Managing Food and Beverage Industry

This document provides an overview of the food and beverage industry, including different forms of business, types of rating systems, current and future trends, necessary skills, legal and regulatory requirements, and operational and marketing technologies. It also examines the various elements that influence customers' decision-making process when choosing a food and beverage outlet.

Managing food and
beverage

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Different forms of Business in F&B Industry...................................................................3
P2 Types of rating system used in F&B Sector......................................................................4
P3. Future & Current Trends that impact on Food and Beverage Industry............................5
TASK 2............................................................................................................................................5
P4 Different food as well as beverage skills which is needed within F& B industry............5
P5 Legal and regulatory requirements which is needed in food & beverage sector.............6
TASK 3............................................................................................................................................7
P6 Various types of operational and marketing technology which is used in F&B Industry.7
TASK 4 ...........................................................................................................................................8
P7 Examine Various elements that influences on decision making of customers while they
choose F&B outlet..................................................................................................................8
P8 Strategies which are acquired by organisations in a F&B outlets in order to attract
customers........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books & Journals.................................................................................................................11

INTRODUCTION
Food & beverage industry is playing a very crucial part in producing various
opportunities in this sector. Since, past years it is seen that this industry is growing at a very fast
speed. It is also analysed that this is the fastest growing industry. The existing report includes
various organisational functions which are part of food & beverage industry and includes present
and future trends flourishing in this industry (Bradley and et. al., 2017). There is consideration to
various rating systems which are used by business organisations across globe. There are some
skills required by every individual which helps in performing in a better way. Further, there is
discussion on various legal requirements which have to be considered by management of
organisation which are part of Food & Beverage operations, while they are performing their
business functions.
TASK 1
P1.Different forms of Business in F&B Industry.
It has been said that there are different aspects which is mainly are part of Food &
Beverage industry & is quite advantageous for the enhancement of growth and earning of
increased revenue. This is the industry, having its main focus on fulfilment of customers
demands in a more appropriate manner. Different sector are playing a crucial role in effective
functioning and this is explained below:
Entertainment: In Food & Beverage sector this factor is essential for guests so they can
be attracted towards a particular outlet. This is one feature which can act as a differentiation
advantage for these business and help in enjoying at the same time with facilities such as games,
cruise, clubbing and many more.
Accommodation and Lodging facility: It is a division which is mainly found in
different hotels where there is other facilities such as complimentary breakfast, pleasant
atmosphere, luxurious facilities, drinks etc. All such factors are helping various visitors to make
their stay more comfortable and enjoyable (Chriqui and Sansone, 2016). A positive feedback is
very necessary for making a estimate whether there will be a repeated visit or not.

Food & Beverage: This is one sector playing a very important role as it helps in having a
large customer base as travellers can have a wide range of food products. Such services includes
catering facilities, quality food etc.
P2 Types of rating system used in F&B Sector.
There are different rating systems utilized in Food and Beverage sector at international
and global level as mentioned as follows:
One star rating: It has been said that One star is the rating system which is provided to
the hotels where there are only basic necessities which are provided to their customers. No extra
amenities or facilities are provide in such hotels as it includes normal bed and a wash-room just
to fulfil basic service of a customer. Such hotels are mostly preferred by middle class segment of
customers as they are not able to afford luxury and have a preference for just basic amenities
required for a basic and comfortable stay (Davis and et. al., 2018).
Two star Rating: It is same as one star rating as in this all accommodation and facilities
are similar to a one star hotel. In such hotels extra services such as phone, television, on site
restaurant, housekeeping are some additional services which are provide in these hotels.
Three star rating: Three star rating is provided to those hotels having more comfort and
include services such as fitness centre, room service, conference rooms, valet services, restaurant
services etc. Hotel rooms are larger in size, have flat screen facility etc.
Four Star Rating: These are considered as superior hotels with upscale establishments
and first rate of services. The rooms are spacious with premium furnishing facilities and have
luxurious such as fine bathing products and lavish bedding.
Five Star Rating: These type of Hotels is classified as luxurious hotels as they provide
high quality and timely services to their customers. These are preferred by high class customers
as there are services such as Wi-Fi, spa, clubbing which are offered to their customers. They try
to satisfy will the requirements of their customers shaving a competitive advantage as compared
to other similar hotels who are in possession same rating (Espiñeira and Santaclara, 2016).
Classification of hotels in accordance with rating system is very helpful for various
customers in order to choose it as per budget, expectation & facilities.
P3. Future & Current Trends that impact on Food and Beverage Industry.

