Components of a Business Plan for Food and Beverage

This assignment provides an in-depth analysis of the key components involved in creating a business plan for the food and beverage industry. It outlines the importance of considering factors such as consumer trends, product concept, position of competitors, and production procedures to ensure smooth functioning of the food supply chain. The report also references various books, journals, and online resources to support its findings.

FOOD AND BEVERAGE

Table of Contents
INTRODUCTION...........................................................................................................................1
Aim, policies, standards embedded in food and management system of Subway......................1
New Product Development Plan.................................................................................................2
Design of food beverage management system of Subway..........................................................4
Significance of marketing, sales and promotion for Subway.....................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................8

INTRODUCTION
Food and beverage sector do not see much ups and downs because it is related to basic
need of human beings. Proper management system is necessary for growth of a brand. This
report will be analysing a NPD for a Subway Pea Soup which is made up of ingredients like pea,
Onion, Parsley, Red potatoes, Butter, Cream fraiche, Salt, Pepper, Plain floor. Subway is a
multinational fast food retail chain. They are considered to be leading food chain in UK itself.
Now the company is concentrated on serving pea soup which is really good way to attract health
conscious people towards its stores (Maré, 2017). Moreover, this project will be analysing and
the process that is used by Subway to serve its end users. That being done, the whole report will
be outlining ingredients as well as prices that are needs to prepare them. It will discuss about
policies and standards of F&B management system. Formulation of business plan will be
included in this project. Significance of marketing and promotion will be included under this file.
Aim, policies, standards embedded in food and management system of Subway
The prime goal of food and beverage sector is simple and clear and that is to feed the world
with delicacies which it hasn’t tried out yet. This is same for every company and business house
that is operating in the cited sector. It is completely focused on satisfying consumer needs as well
as serve them with affordable prices. A good consumer service is what every company is trying
to attain so that customer makes repetitive purchases. Furthermore, the prime goal of Subway is
to produce and supply food items which are as per the needs and wants of consumers.
There are different rules and regulations that regulate the whole environment of Subway.
There are various activities like production, distribution, processing, labelling and packaging of
food is something that is done by the cited food firm (Lohmann, Panosso and Gimenes-Minasse,
2017). While conducting these programs they follow various regulations that are enacted by UK
government as to maintain health and safety levels in a country. The food and beverage related
laws are prepared and enforced by Food Standard Agency as to make sure that they are able to
provide guidance to companies as which procedure is safe and healthy. There are various laws
that boost management of Subway in maintaining and enhancing standards related to edible food
items:
Food Regulation 1995: This is done to make sure that all specified criteria related to
production of food are stated to agency. Furthermore, organisation is asked to innovate with food
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items but they are advised regarding controlling the usage of additives. The regulation tries to
ensure that all food items which are offered by companies like Subway are based on organic or a
theme which does not have side effect on people health. This law has been amended several time
and according to it, companies are free to amend names of food items as per their will (Slining,
Mathias and Popkin, 2013).
Standards
 Regulation is enacted with an aim of providing consumer with sufficient as well as
suitable information related to food and beverages.
 It assists in establishing control over salt as well as sugar items.
 Whole production is standardised as per the hygienic conditions that are important for
maintaining food items.
New Product Development Plan
Subways has to focus its new product development plan on healthy eating habits of
people, before they launch it. The new item which will be sold is a Pea Soup. The company is
innovating products and services as per the new trend of being health conscious. The pea soup is
part of vegan food range that is being offered by Subway. This will enable company in attracting
consumers for new innovations as per the demand of people.
Aims: The goal of Subway is to make a pea soup as a starter for any meal. It will assist
people in boosting their digestive system. Also, they are trying to innovate with taste as well as
serve people with qualitative services as to deliver higher level of sales.
Competition: The main motive of organisation is to launch a vegan related food item as
to attain a higher level of competitive advantage over its rival’s like KFC, McDonald’s.
Product concept: This is where Subway management will try to innovate their plans as
to launch the product in a way that it creates a wave in market. The aim here is to make
consumer believe that all the items are prepared as per their taste and preferences. They will
make sure that all code of standards/ethics/conduct are followed to maintain stability within
organisation. while changes will be made as per the taste and preference of consumers.
