Managing Food and Beverage Operations

This report provides a comprehensive overview of managing food and beverage operations, covering various business types, rating systems, industry trends, professional skills, legal requirements, marketing technologies, consumer decision factors, and strategies for building a loyal customer base. It is a valuable resource for students and professionals in the hospitality industry.

Managing Food and Beverage
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explore different types of businesses within the food and beverage industry.......................1
P2 Explain different rating systems used for the food and beverage industry nationally and......2
Internationally..............................................................................................................................2
P3 Discuss the current and future trends affecting food and beverage businesses.......................3
TASK 2............................................................................................................................................4
P4 Demonstrate professional food and beverage management skills..........................................4
P5 Explain the legal requirements and regulatory standards that food and beverage service
outlets must comply with.............................................................................................................5
TASK 3............................................................................................................................................6
P6 Compare and contrast different operational and marketing technology for different types of
food and beverage businesses.......................................................................................................6
TASK 4............................................................................................................................................6
P7 Investigate the factors that influence the consumers’ decision..............................................6
P8 Analyse strategies used by food and beverage outlets to attract and build a loyal customer
base..............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Food is a basis necessity of human life. It helps people to survive in entire lifespan. Food
industry is expanded into wide area. It covers various other sectors like hotels, restaurants,
catering services, etc. also, hospitality industry is closely related to this as it provides different
types of services. Thus, they have to properly manage operations so that high quality food can be
served. The type of operations differs according to size and nature of industry. This report will
show different styles of food and beverage outlets, rating systems, etc. also, it will discuss about
current and future trends affecting food business along with professional skills required in it.
moreover, it describes legal requirements and marketing done by them. At last factors that affects
consumer decision will be shown.
TASK 1
P1 Explore different types of businesses within the food and beverage industry
In hospitality sector, there are different types of trends of food style. It is because each
industry has their own way of performing operations. The size of business depends on its nature.
each to them are interrelated and can provide similar services. Its types are explained below:-
Sector Description Advantage Disadvantage Example
Hotels Wide variety of
services are
provided like
food,
accommodation,
resort, etc.
It provides large
opportunity of
career
development
(Wood, 2018)
In this there the
pay of people is
very low.
Hilton hotel
operating all
around the world.
Full service
restaurants
It contains
branded and non
branded outlets.
They provide
services like
home delivery.
A person can
learn a lot of
skills and
knowledge in
this sector.
The working
hours are not
fixed. Generally,
there are long
working hours.
McDonald’s
Branded
Restaurants
They are
different from
It provides vast
opportunities to
There are long Tim
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fast food outlets
as it provides
lunch and dinner
facilities.
build career in
different sector.
working hours. Hortons
Theme parks They are
developed for
entertainment
purpose. In this
rides, games, etc.
are there to
enjoy.
It has sociable
working hours
There is lack of
career
development
Imagica
Fine dinning They are family
style restaurants
having formal
atmosphere.
Standards
working hours
Low wages
Casual dinning These restaurant
serves moderate
pricing food in
usual
atmosphere.
Better
atmosphere to
work
Not proper
working hours
Bars and pubs They are like
café.
Less work
pressure.
Non flexible
working hours
CCD
Street food stalls These are local
street food stalls
located at
particular place.
Very low profit
margin
Harsh
atmosphere to
work.
Coffee shops They can be
branded or non
branded coffee
shops.
Good
atmosphere to
work
Less growth
opportunities
Starbucks
Gastro pubs Both bar and High benefits Harsh F bar and lounge
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restaurant that
serves high end
food and drinks
environment to
deal with
customers
P2 Explain different rating systems used for the food and beverage industry nationally and
Internationally
In hospitality sector there are various types of grading system which are used to select the
best one. It helps in giving grades in different sectors on basis of their services and products
offered. The systems are based on national and international standards (Couto and et.al., 2017).
By this, it becomes easy to identify which company is famous for what type of service. systems
are defined as :
Scores on the doors- It is UK basic grading system through which restaurant food safety results
are displayed. Here, government officials compare results with standards and then give rating. It
is a 6 tier scheme. It is only applicable in UK and neighbouring countries.
AA rosettes- They are awards given by hotel and restaurant inspectors. It is based on some
criteria. For this various type of services are evaluated and then each one is given one to five star
according to results. This is only followed in UK.
Michelin stars- They are stars used by red Michelin guide to grade restaurant on their quality. It
was developed in 1930 and consists of only three stars. One denotes very good, two for excellent
cooking and three means exceptional cuisine (Gluck and Soltan, 2017). The ratings are updated
every year.
