Food Service Management: Supply Chain Approaches, Procurement Principles, and Analytical Tools

This report explores different food supply chain approaches in the food service industry, discusses the principles of effective procurement and sourcing processes, and assesses the application of analytical tools in food service management. It includes a case study on Wagamama restaurant and highlights key stakeholders, sourcing considerations, and management strategies.

Food Service Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Examine a range of different food supply chain approaches in the food service industry....3
P2 Discuss the principles of effective procurement and sourcing processes for the food
operation......................................................................................................................................5
LO2..................................................................................................................................................8
P3 Assess the application of different analytical tool to support effective management
strategies......................................................................................................................................8
P4 Evaluate different management practices that support successful business operations in the
food service companies.............................................................................................................10
LO3................................................................................................................................................11
P5 Discuss ethical practices in a Wagamama and the impact of these practices on overall
business success........................................................................................................................11
LO4................................................................................................................................................12
Management practices within food service operation...............................................................12
Recommendation improvement and alternative management strategies..................................13
Implementation plan.................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Food service management can be defined as the art of offering food and beverage
scientifically and aesthetically to wide number of people in cost effective and satisfactory way.
FSMs plays significant role in leading business profitable by educating individuals to serve and
prepare standards. They also direct employees to ensure that guests are satisfied from dining
experience because it will lead profit in returns. There is an example of Wagamama restaurant
company to understand role of food service management. It is a Japanese restaurant with noodle
bar which offers it's food services across the world and majorly headquartered in London, UK.
This report will provide high understanding over a range of different food supply chain
approaches in the food service market and highlights key stakeholders in this process.
LO1
P1 Examine a range of different food supply chain approaches in the food service industry
Diversity of food services
 Fine dining: It is a white tablecloth restaurant in which provides high quality products.
These restaurants have dressing code for the staff. For example, The Dorchester and
Gordon Ramsay are London-based fine dining restaurants.
Casual dining: It is full-service restaurants wherein offers full bar service with affordable priced
menu. These restaurants lies between fast food and fine dining but it has high priced
food menu as compared fast food. There is a great example of Wagamama because it is
casual dining restaurants (Kim and Thapa, 2018).
 Fast-food and take away: In these restaurants guests can sit-down, take-out fast food in
packaged form and can be eaten immediately.
 Pope-up food service: These restaurants allows chef, owners and customers to try new
food products. However, pop-up restaurant can be anything like beer garden that is open
for limited period in summers. These food-service includes counter service, food truck
service or food stand.
 Conference and events: Food are needed at events and conferences for such occasion like
sports event, festival events or social gathering. Themed food services: Themed food services are those food services that are organized
across a specific subject. For example Wagamama restaurant that offers Japanese food
with noodle bar.

Planning product ranges and suppliers in accordance with organizational theme and brand
The range of products is the systematic set of all kind of products that offers to the guest
by the organization like Wagamama or it's franchises. However, range of proposed products
must be corresponded to the preferences and expectation of targeted market of the organization.
Food supply chain and key players
Food supply chain is the procedure of explaining how food moves from a farm and ends
up on customer's table. So it is also known as “farm to fork”. This supply chain contains different
activities that are involved in the modification of food stuffs (input) into final products or
consumer ready products such as from origin to processing, handling, distributing and sales. In
addition, management and documentation are also essential activities that involves in food
supply chain process (Lehtokunnas and et.al., 2020). Food supply chain is the chain through food
moves from producer to consumers. While money pays by consumers for the food that goes to
those stakeholders who are involved in different stages of food supply chain in reverse direction.
However, this chain is composed of wide range of products and businesses which locate in
different business markets and sells proposed range of food products. This chain majorly
connects with three sectors i.e. agricultural sector, food processing industry and distribution
sectors. The key stakeholders I the food supply chain are farmers, processors, distributors
(transportation & storage) and consumers. Food switches from producer to consumers through
the processes of production, processing, distributing retailing and consumption in the food
supply chain. Thus food moves from farmer to consumer. At the same time, money pays by
consumers for the food that moves from consumers to retailer, to distributor, to processor, to
farmer in the reverse direction. Thus, two-sided causality from consumer to farmer is known as
pull and push in food supply chain Hong, 2017 (.
Types of supply chain
There are three types of supply chains that are based on number of members who involved in this
process such as:
 Direct: In this process only a supplier, central organization and buyers are involved.
 Extended: This supply chain includes supplier’s supplier, the supplier, major company
and the buyer. Final supply chain: This type supply chain includes all stakeholders in the flow of goods,
information, services and capital that starts from the first supplier to final consumer.

