Managing Food & Beverage Operations

This document provides an overview of the management of food and beverage operations in the hospitality industry. It discusses different types of businesses, rating systems, future trends, operational functions, marketing technologies, and their impact on consumer behavior.

Managing Food & Beverage
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 and LO3...................................................................................................................................3
FACT SHEET ONE.........................................................................................................................3
Number of business in F & B industry...................................................................................3
FACT SHEET TWO........................................................................................................................5
Rating system that are being used in both in international and national platform.................5
FACT SHEET THREE....................................................................................................................6
Future Trends and Current......................................................................................................6
Trends impact upon F & B industry.......................................................................................6
Manner in which F & B business operations undertake trends of future...............................7
FACT SHEET FOUR......................................................................................................................7
Comparison of different types of operational functions ........................................................7
Evaluation about the ways operational technologies enhances performance of business......9
Technology impact upon buying behaviour of consumers.....................................................9
FACT SHEET FIVE......................................................................................................................10
Comparison among different forms of marketing technologies...........................................10
Marketing technologies innovation as to make increase in performance of business..........11
Marketing technologies impact upon buying behaviour of consumers................................12
LO 4...............................................................................................................................................12
Elements that states which outlets within food and beverage consumer choose.................12
Activities evaluation as to retain as well as attract consumers.............................................13
Distinct strategies in order to build loyal consumer base ....................................................13
Digital technologies evaluation............................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
F & B department engage in the activities such as management of inventory, ensuring
delivery, engaging into development of certain events, production of food items and beverages,
and more (Davis and et. al., 2018). These form of activities is being undertaken by food and
beverage organisations to offer maximum satisfaction to their customers while ensuring
profitability. Present report include discussions on identification of behaviour of customers along
with the factors that influence their decision-making. Further diverse range of business in food
and beverage sector is being included in this report along with rating systems that are being
undertaken in international and national level.
LO1 and LO3
FACT SHEET ONE
Number of business in F & B industry
It has been evaluated that there are different types of organisations those who are
performing their business within food and beverage sector. Main aim of these entities are to
effectively satisfy needs and wants of people in well defined manner as to increase organisational
profitability in number of ways. In addition to this, it has been evaluated that organisations
within this sector provide different types of product and services to customers as to increase their
interest towards entities in well defined manner. It is important to have formative knowledge
related to different organisations within this sector as to have better understanding of all these
segment in best effective manner. Mentioned below some of the entities within this sector are
being defined:
Restaurants:
Restaurants are considered as one of the prominent segment in food and beverage sector.
In this outlets mainly offer food along with exotic seating arrangements as to provide them
satisfaction. In addition to this different forms of dishes are being served to customers as to gain
their maximum satisfaction in order to increase profitability.
Hotels:
It is one of the most essential sub segment in food and beverage sector, this unit mainly
engage in the function related to accommodation services along with different types of facilities
such as sports arena, gym, banquet, lodgings, effective leisure facilities, swimming pool and
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more. Hilton group of hotel falls within this sector as they offer different types of facilities to
their customers with an aim to influence customers towards their services and increase overall
profitability of organisation in number of ways.
Catering Services:
In this form of segment in food and beverage sector there are number of activities are
being organised such as weddings or ceremonies and more. It has been analysed that in Hilton
hotel these facilities are being provided to customers with an aim to have significant increase in
organisational profitability and productivity as to increase their market share in best effective
manner.
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FACT SHEET TWO
Rating system that are being used in both in international and national platform
Rating systems are mainly used by hotel industry to express that which type of services
are offered to the customers. It can be said that with the usage of rating system customer or user
of service can easily find best accommodation as per their required service. With reference to
Hilton Hotel, it can be said that this hotel makes use of stars to all customers to determine right
hotel as per their requirement. This rating system is expressed as below:
Hotels:
 One Star: This rating is mainly provided to those hotel which provides accommodation
facilities to its customer. It does not offer food and beverage facilities within the hotel
premises.
 Two Stars: Hotels belonging to this provides comfortable accommodation services to its
customers with the nominal range of food and beverages.
 Three Stars: Hotels comes under this rating mainly offers high quality of food services to
customers along with comfortable and personalise services. All the additional services are
provide to customers within hotel premises.
 Four Stars: It offers lavish services to customers that includes huge additional amenities,
leisure activities and variety of food & beverages services.
 Five Stars: Hotels belonging to this rating criteria provides luxury services to its
customers with finest quality of food. It can be said that Hilton Hotel belongs to this
rating which offers high class services to its customers.
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FACT SHEET THREE
Future Trends and Current
Hotel industry is incorporating range of trends in order to attract more nu7mber of
customers towards them in appropriate manner. With reference to hotel, some of the common
trend enrolled in this sector are stated as below:
 Innovation: The industry are brought range of innovation within the sector in order to
serve customers in better manner. The main innovation took place in this industry are
automated machinery, strong and quick delivery system, digital booking etc.
