Food and Beverage Supply Chain Management

The assignment focuses on a study that analyzed various styles and types of food and beverages operations, emphasizing professional management skills to attract consumers. It also explored the influence of consumer decision-making factors and provided discounted offers and techniques to increase customer consumption. The study considered real-world case studies from the Spanish food supply chain, revenue management in beverage operations, managing service brand value, and improving service operations in fast-food restaurants.

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
TASK 2............................................................................................................................................2
P2 Explain different rating systems used for the food and beverage industry nationally and.....2
Internationally..............................................................................................................................2
TASK 3............................................................................................................................................3
P3 Discuss the current and future trends affecting food and beverage businesses......................3
TASK 4............................................................................................................................................4
P4 Demonstrate professional food and beverage management skills .........................................4
TASK 5............................................................................................................................................4
P5 legal requirements and regulatory standard for food and beverage services .........................4
P6 Comparison between operational and marketing technology ................................................5
P7 Factors that influence consumer's decision...........................................................................7
P8 Strategies by Food and beverage outlets in order to attract loyal customers ........................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
In food industry there are several types of operations that are performed. it covers many
sub sectors like hotels, resorts, catering services, etc. the food and beverage industry is directly
related to many industries. It offers variety of products and services to large number of people.
the industry has grown rapidly in recent times due to increase in travelling and income level of
people. there are different sector like QSR, FSR, etc. (Chang and Ma, 2015) the report will
describe about different types of business and different rating system used at national and
international level. Also, current and future trends exist in food industry is discussed. Moreover,
legal requirements and professional skills required in food manager are explained in it. at last
factors that affects consumer decision is explained. For present report Burger King is taken.
TASK 1
P1 Explore different types of businesses within the food and beverage industry
As discussed above there are different types of business in food and beverage industry.
each of them differs in size and nature. The products and services provided to people can be
easily differentiated. But businesses are dependent on each other growth. They are described
below :-
Sector Description Advantage Disadvantage Example
Hotels Hospitality sector
is expanded in
wide area. It
offers variety of
services that
includes
accommodation,
food, etc.
Freshers can
easily get jobs.
There are large
number of career
opportunities
available.
Working hours
are not fixed in
seasons.
The environment
is also not so
better to work in.
Marriott <
https://www.mar
riott.com/default
.mi >
Fast food They can be
divided as QSR,
FSR, etc. in
which various
services and food
A person learns a
lot of
professional
knowledge.
Person has to
deal with
customers in
different
KFC <
https://online.kf
c.co.in/ >
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items are
provided
(Kanyan, Ngana
and Voon,
2016).
A lot of
opportunities are
available for
graduates.
languages
There is a lot of
work load in
festive seasons.
Branded
Restaurants
They are
different from
fast food outlets
as it provides
lunch and dinner
facilities.
Free access to
food and
accommodation.
High rise in pay.
Long working
hours.
Popeyes
<https://popeyes
.com/>
Golf club It provides
services of
playing golf and
club combined.
Exposure to
green
environment
high salary and
less work.
Inflexible
working hours.
No proper
criteria to get job.
Doha golf club
<
https://www.doh
agolfclub.com/
>
Fine dinning They are family
style restaurants.
Standards
working hours
Harsh
environment
Casual dinning These restaurant
serves moderate
pricing food in
usual
atmosphere.
Better
atmosphere to
work
Not proper
working hours
Street food
stalls
These are local
street food stalls
located at
particular place.
Very low profit
margin
Harsh
environment
Coffee shops They can be
branded or non
branded coffee
shops.
better
atmosphere
Less growth
opportunities
Starbucks
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Gastro pubs Both bar and
restaurant that
serves high
quality and
expensive food
and drinks
High benefits Inflexible
working hours
F bar and lounge
TASK 2
P2 Explain different rating systems used for the food and beverage industry nationally and
Internationally
Business operating in food and beverage industry are given rating on basis of standard
system. These grades help in differentiating hotels on basis of quality of services and products
offered. The ratings are given by international and national agencies. The different rating system
are described below:-
Scores on the doors- This system is followed in UK where grading are given on basis of safety
and security regulations implemented by restaurants. Government authorities give ratings by
comparing results. It is a 6 tier rating scheme applicable in UK and neighbouring countries.
AA rosettes- This system is only followed in UK (Sen and Kaushik, 2016). they are not ratings
but rewards which is given by officials. They visit different hotels and restaurants and evaluate
each type of services provided by them. the ratings vary from one to five star.
Michelin stars- the grading system was developed in 1930 in which restaurants are given
grades. It also consists of stars but is different from AA rosettes (How Michelin stars are
awarded to restaurants. 2018). There are only three stars in it, one denotes very good restaurant,
two for excellent cooking and three means exceptional cuisine. Every year ratings are changed
due to update.
