Twenty-First Annual Report 1998-99

Annex A – Refreshment Department

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Refreshment Department
Annual Report 1998-99

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Organisation Chart

 
Purpose

1.

The Refreshment Department is responsible for the efficient operation of the House of Commons catering facilities. The Department's primary duty is to provide meals and light refreshments for Members, guests, staff and other people working within the Parliamentary Estate whilst the House is sitting. An appropriately reduced level of catering service is provided during parliamentary recesses or at other times when the House is not sitting. Banqueting and private dining facilities are available for Members, Officers of the House and Parliamentary organisations with which Members are associated. The Refreshment Department also manages the House of Commons souvenir sales.

 
Services provided

2.

The principal services provided by the Refreshment Department are: -

Core Services	7 Cafeterias
	6 Dining Rooms
	8 Bars
Commercial Services	Banqueting and Private Dining
	Souvenir Sales
Ancillary Services	Vending
	Off Sales

 
Organisation

3.

The organisational structure of the Refreshment Department and approved staffing complement as at 31 March 1999 are shown on the attached chart.

 
Current and Future Activities

4.

The level of demand for catering services in 1998-99 was exceptionally high and, for the first time, the Department served more than 1 million meals during the year. Total sales were £4.5 million, an increase of 8% on the previous year. Food sales in particular were buoyant throughout the year, rising by 11%, with beverage sales increasing by 7%. Souvenir sales, however, were disappointing, with a 1% decrease in sales compared with the previous year. This is entirely due to a reduction in sales of beverages and tobacco, although the general souvenir sales demonstrated a slight increase overall.

Banqueting sales increased by 12% to £1.8 million with an increase in covers of 14% compared with last year. A computerised diary management and booking system was installed in the Banqueting office during August, thus enhancing the information available to manage this important aspect of the Department's business. This new system is interfaced with the accounting system so as to speed up the efficiency of the invoicing process.

Overall, the Department exceeded its budgeted operating surplus by 3% on its Trading Account, whilst staff and other costs carried on the Administration Vote were within budget. The full details of the Refreshment Department's trading performance are disclosed in the published Trading Account for 1998-99. Key statistics are included in the Performance Measures set out in paragraph 5 below.

The greatest priority facing the Department in the year ahead is the completion of the final phase (Phase F) of the six-year modernisation programme, as approved by the House in July 1994. This final and extremely complex project - the modernisation of the principal kitchens – will commence in August 1999 and is scheduled for completion in March 2000. During this period, temporary kitchens will be operated and a reduced service will be provided in the Members' Dining Room, the Churchill Room and Terrace Pavilion. The Strangers' Dining Room and some private dining services will be closed for the duration of the works. This will inevitably impact on the Department's financial performance during 1999-2000.

Other projects and objectives for the Department during 1999-2000 include: -

Formal commitment to the Investors in People standard and commencement of work to achieve accreditation by the end of 2000;

Review of kitchen staffing and implementation of new structure to coincide with opening of the new kitchens;

Implementation of the revised Personnel and Training office structure, including recruitment for the new post of Training Officer;

Re-focus of training and development activities to better reflect the aims and objectives of the Department and to provide staff with the necessary skills to achieve levels of excellence in their jobs;

Train at least four members of the Department to the NVQ level 32 Assessor standard;

Respond to any recommendations arising from the Braithwaite Review, the recent Members' Survey of Services, and to any other changing requirements identified during the year;

Development of a comprehensive catering policy to clearly define the core services of the Department, its key customers and its financial remit;

Review accounting policies and procedures as the Trading Account is amalgamated into the Administration Vote to provide a single, unified account for the Department;

Complete testing and contingency plans to safeguard all business critical systems and services over the millennium;

Continued extension of the Electronic Point of Sale (EPoS) system, to include the Members' Dining Room, Strangers' Dining Room, Pugin Room, Members' Smoking Room, Members' Dispense Bar and Principal Kitchen (as part of the Modernisation Programme), the Churchill Room, Strangers' Bar, 1 Parliament Street and 7 Millbank; all remaining installations should be complete by the end of 2000-01;

Identify all supplies which must be procured through the letting of formal contracts (as required under the Government Purchasing Regulations) and complete tenders for at least two key commodity groups by the end of the financial year;

Refine the catering brief for the catering facilities for Portcullis House and commence detailed planning for the opening of the new services (expected Autumn 2000) ;

Review and where necessary refine the implementation of the Assured Safe Catering System (Food Hygiene);

Development of a comprehensive Departmental Health and Safety Risk Management Strategy.

The Department will continue to keep under review all aspects of its activities to ensure that the level and quality of service delivered meets, and where possible exceeds, customer expectations and at the same time offers good value for money in a cost efficient manner.

 
Performance Measurement

5.

(a)

Total cost per cover/meal served: This figure includes all operating costs.

 

 

(b)

Banqueting/Private Dining Business Mix: These charts demonstrate the mix of business conducted in the Banqueting/Private Dining sector of the Department during 1998-99.

 

 

(c)

Other Key statistics:

	1998-99	1997-98
Gross profit percentages (subject to audit)
Food	37%	39%
Beverage	56%	55%
Souvenirs	42%	42%
Net Operating Surplus	8%	10.6%
Stockholding Value	£222,600	£244,400
Staff Costs
–  borne on Trading Fund	£801,000	£720,000	11%
–  borne on Administration Vote	£4.70 m	£4.30 m	9%

 
 
 
 
Sue Harrison
Director of Catering Services
 

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Prepared 26 July 1999