Food supply chain processes and key stakeholders in the process
This supply chain processes comprises five steps in which involves different stakeholders
and perform their responsibilities. Supply chain stages have mentioned below as follows:
 Food Origin: It is primary stage of food supply chain process wherein farmers are the key
stakeholder who plays vital role in this process. For example, they are responsible for
using synthetic or natural chemicals to increase strong harvest and combat with pet's
disease. The reason behind is that nature of product can affect overall quality of harvested
produce during this process.
 Processing: It is second stage of supply chain process that is responsible for preserving
and processing food as to get good food products for the consumers in edible and safe
situation. Processor is the key stakeholder of this process who take care of all food
processing activities (Van Kleef and van Eijk, 2016).
 Transportation & Storage: It is third stage wherein transport and logistic providers are the
key stakeholders who are responsible to close the gap between food producers and
consumers. It is one of the essential stage because it provides opportunity to determine
and eliminate contaminated inventory.
 Consumer: It is the last stage of food supply chain processes in which food supply to final
consumer by the defined time. Consumers are the key stakeholder of this stage that helps
businesses or companies to earn financial benefits based on the proposed food products.
Approaches of food supply chain
It can be longer or shorter because it is properly dependent on number of stakeholder’s
involvement. It is longer when number of stakeholders are involved and shorty if the
manufacturer sells a food product or service directly to the guest. It can easily access by
measuring performance of stakeholders in the company who involves in the chain (Kushwah,
Dhir and Sagar, 2019).
P2 Discuss the principles of effective procurement and sourcing processes for the food operation
Procurement is the procedure of buying goods or services on which business spending.
However, business procurement needs preparation, solicitation and payment processing that are
majorly involved in several locations of the corporation. While procurement management is a
strategic approach of managing and optimizing organizational expenditures. This management

process involves various activities like sourcing, requisitioning, ordering, inspection and
reconciliation.
Key stages of procurement process
 Identify goods or service needed: It is one of the primary stage of procurement process
wherein good service managers requires to buy such food products which are available in
right quality, cost-effective price and ensures that these are available whenever they
required.
 Explore and select supplier: Food service manager (FSM) must source high skilled and
talented vendors who can offer the best value and high standard quality for company's
food or services. This stage of procurement process supports food service company to
gain competitive advantage because they get food stuffs (raw material) at lower price.
 Submit purchase requisition: It is a type of approval documented process wherein key
stakeholders takes approval from internal department to order and purchase goods from
suppliers.
 Create purchase order: It is another stage of procurement process wherein buying occurs.
Once key stakeholders take approval of purchase requisition then internal department
become responsible for dealing with economic issues of purchase order to the supplier.
 Receive invoice and order: In this stage vendors directly sends an invoice to the buyer
which defines what the order exactly included (Gabriel..and et.al., 2016).
 Pay goods or services: Finance management plays vital role in this stage because they
process on invoices and matches the invoice against an approved product order and
delivery details to ensure that order follows all practices or not. When everything matches
with given guidelines then payment sends to supplier within time period.
 Record for Audit: It is final stage of the procurement cycle wherein auditors examine all
documented associated with purchase requisition and invoice that must be stored in one
central area or location.
These above-mentioned different components of procurement processes are the principles
of the process that supports to improve effectiveness of food service organizations like
Wagamama.
Sourcing Considerations

