Managing Profitable Food and Beverage Operations: Critical Evaluation of Supply Chain Management

Managing Profitable
Food and Beverage
Operations

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Food and beverage operations are said to be profitable ones when they have solid controls
and follow procedural guidelines which are designed to minimize waste of food products and
perishability of raw materials (Davis and et. al., 2018). Supply chain management in operations
of restaurant can be explained as a process which initiates from procurement of raw materials
and gets completed when final products are delivered to its end customers. Efficient supply chain
management practices assists restaurant owners in maintaining competitiveness in market. In the
era of digitalisation, digital channels plays an advent role in making supply chain management
effective. This essay highlights a critical evaluation of the role of supply chain management in
restaurants while providing an opportunity to gain competitive advantage.
MAIN BODY
Supply chain management can be described as a process of tackling entire production flow
of a product or service which enables organisational managers in maximizing quality as well as
providing excellent customer experience. In relevance with restaurants, it comprises of various
elements like procurement of raw materials cooking dishes, taking orders, billing and many more
processes. It has been critically assessed that procurement and supply chain management
practices plays a significant role in securing competitive advantage which enhances performance
of business and helps in generating more profits. It is imperative for restaurant owners to build
and maintain good relationship with suppliers as well as vendors for getting best services. For
instance, managers of La Pesca restaurant maintains good relationship with their suppliers by
paying them timely payments. As per Gardijan and Lukač (2018) supply chain management
practices can be a significant source of gaining competitive advantage as it aids in cutting down
the cost which enables greater profitability for establishments (Gardijan and Lukač 2018).
However, Manning (2018) argued that restaurant owners are began to realize that only
maintaining good supply chain practices will not help in attaining competitive advantage for a
long period of time (Manning, 2018). It should be overlooked by restaurant owners that only
maintaining effective supply chain management practices do not help in gaining competitive
advantage. It should be streamlined with various other business functions like cost incurred, set
budgets and customer preferences for accomplishing competitive advantage. As per Porter's five
forces model, it has been outlined that there are large number of suppliers providing similar deals
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