two fair maidens of the court, And out into the air of
spring, To revel in a grove, and see The lovely blossoms
bourgeoning, And linnets piping cheerily. At last, beneath a
spreading tree, They sat them down in grasses deep, And soon —
the maids watched at her knee — The queen was lying fast asleep.
They feared to waken her too soon, So let her lie in sweet repose.
[4]
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She slept till it was afternoon, And morn had gone, as

morning goes; Then sudden with a cry she rose And burst in tears of
wild despair, And wrung her hands, and showered blows Upon her
breast, and tore her hair. Her jewelled robe she seized and rent, For
she was frantic in her pain. The maids in their bewilderment No
longer dared with her remain, But to the palace ran again And
summoned every squire and knight, And bade them haste with
might and main To aid their mistress in her plight. Knights, pages,
squires, and ladies too, And damsels hasten from the wall; Into the
orchard quick they go, And, fearful of what may befall, [6]
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They lift and bear her to the hall And moaning on her
pillows lay; Yet wild and heedless still of all Ever she strove to flee
away. Sir Orf eo, when he was told, Was as he ne'er before had
been; With all his knights he entered bold Into the chamber of the
queen, But when he saw, he cried in teen, "Ah, dearest wife, what
afleth thee? Thee joyless I have never seen, Yet now thou wailest
dreadfully. "Thy lovely body, once so bright, Is bruised as if thou
wished thee dead. Alas! alas! how wan and white Thy little mouth
that was so red! And dark with blood thy nails have shed Thy fingers
that were erst as snow! Thy lovely eyes are full of dread And gaze as
if I were thy foe! [61
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" Cease, Dearest, I *implore thee now These cries that all
the palace fill, And tell me what hath been, and how, Or who hath
done thee aught of ill." At last she ceased and lay full still, And
weeping bitter tears of woe, She answered at his royal will, "Alas!
my lord, Sir Orfeo, " Since we were first together, naught Hath
marred our life; no smallest sign; But we have loved as love we
ought; Thou art my life, and I am thine. Now do thy best and do not
pine, For we must part, and I to doom ! " " Alas ! " he cried, and "
woe is mine ! Where dost thou go, Love, and to whom? "Whither
thou goest I will go, And where I go thou too shalt fare ! " " Nay,
nay, my lord ; thou dost not know : My doom no mortal man may
share. [7]
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This morn, as I was lying there Asleep beneath an orchard-

tree, Two gallant horsemen, young and fair, Rode to my feet, and
bent the knee, " And bade me come with haste and speed To parley
with their lord the king. But I replied I durst not heed, Nor would I
come for any thing. Then they departed galloping, And came the
king with all his court: Knights and fair damsels in a ring, All clothed
in white of wondrous sort. " I never in my life before Have seen such
creatures as they were. Upon his head the monarch wore A crown,
but nought of gold was there: It was a precious jewel rare, And
blazed as brightly as the sun; And when he came, he spoke me fair,
And though I wept, he placed me on [8]
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" A steed. And so I rode away Upon a palfrey by his side.

He brought me to his palace gay; More beautiful I never spied. He
showed me castles, rivers wide, Towers, and vast forests, mead and
plain. Again to horse, again we ride, And so he brought me home
again. "And hither to our orchard borne He let me down and said to
me, ' See, lady, that to-morrow morn Thou art beneath this self-
same tree; Then thou shalt go with us and be For aye with us in
fairy land; And if thou failest, woe to thee, For thou shalt feel the
fairies' hand ! ' " ' Where'er thou art thy limbs shall fail, No man shalt
thou find piteous; [9]
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Thou shalt be torn with tooth and nail, And would thou
hadst returned with us!'" When Orfeo had heard, he was Distraught,
and moaned, " Alas ! my life, Dearer than life, and must I thus Lose
thee, my queen, my love, my wife?" He sought for counsel: all were
dumb, For none could proffer words of good. At last the morrow
morn had come, And Orfeo in armour stood With hundreds of his
knightlihood, Each armed and harnessed, stout and grim; They
sallied forth into the wood And girt about the queen and him. In
close array they stood at guard And swore upon their weapons keen
They each should die upon the sward Ere aught should come and
take the queen. [10]
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Yet from their circle, and unseen, The woeful Heurodis was
won. Alas! naught was where she had been, And none could tell
where she had gone. Then there was wailing wild and dread; The
king into his chamber went, And oft he swooned upon her bed, And
made such dole and such lament His very life was wellnigh spent Ere
he could find a space for words; Then woefully he rose, and sent For
all his barons, earls, and lords. When they had come in solemn train,
" My lords," he said, " all ye have seen ; Hear now: my steward I
ordain To rule throughout my broad demesne. He shall be lord as I
have been, And I must wander hence forlorn, For I have lost the
fairest queen And sweetest lady ever born. [11]
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"No other lady shall I see; Forth must I fare on woeful

