This competency-based preservice home economics teacher education module on managing a food service operation is the third in a set of three modules on occupational education relating to foods and nutrition. (This set is part of a larger series of sixty-seven modules on the Management Approach to Teaching Consumer and Homemaking Education [MATCHE]--see CE 019 901-967.) Following the module objective and overview one unit of instruction is presented on management, menu planning, and budgeting in a food service operation (includes three lessons, each on one of the aspects named in the unit topic). Each lesson generally includes a narrative summary and suggested activities. A list of suggested module resources (readings) and a module pre/posttest (with answer key) conclude the document. (Workshop proceedings relating to the development of these modules are available in the ERIC system as CE 019 896-899; also available is a module on utilizing FHA-HERO as an instructional strategy to expand and strengthen the home economics instructional programs [CE 019 900].) (JH)