Managing Food and Beverage Operations

Understanding how to
manage food and beverage
operations
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry........................................................................3
P2 Explain different rating systems used for the food and beverage industry nationally and
internationally..............................................................................................................................4
P3 Discuss the current and future trends affecting food and beverage businesses......................6
TASK 2............................................................................................................................................7
P4 Demonstrate professional food and beverage management skills within a food and
beverage organisation..................................................................................................................7
P5 Explain the legal requirements and regulatory standards that a restaurant must comply with,
giving specific reference to the maintenance and cleaning of equipment...................................9
TASK 3..........................................................................................................................................10
P6 Compare and contrast different marketing and operational technologies for a range of
different types of food and beverage business...........................................................................10
TASK 4..........................................................................................................................................11
P7 Investigate the factors that influence the consumers decision on which food and beverage
outlets they choose.....................................................................................................................11
P8 Analyse strategies used in a range of food and beverage outlets used to attract customers
and build a loyal customer base.................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Food and beverage industry includes business organisations that are involved in processing,
packaging and distributing of food products and materials. This report is being prepared for the
management of a local business owner in London, United Kingdom who have decided to open a
restaurant Healthy Bites Ltd. for promoting healthy eating habits. In the report, an attempt has
been made to determine the various types of businesses within the food industry and the different
food rating systems being used nationally and internationally. The report also aims to determine
the current and future trends in the industry and analyse the important skills for managerial
positions in the industry. At last, the report aims to evaluate the different factors which influence
the consumer decision-making process in the industry and analyse the strategies being
implemented to foster customer-loyalty and attract new customers in the industry.
TASK 1
P1 Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry.
Food and beverage industry contributes to a significant amount of revenue generated from
the hospitality industry with different types of business organisations providing different food
and beverage services and products. Some of the most important types of businesses within the
food and beverage industry that needs to be considered by the management of Healthy Bites Ltd.
are as follows:
Catering businesses: Business organisations involved in catering services provide food
and beverage services at remote sites and locations such as an event venue, wedding hall, parks,
cruise ships etcetera. With the increase in number of corporate and family functions and events,
the demand for catering food services has increased exponentially with many firms entering into
the business sector (Scanlon, 2012). Primary advantage of catering business is the low influence
of seasons on the nature of demand within the industry and the huge potential of reaching out to
larger target audience at any event venue. However, catering businesses require a great deal of
organisational skills and attention to detail is essential which determines the success or failure of
an event or gathering.
Quick-service restaurants: These are fast food outlets which provide a quick service to the
customers in preparing, providing and consuming the food products with convenience as the
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primary element or factor such as McDonald’s, Pizza Hut, Burger King etcetera. Increase pace of
life in urban regions have increased the demand for fast food and as a result, quick-service
restaurants have witnessed immense growth. QSR can be established with limited investment
and can provide huge earning opportunities (DiPietro, Gregory and Jackson, 2013). However,
cost-effectiveness and attractive pricing strategy in QSRs may create a restriction of the
profitability and profit margins. Takeaway service is quite common in quick-service
establishments. Drive-through and kiosk locations are primary common among the quick service
establishments.
Full-service restaurants: These are themed restaurants with fine-dining services and offer
a wide range of options and food products on the menu and on-premise consumption of meals is
popular in full-service restaurants. Customers have high expectations from full-service
restaurants and and these establishments usually operate with customer satisfaction and
experience as the key performance indicators (Auchincloss and et. al., 2013). However, amount
of investment and operational expenditures is quite high in case of full-service restaurants.
Bars and pubs: Bars and pubs are establishments or business organisations under food and
beverage industry where alcoholic drinks along with limited food products are served and the
customers usually visit these places to enjoy the ambience and spend good time with peers.
Social interaction and engagement is more prominent at these places and customers usually
expect a high quality of service and some privacy.
Café and coffee houses: These are business establishments offering coffee and other
beverages with light food and snack options. These can be owned by small corporations to big
multinational companies. Franchise systems are popular in coffeehouses such as Starbucks Ltd.,
Costa Coffee etcetera. High standard of living and popularisation of coffee culture in United
Kingdom has increased the spectrum of customers for café and coffee houses.
P2 Explain different rating systems used for the food and beverage industry nationally and
internationally.
Food Hygiene Rating System:
Food Hygiene Rating System is operated by government of United Kingdom in England,
Wales and Northern Ireland under the Food Standards Agency. It is a system which is used to
determine the hygiene level of restaurants, fast food outlets, takeaway stores etcetera and rank
every food business establishment based on its hygiene quality (Council, 2013). A high rating
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