Refreshment DepartmentAnnual Report 2000-01
1. Introduction
The Refreshment Department is responsible for the
provision of catering services for Members, staff and others working
within the Parliamentary Estate, and for their guests visiting
the House. This involves the operation of a diverse range of services
within the Palace of Westminster and in three other parliamentary
buildings: Portcullis House, 1 Parliament Street and 7 Millbank.
Vending machines are also maintained in parlia-mentary buildings
that do not have a staffed catering facility.
The opening of the new parliamentary building, Portcullis
House, brought about a major addition to the catering services
operated by the Refreshment Department, with the opening of two
new restaurants, 'the debate' self-service restaurant and 'the
adjournment' brasserie, and the start-up of a new catering service
to the meeting and conference rooms. The opening of these new
facilities has finally enabled the department to close the former
Westminster Hall Cafeteria for conversion into facilities for
visitors to the House, a decision made by the House in July 1994.
As at the end of the year, the Refreshment Department
was responsible for operating the following parliamentary catering
services, serving more than 965,000 meals in 2000-01:
| 6 self-service restaurants
| (Members' Tearoom, Terrace Cafeteria, Press Cafeteria, Bellamy's Cafeteria & Clubroom, Portcullis Cafeteria, 'the debate' in Portcullis House)
|
| 4 traditional restaurants | (Members' Dining Room, Strangers' Dining Room, the Churchill Room, Press Dining Room)
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| 2 modern restaurants | (the Millbank Room, 'the adjournment' brasserie)
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| 1 seasonal restaurant | (the Terrace Pavilion summer buffet)
|
| 8 bars | (Members' Smoking Room, Pugin Room, Strangers' Bar, Terrace Pavilion Bar, Churchill Bar, Annie's Bar, Press Bar, Bellamy's Bar)
|
Additionally, the Department operates banqueting and private dining
services on a commercial basis. A Member of Parliament or other
authorised officer sponsors all functions, and the profits from
this activity contribute towards the cost of operating the Parliamentary
catering services. Banqueting turnover in 2000-01 was £1.9
million, generating an operating surplus of £378,000.
The Refreshment Department is also responsible for the purchasing
and sale of House of Commons souvenirs. Merchandising activities
are an important source of income to the House, and during 2000-01
the souvenir shops generated an operating surplus of £180,000,
excluding the trial summer opening of the Line of Route.
2. Plans and Achievements
FINANCIAL
2.1 FINANCIAL MANAGEMENT
OF TRADING
OPERATIONS - "THE
TRADING ACCOUNT"
The net cost of operating the Refreshment Department is met from
the House of Commons Administrative Expenditure Account. However,
under the financial targets approved by the House of Commons Commission,
this cost, the subsidy, is limited to the cost of staff for parliamentary
catering (i.e. excluding staff costs for banqueting and souvenir
services) and capital expenditure for computer systems or other
exceptional items. All other expenditure relating to the trading
activities of the Refreshment Department, including banqueting
and souvenir staff costs, are met from the Department's trading
income. The Department is tasked with delivering an overall five
per cent surplus on its trading activities.
Forecasting of the trading budget was difficult for 2000-01, as
the precise timing and impact of opening of the new facilities
in Portcullis House was not clear when budgets were set. Furthermore,
the final stage of the Department's modernisation programme was
only completed at the end of 1999-2000, with the result that efficiency
gains from the Department's new kitchens could not be established
before budgets were agreed. Whilst demand for the Department's
services varied against budget within individual outlets, the
overall income, gross profits and other expenditure from trading
activities were very close to budget.
Key trading figures are set out in Table 1 below:
After incorporation of the trading surplus into the Administrative
Expenditure Account, the total cost of operating the Refreshment
Department in 2000-01 was £6.0 million, against a budget
of £6.3 million. This figure represents the net cost of operating
the Refreshment Department after return of the trading surplus
(£263,000).[19]
2.2 STRATEGIC REVIEW
AND BUSINESS
PLANNING
In October 2000, the Refreshment Department introduced a quarterly
strategic review meeting, intended to improve the financial and
commercial awareness of middle and junior management and, in particular,
to create a link between business planning and business performance.