Development: This is where the management will have to look at the prospectus of
innovation requirement. They will check if there is a need of changing whole product or just
need new additions (Jung and Yoon, 2012).
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Marketing: The NPD of Subway will be aligned with different market strategies that will
aid the company in determining buyers. Also, the marketing team will assist in making use of
marketing strategy as to monitor the activities of competitors and find variances in NPD itself.
Consumer needs: The prime part which is there with NPD is stated to be related with
assessment of requirements and desires of clients. The consumer is considered to be King of
market.
Food Production: The product will be readied in a way that it boosts the preparation of
Pea soup. In this, Subway will focus on the process of preparing the pea soup which involves
boiling all the ingredients as well as using all equipment’s to reduce chances of infection. The
company aims of reduce unhygienic and contaminated practices by 60% as to showcase that they
are serious with health aspect of consumer.
Food service and packaging: The whole food chain will be focused on presenting Pea
soup in a way that it attracts. As well as if the items are sent as a home delivery, then it will be
packed in a way that attracts consumers. It also has to cover the environment aspect with the
usage of paper bags and biodegradable wrapping (Castleman, 2014). Also, consumers should be
showed as how the soup is prepared as to boost their confidence.
Pattern for serving Pea Soup: The company is not delivering food online while with the
introduction of pea soup it will be launching its online as well as mobile app. Where people can
order their food items and get them home delivered.
Type of Food services: This comes under the health concerns related to food services.
the company has to ensure that additives are minimal and the item does not compromise health
aspect.
Ingredients Price (Pound) Quantity
Peas 0.70 1kg
Onion 0.60 4
Parsley 0.05 100 gm
Red Potatoes .30 200 gm
Butter 0.50 250 gm
Cream Fraiche 0.10 7 grams
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Salt 0.32 500 gm
Pepper 1.29 35 gm
Plain Floor .70 100 gm
Price plan for 3 persons
Each Portion Product Price
1 1 Pea Soup with Small
sandwich and Toast
£2.20
2 1 Pea soup with Small
sandwich and Toast
£2.20
3 1 Pea soup with Small
sandwich and Toast
£2.20
Combine for 3 persons 3 Pea soup with small
sandwich and Toast
£ 6. 60
Design of food beverage management system of Subway
Designing and launching new eatables is not an easy task and manager of Subway have
to do their duty is right way for making a sound food and beverage system:
 Analyses profitability of the product in market so necessary changes can be done before
introducing food items and beverage in market.
 All technological changes, happening in the industry, has to be checked on regular basis
along with the major trends relating to taste and preference of customer.
 Material which will be used for manufacture will be of high quality.
 Training of employees will be done in constant interval of time so they can become
expert of their field and developed required skills.
 Regular meeting will be analysed for finding flaws which can be present in management
system.
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 Adopt effective marketing strategy along with sales promotion strategy so people can
know everything about products (Fardet and Boirie, 2014).
FOOD PRODUCTION METHOD OF SUBWAY (PRIMARY)
Before manufacturing or introducing a product, company has to make sure that they are
following all the rules relating to food safety acts and hygiene. Centralised production system
will be adopted by Subway so production and services of the organisation can be bring on same
page. This will assure sound distribution system. This process will play crucial role in
duplication of various activities and it will make whole procedure much simpler by removing
reducing complexities specially in manufacturing system (Powell, Schermbeck and Chaloupka,
2013). This system will support company at the time of going through major changes because it
will synchronise all activities and centralisation will minimise challenges relating to interruption
in supply chain.
METHROD OF MAKING SOUP OF PEAS
Lot of material are need for making pea soup, like Onion, parsley, red potatoes, butter,
Cream fraiche, salt, pepper, plain floor, water and peas.
 Raw material i.e. onion, red potatoes, peas, parley will be washed by cold water and
then they will mixed by using blender.
 After 5 minutes of mixing, butter, plain floor and cream fraiche will be put in the
available solution and then blender will be again used for mixing whole solution for 10
mixtures.
 This solution will be filled with hot water and then it will be boiled for 5 min along with
continuous stir.