 Food Safety: In order to assure the customers that they are offering high quality of pure
food, the respective industry believes in maintaining transparency in its kitchen area.
Also, they believes in serving healthy food to its customers along with the taste.
Trends impact upon F & B industry
On the basis of the above provided description on the trend, it can be said that the both
the innovations has higher influence over Food & beverage businesses. This is so because,
companies belonging to this zone are required to incorporate all of these innovations to retain its
existing customers and attract new one with trendy services. This can be well understood with
the help of example. For instance: Latest trend of digital technology have created demand of
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creating their own mobile application for Hilton Hotel in order to serve its customers in
personalise manner.
Manner in which F & B business operations undertake trends of future
With reference to Hilton hotel, it can be said that the respective hotel can easily
incorporate innovation as the future trend by conducting training and development session for its
employees. This will improvise performance of employees because with appropriate training
they will become familiar with the latest innovation. At the same time, this could be seen as the
most expensive method for the company as company have to invest a lot for conducting training
sessions for employees.
FACT SHEET FOUR
Comparison of different types of operational functions
Operational technology include software and hardware that are mainly devoted to
undertake detecting and causing changes within physical processes via control of physical
devices and direct monitoring. It has been analyses that in food and beverage sector there is
involvement of extended base of operational technologies that are being used by business
organisations as to expand their business operations. Some of the certain operational
technologies is being defined below:
Flow through stockings:
This form of operational technology is mainly undertaken for the purpose of segregating
and stocking different form of raw materials. It is important for organisations within food and
beverage sector to ensure that they have stocked their shelves in quick manner as to satisfy
customer’s in best effective manner. Wheels like structure aid organisation to stock along with to
refill commodities in order to save cost and to ensure improvement in management of inventory.
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It has been defined from the above statistics that, with the utilization of operational
technology it has been measured that there is significant improvement in stock in last years.
Along with this there is increase in ration of stocks and flows each year.
Digital booking system:
In this form of operational technology, reservations in order to use organisational aspects
is mainly being done via publicly assessable computers and websites. With the help of digital
booking system, organisation like Hilton hotel accepts booking via online mode in order to
manage individuals bookings in well defined manner. With the help of this booking in pubs,
restaurants in hotel are done in well defined manner. With the help of this maximum level
satisfaction to customers can be provided.
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It has been analysed that more than 42% food delivery orders are done via digital
booking system. Further it has been evaluated that these ratios keeps on increasing on continuous
basis. In the year 2011 the ratio was 8% that have significantly increased in 2019E by 53%.
Evaluation about the ways operational technologies enhances performance of business
It is essential to analyse operational technologies in order to evaluate effectiveness of
such technologies. In context with flow via stocking technology with the implementation of
technologies organisations within food and beverage segment can effectively able to make
decrease in cost related to management of inventory. Stocking with the help of technology
benefit managers to significant increase in business performance. While on the other hand, in
order to implement this technology into business structure huge cost is required that may affect
revenue and profit reserves ratio of organisation. In context with digital booking system there are
number of benefits that can be gained by organisations in terms to saving time and ensuring
smarter insight as to make significant improvement in performance of business. While as to
effectively manage these bookings via online mode effective training to employees are required
to be given that require time and cost.
Technology impact upon buying behaviour of consumers
It has been analysed that operational technologies have significant impact over
purchasing behaviour of consumers. For example, digital booking system benefits in promoting
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convenience and awareness for customers that further influence their buying behaviour in a well
defined and positive manner. This indicates that flow through stocking does not impact upon
purchasing behaviour of customers.
FACT SHEET FIVE
Comparison among different forms of marketing technologies
These are termed as tech with the help of which marketing departments can effectively able to
perform their operations. It has been analysed that in food and beverage industry there are large
base of marketing technologies that are being undertaken by organisations that aid them to adopt
latest trends in marketing. Some of the certain are mentioned below:
Analytics: This technology is one of the prominent segment in food and beverage
industry. With the formative assistance of this technology business within this industry can
effectively able to undertake comparison in relation to company marketing performance in
context with latest trends. This will significantly help in making maximum growth in
performance of business operations.
It has been analysed from the above mentioned statistics that made in F & B industry
significantly make increase in a well defined manner. Further it has been determined that it will
improve to USD 22.8 Billion by the year 2024.
Search Engine marketing: With the help of this form of marketing technology,
organisations involve in food and beverage industry can effectively able to grow efficiency of
their operations by engaging in the process of managing consumer relationships increasing
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perceptibility within search engines. It has been analysed that in food and beverage industry with
the help of this technology organisation can make significant relations with search engine
optimisation.
As per the above mentioned statistics, it has been defined that the utilization of search
engine technologies is increased by every passing year. In the year 2008, it was 11.44% that
significantly increased in 2019 by 75.23%. While it has been determined that it is estimated to
reach in 2020 by 79.27%.
