Food and Beverage Industry Analysis

This assignment provides an comprehensive overview of the food and beverage industry, covering operational strategies such as pay-at-counter, cost effectiveness, and order taking. It also discusses market strategies like email marketing, social media marketing, and website usage to retain customers. The report highlights the importance of following legal regulations and requirements in the industry, and concludes with a focus on customer loyalty and retention.

MANAGING FOOD AND
BEVERAGE OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Different types of businesses in food and beverage industry............................................1
P2. Different rating system both nationally and internationally used in food and beverages
industry...................................................................................................................................3
TASK 3...........................................................................................................................................4
P3. Current and future trend which affecting food and beverage industry............................4
TASK 4............................................................................................................................................6
P4. Importance of having management skills within food and beverages organisations ......6
P5. Value and importance of legal and regulatory standards in food and beverage industry 7
TASK 5............................................................................................................................................8
P6. different operational and marketing technologies used in food and beverage industries 8
Task 6:..............................................................................................................................................9
P7. factors influencing consumer decision while choosing food and beverage outlets:........9
P8. strategies used by food and beverage industry to attract loyal customer base...............10
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12

INTRODUCTION
Food and beverage operation mainly establish to engage in preparing meals, to maintain
service quality, managed various types of catering events, and to analyze the internal and
external factors of business outcomes to decide future. In this report it is to be analysed the
different kinds of businesses found in hospitality sector and standards associate with them.
Further, it will be discussed rating used in food and beverages industry both nationally and
internationally. Current and future trends affecting food and beverage businesses and some legal
and regulatory standard that management must comply with, their operational and marketing
technology is to be discussed later in this report.
TASK 1
P1.Different types of businesses in food and beverage industry
Food and beverages industries covers different sectors of hospitality industries that
includes hotels, theme park, fast food, contract catering, hospital catering, restaurants, and
cultural and heritage services.
SECTOR DESCRIPTION ADVANTAGE DISADVANT
AGE
EXAMPLE
EMPLOYE
R.
1 HOTELS An establishment which
provides services and
facilities on short term
basis like lodging, meals,
accommodation etc.. This
types of business
generally done on global
level.
Opportunity to
grow up and take
promotions at
any level.
Increase
communication
skills because of
interaction with
many peoples.
Very long
working
hours. (Davis,
B., and.et.al
2018.)
Have to work
on public
holidays as
well.
BELMOND
CHARLES
TON place
staff was
dedicated to
entertain its
guests.
(website)
Www.belmo
nd.com
2 THEME
PARK
This parks are made of
thrill rides, roller coasters,
Prestigious work
as there is fun
Stressful work
environment.
CEDAR
POINT in
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water rides, and transport
rides, which aim is to
provide fun and
entertainment in the lives
of peoples.
environment.
Receive help
supplement at
pay scale.
Ohio
providing its
best services
in rides of
roller
coaster.
(www.cedar
point.com)
3 FAST
FOOD.
It is unique business that
is generally for people
who does not have time
seat and eat. They deal in
speed and creativity of
food which is good in
taste.
Improves
creativity as it
needs innovation.
Cost are at own
control, growth
opportunity is
there.
Long working
hours.
BURGER
KING is
dealing in
providing
fast food
services.
(www.bk.co
m)
4 Hospital
catering
services
It provides quality of food
services to patients in
hospital industry and care
for quality and nutritious
meal.
Good pay at
work.
Reasonable hours
to work.
Increasingly
stressful
workforce.
APETITO is
providing
wide range
of nutritious
meals as per
the needs of
each patient.
(www.apetit
o.com)
5 Contract
catering
Company which hired by
organisation or institute
for a fixed period of time
to gets the services on
regular basis .
Lot more
creativity
flexibility is
their.
Enhancement in
Stressful
work to
handle.
BLUE
APPLE
contract
catering
dealing in
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communication
skill.
this
business.
(link)
www.blueap
ple.com
6 Restaurants. It is an eatery business
which serves food and
drinks in exchange of
some valuable money.
Job opportunities
for all age group.
Tremendous
career
advancement.
Long working
hours and
stressful
work.
THE
LEDBURY
is best in
providing
this food
services.
(link)
www.theledb
ury.com
7 Cultural and
heritage food
services
This services provides
original equipment, repair
parts of kitchen
equipment.
Improves
creativity as
innovation needs.
Pay scale is
good.
Long working
hours.
PETROW
food
industry
deals in this
heritage.
(link)
www.petro
w.com
8 Bars and
Pubs
It is a retail business
which provides alcoholic
beverages to peoples of
the society.
Good pay at
work.
