Food Service Management: Principles of Effective Procurement and Sourcing Process

This report discusses the principles of effective procurement and sourcing process in food service management. It analyzes different food supply chain approaches and procurement strategies that can increase organizational effectiveness. It evaluates management practices and tools to support a successful business operation within food services organization. It also explains the ethical practices of Devine Restaurant Coffee Bar and their impact on overall business success.

Food services
management

Contents
Introduction ............................................................................................................................................3
Range of the food supply approaches within Devine Restaurant Coffee Bar along with the key
stakeholders in process...........................................................................................................................3
Explain principles of the effective procurement and sourcing process for the food services operation. 5
Analyze rage of the various food supply chain approaches and procurement strategies which can be
increased organizational effectiveness. (M)............................................................................................7
Assess applications of the different analytical tools that help in effective management strategies........7
Evaluate management practices that help in the successful business operation within food services
organization.............................................................................................................................................9
Evaluate management tools and practices to support a successful business operation within food
services organization.(M).........................................................................................................................9
Ethical practice of chosen organization and their impact on overall the business................................10
Explain ethical practices of chosen organization and impact these practices have on overall
organizational success.(M)....................................................................................................................10
Provide justified and valid recommendation to support management strategies and practices that
increase effective business operation. (D).............................................................................................11
Analyze different ethical practices in a specie food service organization and their impact on
organizational objectives overall. ( D)....................................................................................................11
Conclusion ............................................................................................................................................12
Reference ..............................................................................................................................................12

Introduction
Management and the food services are key element in the success of any restaurants that
deal with the food production and services. Different food services are maintained by the food
outlets including buffet, cafeteria, self services, ready prepared food and many more (Benefo,
and et. al., 2022).The restaurant chosen in this report is Devine Restaurant Coffee Bar, which is
situated in London (Devine Restaurant & Coffee Bar, 2022) Food supply chain and its
stakeholders who are responsible to make final product will be defines along with certain
principles of the sourcing process and effective procurement. This reports will also include
supply approaches and key stakeholders of organizations, the different analytical tool for
effective management strategies, management practices for effective business operations and
ethical practices of food service management with their impact on business success.
Range of the food supply approaches within Devine Restaurant Coffee Bar along with the key
stakeholders in process
There are different kinds of restaurant in the market such as fine dining restaurants that also
known as White Tablecloth hotel or restaurant. There are very modern fancy and costly
restaurant which provides high rate or quality of food. . Casual Dining Restaurant lies between
fine dining and fast-food restaurant that have very expensive price than fast food, but less as
compared to fine dining. This type of restaurant requires casual dress code. For Example: - Duck
& Waffle in London. Fast food is quickly prepared food in restaurant other then different dish to
be sold in restaurant. Take away restaurant give facility of packaged food that can take from
restaurant and eat at home. Pop- Up service restaurant that provide quick services that food stand
or food truck service (Higgins, Gardner. and Carter, 2022). Conferences and Events are the
meeting that conducted for the purpose of to discuss an issue related o their business. They both
require the food services according to their size and structure. For Ex: - Food service in the
conference hall meeting of Hilon Hotel, US.
Devine Restaurant Coffee Bar deals with different kind of the food products and the
quality raw material of food’s product come through their supply chain. In organization, supply
chain management includes the product and services flow and all steps that are required for
making a marketable product.