Sourcing is the stage that initiate before any purchase. So it is also known as subsection of the
procurement process. Before sourcing anything, company access several factors like buying
needs, map out a plan, introduce market research and determine potential suppliers. There are
various FSMs companies create a formal contract with the vendors agreed in the prior phase.
Sourcing Considerations:
There are five elements that must be considered by food service company that will improve
effectiveness of business in food industry market.
 Traceability of product origin: Traceability in the food service industry is the ability of
determining the origin of ingredients, foods and sources of food stuffs. There are two
methods of source tracing such as external and internal traceability wherein internal
traceability keep control entire process of determining raw materiel to the final product.
Withy this method, organization can easily keep control on various stages of procurement
in precise manner.
 Value for money: It is another factor that must be considered in the food service industry
because it is one of the more beneficial combination of quality, sustainability and cost in
order to fulfil needs of guests.
 Range or choice on offer: It is another factor that must be considered in food service
sector because when company offers wide variety options that improves purchase
decisions of purchasers through which it can gain competitive advantage and builds
strong customer base.
 Aftersales services and warrantee: This factor is considered one of the essential
consideration point for the FSM because it supports to build long-term brand image and
loyalty in the market. For example most of the food service companies like Wagamama
offers sales services like feedbacks (genannt. Bonsmann and et.al., 2017).
 Types of supplier payment methods and options: There are various payment options like
payment plans, using debit or credit cards, cashiers etc. through which organizations like
Wagamama can easily compensate with the seller of goods or services. This factor also
considers by FSM.
From the above discussed factors can be analysed that Wagamama restaurant company must
consider all factors that will improve effectiveness of business in the food service sector.

LO2
P3 Assess the application of different analytical tool to support effective management strategies
Operation management plays significant role in different companies by managing balance
between input (people, material and money) and output (services and goods) resources.
Wagamama is Japanese restaurant company which is headquartered in London, UK and offers
it's food service worldwide.
Access business performance through Analytical tools Swot Analysis
It is a strategic analytical tool that is used to analyse internal environment of business. This
model is applied for the Wagamama restaurant to determine its strength, weakness, threat and
opportunity.
Strength
 It has strong global presence in the
food service industry due to high
quality product with wide range of
products.
Weakness
 It does not have key business
segments due to this it unable to
capture large market share.
Opportunity
 It has opportunity to expand
business in other new countries
that will help to build large
customer's base.
Threat
 Brexit's crisis and existing
competitors I.e. Island restaurants.
 Porter's five forces
Porter's five force model is a strategic analytical tool that is applied to measure intensity of
competition in the business market. This model is applies for the Wagamama to analyse
competitive environment of business in the food industry. There are five forces that are
mentioned as follows:
 Supplier’s power (Low): High availability of suppliers in the UK market is the one of the
major opportunity for the Wagamama restaurant because it enables to get high quality

product at lower cost that automatically reduces operational cost as resulted it enables to
sell product at lower prices to the customer.
 Buyer's power (High): High availability of food service company in UK leads switching
price. Due to this, Wagamama often sell it's food product at lower without getting profit
margin over them from customers.
 Competitive rivalry (high): There are various food service companies like Noodles,
Nando's that operates in similar sector like Wagamama and also posses unique products
like Wagamama so it often face price war that ultimately impacts on it's selling
behaviour.
 Threats of substitute (Low): There is very less threat of substitute products because most
of the food companies have covered all food segments for attracting consumers to buy
them. Even Wagamama already has wide range of food products that are quite enough to
put pressure on competitors and gains competitive advantage over them (Gürel and Tat,
2017).
 Threats of new entry (Low): There is no chance of establishing new business in the UK
market because there are various large scale companies have established strong brand
image due to their proposed product and customer services. It is another opportunity for
the Wagamama to build loyal customer base.
From the above discussed analytical tools can be analysed that it is operating quite well in its
sector and wide range food product and services have established strong brand image in the food
service sector.
Product placement as marketing tool
Product placement means demonstration of proposed product segment in front of public
through different marketing tools like advertisement, celebrity endorsement, TV shows etc. and
in exchange pays fees to product advertisers. Wagamama is the french resturant company that
have used various marketing tools like video tutorial, social media, internet, TV etc. to increase
awareness in customer for it's proposed product segment as resulted it has achieved more
benefits like improve brand awareness and gets better returns.