The Food and Beverage industry deals with changing trends prevailing in market. Such
trends have a effect on profitability and sales level. Present and future trends affecting this
industry is discussed below:
Changing customer preferences: This factor is mainly responsible for all business
function in a industry. In present scenario, customers are having focus on health & hygiene then
in such case there must be focus on these facilities. In service and hospitality industry everything
is customer oriented and it is very crucial for organisations which are part of this industry to
make strategies according to target customers demands. In the present era, there is a trend of high
customization which must be adopted as this can play a role of valuable factor in retaining of
customers for a longer duration and at same time having customer loyalty (Fortin, 2016).
Technology: In present scenario, the most crucial factor in F&B sector is technology
that impacts on the choice and buying behaviour of customers. There are may new method
which have evolve with technology advancements that can be used for understanding demands
and expectation of target customers. Such as online surveys can be used as a technique for
identifying the services most preferred of target customers.
Mergers & Acquisitions: Various inventions are happening and this is impacting on
F&B industry also. Such organisations are functions and operate on large scale which help in
developing plans and acquisition of those units that already have a established brand image. Such
techniques from future prospective are very useful in execution of various plans such as
maintenance of high quality of food and all services being offered to customers. High quality and
proper services are very crucial for surviving in the high competitive market (Freeman, 2016).
Above mentioned are some present & coming trends prevailing in the F&B sector that
posses a crucial effect on strategies adopted by Hotels and restaurants.
TASK 2
P4 Different food as well as beverage skills which is needed within F& B industry.
For every individual it is very essential to have some skills and capabilities so that they
can perform business activities in a appropriate manner. All these skills assist an individual
person in order to achieve competitive advantage within the market. In context of a restaurant, it
has been said that top level management requires to have highly talented staff members so that

all their business functions will be performed in an effective manner. Some of the most essential
skills which are required in an individual is mentioned below:
Customer serving skills: It is required by a professional to have effective customer
serving skills in order to gain attentions whenever individuals visit to the restaurant (Kaur, 2017).
There are some hotels which adopt consumer focus or centric approach so that they can maintain
positive as well as strong relationship with their customers. This as a result help an organisation
to remain their loyal customers for longer time frame & increase profitability as well as goodwill
of the company.
Effective communication skills: To perform and carry out business activities in a defined
manner, a professional individual is required to have effective communication and interaction
skills. By the assistance of this, the higher authorities of Hotels communicate required
information to all the staff members that leads to performance of activities as well as task in an
appropriate manner. In addition to this, it is very essential to have two way communication so
that all the business activities will produced positive results. This will help in removing errors,
issues and disputes while doing business functions.
Organisation skills: In context of a restaurant manager, it is important to have
organisational skill in order to deliver high quality goods & services to the customers. Along
with this, It is essential for the top level authority of a restaurant and hotel that they can fulfil the
needs and requirements of their customers. It will help higher authorities of Hotel to maintain
effective relationship with customers and remain them for longer time frame. (Kistner, 2018).
P5 Legal and regulatory requirements which is needed in food & beverage sector.
In order to perform activities and functions of business in a defined manner, it is required
by an organisation to follows some legal regulations, rules, legislations and laws. All these
legislations is required to be follow by higher authorities of an organisation so that they can
maintain quality standards of the food items they sell to the clients. There are some laws
developed by UK government are mentioned below:
Laws related to Food safety: It is determined that there are various rules and regulations
developed by legal authorities in order to make healthy environment to perform every activity
and task. For instance, it is required by the manager of a restaurant that they acquire licence of
performing operations from the government so that they can sell liquor or other alcohols to their