As part of this process, line managers have prepared business
unit plans for the financial year commencing April 2001, linking
their individual unit plans with the overall Departmental 4-year
plan, and with their own and their staff's personal objectives
as agreed in annual appraisals and team meetings. As line managers
become more familiar with the concept of business planning, it
is intended that business unit plans will be extended wherever
appropriate to cover the same timescale as the overall Departmental
business plan.
2.3 MANPOWER PLANNING
The introduction of manpower planning throughout the Departments
of the House has significantly changed the way in which staff
budgets are set. This has created an important challenge for the
Refreshment Department, whose total pay budget is greater than
the total income from the Department's trading activities. Although
very much still in its early stages, the delegation of responsibility
to line managers for the day-to-day management of staff costs
within their areas is a key objective. Some progress was made
during 2000-01, both in the level and quality of information available
to managers, and this work will be continued in 2001-02.
In March 2000, a scheme was introduced whereby chefs work longer
hours when Parliament is in session and take the accrued time
off during recess periods. The trial system, which was agreed
in consultation with the trade unions, has largely been successful
and is expected to be formally adopted shortly.
SERVICE LEVELS
2.4 OPENING OF
PORTCULLIS HOUSE
The opening of the catering facilities in the new parliamentary
building, Portcullis House, was a major project undertaken by
the Refreshment Department in close collaboration with the Department
of the Serjeant at Arms. Detailed design of the kitchen and other
back of house areas was completed several years ago, but during
2000-01 much work had to be done to fit out the restaurant areas
in a style that met the overall project brief and the operational
needs of the Refreshment Department. The Catering Committee agreed
the detailed catering brief in January 2000 and a Special Projects
Manager was appointed to take responsibility for managing this
important project. Furniture, tableware, uniforms and interior
finishes were agreed and purchased in time for the planned opening
in October 2000, and staff were recruited and trained for the
50 new posts necessary to operate the catering services in Portcullis
House. Although the opening of the catering areas was delayed
until November 2000 to enable builders' works to be completed
in the kitchens, both 'the adjournment' brasserie-style restaurant
and 'the debate' self-service restaurant have been enormously
popular additions to the catering service provided by the Refreshment
Department.
In addition to the two new restaurants, the Refreshment Department
introduced a service to provide light refreshments to the meeting
and conference rooms on the first floor of Portcullis House. Bookings
are managed by staff of the Department of the Serjeant at Arms,
who pass on details of refreshment requirements to catering staff.
Customers who are not permitted to take refreshments into the
meeting rooms elsewhere within the Parliamentary Estate have welcomed
the introduction of this new service.
Not only have the new catering facilities in Portcullis House
received universal approval from customers, the financial contribution
from these areas has exceeded expectations. In just four months
of trading, the catering income from the new services was £200,000,
against a six-month budget of £180,000. The food service
concept, based on food freshly cooked to order in both restaurants,
has yielded financial benefits by reducing wastage and ensuring
that portion sizes are carefully controlled; consequently the
food gross profit margin was almost 10% above budget and the overall
gross profit from catering activities in Portcullis House was
almost 70% above budget.
2.5 CUSTOMER SATISFACTION
SURVEY
A questionnaire was issued to all Members, staff and other regular
users of the catering services during October/November 2000 in
order to measure customer satisfaction levels with the various
services offered by the Refreshment Department and to inform the
planning of services for the future. Almost 650 responses were
received, a slightly lower response rate than the last survey
conducted in July 1996.
As in 1996, the survey shows that location, the friendliness and
helpfulness of staff, and food quality are the three key issues
to customer satisfaction. However, menu range and the variety
of food on offer are becoming increasingly important to customers
in their choice of which venue to use. It was gratifying to note
that improvements were recorded in all nine indicators measuring
service standards, recording an overall satisfaction rating of
79% (76% in 1996). Taking the results for individual venues, all
but one area increased or maintained their service score for 1996.
The department continues to be well regarded for its breakfast
offer, which recorded a customer satisfaction score of 78% (73%
in 1996). Cooked lunches and dinners were slightly better rated
than in 1996, but still did not score as highly as breakfasts,
whilst the salads and sandwiches remained the least well regarded
aspect of the Department's food offer.
The Department published a response to the customer survey in
March 2001, setting out the steps that had already been taken
or were planned to address areas of concern identified from the
customer feedback.