Supply chain approaches within Devine Restaurant Coffee Bar
Farmer- Processor- Transportation and storage- consumer
 First stage of the supply chain involve the food's origin. It is originated by farmers by using
synthetic and natural chemical for promoting harvest as nowadays's customer prefer the
natural and organic farming food.
 In second stage, it include the food processing by manufacturer in order to bring it in safe and
edible condition food customers. The process include, refrigerating, heating, drying and so
on. In this manufacture prepare the food by using raw material.
 In third stage of this approach, it include transportation and storage that carries final product
to customers. It is vital stage as it determine and remove the infected stock. In this suppliers
transfer the find goods to customers.
 In final stage, it pertain to the customer who consume the edible and safe food. It is
responsibility of above individual to provide safe and hygienic food to customers.
Key stakeholders
 Distributors- These stakeholders support the food services enterprise to have their essential
products together. Food services operators like Devine Restaurant Coffee Bar does not
require going individually to the manufacturers of the raw material, factories or producers. It
works as connecting the bridge for Devine Restaurant Coffee Bar to their retail outlets.
 Chefs- These stakeholders play a crucial role in making food attractive and delicious, food
for custoemrs. Devine Restaurant Coffee Bar provide training to its all cooking staff and
chefs before starting their work and make them expert in their job.
 Suppliers- In Devine Restaurant Coffee Bar, suppliers play essential role as they provide
good quality or raw material for food in order to ensure a good production methods when
manufacturing the products.
 Customers- These are final user of the products that are produced by Devine Restaurant
Coffee Bar. Food is served on dining and can enjoy the take away y they do not deliver their

food product as they believe that food’s delivery cheapens the food and their qualities
(Stakholders, 2022).
Explain principles of the effective procurement and sourcing process for the food services
operation
Procurement is that process in which goods and services are purchased in reference to the
business spending. Procurement management is strategic approaches that manage and optimize
the organizational spend. It includes acquiring quality of product or services form the preferred
vendors under a stipulated budget. Procurement management involves sourcing, requisitioning,
ordering, expediting, inspection and reconciliation. In context of the Devine Restaurant Coffee
Bar, its key stages of procurement process are discussed below:
 Identify goods and services- In relation to Devine Restaurant Coffee Bar, its manager need
to purchase the product by identifying right quality at reasonable price. They should buy in
most economic qualities and ensure that they are available when required.
 Explore and select supplier- Devine Restaurant Coffee Bar should sources the potential
vendors and determine their ability in order to get a best quality product. The respective café
purchase raw material from those vendors which not just deliver high quality products, but
also who have strong reputation in the market.
 Submit the purchase requisition- This stage includes getting thumbs up form
organizational internal department that control the finance for purchasing products and
services (Martin-Rios and et. al., 2022).
 Create purchase order- in this part of procurement process, buying taken place as once,
then purchase requisition has been approved, after this, department that control the finance,
purchase order to their vendors.
 Receive invoice and order- In this phase, receiving invoice and order may or may not
happen together in this one may arrive before other. In relation to Devine Restaurant Coffee
Bar, vendor ends invoice to the respective restaurant that describe that exactly what orders
are includes. Invoice confirms sales and reaffirms accurately when payment is due. During,

receiving the purchase order, mainly three document are needed that include, purchase order,
the order receipt and vendor invoices.
 Pay for the goods and services- When receiving order and invoice, accounts payable or
finance team will process the invoice. Invoice are matched against the approved PO and
delivery details for order follows best practices called a three way matching in account
payable process. In relation to Devine Restaurant Coffee Bar, when everything get matched
then finance team of respective restaurant send payment to their vendors within a specified
time period.
 Record for audit- It is final stage of procurement which is very essential for all around good
bookkeeping and for the audit purpose. Auditor of Devine Restaurant Coffee Bar require the
documentation of all the purchase, so these required document form the purchase requisition
should be stored in the one central location.
Sourcing consideration- It is the process of research & finding the Distributor of materials or
food products. It emphasis on getting the less cost of distributor for the required food products.
The Process of this are below
 Specification- It means that this specifies the needs or want of the consumers, the speciation
product to be added, and any specific product to be offer in this competitive market.
 Market Assessment - It includes the quotation set in market assessment by inviting the
distributor. It includes the information to appraise the potential of distributor as well as set
the quotation for the requirement of the organisation or companies in the market.
 Negotiation - The Food service organisation need to arrange the food product about the
lower in price with along the better quality of food products. It need to select the good
distributor form the market to deal with the top distributor.
 Contract - The Contract with the distributor is formulation of final things to the negotiate
terms. The Devine Restaurant & Coffee Bar also follow the above standard process of