customers. This as a result create positive, secure and safe atmosphere which help in gaining
eyes of large number of audiences on the company. (Marriott, Schilling and Gravani, 2018).
Food safety: This consist of overall legal laws which are related to food items and is
needed to be follow by the managers of all hotel. All these legal regulations assist companies to
gain trust of customers and raise their number of loyal customers. There are some food safety
authorities which includes Foods Standards Agency, they conduct regular basis audits so that
they can examine food & safety standards utilised by the managers of the restaurant and hotel.
Management team of the hotel must consider production procedure, quality of raw material,
packing of food items and many more so that high quality goods and services will be produce.
Food import regulations and policies: There are various types of export & import duties
developed by government of United Kingdom (O'sullivan, 2016). These policies & regulations
required to be followed by every companies in order to develop positive and strong environment.
It has been said that restaurants which operates on global & domestic level is needed to follow
all laws & regulations in order to gain positive outcome.
TASK 3
P6 Various types of operational and marketing technology which is used in F&B Industry.
In the present marketplace, it is determined that has been said that there are ample
number of operational and marketing technologies used by F&B sector in order to perform
activities in an appropriate manner. The various technologies related to Food & Beverage
Industry is mentioned below:
Operational technology:
Progression of technology: It has been said that the business sector which mainly
performed their business functions within food industry are generally assisted by a technology
which is AGV. It is the technology which will help in performing the business function in an
effective manner by enhancing their efficiencies (Smith and et. al., 2017). For instance, in the
present competitive environment, automatic cars are generally used in warehouses so that the
stock will be managed according to the requirements. There are some steps used to minimise the
defects and errors in order to reduce the operation cost.
Online ordering: It has been observed that due to fast changing technology, internet or
social site become most active factors which influences the decision making of individuals.

Online method of marketing attract large number of individuals towards their organisation
whereas, it will also changes the procedure of ordering food as per their requirements and
convenience. By the assistance of mobile application, customers get various discounts and
benefits which leads towards the enhancement of goodwill and brand image.
Marketing technology:
Usage of social media: It has been analysed that the usage of social media platform help
in maintaining connectivity with large number of individuals. In the context of traditional
marketing method it has been said that Food & Beverage sector adopt billboards & pamphlets for
promoting their services in best manner. On the other hand, online marketing tools help in
enhancing the growth of business organisation (Taoukis and Tsironi, 2016). This is the tool
which is used by companies to gain eyes of large audiences and increase their sales.
Hosting events: This is a marketing tool which is utilised by business organisation so
that they can host business shows in order to gain competitive advantages at the market place. In
addition to this, they also provide their clients tea, snacks, coffee so that they can influence their
customers in an effective manner.
TASK 4
P7 Examine Various elements that influences on decision making of customers while they
choose F&B outlet.
It is determined that there are different elements which is present at the competitive
marketplace. This elements highly impacts on the decision making of individuals. All these
factors are required to be considered by the top management team of food and beverages
industry. Some of the most primary factors includes food offerings, affordability,quality of
service and many more. All these elements are mentioned below in an effective manner.
 Food offering: It has been said that a restaurant provide different variety of food
products to the clients as per their needs and wants. For a restaurant manager, it is very
important to fulfil their requirements so the customers remain loyal towards them. This is
the factor which might influence in positive and negative way the overall decision
making procedure of individuals (Wood, 2018).
 Affordability: It is identified that, consumers required to get high quality products and
services but within less amount. In simple words, it has been said that, individuals do not