STAFF RESOURCES
2.6 CUSTOMER FOCUS
TRAINING
A staff training programme, "Aiming for Excellence"
was conceived and developed in conjunction with a specialist training
company. Management of the Department were trained to deliver
the course and all staff of the Department had attended the course
by October 2000. The course not only raised awareness of customer
expectations, but was also an important aspect of the Department's
commitment to the training and development of its staff.
2.7 INVESTORS IN
PEOPLE (IIP)
The Refreshment Department exceeded its target to achieve full
accreditation as an Investor in People by March 2001, achieving
the standard in August 2000. The "Aiming for Excellence"
customer focus programme was a very significant factor in the
Department's early accreditation, but other key requirements included
the establishment of an annual appraisal system for all catering
grades, and the compilation of personal training and development
plans for all members of staff.
Following the Department's accreditation, an action plan was drawn
up and implemented during the autumn of 2000, with a view to retaining
accreditation when reassessed in July 2001. The key elements are
that:
- action plans arising from staff appraisals will be drafted
to maximise the development opportunities of all staff;
- "SMART" objectives for the development of teams
and individuals will be set specifically with reference to contingency
planning, career development and succession planning; and
- evaluation of the effectiveness of staff training and development
will be conducted at three levels - individual, team and senior
management.
2.8 NATIONAL VOCATIONAL
QUALIFICATIONS (NVQ'S)
Alongside the work undertaken to gain and retain IiP accreditation,
the Refreshment Department has embarked on an objective to become
an approved NVQ centre. This will enable the Department to assess
and award nationally recognised qualifications without incurring
the cost of external assessors. By the end of 2000-01, an infrastructure
of trained assessors and internal verifiers will be in place,
enabling the Refreshment Department to actively operate as an
approved NVQ centre as soon as accreditation is awarded.
IT SYSTEMS
2.9 EPOS SYSTEMS
The 5-year programme for the installation of electronic point
of sale systems throughout the Department was completed in February
2001, approximately a year ahead of the original timetable and
within budget. One of the last installations, the Members' Dining
Room, was exceedingly challenging, with the need to tailor a standard
system to meet the unique operational requirements of this busy
and vital service to Members. This was a very time-consuming project
during the first quarter of the year, with management focussed
on eradicating early system failings and improving the skills
of staff using the new system. By July 2000, the system had largely
been settled-in and staff familiarity with the new system had
been achieved through a combination of training and usage.
Additionally, the Department installed on-line credit card authorisation
systems throughout the dining rooms and souvenir kiosks, improving
the speed of service for customers paying by credit card.
OTHER
2.10 SUMMER LINE
OF ROUTE
In January 2000 the House agreed to re-open, on a trial basis,
the Line of Route for visitors during the summer of 2000. As part
of this trial, the Refreshment Department was requested to collaborate
with the House of Lords Refreshment Department in the operation
of merchandising activities, selling souvenirs and guidebooks
to visitors during the summer opening. The planning and management
of this additional service was very time consuming and had a considerable
impact on the workload of the Department. In particular, purchasing,
stores and accounts office staff had to work to tight deadlines
to agree the product range, receive and store the merchandise
and set up appropriate financial controls and reporting systems.
The sales counter was largely manned by dining room waiting staff,
whose contribution was vital.
With no previous history, financial projections set out in the
Administration Committee's Report had to be taken as the basis
for planning; in the light of experience, these projections were
over optimistic, and the merchandising activity for the second
trial year during the summer of 2001 has been appropriately scaled
down. The Refreshment Department derived no financial benefit
from undertaking this activity, as all income and expenditure
was transferred into the project account held by the Department
of the Serjeant at Arms.
2.11 THE GENERAL
ELECTION
In collaboration with the other departments of the House, the
Refreshment Department was been involved in planning for the 2001
general election. Detailed plans were drafted for catering services
during the period of dissolution, and for the new Parliament.
Sue Harrison
DIRECTOR OF CATERING SERVICES
19
The different figures in this section and Table 1 (page 11) reflect
reconciliation and accounting base differences between the Vote
and the Refreshment Department's operating accounts. The figures
are provisional and subject to audit by the National Audit Office. Back
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