Marketing technologies innovation as to make increase in performance of business
Marketing technologies involves search engine marketing and analytics with the help of
which business organisations can measure significant growth in their business performance in
number of ways it further helps in increasing opportunities for entities in order to promote their
services and products in best effective manner that helps in increasing performance of
organisation in relation with profitability and productivity. While in relation with search engine
marketing, business organisations can gain significant opportunities as to make expansion of
their online presence that further aid them to satisfy customer at different locations. While in
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terms of analytics technology entity like Hilton hotels can effectively able to measure their
organisational performance within marketplace and can further implement practices as to make
improvement in their business performance.
Marketing technologies impact upon buying behaviour of consumers
Marketing technologies involve analytical technology in addition with search engine that
significantly impacts upon behaviour of customers. While in relation with analytical technology,
this aid business to undertake emerging trends in external surroundings and can further make
modification in their marketing techniques and to encourage behaviour of customers and satisfy
their needs as per in accordance with latest trends. Along with this, search engine marketing
effectively aid organisation to attract large base of customers via enhancing presence. This will
significantly benefit entity to increase their customers base and can influence their Purchasing
behaviour in a positive manner.
LO 4
Elements that states which outlets within food and beverage consumer choose
There are numerous range of elements with the help of which interest of customers can
be duly influenced in best effective manner. It is the main responsibility of organisations within
food and beverage sector as to have proper understanding of all these elements as to effectively
attract customers interests towards organisational products and services. There are diverse range
of factors that are being defined:
Environment: This is most important factors that lead towards influencing customers
decision making in terms of selecting a outlet. With the due understanding of these factors
organisations can significantly able to attract customers towards their offerings. For example by
providing pleasant interiors, clean environment, professional and friendly staff, clean
environment and more organisation can effectively able to attract customers in a well defined
manner. This will help organisations engage within food and beverage sector to serve large base
of customers and make significant increase in overall profitability and productivity of
organisation.
Affordability: It is most important aspect that are required to be consider by organisation
as with the help of having proper understanding to this factor entities can effectively able to gain
opportunity to serve more customers in well defined manner. In addition to this, it has been
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identified that it is important to organisations within food and beverage sector to ensure that they
provide affordable products and services to customers as to influence their decision-making
process and increase profitability of organisation.
Activities evaluation as to retain as well as attract consumers
There are some certain strategies that are being discussed below:
Customer Feedbacks:
This factor is termed as one of the most important aspect by considering which
organisation can effectively able to ensure loyal customers. As by taking regular feedbacks from
customers organisations can effectively able to solve their issues and can further satisfy them in
best effective manner. This will help them to offer maximum level of satisfaction while ensuring
large base of profitability.
Technological Advancements:
It has been analysed that technology is updated on daily basis thus, it becomes essential
for organisation those who are engaging in food and beverage sector to satisfy their customers as
per according to latest trend and elements. For example with the help of technology organisation
can offer services like automatised billing, self check in and check outs, digitalised booking and
more to customers in order to influence their decision and encourage them towards
organisational offerings.
Distinct strategies in order to build loyal consumer base
Within this it is important to take advantage of wide range of strategies as to duly attract
attention of customers in order to retain them for long duration of time. Within this,
organisations are required to undertake feedbacks on regular manner from customers as to satisfy
them in best effective manner. Along with this, entities must provide technological benefits to
their customer's in order to serve their needs and demands in a well defined manner.
Digital technologies evaluation
Technology impacts upon each and every sector in number of ways and impact upon their
functioning. Different types of factors are linked with digitalisation that are required to be
consider by entities as to satisfy their customers in best effective manner. With the help of
technology organisation can identify current trend and factors and can satisfy customers as per
according to them (Pagani and Pardo, 2017). This will effectively help them to increase
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organisation work efficiency that further benefit in ensuring large base of profitability. In
addition to this, by taking advantage of technology company can able to have regular feedbacks
from their customers and can further resolve their queries. Further it is essential of organisation
to make regular update in their software system as to undertake regular modifications in their
products and services offerings. This will effectively help them to increase their customer base
while ensuring large base of profitability and productivity in best effective manner.
CONCLUSION
According to the report, there are numerous range of units within food and beverage
sector those who are operating their activities in order to offer satisfaction to customers. In
addition with this, it has been defined that digital technology have significant impact over
organisation thus, it become essential for entities to consider all the factors. This will help them
to satisfy customers in best effective manner. It is essential for organisation to take regular
feedbacks from their customers as to increase organisational profitability and productivity in well
defined manner.
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REFERENCES
Books and Journals
Davis, B., and et. al., 2018. Food and beverage management. Routledge.
Montgomery, K., and et. al., 2019. Big Data and the transformation of food and beverage
marketing: undermining efforts to reduce obesity?. Critical Public Health. 29(1).
pp.110-117.
Pagani, M. and Pardo, C., 2017. The impact of digital technology on relationships in a business
network. Industrial Marketing Management. 67. pp.185-192.
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