Hotel stars – This is a basic rating system in which a hotel is given rating according to services.
generally, ratings are from one to five. One means very poor and five refers to excellent. The
rating is given by people or customers on hotel website. with help of this, it becomes easy to
determine which hotel is best. It is followed both at national and international level.
P3 Discuss the current and future trends affecting food and beverage businesses
In recent time, hospitality is been affected to a great extent. This is due to emerging
trends that has enabled in creating some restrictions on it (Patiar and et.al., 2017). There has
been a many change in trends of food style and their operations in hospitality sector. These
trends are impacting on them in either positive or negative way. Due to this, business in food and
beverage industry is affected. The trends are described below :-
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Street food- in present era, street food industry is boosting at high level. this is because to
change in lifestyle of society. Now, people lifestyle has become fast. They want quick and
healthy food to fulfil their needs. Also, today’s younger generation are highly attracted towards
street food. This is the main reason why companies are developing variety of food items. They
have effectively segregated the market and identified people needs. It has enabled them to
develop product for each market. In the future it is expected that street food will be a common
part of individual life. Companies will focus on improving food quality and making it healthier.
Robot waiters- Technology will play a significant role in operations of hospitality sector. The
integration of AI with machines will help in reducing employee involvement. It will enhance the
service quality (Min, Swanger and Gursoy,, 2016). The services will be delivered in quick time
and in effective way. The example can be seen in evolution of robot waiters in hospitality sector.
Robots will be used by business in waitering services. The order will be recorded in their
memory. It will be sent into system of restaurant from where it is processed.
App based service- it refers to mobile or web applications that are used by companies in
providing their services. In this third parties collaborate with restaurant and fast food chains to
deliver their services. Through this, customers can order online and food will be delivered at
home. They do not have to travel or go to that place. In addition many other activities are bee
done. It includes catering services, event management, etc. it has resulted in attracting large
number of people. This has led to growth and development in different markets. For example –
in India Zomato is a platform from where customers can order food from any restaurant and it
will be delivered.
In the coming years, it is expected that food and beverage industry will be highly affected
by change in technological or taste and preference of customers. by using various software and
applications their operational efficiency will be enhanced. In future hospitality and food industry
will be dependent on each other growth (Seyitoglu, 2017). Any fluctuation in one will directly
impact the other.
TASK 2
P4 Demonstrate professional food and beverage management skills
A person should possess appropriate skills in order to build a successful career in food
industry. without proper skills, it will be difficult to manage food and beverage operations. apart
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from this, it helps in identifying what particular skills are required to be gained. There are some
skills required in managing food and beverage operations in McDonald’s that is as follows :-
Communication – This is most important professional skill that is required. A person should be
able to properly communicate with each other. he or she must be having ability to listen properly
and share ideas or thoughts. In McDonald’s working is done with customers, staff, managers,
etc. so everyone has to be communicated in different way. also, person should be expert in native
language and know 2-3 other languages as well (Giritlioglu, Jones and Avcikurt, 2014).
Furthermore, it is required to work in team and customer service.
Safety – the second essential skill that is required in it. here, a person should know about various
techniques and tools of safety. He or she should have knowledge about how food must be kept
safe and what procedure is followed. McDonald’s is highly concerned with safety measures as
provide high quality of food to their customers. thus, individual must have vast knowledge about
various food safety control and measures.
Customer service – As name depicts a person must have skill about interacting with customers.
they are some professional skills that is required in food operations. he or she should possess
proper etiquettes and ethics on how to deal with them (Restaurant and food service skills. 2018).
They must be having knowledge about how to behave and treat customers. he or she should
welcome customer in proper way. with this customer relations are built and developed.
Ability to learn quickly- a person must be must have a good grasping power so that new things
and skills are learned quickly (Omar, Adaha and Kamri, 2017). This is because food industry is
an area where there are many functions and operations performed. It varies from cooking food to
cleaning it. thus, candidate in McDonald’s have to perform two or more operations at one time.
Besides this, there is no training provided for every work that is done.
Flexibility – a person must be flexible enough so that it ca work in various areas. he or she
should be able to handle and manage operations and assign work in case of emergency.
Furthermore, he or she must be able to work in any shift.
Food knowledge- this skill is specially required in McDonalds’. The person must possess
knowledge about different types of food and ingredients that are used in preparing it. also, it
helps in dealing with customers and providing them detail and information about different
products of company.
