Operational Management in Food and Beverage Industry

The assignment requires the student to develop a business plan for a restaurant that involves clear aims, critical evaluation of competition, product concept, development & marketing, and consumer trends. It also emphasizes the importance of delivering quick services, providing better quality food products and beverages, making effective promotions, and following legislations associated with the industry.

Food and Beverage
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
An explanation of industry aims & policies ...............................................................................1
Design of your new food and beverage management system......................................................3
Planning and operational management .......................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Food and beverage management forecasts, plans & control the ordering of food and
beverage for a hospitality property. As the main aim of food and beverage management is to
provide quality products and services in order to satisfy the desires of consumers so that their
experience can be better. To better understand this concept Sherlock has been chosen which is a
stylish restaurant known for Hollywood theme and serve the cuisines of 15 countries and it is
located at London, UK. There are various topics has covered in this report such as: to draw a
business plan in context to the food and beverage management and to describe about production
methods, pricing techniques and sales promotion. Along with this planning and operational
management issues are also discussed in context to the service sequence, training and consumer
service & legislation awareness.
MAIN BODY
An explanation of industry aims & policies
A business plan is a document which describes that how a business run in order to
accomplish the objectives and it involves marketing, financial & operation viewpoints. For that
purpose Sherlock has chosen that is a Hollywood theme restaurant which serves cuisines of 15
nations and provide food, cocktails and wines. As consumers can watch the movies while eating
and drinking and restaurant is based out on a tramcar, giving variety & entertainment for all
Hollywood fans. Theme is based on Hollywood style which consist of disco light and soft music.
Aim: As the main aim of business is to serve best quality food and beverage in order to
fulfil the desires of consumers so that organisation can generate more revenue and grab more
market share. To enhance the quality product standards are require to be follow so that
consumers can get healthy and fresh food products (Peña and Taveras, 2012).
Evaluation of competition: In the food and beverage market where is huge competition
high profit margin and business growth. From the year 2013 to 2018 there is 6.1% annual growth
can be seen in the hospitality sector which involves specially restaurants. The main competitors
which are exist in the market as: The Ledbury, Amrutha Lounge, E Pellicci etc and they have
good market share and image. So while making business plan competition is required to be
analysed properly by Sherlock.
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Illustration 1: (Source: Annual Growth of restaurant)
Product concept, development and marketing: As Sherlock has decided to provide
cuisines of 15 nations which involves Chinese, Italian, Mexican, Indian etc. So it has wider
product variety so that need of different types of consumers can be satisfy. For the product
development it emphasis to make quality products with good taste. In context to the product
marketing restaurant use hoardings and online tools for promotion which involves Instagram,
Facebook, Twitter and websites. Pictures are prices of food products are also put while the
marketing so that consumers can get useful information in context to the different food products
and its prices. So while developing a business plan these things are required to be consider.
Consumer trend: As there are more than 56000 restaurants in United Kingdom and most
of them are provide online services to its consumers. So by analysing the consumer trend
Sherlock can also launch its mobile app so that people can place online order and get it food at
their home. So this trend is popular because consumers does not prefer to visit the restaurants. It
is important for the an organisation to analyse the recent market trend so that product are produce
on the basis of it in order to satisfy the desires of consumers. While making a business plan for
restaurant it is important to emphasis towards this factors so that business can grow and get
success (Jung and Yoon, 2012).
Branding & theming of proposed food and beverage services and products: For the
branding of food and beverage product, Sherlock has provided 15 different types of cuisines and
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it targeted mostly youngsters in London and emphasis to provide quality products in order to
satisfy the demands of consumers. So it is helpful for the organisation in context to the branding
of food and beverage products. As the theme of restaurant is based out on a tramcar, giving
variety & entertainment for all Hollywood fans. As consumers can watch Hollywood movies and
can enjoy the soft music and disco light within the restaurant.
Design of your new food and beverage management system
Food production method has involves:
Traditional method: In this method majority of food is purchased raw and facilities are
presented for the receipt & storage of goods, the preparation, cooking, holding & service of food
and this method has been used in most kitchen concern.
Cook-Freeze method: It is based on full cooking of food pursued by fast freezing with
storage at a controlled low temperature of -18C or under and this method is associated to cook-
chill apart from refrigeration temperatures.
Blast Freezing: In order to reduce time spent in hazardous areas, specially considered
Blast Chilling or Freezer is required.
Blast Chilling: The temperature should be concentrated to less than + 70 ° C. to + 3 ° C.
within 90 minutes (Jackson and Singh, 2015).
Blast Thawing: In this method heat is transffered from the air to the food to melt the ice,
the air needs to be relatively hotter than the food itself to remove the food from the ice. The
Hazard zones range from + 8 ° C to + 68 ° C, with the fastest growth of microorganisms and in
the shortest time possible and in this process germs are divided ito two every 20 minutes.
Service and quality: In the hospitality industry service is very important and for that
purpsoe Sherlock has emphasis to provide better and quick services and it should also emphasis
to provide online delivery services so that needs of consumers can be satisfy. It is important for
an organisation to provide better quality products so that maximum consumers can attarct
towrads the busienss. For that purpose restaurant has emphasis to provide excellenat quality food
products and beverage so that experience of consumers can be better. As the management has
instruct the employees to follow the quality standards for the purpose of making quality
products.