Hotel stars – It is very common system followed in every country. Here, ratings are given
between one to five. One shows low level of services and five shows very high and excellent
services. this makes it easy for people to identify which hotel or restaurant offers best services.
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TASK 3
P3 Discuss the current and future trends affecting food and beverage businesses
There has been a lot of change in trends in food and beverage sector. It has led to some
advance developments in providing services to people (Valta and et.al., 2016). also, the way of
taking order and delivering is changed. Due to this there is a great impact on growth and
development of fast food sector. The changing trends are described below :-
Touch screen technology – Technological advancement has almost impacted every sector. The
use touch screen devices has made the work easy for people. Similarly, in future companies
engaged in fast food sector will use such devices. it will make it easy for people to select and
give orders. Moreover, waiters will use devices to process and take orders. The chefs will
monitor food cooking through devices. this will make it easy for them to maintain temperature of
room. All things will become automated in restaurant and hotels.
Chefs at home-in today’s era people lives has become fast. They spend a lot at work place and
dos not get enough time to prepare healthy food. Along with this, now they are more concerned
towards eating healthy food. In recent time there has been increase in trend of chefs coming
home and preparing food. The emergence of this trend in future will highly impact on fast food
sector. People will consider calling chefs at home to prepare food. It will lead to fall in sales and
profits of QSR’s. more people will get involved in providing services of chefs at home. The
companies have to make more efforts in attracting people.
Mobile phone as room key- due to integration of technology with internet (IOT), everything is
connected to devices. it has made it easy to do complex task quickly. in hospitality industry
many key changes will occur (Goldsmith, Lin and Monteiro, 2016). Among them one is mobile
phone will become room key. It means customers will be given a unique code through which
access of rooms is given. This trend will enable hotels to implement advance IT infrastructure.
TASK 4
P4 Demonstrate professional food and beverage management skills
In order to build and develop a successful career in food and beverage industry a person
should possess high level and various professional skills. This is because they have to deal with
different customers differently (Bellido and Heras, 2017). Furthermore, there are large number
of opportunities that are available in this sector. The skills required in Burger King are :-
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Communication- A person should possess high level of communication skills so that it can
easily deal with customers. he or she should listen and reply in proper way. in Burger King many
people visit outlet in one day. Thus, person must know 1-2 other languages as well. The
candidate of native region must speak, write, etc, local language easily.
Safety- A person must have knowledge about different types of safety tools and equipment that
can be used in situation. Moreover, he or she should know how food is kept safe and at what
temperature., what precautions are to taken, etc. Burger King follow safety standards very
strictly. With this they prepare food and offer services. the candidate must know about safety
standards.
Customer service- Burger King is fast food retain restaurant. The employees have to deal with
different types of people. so, person must possess relevant skills about how to handle customers,
treat them, serve food, etc. (Robinson and et.al., 2016) this professional skills makes a person
eligible to work in food industry.
TASK 5
P5 legal requirements and regulatory standard for food and beverage services
Food and beverage services are directly linked with the health of individuals thus service
providers must ensure that their products and services do not cause any adverse impact on the
health of individuals. Though different countries have variety of regulations related to Food and
beverage but all regulations have common objective of ensuring the safety standards with these
services. Some essential regulatory standards which must be followed by the organisations are as
follows:
Food safety and quality compliances:
The regulation agencies provide clear guidelines for Food and beverage services which
guides them to ensure that the products they serve are not harmful. Their processing and
manufacturing is accomplished under safe environment (Radzi, Saidon and Ghani, 2016 ). For
instance dairy products and meats which can cause harmful effect on human beings if not
verified before processing. These compliances ensure that service providers use only good
quality of ingredients. The manufactured food must be supplied with safe and secure manner. It
should not be supplied in a way which promotes the food contamination or can cause adverse
impact on health of individuals. These regulations thus describe how service providers can
supply, manufacture products.
5

Maintenance and hygienic regulations:
The processed foods must be stored with specific mechanism so that they can be
preserved. These regulations enable Food and beverage service providers to regulate that only
edible preservatives are used. It also ensures that the equipment’s which are used for food
processing are cleaned and hygienic and do not cause any degradation in food quality.
P6 Comparison between operational and marketing technology
Technology is an integral part of the marketing and operational functions of Food and
beverage service industries. These organisations can use technologies in following areas:
What is the
technology?
What it does? Who might use
it?
Benefits
Payment
technology
Application for
online payment
It will enable
consumers to
make payments
without cash as
well (Taylor,
Slabbert and
Saayman, 2014).
Customers,
suppliers and
distributors
Time saving and
encourage
consumers to buy
even if they will
not have cash in
their hands.