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Hence, it is evaluated that acquiring and possessing these professional skills in
McDonald’s enables a person to build a successful career in food and beverage industry (Sacks
and et.al., 2018). it is necessary to possess above skills so that food operations can be managed in
effective way.
P5 Explain the legal requirements and regulatory standards that food and beverage service
outlets must comply with
There are certain laws and regulations set up by government and international agencies
related to food safety and security. They have set some standards and guideline which has to be
followed and implemented by food outlets. This restricts them to provide healthy food to people.
Also, they are bounded to follow standards. Besides this, it ensures that customer get high quality
food and service equally (Manzardo and et.al., 2016). The legislation framework may vary in
different countries. the standards provide a base for companies to develop their own policies
which is as follows:-
Food and safety regulations- they are basic norms which is followed by set by international
agencies. It consists of policies and procedures that is imposed on food and beverage company. It
shows ways handling of food, its selling, etc. in this many other aspects are included as well like
food safety for meat, dairy products, etc. they are base through which food industry operations
are monitored and controlled.
Food safety compliance- it is developed by FDA that consists of laws and policies related to
safety of food processed in manufacturing, distribution, supply chain, etc. they are followed by
organization to ensure safety of food and ingredients (Green and et.al., 2015). Food process is
described in it which enable organization to execute it.
TASK 3
P6 Compare and contrast different operational and marketing technology for different types of
food and beverage businesses
In food and beverage industry technology is used for marketing as well as in operations.
this is done so that goals and objectives are achieved in effective way. it also helps in increasing
efficiency and productivity of company. basically, in two areas technology is used which are
discussed below –
Operational- it refers to internal and external operation of company. there are many activities
related like supply chain, order taking and processing, delivering, etc. (Patiar and et.al., 2017) the
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use technology in operations in different from marketing as it is complex procedure. Also, tools
and equipment’s used are of high level. Here, method of implementation of technology is differs
according to services.
Marketing – Here, technology in used only for specific purpose. Company have to advertise
their products and services so that people can be attracted. Now, companies are using digital
marketing and social media platforms. They have developed their own website, blogs, etc. to
advertise their products.
Operational Marketing
In includes operations like stock trading,
costings sheets, etc.
It includes CRM and loyalty systems, e mails,
etc.
The operational manager can use this
technology
Marketing manager, employees and customers
can use it.
It helps in managing operations in proper way. It helps in marketing of products and services
Both helps in growth and development of business. by using them services are delivered
quickly and feedback taken from customers. with operational there is effective handling of
functions. The complex tasks are done in easier way and goals are attained in time. In marketing
data and information is collected and analysed to identify change in taste and preference of
customers.
TASK 4
P7 Investigate the factors that influence the consumers’ decision
In hospitality sector it is very necessary to gain satisfaction of customers so that they can
be retained. This helps in building a loyal customer base and competing in market. Consumers
are very sensitive. Their buying behaviour influences constantly due to change in certain factors.
it forces them to select proper and appropriate restaurant to fulfil their needs (Patiar and et.al.,
2017). therefore, different strategies are developed in order to attract consumers. The factors are
described below :-
Brand name – this is first factor that consumer considers before selecting a restaurant. Brand
name reflects company image and its goodwill in the market. it plays a vital role in influencing
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consumer decision. many people prefer to go in reputed restaurant. This is because they are
ensured about food quality, hygiene, services, etc. developing a better brand image in mind of
people will be beneficial in attracting them.
Variety of products- Here, consumer analyse the variety of products that are available.
Generally, in food and beverage industry each fast food outlet provides specific product. So,
people need to analyse whether their needs will be fulfilled or not. If outlets provide more variety
of products it is easy for people to select it. so, any change or development of new product will
influence consumer decision.
Reputation- it is a factor that depicts outlet brand equity in the market. it reflects beliefs and
opinions and what stakeholders thinks or view that outlet (Min, Swanger and Gursoy,, 2016). A
good reputation shows consumer trust your brand and feel comfortable to buy products or
services. therefore, any change in reputation influences consumer decision.
Pricing – It is most important factor that influences consumer buying behaviour. Here, consumer
analyse and compares price of different restaurant so that cheap one is selected. Moreover,
decision is based on purchasing power of consumer. If they are having enough power then they
will choose reputed restaurant. Any fluctuations in prices will influence consumer decision.
Thus, it can be stated that the consumer decision is influence due to change in several
factors. they have to evaluate different elements to select an outlet. It has forced consumer to
evaluate food outlets on certain factors before making final decision.