 This last part of boiling will be done once customer give order because heating soup for
more than one time will make a negative impact on its taste.
PROCESS OF FOOD, DISTRIBUTION AND SERVICES
 Keeping good relation with partner will help following safety standard and other plans.
Supplier are key stakeholder and if they will do work according to the plan then it will be
beneficial for both sides (Chriqui, Pickel and Story, 2014).
 The food process system mainly concentrate on maintaining risks relating to controlling
of procedure and promoting safety standards in order to assure safe workplace
environment.
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TODAY'S CONSUMER
 Subway will try to convince present customer about various health benefits and unique
taste of Pea soup (What is included in business plan? 2017).
TOMORROW CONSUMER
 Company will focus on changing taste of soup according to the market trend and they
may also have to add some other nutritions which are more healthy for customers.
PRICING TECHNIQUES
Setting correct price is a difficult because sometime buyer fees that product is expensive
while company think opposite. Below will be the pricing strategy of which will be followed by
Subway:
Market penetration – Initially, soup will be introduce at low price so more people can
taste it and it earn some free publicity.
Competitive pricing – Once it will starts capturing decent share in the market then its
pricing will be raised according to the competitors price.
SALES PROMOTION
 When the product will be sold at low rate and various discount offers will be made
available then it will ultimately earn attention of buyers and buy a place in their mind.
 Soup will be served in innovative mug and its attractive packaging will play significant
role in promotion of the product (Speers, Harris and Schwartz, 2011).
Significance of marketing, sales and promotion for Subway
Marketing Sales Promotion
Market analysing shows what
is the present preference of
buyers and which taste is
present on their tongue.
Sales pay an important role in
creating and maintaining
effective system of
distribution.
Promotion is important
because it increases awareness
of the product.
Effective execution of
marketing strategies will
improve financial strength of
the company.
It motivate people to try
something new and healthy.
Promotion provide extra edge
over competitors.
Marketing can find execute Subway is aiming at Appreciation to attractive
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demand of Pea soup in market. improving eating habits by
introducing pure vegetarian
soup.
packaging will motivate
employees to do more
innovation (Teixeira and
Sampaio, 2013).
Monitoring of customer along
with company's competitors
can be done by using
marketing strategies.
Subway is not known for
vegetarian food, this sale will
assure one more step towards
enter in new sector.
Promotion of healthy would is
another way of fulfilling
corporate social responsibility.
CONCLUSION
From the above report, it can be concluded that every introducing a new product involve
work relating to deciding price, components used in product, sales and marketing strategy etc.
Flawless production procedure results in quality eatables and smooth function of food supply
chain. Plan consist of aims and objectives along with some other significant areas like consumer
trend, product concept position of competitors etc.
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REFERENCES
Books and Journals
Castleman, T., 2014. Food and Beverage. Network Journal. 21(4). p.20.
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.
Fardet, A. and Boirie, Y., 2014. Associations between food and beverage groups and major diet-
related chronic diseases: an exhaustive review of pooled/meta-analyses and systematic
reviews. Nutrition reviews. 72(12), pp.741-762.What is included in business plan? 2017
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.
Lohmann, G., Panosso, N. and Gimenes-Minasse, M.H.S.G., 2017. Food and beverage. Tourism
theory: concepts, models and systems, pp.30-32.
Maré, L., 2017. Food and beverage. Laboratory Marketing Spectrum. 36(3). pp.21-25.
Powell, L.M., Schermbeck, R.M. and Chaloupka, F.J., 2013. Nutritional content of food and
beverage products in television advertisements seen on children's programming.
Childhood obesity. 9(6). pp.524-531.
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.
Speers, S.E., Harris, J.L. and Schwartz, M.B., 2011. Child and adolescent exposure to food and
beverage brand appearances during prime-time television programming. American
journal of preventive medicine. 41(3). pp.291-296.
Teixeira, S. and Sampaio, P., 2013. Food safety management system implementation and
certification: survey results. Total Quality Management & Business Excellence. 24(3-4),
pp.275-293.
Online
What is included in business plan? 2017. [Online]. Available through;
<http://planthybusiness.com/business-plan/>.
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