Long working
hours
especially on
weekends
Satan's
Whiskers is
doing
business in
providing
alcoholic
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beverages.
(link)
www.satan's
whiskers.co
m
9 Coffee
culture and
coffee shops
This service is provides
coffee to entertain peoples
and to provide them
relaxation in giving the
best coffee.
Improves
creativity skills.
Pay scale is
good.
Long working
hours.
Prufrock
coffee is
doing
business in
providing
coffee
services.
(link)
www.prufro
ckcoffee.co
m
10 trains This business is
established to provide
facilities to peoples to do
their journey with
facilities.
Good pay scale Stressful work
environment
EAST
Midlands
trains is
doing
business in
booking
tickets of
customers.
(link)
www.eastmi
dlandstrains.
com
TASK 2
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P2. Different rating system both nationally and internationally used in food and beverages
industry
Rating system in hospitality sector given to classify organisation on the basis of services,
quality and the amount which they charge. Aim of this system is to rate hotels depending on the
qualities and amenities they provide to customers. Some types of rating systems are:
Scores on the doors: this generally known as food hygiene rating system. It gives clear
business hygiene standards that are determined after inspections of permises. This schemes are
provided on the online websites of the organisation. It is all about how hygienically food is
prepared, cooked and stores its physical condition in cleanliness, lightings and in other facilities.
Rating system in hospitality sector can be done from 0 to 5 where 5 indicates the best quality and
0 shows urgent improvement required in the industry. (Long, T.B., Looijen, A. and Blok, V.,
2018.)
AA Rosettes: this is a type of reward established to find cooking at different levels of
worldwide. One or more hotel inspectors visits organisation to access the taste of an
organisation. Industry can get this reward only when inspector found that food is prepared with
skills, and the ingredients used was good in quality. Superb technical skills and remarkable
consistency has to be there to secure ideal rating i.e. AA5.
Michelin stars: this award given on 0 to 3 star on the basis of reviewer feedback.
Reviewer concentrates on the quality, techniques, and amount of consistency in the food for
making his reviews. ONE STAR means that it is good restaurant which offers good quality of
cuisine, prepared with high standard. TWO STAR means that restaurant is providing excellent
cuisine with high quality crafted dishes. THREE STAR indicates exceptional cuisine with
excellence dishes and ingredients.
Hotel stars: This rating used to differentiate hotel according to their quality. Hotels can
be stared from one star to five star hotels. ONE STAR indicates it meets basic budget needs, and
simple accommodation facility is there. TWO STAR indicates it meets basic needs, affordable
and basic clean is there. THREE-STAR indicates quality, comfort personalised service with good
amenities. FOUR STAR indicates deluxe comfort with quality and varieties of amenities are
provided. FIVE STAR indicates the highest comfort standards with luxurious facilities.
These ratings are applied both in national and international food and beverages industry
so that qualification can be done in-accordance with customer priorities.
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TASK 3
P3. Current and future trend which affecting food and beverage industry
For the success of business, every entrepreneur has to know the current and future trends
which affecting the business, and this, involves innovation in the business. So here are the three
business RESTAURANTS, HOTELS AND FAST FOOD SERVICES businesses which
adopting this trends.
Flowing through sorting system: for maintaining the stock of food and beverages industry,
companies are bringing sorted stages to restocked the quantity at very same day for making the
task more simple.(Dunford,and et.al, 2017.) In current trends these factor affecting industries for
keeping their stock on same day, so entrepreneurs started taking initials that does not affect this
upcoming trend.
Innovation: in this new era of technologies, food and beverage industries are also affecting with
the many new technologies and innovations available in the market. Nowadays customer
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Illustration 1: trend in food and beverage industry.
Source:(the future of innovation 2018).

expectations are high from these industries so innovation is to be their so that current and future
trends does not affect the industries. Innovation like social media marketing is new recent trend
in these sectors.
Food safety and sustainability: this trend affecting in present as well as this is the factor
company has to focus on the things which does not affect the food safety and sustainability in the
market. Now consumers wants to know the water consumption control of food producers,
alternate energies (like solar system) they use, and how they reduce the wasteful packaging and
many more. It is affecting current trend because these factor is cost consuming to operate so
producer must leverage efficient green system to offset this factor.
Changing consumer preferences: food and beverages industries are facing a lot more
competition in the market therefore this factor affecting the consumer preferences. Nowadays a
customer will only get attracted to the company which providing nutritional food with exotic
flavours. Food delivery process with detailed information of meal making process and used
ingredients factor are changing the consumer preferences in the market.
