Food Industry Trends and Operations Management

This assignment delves into current trends shaping the food industry, encompassing areas like packaging, manufacturing systems, and technology. It examines factors driving these trends, including environmental concerns, consumer demand, and advancements in production processes. The analysis also explores the role of lean operations, and their impact on performance within the Chinese manufacturing sector. Furthermore, it investigates the influence of policies and initiatives aimed at promoting healthier food choices, such as taxes, subsidies, and advertising restrictions targeted at children.

Food and Beverage
Operations Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Characteristics of different food production and food and beverage service systems.........1
1.2 Different factors affecting recipes for specific systems.......................................................2
1.3 Staffing structures, and costs, for the different production systems.....................................2
1.4 Suitability of service systems for specific F&B outlets.......................................................3
TASK 2............................................................................................................................................3
2.1 Use of financial statements in food and beverage operations...............................................3
2.2 Use of cost and pricing processes........................................................................................3
2.3 Analyse the purchasing process...........................................................................................3
TASK 3............................................................................................................................................4
3.1 Food and beverage menus for an event................................................................................4
3.2 Reasons that you believe these menu dishes are suitable for the event................................4
TASK 4............................................................................................................................................4
4.1 Budget for hospitality event..................................................................................................4
4.2 Implement planned services maintaining standards health and quality................................5
4.3 Factors to determine the success of the service, making recommendations for
improvement...............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
In hospitality industry, food and beverages play a most important role because it helps in
providing various opportunities of earning profit in easier way. This is one of the largest industry
in world which provides different services and several job opportunities to young generation.
Food beverage operation management term is consider different terms such as planning,
organising, monitoring, controlling, training and different serving methods of quality food and
services to customers (Davis, 2013). This report is based on an international restaurant chain,
TGI Fridays which h was founded in the year of 1965 by Alan Stillman. This report discussing
about Food production and beverages services system, use of financial statements for this sector
and brief information about different factors for the success of services sector. At last this report
will representing a proper budget for different hospitality events.
TASK 1
1.1 Characteristics of different food production and food and beverage service systems
Food production is a specific method that used to transform raw material products in
finished goods. This process is basically uses according to customer's need and demand. Main
objective of this process is to convert raw material into fished goods to provide higher
satisfaction to customers.
Food production system – This is a specific process that used to prepare food through specific
procedure. There are some specific steps of food production system are given below -
 Input – In this process, organisation purchase raw material to transform them into
finished goods. Basically this process referred to customers analysis on the basis of their
demand and choice for specific product (Mahalik and Nambiar, 2010).
 Processing – This is second step of food production system in which chef and
professionals of hotel produce quality product by the uses of raw materials.
 Output – This is final step of food production system in which organisation employees
serve finished goods to their customers.
Food and beverage service systems – In hospitality industry, employees uses different kind of
service system such as -
 English service – This is a standard serving methods in which foods are served in a
specific method of from the left side of guest. It is also known as silver service method.
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 Buffet services- This is a special type of serving method in which meal and dished
placed on a table at a particular place. In which candidates serve their own meal
according to their choice.
 Cafeteria services – This is a traditional serving method in which customers and guest
place their order on menu counter and employees provide them particular product
according to their choice (Massoud, 2010).
1.2 Different factors affecting recipes for specific systems
In hospitality industry, influence in menu designing is not only affected by cost oriented
methods but also based on audience and their demand. Various external factors are also affect its
operational activities. For this TGI Fridays hotel needs to make appropriate strategy according to
different age group, combination of demand and several organisation events. There are different
factors are determine below that affecting recipes for specific systems as -
 Customers expectation – They are most important element who affect specific menu
designing system in an organisation. For them organisation needs to use specific strategy
to make attractive menu according to customers expectation.
 Social response – Now a days, youngsters and social groups visits most of the hotels, so
organisation needs to analyse their choice to make a effective and attractive menu
according to them. These factors are directly affects recipe and menu development
process (Slack, Chambers and Johnston, 2010).
1.3 Staffing structures, and costs, for the different production systems
In TGI Fridays hotel, lots of employees provides heir effective services to achieve
business objectives easily. Their main objectives is to provide appropriate satisfaction to
customer's through their quality products and services. Its staffing structure is works according
to different production system such as -
 One-off Production – This method is basically uses, when only one product is made by a
specific person. In this process, organisation save various expenses or cost through one
on one production services. In this process, organisation paid cost to a specific person
who provides their services.
 Batch Production – In this process, group of some candidate are assigned for a specific
task according to customer's demand. In this process, organisation pay cost according to
group performance.
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 Mass Production – In this process, overall employees of firm are working together to
achieve a specific goal and objective of firm. For them organisation paid a specific cost to
each and every employee.
1.4 Suitability of service systems for specific F&B outlets
For food and beverage firm, it is required that they follow various systems for providing
specific services to their customers. In this they needs to analyse demand of customers for their
services to develop their own outlet at this area (Taj and Morosan, 2011). For this process, they
needs to make specific strategy to provide quality services according to differer level of areas
such as -
 High level outlets – At these type of location and areas, TGI Fridays hotel needs to
manage their business strategy according to its standard and choices of different person.
For them organisation needs to make specific strategy for menu designing, serving
methods and food production methods.
 Medium level outlets – These kind of individual can manage their demand easily. So for
them organisation needs to make attractive and creative strategy to capture their eyes
toward organisational services.
 Low level outlets – At these type of places, people do not believe to judge services of
organisation. They are basically come to enjoy the atmosphere of outlets.
TASK 2
2.1 Use of financial statements in food and beverage operations
Income statement Currency in GBP. All numbers in thousands
Revenue 31/12/17 01/01/17 27/12/15 28/12/14
Total revenue 679282 710712 685381 635225
Cost of revenue 589490 598136 558491 516623
Gross profit 89792 112576 126890 118602
Operating expenses
Research
development - - - -
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Selling general and
administrative 31188 33420 37999 33588
Non-recurring - - - -
Others - - - -
Total operating
expenses 620678 631556 596490 554913
Operating income
or loss 58604 79156 88891 80312
Income from continuing operations
Total other
income/expenses
net -15018 -118683 -2046 4615
Earnings before
interest and taxes 58604 79156 88891 80312
Interest expense -1911 -2073 -2128 -2488
Income before tax 43586 -39527 86845 84927
Income tax expense 10653 638 17959 17928
Minority interest - - - -
Net income from
continuing ops 32933 -40165 68886 66999
Balance sheet Currency in GBP. All numbers in thousands
Period ending 31/12/17 01/01/17 27/12/15 28/12/14
Current assets
Cash and cash
equivalents 9611 9568 2983 880
Short-term - - - -
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investments
Net receivables 14949 18782 13366 8991
Inventory 5930 5632 6389 5530
Other current assets - - - -
Total current assets 47963 49806 38005 29410
Long-term
investments - - - -
Property plant and
equipment 335029 345952 403640 368576
Goodwill 26433 26433 26433 26433
Intangible assets - - - -
Accumulated
amortisation - - - -
Other assets - - - -
Deferred long-term
asset charges - - - -
Total assets 409425 422191 468078 424419
Current liabilities
Accounts payable 124238 42812 55669 50977
Short/current long-
term debt 33935 41225 34676 42720
Other current
liabilities 12537 27848 16803 15495
Total current
liabilities 136939 139909 136403 121634
Long-term debt 31223 37882 30527 39458
Other liabilities 36815 32013 14632 15873
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Deferred long-term
liability charges - - - -
Minority interest - - - -
Negative goodwill - - - -
Total liabilities 207525 212754 184518 179895
Stockholders' equity
Misc. Stock options
warrants - - - -
Redeemable preferred
stock - - - -
Preferred stock - - - -
Common stock 56551 56550 56518 56433
Retained earnings 127548 137332 212867 175567
Treasury stock -7753 -9987 -11080 -11971
Capital surplus 25554 25542 25255 24495
Other stockholder
equity -7753 -9987 -11080 -11971
Total stockholder
equity 201900 209437 283560 244524
Net tangible assets 175467 183004 257127 218091
2.2 Use of cost and pricing processes
COSTING EXERCISE
Dish:
Quantity to
prepare:
Best Yorkshire 5 portion
6