want to pay more amount if there is any kind of substitute present at the marketplace. It
has been examined that main of customer is to fulfil their requirements by paying less
amount, this need to be focused by the management team of food & beverage sector in
order to remain at the competition. With the help of keeping the price low or affordable
along with high quality goods and services, restaurant and hotel manager will be able to
sustain in this competitive market for longer time frame (Woodhouse and Woodhouse,
2018).
 External environment: There are ample number of external environments which is
required to be focused by the management team of companies. It has been analysed that
the external elements highly influence the decision-making process of an individual
which might provide both positive as well as negative impact. In relation to F&B
Industry, external elements includes family, friends and various other factors which can
highly affect on the decision making process.
P8 Strategies which are acquired by organisations in a F&B outlets in order to attract
customers.
it is significant for higher authorities of an organisation attract large number of new
customers and to retain loyal clients for longer time frame. This will help them in order to gain
various benefits and gain competitive edge at the market area. There are large number of
substitute present in market that impact on overall decisions of customers. For example, an
individual person remain loyal if a company provide food products and services which can
satisfy their needs and wants. Along with this, it has also been said that an organisation need to
adopt various techniques and strategies in order to attract ample number of new customers
towards the organisation (Bradley and et. al., 2017). Some of the methods used to influence
customers towards the company are discussed below:
Customer Feedback: For every organisation, it is important to fulfil requirements of
customers so that they can maintain their sustainability for a longer period of time. For this,
feedbacks from customers on regular basis are very important so that modifications in food item
can be done. Needs and wants of customers if not fulfilled it will affect the goodwill and
reputation of an organisation within the market. Therefore, feedbacks plays very essential role in
order to remain in competition and sustain for longer time frame.

Loyalty Program: It has been said that there are ample number of offers given to the
customers by the higher authorities of an organisation so that customers remain loyal for longer
time frame. Some of these offers includes membership card, special gifts, loyalty cards, discount
vouchers and many more to their customers. If talked about F&B Industry, there are ample
number of regulations which is followed by senior authorities of an organisation so that they can
effectively beat the level of competition. Along with this, in order to raise the profitability and
sales of the company, managers provide offers and discounts to their regular customers (Chriqui
and Sansone, 2016).
CONCLUSION
From the above study, it is determined that F&B sector includes ample number of
innovative approach which help in maintaining the brand image of an organisation within the
market. It has been analysed that there are different types of business within food and beverage
sector which provide benefits to them. Apart from this, it has also been said that there are some
skills which are required by professionals so that they can carried out business functions in a
defined manner. These skills includes communication skills, time management skill as well as
multi tasking skill which will assist a professional in a positive manner. Along with this, there
are some legal policies which need to be considered by the management team of food and
beverage sector that assist them to implement business activities efficiently and effectively.

REFERENCES
Books & Journals
Bradley, D. M. and et. al., 2017. Human capital challenges in the food and beverage service
industry of Canada. Worldwide Hospitality and Tourism Themes.
Chriqui, J. F. and Sansone, C. N., 2016. Food, nutrition, and obesity policy. Prevention, Policy,
and Public Health, p.141.
Davis, B. and et. al., 2018. Food and beverage management. Routledge.
Espiñeira, M. and Santaclara, F. J. eds., 2016. Advances in food traceability techniques and
technologies: improving quality throughout the food chain. Woodhead Publishing.
Fortin, N. D., 2016. Food regulation: law, science, policy, and practice. John Wiley & Sons.
Freeman, A., 2016. Behavioral Economics and Food Policy: The Limits of Nudging.
Kaur, I., 2017. Role of hotel management and catering technology institutes in ensuring food
safety. In Food Safety in the 21st Century (pp. 321-335). Academic Press.
Kistner, B., Business Opportunities for the Food Industry in Emerging Markets.
Marriott, N. G., Schilling, M. W. and Gravani, R. B., 2018. Principles of food sanitation.
Springer.
O'sullivan, M., 2016. A handbook for sensory and consumer-driven new product development:
Innovative technologies for the food and beverage industry. Woodhead Publishing.
Smith, M. and et. al., 2017. Children's and parents' opinions on the sport‐related food
environment: a systematic review. Obesity Reviews, 18(9), pp.1018-1039.
Taoukis, P. and Tsironi, T., 2016. Smart packaging for monitoring and managing food and
beverage shelf life. In The stability and shelf life of food (pp. 141-168). Woodhead
Publishing.
Wood, R. C., 2018. Strategic questions in food and beverage management. Routledge.
Woodhouse, B. B. and Woodhouse, C. F., 2018. Children's Rights and the Politics of Food: Big
Food Versus Little People. Family Court Review, 56(2), pp.287-307.