Food and Beverage Management System

The provided assignment is focused on the topic of food and beverage management system. It emphasizes the significance of effective management in the hospitality industry, highlighting the importance of marketing and promotion to inform customers about product benefits and create differentiation among similar products. The case study examines Wetherspoon's event planning, including venue, timings, chief guest, and estimated cost, showcasing a proper business plan for a new service or product launch. Additionally, a costing sheet is included to demonstrate the calculation of material costs, preparation costs, total cost, profit margin, and selling price.

Food and Beverage
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAINBODY....................................................................................................................................1
1. Explanation of industry aims, policies and standards.............................................................1
2. Food and beverage outlet business plan and analysis of data.................................................2
3. New food and beverage management system.........................................................................6
4. Importance of marketing, sales and promotion ......................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX......................................................................................................................................9

INTRODUCTION
Management is a technique which is required in every industry it helps to run the
business smoothly and gain higher profits. In food and beverage industry is mainly related to
restaurant or hotel who is serving different type of food (Davis and et. al., 2018). This industry
provides various services such as preparing, presenting and delivering eating and drinking items
to the customers. Organisation taken in this report is Wetherspoon, which is based in UK. The
company is willing to introduce a new food item which is rainbow rice. For this purpose a
business plan is prepared for and its outcomes are analysed under this project report. This report
also consist aims, policies and objectives of food and beverages management system,
explanation and assessment of a new food and beverages management system and importance of
marketing, sales and promotion in relation to same sector is also covered in this report.
MAINBODY
1. Explanation of industry aims, policies and standards
Food and beverage management system is followed by all the hospitality related
companies as they serve all types of foods and drinks to their customers. In this type of industry
management is very important as it can help to perform all the activities appropriately. Following
are some aims, policies and standards of this sector that embedded in such type of management
system:
Industry Aims:
 Main aim of the industry is to provide best services and food items to the customers and
this is possible if company is following a proper food and beverage management system.
 To attract higher number of customers and satisfy their needs which can be achieved by
proper management system (Grekova and et. al., 2014).
Policies:
 The companies who are the part of food and beverage industry should provide hygienic
food and prepare it by considering health of their customers. This could be done by
following a management system in which a managers will can keep an eye on every
activity which is performed by the staff while preparing food.
 Organisations should ignore food contamination like harmful chemicals and
microorganisms, because this may result in consumer illness. For this purpose a proper
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management system should be followed as this may reduce the possibility of such type of
issues.
Standards:
 ISO 9001: It is mainly related to the management system of quality of food that is
provided to the customers. It direct companies to provide prime products and services to
the consumers that may fulfil their requirements.
 ISO 22000: It is introduced to deal with food safety issues. Under this standard
companies are directed to keep communicating with their staff to assure relevant food
and safety hazards in food chain (Ha and et. al., 2014).
2. Food and beverage outlet business plan and analysis of data
Business plan: It is a written document that contain detailed information such as
objectives, vision, mission etc. of a company. It is mainly generated to keep all the data in one
place so that it may facilitate while making any decision. As Wetherspoon is now willing to
launch a new food item which is Rainbow rice a new innovation (Martinez, 2013). For this
purpose the company needs to prepare a business plan to attain its objectives. The detailed
business plan is as follows:
Business Plan
1. New product goals and objectives
New product: Wetherspoon is now launching Rainbow rice with fish and multi coloured
peppers.
Aim: The organisation's main objective is to attract more and more customers by providing
them attracting, innovative and good quality food item.
Policies: The company is using nutrition policy as it is using green and other vegetables for
colouring in rice.
Objective for the new product
Short term: Objective of the company fro Rainbow rice is to attract customers by providing
them a new and innovative product.
Long term: To pull potential customers by providing them varieties in one food item.
Introduction of organisation:
Organisation: The new food item is going to be sold by Wetherspoon which is currently located
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in UK. It provides online services to its customers so that they may order food and pay amount
from their phone.
Aim: The aim of the company is to be on the top of the food and beverages industry by
acquiring higher market share.
Policies: The organisation is following various policies such as food safety, nutrition and
agriculture. Company is buying food material direct from farmers and serves hygienic food
items.
Objectives of the Wetherspoon
Short term: To make modification in food chain.
Long term: Wetherspoon has set a long term objective which is, to acquire more market share
by introducing more innovative food items, so that it can retain existing customers and attract
potentials.