P8 Analyse strategies used by food and beverage outlets to attract and build a loyal customer base
Every organization needs to develop strategies so that it can attract large number of
customers. also, it is essential to do so for continuous growth and development. Moreover,
business needs to sustain for long term in industry (Seyitoglu, 2017). For this a loyal customer
base has to be developed. The strategies need to modified according to market condition.
Furthermore, they differ as per target market and size and nature. Other than this, in food and
beverage industry the customer base is small so it is difficult to retain it. this can be only done by
building loyal one. The various strategies developed and implemented by food outlets are as
follows :-
Seasonal offers – this strategy is commonly followed by every food and beverage outlet. In this
they offer discounts in festive seasons so that more people can be attracted. It helps in building a
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large customer base in different markets. Also, people are always attracted to those outlets that
provide and offer discounts. It creates a positive image in their mind.
Offering discounts- It is also a popular strategy in which food outlets provide offers to their
customers so that loyalty can be gained. This is done through various methods such as
membership, coupons, free delivery, etc. it is useful tactic to enter in new market. Here,
advertising is done to create awareness among people about offers. Once a customer is engaged
with outlet then trust can be gained.
Happy hours- this is a new concept initiated by food outlets in attracting customers. in this they
set a particular time in which products and services are available at very low price (Giritlioglu,
Jones and Avcikurt, 2014). It is useful to build loyal customer base. Moreover, customers avail
happy hours to fulfil their needs. In this way company can gain their trust. The offer is advertised
on social media and other sources.
Offering combos- Food outlets focus on offering combos to so that it is affordable to people to
buy it. they do this every week and set price accordingly. With it effective meals can be provided
to them.
Loyalty system – in order to encourage customers reward system can be implemented. Here,
they are be given points on basis of visits or bill of items. Thus, providing benefits or discounts
on loyalty card will be beneficial in attracting people.
CONCLUSION
This report concluded that there are different styles and types of food and beverage
operations. it depends on size and nature of industry. the law followed in food industry are Food
and safety regulations, Food safety compliance, etc. Management professional skills required are
Communication, Safety, Customer service, ability to learn quickly, etc. The future trends like
robot waiters, street food, etc. will impact on operations of food and beverage industry.
Consumer decision in selection of restaurant is influenced by many factors such as brand name,
pricing, variety of products, etc. there are different strategies followed by food and beverage
outlets in order to build loyal customers base. They are seasonal offers, offering discounts, etc.
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REFERENCES
Books and journals
Couto, C.A. and te.al., 2017, September. Managing Enterprise Resource System (ERP)
and Balanced Scorecard (BSC) in Food Industry in Brazil-Food and Beverage Products: A
Multiple Case Study. In IFIP International Conference on Advances in Production Management
Systems (pp. 99-104). Springer, Cham.
Giritlioglu, I., Jones, E. and Avcikurt, C., 2014. Measuring food and beverage service
quality in spa hotels: A case study in Balıkesir, Turkey. International Journal of Contemporary
Hospitality Management, 26(2), pp.183-204.
Gluck, S. and Soltan, A., 2017. Treating high sugar wastewater in the Food & Beverage
sector with new biological technology. A case study. Proceedings of the Water Environment
Federation, 2017(16), pp.176-189.
Green, R. and et.al., 2015. Innovation Capability and the Food Beverage and agri-business
sectors.
Manzardo, A. and et.al., 2016. Organization life-cycle assessment (OLCA): methodological
issues and case studies in the beverage-packaging sector. In Environmental Footprints of
Packaging (pp. 47-73). Springer, Singapore.
Min, H., Swanger, N. and Gursoy, D., 2016. A longitudinal investigation of the importance
of course subjects in the hospitality curriculum: An industry perspective. Journal of Hospitality
& Tourism Education, 28(1), pp.10-20.
Omar, C.M.C., Adaha, N.M.A. and Kamri, N.A., 2017. Shariah compliance in hotel
management: a conceptual framework.
Patiar, A. and et.al., 2017. Students' perceptions of quality and satisfaction with virtual
field trips of hotels. Journal of Hospitality and Tourism Management, 31, pp.134-141.
Sacks, G. and et.al., 2018. How food companies influence evidence and opinion–straight
from the horse’s mouth. Critical Public Health, 28(2), pp.253-256.
Seyitoglu, F., 2017. Components of the menu planning process: the case of five star hotels
in Antalya. British Food Journal, 119(7), pp.1562-1577.
Wood, R.C., 2018. Strategic questions in food and beverage management. Routledge.
Online
Restaurant and food service skills. 2018. [online] Available through:
<https://www.thebalancecareers.com/restaurant-and-food-service-skills-2062470>
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