Nutritional
information
Description of
the nutritional
content involved
in the products
Attracts
consumer which
are health
conscious.
Marketing
executives and
Chefs
Profits will be
increased. There
are customers
who avoid such
service providers
due to their health
concerns but
when this
technology will
be used then they
will surely begin
to use the
products and
6

services.
Marketing technology
What is the
technology?
What it does? Who might use
it?
Benefits
Social media
marketing
Promotion It will create
brand awareness
among
consumers
regarding the
services of
organisation
Marketing
executives and
consumers
More consumers
will know
organisation so
sales will
increase.
Email Application It will provide
the status of
orders to
customers and
will update them
with the latest
updates within
company so that
they can remain
connected with
company.
Customer
relation
managers
Customers will
be able to contact
organisation
anytime and thus
customer services
will be improved.
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P7 Factors that influence consumer's decision
Main purpose of Hospitality industries is to sale customer demanded products so that it
help in retention of loyal customer for the longer time. It help in developing a strong and healthy
customer relationship that increases the sales of the company in order to achieve the main
objective of generating huge profits for the company (izzuti and et.al., 2014). With the change in
the preference and taste of the consumer they easily get influenced by different brands and
variety of products. It may be depended on various factors that help them to select particular
company for the purpose of consumption of goods and services. These factors may include brand
name, variety of product, variety of products available, reputation, pricingh in the market etc.
Brand name
This factor influences the minds of the consumer as brand name is the major factor that
helps consumer in preferring the particular brand of eatable items. This easily influences the
customer decision as brand name of the company builds the reputation among a society which
builds interest of the buyer in consumption of goods.
Variety of products
Consumer might like to choose variety of food items so in order top choose large eatable
products the company may have to deliver different food services. This factor is mainly
responsible for changing the decision of consumer as availability of different variety foods and
beverages may be preferable by various consumers.
Reputation
This factor generally inspires the minds of the people as high class people often like to
prefer reputed hotels for consuming food and beverages. This holds the faith and trust of the
customer towards buying a particular brand of eatable items.
Pricing
This can be considered as the major factor which influence the buyer's decision. Prices of
the foods are initially analysed by the customer in order to select a particular hospitality industry
(Blevins, 2016). According to the nominal charges of product, mood of the consumer
completely depends as buyer prefer low priced same quality product over high prices. It
generally attracts and influence their decisions.
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P8 Strategies by Food and beverage outlets in order to attract loyal customers
Coffee
shop :Costa
coffee
Restaurant: KFC Hospitality
business: Hyatt
Regency
EPOS System
What is the EPOS system of the
business does company prefer?
Appearance of the
manufacturer name which is
available on the system
Does the functionalities of the
system are easy to use
Yes,
It is very easy
to use as
functionalities
are user
friendly
Yes
It is very easy to
use as
functionalities are
user friendly
Yes
It is very easy to
use as
functionalities
are user friendly
Card reader
is there any payment facality
available?
Does it take contactless
payments?
Will it accept various payment
methods such as google pay,
paytm etc.
Yes
yes there is such
kind of payment
system
Yes it accepts it.
No
No there is no such
kind of payment
system
Yes it accepts it.
Yes
No there is no
such kind of
payment system
No it only accepts
authorised one
Product Display
Are products displayed in a
logical order?
Is the order display attracts
large visiters?
Is the taste of the prodyucts is
delicious?
YES,.
Yes products
are completely
displayed in
attractive
manner
Yes it looks
delicious
No,.
Products are
displayed
attractively
Yes it looks
delicious
Product are not
displayed here
yes taste of the
food is extremely
delicious
Purchase Boosts
is various business strategies are
applied by the company to attract
large customers and also to
increasing their purchasing
power?
Is prices of the products are
They provide a
peaceful
environment.
Yes all items
are individually
priced.
No
They provide a
better environment
(Bujisic,
Hutchinson and
Bilgihan, 2014).
Yes all items are
individually
Marriott provides
extra facilities
like Spa,
swimming pool,
gym, etc.
Items are not
9

individually mentioned?
Are there Impulse
Purchase items near the
till?
Do members of staff upsell?
No they do not
upsell.
priced.
No
No they do not
upsell.
displayed.
No.
Posters/Advertisements
are there advertising and promotions
are comparatively effective?
are they take proper feedbacks
from the customers in order to
succeed?
Yes there are
advertisement
of Starbucks.
They promote
coffee culture
Yes they are
likely to
succeed.
There are several
posters of
McDonald.
It promotes variety
of food items.
Marriott does not
carry out any
promotional
activities.
Pricing
Four Eatables which produced
by the company and their prices?
Do the prices of the products
worth buying?
Are there any special
offers, discounts, meal
deals, etc.?