puddings
Ingredients Specification
Unit of
Measure
[UoM]
Cost /
UoM
Quantity
Required
Total
Cost
plain flour 140 gram £5.00 5 £25.00
egss 4 units £0.20 4 £0.80
Milk 200 ml £1.00 2 £2.00
TOTAL COST £27.80
COST PER PORTION (total 5 portion) £5.56
Wastage (Per
Portion) 5% £0.28
Cost Price Plus
Gross Profit 35% £1.95
Adding VAT to
Achieve Selling
Price 5% £0.28
Portions Sold 5
Selling Price £8.06
Gross Revenue £2.50
Net Revenue (After removing VAT) £2.22
Actual GP% Achieved
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Actual CoS% Achieved
2.3 Analyse the purchasing process
Variance analysis
Budget Actual Variance £ Variance %
Pudding £120 £125 £5 4.0%
TASK 3 & 4
(Covered in PPT)
CONCLUSION
As per the above report it has been summarised that food and beverages are most
important aspects in hospitality industry that needs to manage in appropriate manner. Through
this, an organisation can easily build strong relation with their customers for a long term period.
This project report is based on an international restaurant chain, TGI Fridays. For them it is
require to manage their operational activities in appropriate manner to getting effective success
easily.
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REFERENCES
Books and Journals
Davis, B., and et. al., 2013. Food and beverage management. Routledge.
Mahalik, N. P. and Nambiar, A. N., 2010. Trends in food packaging and manufacturing systems
and technology. Trends in food science & technology. 21(3). pp.117-128.
Massoud, M. A., and et. al., 2010. Drivers, barriers and incentives to implementing
environmental management systems in the food industry: A case of Lebanon. Journal of
Cleaner Production. 18(3). pp.200-209.
Slack, N., Chambers, S. and Johnston, R., 2010. Operations management. Pearson education.
Taj, S. and Morosan, C., 2011. The impact of lean operations on the Chinese manufacturing
performance. Journal of manufacturing technology management. 22(2). pp.223-240.
Powell, L. M. and et. al., 2013. Assessing the potential effectiveness of food and beverage taxes
and subsidies for improving public health: a systematic review of prices, demand and
body weight outcomes. Obesity reviews. 14(2). pp.110-128.
Thorndike, A. N. and et. al., 2012. A 2-phase labeling and choice architecture intervention to
improve healthy food and beverage choices. American Journal of Public Health. 102(3).
pp.527-533.
Powell, L. M. and Nguyen, B. T., 2013. Fast-food and full-service restaurant consumption
among children and adolescents: effect on energy, beverage, and nutrient intake. JAMA
pediatrics. 167(1). pp.14-20.
Davis, B. and et. al., 2013. Food and beverage management. Routledge.
Galbraith‐Emami, S. and Lobstein, T., 2013. The impact of initiatives to limit the advertising of
food and beverage products to children: a systematic review. Obesity Reviews. 14(12).
pp.960-974.
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.
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.
Chriqui, J. F., Pickel, M. and Story, M., 2014. Influence of school competitive food and
beverage policies on obesity, consumption, and availability: a systematic review. JAMA
pediatrics. 168(3). pp.279-286.
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