P4 Evaluate different management practices that support successful business operations in the
food service companies
Human resource management is the approach that undertakes by company to manage wide
number of people and coordinates them to gain common goal of the business. HRM plays
various role in different organization like recruitment & selection, training & development.
Strategy formation and implementation etc. through which they enable to achieve all proposed
goal in precise manner (Hussein, 2018). Human resource plays key functions in the company
that are mentioned as follows:
 Staffing: It is one of the prime function of HRM that perform by HR professionals at
different food services companies like Wagamama such as recruitment, screening and
selection in the context of filling job openings. Thus, they support companies to maintain
employee diversity and productivity in the workplace.
 Training and development: It is another practice of HRM that conducts by HR managers
to make individuals highly competent and skilled in workplace so that they perform
better while dealing with customers.
 Motivation: Motivation is necessary to retain skilful and talented staff in the company
they it can gain it's all projected goal and objectives within time frame. However, HR
managers plays vital role in the context of employee motivation such as they provide
good sitting arrangement with creative working environment.
 Maintenance: HR professionals always concerns with protecting and influencing physical
and mental health of individuals in the workplace so it is considered one of the major
prospect of HRM.
In addition, HR managers perform another roles as well, such as they measure degree of
customer satisfaction which occurs by offering service or goods of the business. To analyse
customer satisfaction rate, HR professionals practices some performance indicator i.e. CSAT
through which can track number of loyal customers of the company who often visit and buy it's
product or services. Overall goal of the HR managers to increase branding of food service
company i.e. Wagamama. Branding is essential for the food service company because it offers
opportunity to build strong loyalty with it's users. In this context, HR plays vital role such as they
implement a successful brand strategy to build strong customer base. To influence brand image
HR professionals follows all components associated with brand strategy such as company

purpose, consistency, emotional connection and employee empowerment. These components
helps human resources to gain improve brand image in the food industry. They also responsible
for managing staffing level in food service industry such as fine dining, seated but casual dining
and others. They ensure that right number of employees delivers a successful service and full
customer satisfaction instead of concerning their salaries. Marketing strategy i.e. brand
positioning, product packing and USP etc. are created and implemented by HR managers in the
different food-service companies like Wagamama to lead high profit in the business. HRM plays
role as cost management as well for effectively planning and controlling the costs or expenses
which are involved in a business (Jeong and et.al., 2020). Thus, they help upper management to
save extra expenditures in its business. Belbin team roles model is also practised by HR
managers at the food service companies to make effective team so that they work promptly and
supports to gain all projected objectives and goals.
LO3
P5 Discuss ethical practices in a Wagamama and the impact of these practices on overall
business success
Business ethics are those beliefs, principles and morals that promotes an organization in
its business sector. Ethics are essential for the organization because it efforts to treat companies
and people with respect and build positive working environment. HR managers at Wagamama
have implemented different ethical practices for establishing a strong corporate image in the food
service industry. For example, human resources keep fairness with employee, suppliers and
consumers in the workplace that maintains well-being of them. They also maintain safe
workplace for the staff that encourages individuals to give additional hours except working hours
for completing their targets. Wagamama posses wide range of products line with standard quality
so, HR managers implements marketing strategy i.e. advertise products fairly in order to increase
awareness in people about its product and services.
Corporate social responsibility (CSR) is another effective ethical practice that also has
implemented by HR professionals at Wagamama restaurant company. It is a self-regulating
business model that promotes organization to be socially responsible, not only itself but also
influence it's stakeholders. CSR is essential for the food service sector because there are various
companies which uses cheap raw material or highly chemical products to prepare final products

in order to earn more profit instead of thinking about guest's health. With the support of CSR
strategy Wagamama company enables to build sustainable brand image in the food sector and
gains consumer's trust on it's brand. Initiative of CSR supports company to become
environmental responsible, economic responsible and philanthropic responsible through which it
has made it's business more successful as compared other food service companies. Thus,
different ethical practices have supported company to establish strong brand image in its sector
and enhance its business expansion across the world. The major drawback of the ethical practices
is that these are quite costly and requires high maintenance while implementing in the workplace
(Smith and et.al., 2016).
LO4
Management practices within food service operation
Performance review is about to monitor the performance of employees part of the
organisation. This involve analysing the productivity and work efficiency of employees part of
the organisation. Management at Wagamama Company usage the following performance review
techniques.
Planning
Human resource department at Wagamama Company conduct the performance
management practice at organisation. Department conduct the entire campaigning in three
different stages. First stage of the process is denoted as planning. In this stage of performance
assessment department prepare performance plan, evaluation of various elements that denote the
performance of employees in company, setting up performance standards, developing and
communicating about the performance expectations and the final stage is to modify the
performance plan. All these stages allow the organisation to conduct the performance evaluation
is the most systematic manner (Fu, Hsieh and Wang, 2019). Planning cover all key areas that
will contribute in the performance management practice and can drive the evaluation process of
employee performance in organisation. All further operation of performance evaluation are
conducted based on the planning done in this stage. Human resource depart met cover up all key
areas that can contribution on behalf of organisation to plan the performance evaluation process.
Monitoring