finding the good distributor and is successful in making with the top ones in the foreign
market.
Analyze rage of the various food supply chain approaches and procurement strategies which can
be increased organizational effectiveness. (M)
In food supply chain, tehre are various phases taht help company to enhcne tehri
effetcivness in ordeer to accomlihs their business goasl. In relation to Devine Restaurant &
Coffee Bar, its effetvie supply chin apporiachs may be long as it bring th final goods on tehri
hands to serve teh consumers that lessen tehri burderon of the manufactruing any commodiity.
Effective procurement strategy aid Devine Restaurant & Coffee Bar as it will help in providing
quality food to customers that will result in the customer satisfaction and also enhance the
customer loyalty that will help in enhancing the effectiveness of the organisation.
Assess applications of the different analytical tools that help in effective management strategies.
There are different analytical tool of effective management strategies. These tools are
mentioned below:
Strength Weakness
Devine Restaurant & Coffee Bar has good
brand awareness within market as it serves a
quality food to its valuable customers.
Devine Restaurant & Coffee Bar has a narrow
expansion and it also need to work with latest
technology.
Opportunity Threats
It can expand its business in international
market that provides it an opportunity to earn
more market shares.
Devine Restaurant & Coffee Bar is facing high
competition in this industry due to which it
need more money in order to invest in latest
technology.

PESTEL analysis
 Political Factor - The political Factors include the policies of government and foreign
trade relations etc. As Devine Restaurant &Coffee Bar operates world wise, it must
follow the policy of different countries and also had to face the restriction of Covid-19 in
different countries to ensure the hygienic and safety at the dining.
 Economical Factor - The Economical Factor includes the effect of inflation rates,
unemployment, and income of people after tax, rate of interest, etc. The Devine
Restaurant & Coffee Bar is a Good Dining Restaurant that attracts public with high
income after tax as it is Star Hotel. It has a Country’s economic benefit to attract high
income group people.
 Social Factor- The Social Factor like consumers preference, marketing policies and
demographic like population of country and the business location fall under these factors
(Saha and Mathew, 2022). The Devine Restaurant & Coffee Bar is impact by people
preference is different.
 Technological Factor - The Technological factor includes the effect of new Technology,
E – commerce and new innovation on the business. The Devine Restaurant & Coffee Bar
uses online services for delivery of food packages to increase the customer experience.
 Legal Factor - The Legal Factor includes the rules, law and order or regulation of other
countries that the restaurant has stored in. The Devine Restaurant & Coffee Bar must
follow all rules and regulation or healthy and safety laws and food quality laws to ensure
the protection or quality of the food to considering the health of the public.
 Environmental Factor- The Environmental factor includes like environment, weather
and climate change. The Devine Restaurant & Coffee Bar has negative impact on the
economy & environment due to its carbon, plastic, waste of food, etc.
Evaluate management practices that help in the successful business operation within food
services organization.
 Train employees for excellent customer services- An excellent customer services is
must for Devine Restaurant & Coffee Bar as if it fails to offer reliable customer services

then ether might be possibility that respective restaurant will lose on the valuable
customers.
 Encourage effective communication between all staff members- This is most
important practises of any restaurants service. In Devine Restaurant & Coffee Bar there
should be effective and consistent communication between all the staff members to
ensure timely services.
 Deals with the customer’s complaints and concerns- Any issue or concern of customer
should be taken care of a priority basis in Devine Restaurant & Coffee Bar. Its
management should be responsive with courtesy and politeness (Scholl, 2022).
 Use technology for a better restaurant service- Utilization of technology is enhanced
manifold within all industries as automating operation of Devine Restaurant & Coffee
Bar help those to improve their efficiency that in turn will increase their restaurant
services.
Evaluate management tools and practices to support a successful business operation within food
services organization.(M)
As customers have certain pre-conceived expectation form restaurants before they visit
there. Both the food and services are important to deliver excellent restaurants services to
valuable customers (Subramanian and Suresh, 2022). Restaurant’s owner employees and
manager all share their responsibility in order to ensure that customers are treated with a
professional behavior. By communicating well and utilization of latest technology help then
restaurants to leave overall positive impression of excellent dining experience and also retain the
customers.
Ethical practice of chosen organization and their impact on overall the business.
 Corporate social responsibility- In this concept for the management, organization raise
their concern towards the environmental and social sustainability. In CSR, there are
certain activities including reduction in pollution, carbon footprint, and charity for poor
people, doing volunteer work and so on. Devine Restaurant Coffee Bar has establish goo
connection with the organization to donate some extra food as charity. By following