New Era of e-commerce : this trend is currently affecting and if this continue then it will also
affect future trend also, because customers nowadays attracting to companies because products
of the major hospitality organisation are available through internet as well.
TASK 4
P4. Importance of having management skills within food and beverages organisations
To manage others effectively, management skills are anything which enables others to
work. Role of manager in hospitality sector is unable plan and to control ordering of food and
beverages for venue. To check the financial sector, stock control, training of employees are all
management skills. These skills are;
Communication : employees of food and beverage industry must have effective communication
skills to attend the customers of different nation with different languages.(Lockyer, S., 2018.)
Good communication helps them to maintain the cordial relationship among the employees in
the organisation.
Ability to learn quickly: Employees under food and beverage industry must have quality and
ability to learn quickly this helps them to easily set in the environment of work. This ability helps
them to attend customer speedily and to fulfils the customer needs and preferences.
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Leadership quality: Manager of food and beverage industry must have leadership quality to
attend customer in front-line of office and leads in back- house for getting the job done.
Leadership quality helps manager to get work done in a proper time with the proper coordination
of all the functional units in the business.
Team spirit: Employees under food and beverage industry must have team spirit to work
because in these sectors during heavy shifts employees have to work a lot and managing work in
team can help them to work without any stress.
Flexibility: during the heavy shifts in the food and beverage industry burden of work is large
among the employees so flexibility of working is to be there because if unusual time and long
working hours. Flexibility in work makes them work easily is a stressful environment.
This important skills make employees to work in food and beverage industry with proper
coordination and to get the best work done with proper service quality, by achieving the best
organisational objective. This management skills also helps industry to get the best work done
from the employees which improves their image in front of customers.
P5. Value and importance of legal and regulatory standards in food and beverage industry
Legal and regulatory standards shows that customer has right to expect food which they
purchased and consume will be safe with high quality of ingredients. Customer has right to share
their option about food control procedure, standards and activities which is provided by
organisation. Some standards which applied in hospitality industries are (the food act), (liquor
control act), (tools and quipment), (food product standards and additive), (packaging and
libelling), (prohibition and restrictions) and many more standards which has to apply in all the
food and beverages industry. Here are the following legal regulatory standards which food and
beverage industry has to follow in doing their business:
Personal hygiene: cooking management of the food and beverage industry has to maintain
personal hygiene while preparing food in order to avoid any impurity which is tested. Hygiene
cleaning tools safeguard people's health and safety.(Martin-Rios, and et.al 2018.)
Cooking method: management of food and beverage industry must have to maintain the ideal
temperature of preparing food that is safe and does not create any harm for customer while
eating.
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Storage: proper storage in organisation of particular storage area ensure good hygiene and
cleaning of tools in proper time helps to extend the tool life. High temperature affect the life and
quality of tool and cold temperature fracture tools create hazards in food facility.
Maintenance: proper maintenance is must in an organisation. Removing of nutrients that
bacteria grow and kill them which is present of food are the fundamentals of effectively cleaning
food tools and equipments.
Sterilizing: to control the temperature, pressure and time sterilizing is to be used for cleaning
tools and equipments. Food and beverages industries sanitise their equipment so that people
cannot get contact with the bacteria present in the tools and this sanitizing process will also to be
cleaned so that it cannot get contacted with people where chemical used in cleaning tool.
Tool life: tools which are used in making the foods must regularly inspected. Tools which are
staining, damaged, severe discoloured are need to be change time to time and warning must be
given to management so that it does not create any hazard to users.
These are some types of legal and regulatory standards which specifically used in the
terms of maintenance and cleaning of equipments.
TASK 5
P6. different operational and marketing technologies used in food and beverage industries
Food and beverage industry use different technologies that can improve operational
efficiency in the competitive market.(Huang, and et.al 2017.) As these industries have to face
high competition in the market for retained them in different operational and marketing strategies
are used by an organisation. The details are as follows:
operational technology: these strategies made to achieve companies marketing strategies plans
such as customer base, introduction of new product, attracting of customer. Operational strategy
used to achieve these tools in organisation.
 Adoption of payment technology include options which makes customer convenient to
make payment of their order. Options like PAY-AT-TABLE, is fast process to pay right
at table. PAY-AT-COUNTER and SELF- SERVICE are the option where customer does
not have to wait for long.
 For increasing revenue in organisation COST EFFECTIVENESS is another strategy that
used by food and beverages industry. Company has to ensure that beverages are produced
at cost effective speed.
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 Another strategy is ORDER TAKING from customer. This strategy involves services like
home delivery options, or taking order from customer either hand written or
electronically given by customer through iPad.