2. Probable financial outcome
Probable outcome of action:
As analysed from income statement of the company that total profits of the company has
increased as compare to previous year. There is a possibility of a huge success for a new
products because it is an innovative concept that may attract more customers (Slining, Mathias
and Popkin, 2013).
Approach to pricing Rainbow rice:
As analysed form Appendix the probable selling price for this food item is 25£. Total cost for
this item is 20£ and total profit margin of the company is 5% of cost. Company has set the price
appropriately which is a combination of various costs such as ingredients and preparation.
Targeted customers:
Estimates potential customers for the organisation are 20000 approximately form the total
population of the country. This estimation is mainly based on the image and performance of
Wetherspoon. The target region for the company is London.
3. Production and service system of the new product
New food production and service system: The system is as follows
Input: All the ingredients are input for the food item. Those are olive oil, rice, peppers,
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vegetable puree, salt, lemon juice etc.
Process: It consist all the process such as chopping, cooking, boiling etc.
Output: It is the food item which is going to be received after all the processes. When the
output has been received than this will be served to the customers with attractive presentation.
Operational plan:
It has been decided that Rainbow rice will be served with fish and multi coloured pepper. As it
is a new and innovative idea so it is vital for the organisation to provide good quality food and
best services so that more and more customers get attracted toward its food.
Legislations:
Food standard act 1999: This is mainly related to public health and consumers interest. If
Wetherspoon is not considering consumers health and using harmful ingredients than it may
affect the sale (Wood, 2018).
Food safety order 1991: It affects the food business by analysing that they are proving food
according to their promise or not. It also assures that food is safe for customers.
Necessary training and staffing requirement:
It is essential for Wetherspoon to provide training to its staff which can help them to attend
customers specifically. It is also very important for the employees of the restaurant to serve
food according to customers demand.
4. Market and competition
Customers trends and needs of new food item:
Now a days customers are willing to have new and innovative food items that can satisfy their
needs. Customers also go to those restaurants who serves best food item with high quality of
additional services such as good dining, perfect environment etc. The need for Rainbow rice is
that it is made from different vegetables so if a customer ids having allergy from a vegetable
than this may create a problem.
Unique selling point:
For Rainbow rice unique selling point is its colours as it will be served in very colourful form.
Another unique point is that the colours that are used are not artificial they use natural
vegetables to provide colours to rice.
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Target customer:
It has been decided by the company that it will target local young people first so that their
feedbacks can be recorded and if there is any problem in food than it will be improved or
resolved. The target customers are selected from London.
Research:
Secondary type of research has been conducted for market, industry and region. From internet
and other resources it has been analysed that customers taste and preferences always remain
changing and there is a need to make modification in food items. So that more customers get
attracted. It has been also determined that competitors are not providing options to the
customers this is a good chance for Wetherspoon to attract customers with its new food item
(Pelletier and Laska, 2013).
Promotion:
Company will promote its business with the help of advertisement and additional discounts to
its existing customers.
Business operation:
The business will be operated in London firstly and if it get success that organisation will
spread it in all over UK.
SWOT of Wetherspoon:
Strengths: Natural items are used rather than artificial to provide colour in food. It provides
options to its customers.
Weaknesses: A major weakness of Wetherspoon is that it allows children with adults which is
not good.
Threat: As company is running its business in various countries so it is possible that political
factors may affect business negatively.
Opportunity: As company use innovative and updated methods for food production that can
result in higher profits.
Deatils of competitor:
Name : Nandos
Location: It operates its business in London.
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Website: www.nandos.co.uk
Aim: Main aim of the company is to attract more and more customers to maximise profits.
Strengths: It provides best grilled chicken in world. Selling price for food it reasonable
according to food quality.
Weaknesses: It spend less on marketing activities so there is low recognition of the restaurant.
From the above mentioned business plan it has been analysed that the main objective of
the company is to attract more and more customers by providing them innovative food item.
There is a probability of that the Rainbow rice can grab attention of higher number of customer
as it is very attractive and innovative.
3. New food and beverage management system
There are various management systems that are used by food and beverage industry. All
of them are explained below:
 Food production methods: There are various types of methods that can be used by
Wetherspoon to produce new food item which is rainbow rice. These methods are
chopping, boiling, frying, grilling, mixing, pasteurising, steaming and grinding.
 Service and quality: While delivering food items to the customers the company needs to
provide best quality food with additional services like good surrounding, special dining
etc. If it provides good services to its customers than it will help to set a positive market
image.