quest To dwell where never man may be, Of beasts and birds to be
the guest. And when ye know my soul has rest, Call then yourselves
a parliament, And choose a king as seems you best. Do all as this
my testament." Then there was wailing in the hall; Men wept as
there were no surcease, And not a man among them all Might speak
for tears. Upon their knees They knelt and made their woeful pleas,
Beseeching him he would not go, Else were they desolate. But, "
Cease," Answered the king; "it shall be so!" And so his kingdom he
forsook; He had no kirtle and no hood; A simple palmer's cloak he
took; No shoes he had, no store of food. [12]
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But with his harp he sadly strode Barefooted from the

castle gate, Alone to wander where he would. Alas! how woeful was
his state! Alas! the wailing in the hall, When he that had been king
with crown, Went like a beggar from them all. In poverty he left the
town; Through wood and waste and dreary down And towards the
wilds he set his face; Now found he deserts bleak and brown And
naught to ease his woeful case. He that had worn but garments gay
And slumbered in a purple bed, Now on the barren heather lay, His
couch with leaves and grasses spread. He that had castles turreted,
Rivers, and forests, fields, and flowers, Now had the snow and sleet
instead, And passed in woe his weary hours. [ 13]
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He that had scores of gentle knights And ladies at his beck

and call, Now saw but dread unhappy sights, Serpents and beasts
that creep and crawl. He that had supped in bower and hall On
dainty dishes and sweet fruits, Now must he dig to find a small
Repast of herbs and bitter roots. In summer, fruits of every kind He
had, and berries from the bough; In winter, nothing could he find
But roots and leaves beneath the snow. His form was bent, his pace
was slow, And he was worn by tempests sore. Ah, who can tell the
pain and woe This king endured ten years and more! His beard, that
once was black and trim, Was white, and lengthened to his knee; His
harp that ever solaced him, He hid within a hollow tree; [ 14]
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And when the day was clear and free He took it forth, and
musing played, And when the gentle melody Was echoed far
through gorse and glade, The wildest creatures hidden there For
very joy about him played, And all the birds from everywhere Came
forth and heard; for all obeyed The witching music that he made,
Such perfect melody it was; And when he ceased, they fled afraid
And hid them, wild and timorous. And oft on dewy summer morns
Sir Orfeo beheld at hand The fairy king, and heard the horns Of
hunting, and his shouting band A-ranging wide across the land With
barking hounds; yet never game He saw them take, nor heard a
stand, — Nor never knew he whence they came. [15]
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He saw across the hazy heights A mighty host another day:

A thousand well-accoutred knights Went riding ready for the fray.
Bright were their ranks, with large display Of gorgeous banners gaily
blent; Each brandished sword in that array, — Yet never knew he
where they went. Again, he saw a wondrous rout Of knights and
ladies dancing free, In quaint attire, and in and out They wove and
wandered daintily, To sound of pipes and minstrelsy And every kind
of music sweet. One day he saw a galaxy Of ladies ride by his
retreat; Gentle and sweet they were, he wist, And not a man rode in
their train; Each had a falcon on her wrist, And to the river in the
plain [ 16]
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They passed. The prey rose up amain, Cormorants, herons,

mallards flew; The falcons soared with proud disdain, Stooped, and
each hawk his quarry slew. "Ho!" laughed the king, "there is fair
game! I too will see their gay intent, For I was wont to do the
same." He rose in haste and thither went, And to a beauteous lady
bent His steps, when lo! he starts, he sees Dumb with a like
astonishment, His stolen queen, sweet Heurodis. For when she saw
that it was he She neither spoke nor uttered cry, He was so spent
with misery That once had been so rich and high. And then she wept
as if to die, But quick the others caught her rein, [17]
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And closed about, and made her fly, And would not let her
there remain. " Alas ! alas ! " he gan to cry, "Why will not death
dispel my pain? Alas! alas! would I could die Now I have seen my
love again. Alas, that I must live, who fain Would perish! for I dared
not speak To her, nor she to me. Ah, vain Is life ; alas ! my heart will
break ! " "But nay," he cried at last, "not so: I too shall wend, tide
what betide, Whither these gentle ladies go, And learn the spot
where they abide! He took his cloak and harp, and hied Him forth,
his harp upon his back, Nor stock nor stone could turn aside His
footsteps from that beaten track. [ 18]
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In at a rock the ladies rode, And fearlessly he followed fast.

When far into the rock he strode, It grew more bright, and so at last
Into a far countree he passed, Bright as the fairest summer sun: All
smooth and plain and green and vast, For hills and valleys were
there none. Amid the land a castle tall And rich and proud and
wondrous high Uprose, and all the outmost wall Shone as a crystal
to the eye. A hundred towers lit up the sky, Of diamond all battled
stout; And buttresses rose up near by Arched with red gold and
broad about. All the bonsour was carved in stone With every beast
and every wight, And all within the castle shone And sparkled with
unearthly light. [ 19]
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