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Menu costing and budgeting:
Menu costing
Items Quantity Price
Starters:
Open Faced Burger with the Lot 1 1 GBP
Spicy Nachos 1 0.20 GBP
Chicken Liver Pate, Prosciutto, Sage &
Garlic
1 1.5 GBP
Main Course:
Spanish & Ricotta Roulade 1 3 GBP
Lightly Curried Prawn & Crabmeat Cakes 1 1.7 GBP
Herb & Citrus Crusted Tasmanian Salmon 1 4.5 GBP
Dessert:
Sticky Date Pudding with Sauteed Strawberry 1 2 GBP
Lemon Citrus Tart with coconut Ice- Cream 1 1.7 GBP
Peach & Honey Bread and Butter Pudding 1 2.5 GBP
Budgeting:
Particulars Amount (GBP)
Raw material 5000
Plant and machinery 15000
Labour 2500
Promotion 2000
Research and development 4500
Building and interior 20000
Total 49000
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So the total cost which is required in budgeting is 49000 GBP to execute the business
plan in effective manner (Henderson, 2016).
Pricing techniques: It has classified into:
Cost based pricing: This techniques is useful where price involves the cost of
ingredients & cost of operating the business. It is sub divided into: cost plus pricing, full cost
pricing, target profit pricing and marginal cost pricing (Chen, 2012).
Demand based pricing: In this technique prices are decided according to the demand of
consumers and if innovative product has been introuced than value based price may help to
create deamnd in context to the product or service. It is also sub divided into skimming pricing
and penetration pricing.
Competition based pricing: This technique is useful when product is almost similar &
market is highly competitive. As company tries to maintain the price of its products more or less
than at par as compare to the prices of competitors. It is sub divided into: premium pricing, going
rate pricing, discount pricing and tender pricing. Sherlock can use this pricing technique and set
the appropraite price of its food products and beverage.
Sales promotion: To aware the consumers it is important to make promotion in order to
enhance the sales of organisation. There are various steps can be taken by Sherlock in order to
make sales promotion which involves: discount, refunds, product combination, quantity gift,
instant daw & assigned gift, lucky draw and usable benefits. These are the sales promotion tools
which help the restaurtant to attract more number of consumers in order to maximize the sales so
that it can earn more profits and sustain for a long term in the market.
Planning and operational management
Service sequence: It has been analysed that service sequence is not palnned properly and
there is no sequence can be seen while delivring the service in the restaurant. It create the issues
in service and if organisation does not deliver better service as per the sequence than consumers
will not satisfy and does not want to prefer to eat. Proper service has includers: welcoming the
guest, escorting the guest, seating the guest, presenting the mene, menu content, taking the order,
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placing the order to the kitchen, serving the food, presenting the guest's bills, receiving and
accepting tips and bidding goodbye (Borges Lopes and Sousa, 2015).
Training: Due to the absence of proper training employees can not perform as per the
requiremnet of organisation and it cretae the issues in context to the planning and operational
managemnet so it is important for Sherlock to provide training to the employees so that they can
perform better.
Consumer service: Due the absence of planning and operation management issues
comapny can not provide proper services to the consumers and due to it thet does not prefer to
visit the restaurant and ir reduce the sales of comapny. So it is important for Sherlock to provde
better consumer servive and enhance the service quality and delivery.
Legislation: As there are various legislations which are require to be follow by the
restaurnts and it involves: Helath and safety act, food and beverage act, licencing act etc. It is
important for Sherlock to make effective planning in context to follow the legislation (Amin and
et. al., 2013).
CONCLUSION
As from the above report, it has been concluded that food and beverage management is
important for the grwoth of organisation. For get success it is required to make a effective
business plan with involves: claer aims, crutical evaluation of competition, product concept,
development & marketing and consumer trends. As there are different food production methods
which can be used as per the requirement of restaurnt. It is imprtant to deliver quick services and
provide better quality of food products and beverage so that more number of consumers can
attract towards the organisation. To enhance the sales it is required to make effective promotion
and it is helpful to attract more consumers. As there are various planning and operational
management issues has been arises in context to the service sequence, training and consumers
service and it is important to follow the legislations which are associated with food and beverage
industry and if these are not followed than it can create issues in context to the operational
management.
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REFERENCES
Books and Journals
Amin and et.al., 2013. Service quality dimension and customer satisfaction: An empirical study
in the Malaysian hotel industry. Services Marketing Quarterly.34(2). pp.115-125.
Borges Lopes, R., Freitas, F. and Sousa, I., 2015. Application of lean manufacturing tools in the
food and beverage industries. Journal of technology management & innovation, 10(3),
pp.120-130.
Chen, L. F., 2012. A novel approach to regression analysis for the classification of quality
attributes in the Kano model: an empirical test in the food and beverage industry.
Omega.40(5). pp.651-659.
Dello Stritto, G. and Schiraldi, M. M., 2013. A strategy oriented framework for food and
beverage e-supply chain management. International Journal of Engineering Business
Management.5(Godište 2013).pp.5-50.
Henderson, J. C., 2016. Halal food, certification and halal tourism: Insights from Malaysia and
Singapore. Tourism Management Perspectives.19. pp.160-164.
Jackson, L. A. and Singh, D., 2015. Environmental rankings and financial performance: An
analysis of firms in the US food and beverage supply chain. Tourism Management
Perspectives.14. pp.25-33.
Jung, H. S. and Yoon, H. H., 2012. The effects of emotional intelligence on counterproductive
work behaviors and organizational citizen behaviors among food and beverage
employees in a deluxe hotel. International Journal of Hospitality Management.31(2).
pp.369-378.
Peña, M. M., Dixon, B. and Taveras, E. M., 2012. Are you talking to ME? The importance of
ethnicity and culture in childhood obesity prevention and management. Childhood
Obesity.8(1). pp.23-27.
Wang and et.al., 2013. Developing green management standards for restaurants: An application
of green supply chain management. International Journal of Hospitality
Management.34. pp.263-273.
Wolfe, K. and Kim, H. J., 2013. Emotional intelligence, job satisfaction, and job tenure among
hotel managers. Journal of Human Resources in Hospitality & Tourism.12(2). pp.175-
191.
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