Cappuccino -
£2.50
Mocha £4.20
Raspberry
Blackcurrant
£4.50
It does not
represent good
value of money.
Yes there are
seasonal and
festive
discounts and
offers.
McAloo tikki- 3$
McChicken – 5$
It represent good
value of money
due to its taste.
Yes there are
seasonal and
festive discounts
and offers.
Smoked Bacon
and Chicken
£7.00
Ham and cheese
£6.50
Prices do not
represent good
value for money
due to less
quantity.
There are no
special discounts.
Repeat Business
What is the business
doing to encourage
customers to return?
Are there loyalty cards
available?
Does staff encourage
customers to return? Are there
any
advertisements
introduction of new products
are soon coming ?
It provides
membership
cards to them.
Yes there are
loyalty cards
available.
Staff
encourages
customer to
visit again.
No.
It provides
membership cards
to them.
Yes there are
loyalty cards
available.
Staff encourages
customer to visit
again.
Yes, it is displayed
inside outlet.
Marriott gives
membership
cards for
repetitive
business. there ae
loyalty cards
available.
Staff highly
motivate
customer to visit
again.
The events are
not advertised.
10

Other Observations
What else have you
noticed, that is relevant
to the operation of the
business, during your
visit?
Costa coffee
provide a better
environment to
enjoy and relax.
KFC provides
fresh and friendly
atmosphere.
None
Website/Advertising
Before, or after, your visit, go to
the
Company’s website and look at
this.
Is it inspiring,
informative and
professional?
Does it provide all the
information that
customers might need
(Opening times, location,
menus, prices, etc.)?
Do they advertise their
business in any other
Way?
Website is not
so inspiring and
does not contain
information
about product,
price, etc.
Yes, Costa
coffee advertise
it through
various
activities.
Website is very
inspiring and
contains detail
information about
product, price, etc.
Yes, KFC's
advertise it
through
sponsorships, TV,
etc.
Website of Hyatt
regency displays
all information
regarding
services, location,
etc.
CONCLUSION
from the above study it was concluded that Food and beverages operations are those
practices are which are occurred during the production and manufacturing of Eatable articles.
The study had provided various different styles and types of food and beverages operation. It had
also explained rules proper laws regarding the safety of food and beverages. The research had
mainly focus towards exploration of professional management skills which are required to attract
the large number of consumer towards the brands. The study had also created a complete
understanding about the influence of consumer decision that may be influenced by various
factors. It had also provided various discounted offers and techniques in order to attract large
number of customer towards the consumption of particular food and beverages products.
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REFERENCES
Books and journals
Bellido, J.M. and Heras, A.D., 2017. Explaining Alliance Success Factors in Spanish Food
and Beverage Supply Chain: Case Analysis. In Engineering Systems and Networks(pp. 167-
174). Springer, Cham.
Blevins, P.W., 2016. Food safety regulatory compliance: Catalyst for a lean and sustainable
food supply chain. CRC Press.
Bujisic, M., Hutchinson, J. and Bilgihan, A., 2014. The application of revenue management
in beverage operations. Journal of foodservice business research. 17(4). pp.336-352.
Chang, H.P. and Ma, C.C., 2015. Managing the service brand value of the hotel industry in
an emerging market. International Journal of Hospitality Management. 47. pp.1-13.
Goldsmith, P., Lin, T. and Monteiro, D., 2016. How Do Firms Manage Inbound Supply
Risk? A Beverage Industry Case Study. Journal of Agribusiness. 34(1). pp.13-32.
Kanyan, A., Ngana, L. and Voon, B.H., 2016. Improving the Service Operations of Fast-
food Restaurants. Procedia-Social and Behavioral Sciences. 224. pp.190-198.
Pizzuti, T. and et.al., 2014. Food Track & Trace ontology for helping the food traceability
control. Journal of Food Engineering. 120. pp.17-30.
Radzi, R.M., Saidon, I.M. and Ghani, N.A., 2016. Risk management in food supply chains
by Japanese food companies in Malaysia. International Journal of Business Management &
Economic Research. 7(6). pp.778-787.
Robinson, P. and et.al., 2016. Operations management in the travel industry. CABI.
Sen, K. and Kaushik, T., 2016. Recent innovative measures across different functions in the
Indian hospitality industry: A case study from Accor Hotels. Worldwide Hospitality and Tourism
Themes,. 8(4). pp.481-489.
Valta, K. and et.al., 2016. Adaptation measures for the food and beverage industry to the
impact of climate change on water availability. Desalination and Water Treatment. 57(5).
pp.2336-2343.
Online
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How Michelin stars are awarded to restaurants. 2018. [online] Available through : <
https://www.tripsavvy.com/about-michelin-stars-1329159 >
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