 Menu costing and budgeting: It is essential for an organisation to prepare budget before
launching a new product. Wetherspoon should set appropriate prices for its food item
which is going to be introduced and create a budget for this launch so that this may not
affect availability of funds. Price which is decided for Rainbow rice is 25£ which and the
cost for is 20£ and company is earning a profit of 5£ on one unit of food item.
 Pricing techniques: Wetherspoon should use right pricing technique to set an
appropriate prices that is affordable for customers. It should also be determined that what
pricing strategies are used by competitors so that right price can be estimated. The
company has used pricing for market penetration strategy.
 Sales promotion: It is an activity that helps to increase sales by providing various
benefits to the customers. It includes discounts, coupons etc. It can be adopted by
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Wetherspoon in order to maximise sales of its new and innovative food item which is
rainbow rice.
As Wetherspoon is launching a new and innovative food item all the above mentioned
system can be used by the company to attain its goals that are customers satisfaction and profit
maximisation (Chen and et. al., 2015).
Menu for the event:
Dishes
Rainbow Rice with fish and multicoloured peppers Main course
Green salad Starter
Virgin Mojito Beverage
Apple Pie Desert
4. Importance of marketing, sales and promotion
When a company is willing to launch a new product or service than it is very important to
promote, and market that product so that more and more customers get attracted and this can
help to acquire more market share. As Wetherspoon is introducing an innovative food item
which is Rainbow rice with fish and coloured peppers, so it is essential to perform marketing
activities in order to attract customers. Following are the importances on marketing, sales and
promotion:
Marketing:
 It increases awareness among people that helps to attract more and more market share.
 If an organisation is using proper marketing activities than it may result in increased trust
on customers because marketing can build good market image (Importance of marketing.
2018).
Sales:
 It fulfils the gap between customers and organisation.
 It is very important as it can help to recover all the expenses that are spent by an
organisation.
Promotion:
 It helps to inform market about benefits of a product.
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 It creates differentiation among same products by describing their benefits.
All these elements are very important for Wetherspoon because it can help in food and
beverage management system which is very important for hospitality industry.
Plan for the event:
Venue Restaurant Gallery
Timings 6 PM onwards
Chief Guest Chef Steve
Cost to be incurred 2500
CONCLUSION
From the above project report it has been analysed that in every industry management is
very important in order to maximise profits. If an organisation is willing to launch an innovative
products so it should conduct marketing and promotion activities so that more customers get to
know about the same. While introducing a new service or product company should make a
proper business plan so that all the activities can be performed specifically.
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REFERENCES
Books and Journals:
Chen, E. and et. al., 2015. Implementation of non-regulatory food safety management schemes
in New Zealand: a survey of the food and beverage industry. Food control. 47. pp.569-
576.
Davis, B. and et. al., 2018. Food and beverage management. Routledge.
Grekova, K. and et. al., 2014. Extending environmental management beyond the firm
boundaries: An empirical study of Dutch food and beverage firms. International
Journal of Production Economics. 152. pp.174-187.
Ha, O. K. and et. al., 2014. Relation model describing the effects of introducing RFID in the
supply chain: evidence from the food and beverage industry in South Korea. Personal
and Ubiquitous Computing. 18(3). pp.553-561.
Martinez, M. G. ed., 2013. Open innovation in the food and beverage industry. Elsevier.
Pelletier, J. E. and Laska, M. N., 2013. Campus food and beverage purchases are associated with
indicators of diet quality in college students living off campus..American Journal of
Health Promotion. 28(2). pp.80-87.
Slining, M. M., Mathias, K. C. and Popkin, B. M., 2013. Trends in food and beverage sources
among US children and adolescents: 1989-2010. Journal of the Academy of Nutrition
and Dietetics. 113(12). pp.1683-1694.
Wood, R. C., 2018. Strategic questions in food and beverage management. Routledge.
Online
Importance of marketing. 2018. [Online]. Available through:
<http://www.stptax.com/importance-marketing-businesses/>
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APPENDIX
Costing Sheet
Particular (per unit) Amount(£)
Olive Oil 2
Pepper(Red+Yellow+Green) 1.5
Rice 6
Salt 0.5
Lemon 1
Salmone fillets 7
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Cost of material 18
Add: Preparation cost 2
Total cost 20
Add: Profit margin 5
Selling price 25
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