transparency in their organization respective restaurant show its ethical practices. They
also try to maintain hygiene at their workplace.
 Environmental awareness- It is related to he environmental sustainability that prevent
the damaging impact on surrounding form business practices. It includes recycling of the
food waste and packaging waste, carbon footprint and so on. Devine Restaurant Coffee
Bar has raised its concerns over the environmental sustainability as it offer sustainable
food items on its menu. It is reducing utilization of the plastic bottles which is very
healthy for the environment.
 Ethical practices- In food industry, there are various ethical issues such as animal
victimization, environmental issue and cruelty (Tseng and et. al., 2022). As Devine
Restaurant Coffee Bar it provides veg and non veg food product. It shows cruelty on the
animals. This restaurant also follows the ethical practices like KFC, Starbucks and many
more that help it in creating a good reputation in market area.
Explain ethical practices of chosen organization and impact these practices have on overall
organizational success.(M)
In organization, system of the ethic and moral beliefs that guide behaviors, decision and
value so f the business enterprise is known as the business ethics. These ethical pratcies of
organsiation are directly related to the profitability in short and long term (Tuffour and et. al.,
2022). It helps the company to get more investment by investors and also create a strong image
within the society. Businesses have more of the incentives to be ethical as area the ethical
investing and socially responsible keeps growing. Increasing number of the investors seeking out
the ethically operating firms to invest in is driving more companies to take this issue seriously,
Provide justified and valid recommendation to support management strategies and practices that
increase effective business operation. (D)
In business, organizational business efficiency is very crucial for the success, improving
efficiency is combine efforts of refining and measuring process, technology, financial and

employees. An organization can improve their business operational efficiency (Vivaldini, M. and
Iglesias, 2022). For this, it is recommended that business should know their operation by
evaluating different business areas, proving secure and consistent access to the crucial
information. It is suggested that company should give regular training to its employees and keep
everyone up to date with practices for efficiency. By all these efforts and organization can bring
improvement in their business operation efficiency.
Analyze different ethical practices in a specie food service organization and their impact on
organizational objectives overall. ( D)
Ethical practices are codes of the values and principle that govern action and decision
within an organization. It is ethic responsibility for a company ensures production of the food is
safe and not harmful for the customers otherwise organization may become have a bad reputation
in industry (Yunta and Vaschetto, 2022). For instance Devine Restaurant Coffee Bar is parties
its ethic responsibility by proving environmental friendly product and avoiding use of the plastic.
It impacts the organizational positively as now more investors are v willing to invest in this
restaurant. Thus, the ethical practices influence an organization overall.
Conclusion
From the above report it is concluded that the food service industry also make a great
contribution in the nation and economic growth. There are different food services context
including casual dining, fine dining and so on. The organizational adopt different approaches of
the food supply chain as per their production scale and stakeholder’s requirements. Food services
enterprise need to follow certain effective principle of sourcing and procurement process for the
quality purchase and delivery. Organization should use different business frameworks such as
PESTEL analysis and SWOT analysis in order to measure their performance. Business need to

take part in different CSR practices and environmental awareness so that the food wastage can be
stopped and also ensure customer safety by following ethical practices efficiently.
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Online reference.
Devine Restaurant & Coffee Bar, 2022 [online] availabe through
<https://www.tripadvisor.in/Restaurant_Review-g186338-d13082910-Reviews-
Devine_Restaurant_Coffee_Bar-London_England.html>
Stakholders, 2022 [online] availabe through
<https://www.bbc.co.uk/bitesize/guides/znf7nrd/revision/5#:~:text=Customers%20are%20the
%20people%20who,to%20a%20business%20they%20like.>