Monitoring is the second stage involve in performance evaluation practice. Monitoring
stage of performance evaluation comprises with stages like continuous monitoring of
performance, performance discussion and the final stage is progress review. All three stages of
performance evaluation would support the human resource depart to monitor the performance of
all employees is the systematic manner. Continuous monitoring would involve measuring the
performance of employee on a continuous basis (Sardi and et.al., 2020). IN the initial time of
recruitment performable of employees stays minimum as they are not aware about the processes
implement in organisation and over the period as employees grow in company they improve their
performance and productivity. Company also conduct various skills development training and
other talent management practice in which company aim to install latest equipment and
technological tools that can support more productive performance of employee in company.
Monitoring can be stated as the crucial stage involve in employee performance evaluation
practice. In this stage deportment try to assess the current productivity and efficiency of
employee part of the organisation. All further stapes company take to enhance the performance
of employees in company are based on the outcome at this level of performance evaluation
practice (Soon and et.al., 2019).
Evaluating
Evaluation is the third stage involve in performance evaluation practice conduct at
Wagamama Company. Evaluation involve preparation and submission of performance appraisal
of employees based on the earlier stage of this practice of performance evaluation. This also
involve description related to performance rating level and in the end ratting the employees of
company based on the performance they entertained in organisation. Employees worth are
measured based on this ratting company has granted to such employee. Ratting is the final
outcome of the entire performance evaluation practice use by Wagamama Company.
The above mentioned points indicate about the different stages human resource
department entertain to monitor the performance of human resources associated with the
organisation.
Recommendation improvement and alternative management strategies
Following recommendations are analysed based on the current practice company has
used for managing performance of human resources part of the organisation.

Taking constructive feedback: Human Resource Management of company can take
constructive feedback over the performance improvement from employees while conducting
performance evaluation practice. This involve taking one to one personal interview of employees
over different ways that can contribute in the improvement of employee performance in
company (Bester, 2019). This strategy would allow the employee to highlight all key areas of
company that seek improvement and development and all such areas that restricts the employees
to perform more efficiently.
Construction of employee grievance centre: Employee grievance centre would allow the
employees of company to resolve all their issues. This would involve human resource
department to directly collect employee grievance as employee can directly apply for solving
grievance. This would drive the department to take care all the grievances of employees part of
company.
Emphasis over resource improvement: Human resource department must give emphasis over
improving the resources of company. Resources play a key role for employees in delivering the
responsibilities assigned to them. Continuous improvement of company's resources would
support the organisation in improving the overall performance of employees in company.
The above mentioned strategies would support the employee performance in company.
Implementation plan
Aim
 To improve the overall performance of employees.
SMART Objectives
Specific: Objectives of this plan are specific as this would guide to improve the overall
performance of employee. This aim to implement different strategies based on the
recommendation above specified.
Measurable: Improvement in employee performance can be monitored and measured. With the
support of existing practice of performance evaluation improvement in employee performance
can be measured.
Achievable: All objectives of this plan can be entertained. With the support of effective
strategies this aim can be achieved.
Realistic: The suitable strategies used in this plan make the aim realistic for company to

achieve.
Time bond: Time set for this project is one year.
Strategies
Training and development: Granting training and development to improve different skills is
the first step. This would cover all key areas that seek expertise for employees to perform its
duties.
Grievance cell: Establishment of grievance cell for employees part of the organisation. This
involve setting up a time in which all issues oif employee needs to be solved (Shen and Benson,
2016).
Resource management: Resource management strategy would guide the company to manage
trhe resources of company in the most effective manner. This involve analysing the resource
requirements of employees install all the relevant resources apparently.
Control and evaluation
Specific team of human resource department would overlook this entire plan. The team
would cover up all areas of this project and control the improvement in employee performance.
CONCLUSION
This report has been summarized a range of diversified food supply services in food
service industry and highlighted all key stakeholders in this food supply chain process. It can be
concluded principles of effective procurement and sourcing processes in the context of food
service operations. Different analytical tools like porter's five force, swot analysis and product
replacement as management tool has been concluded in this report. Different management
practices and ethical practices in the specific food service company i.e. Wagamama and impactof
these practices on overall company's success has summarized in the brief study. In this report has
been concluded performance review techniques in the context of food service company.

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