Marketing technology: marketing strategies in the organisation used to achieve the vision,
mission and goal of the organisation by developing effective marketing outlets and steps to get
that success.
 In the world of digital marketing E-MAIL is the best marketing process done by the
retailers to direct contact with customers. It keeps customer informed about the product
and exclusive platform to promote their product.
 SOCIAL MEDIA connects company directly with the customers where company
introduce their in front of customer through these platform. Facebook, twitter are some
sites on which every person is available and it is suitable for organisation to promote the
product.
 Another strategies would be WEBSITE where customer can easily find information they
want. It is a platform which is providing detailed guidelines to people from which new
customer can attracted. Websites can be used in providing promotional activities on
social media sites.
Task 6:
P7. factors influencing consumer decision while choosing food and beverage outlets:
BELMOND CHARLES a food and beverage industry growing quickly and there is a
continuous pressure on companies to keep updated with changing trends in the environment. this
industry has to face high competition in the market therefore it has brought the changes which
are trending in the environment. Some of these are:
Economic factor: this is the main factor which affect the consumer decision, because people
can't buy what they can't afford. Food and beverage industries has to face more competition with
these factor as substitutes are available to consumers.
Functional factor: this factor based on the consumer needs. In food and beverage industries
culture demand in consumer trends, product relate will influence the growth and success of
company. Amount of emerging trend products in food and beverage industry change the
preferences of customers in the market.
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Marketing mix factor: this factor is based on the product, pricing, promotion and place.
Consumer will only get attracted to industry which offers more discounts and offers to
consumers. More promotion will get more and more customer's in the company. Fair price also
attract the consumers in BELMOND CHARLES.
Personal factor: personal factors include the choice of customer in food and beverage industry.
Taste of choice matters the most to customer, and every type of taste cannot be completed by the
food and beverage industry.
Social factor: social factor includes how products are promoted among the customers. If a
customer does not know about the quality of food and service which industry offers then they
will not attract in food industry. So social promotion of industry is to be there among the
customers.
These are some types of factors which influence the decision power of consumer's in
BELMOND CHARLES industry. These factor can be solved by using the appropriate
operational and marketing strategies in the company.
P8. strategies used by food and beverage industry to attract loyal customer base
Branded coffee shop:
Starbucks
Café/restaurant:
Wasabi Sushi and
Bento
Hilton business
Tariff Board/ Menus Yes, provided. Not provided. Provided only when
person is seated.
EPOS System
Yes No. Agilysys hospitality is
used by hotel hilton
which is easy for staff.
Card reader Yes there is an option. No there no option of
payment.
All type of payments
are accepted.
Product Display Yes Yes No product displays.
Purchase Boosts Yes provided in shop. Yes. Yes provided.
Posters/
Advertisements
Yes used to promote. Not used to promote. No.
Repeat Business Company provides Company always Firms offers attractive
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consumers loyalty
cards that makes them
loyal towards brand.
emphases on adding
new products into
menu so that needs of
mass audience can be
fulfilled (Biswas and
et.al., 2017).
discounts to clients in
order to gain attention
of large number of
consumers.
CONCLUSION
From the above studied it can be concluded that food and beverage industries are rapidly
growing business sector around the world and in order to sustain in the competition market and
bring customer loyalty, the management of food and beverage industry has to follow legal
regulations and requirements which are explained above in this report. This study also explaining
different operational strategy which includes pay-at-counter, pay-at-table, cost effectiveness,
order taking etc. and different market strategies which includes email marketing, social media
marketing, websites to retained customer in the organisation and make strong loyal customer
base.
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REFERENCE
Books and Journals
Biswas, D., and et.al 2017. Shining light on atmospherics: How ambient light influences food
choices. Journal of Marketing Research. 54(1).pp.111-123.
Davis, B., and.et.al 2018. Food and beverage management. Routledge.
Dunford,and et.al, 2017. A comparison of the Health Star Rating system when used for restaurant
fast foods and packaged foods. Appetite. 117.pp.1-8.
Huang, and et.al 2017. Current status and future trends of high-pressure processing in food
industry. Food control. 72. pp.1-8.
Lockyer, S., 2018. Who is shaping the food choices of the future?. Nutrition Bulletin. 43(1),
pp.93-96.
Long, T.B., Looijen, A. and Blok, V., 2018. Critical success factors for the transition to business
models for sustainability in the food and beverage industry in the Netherlands. Journal of
Cleaner Production. 175. pp.82-95.
Martin-Rios, and et.al 2018. Food waste management innovations in the foodservice
industry. Waste Management, 79. pp.196-206.
Online
The future of innovation. 2018 [online]. Available through
<https://www.leatherheadfood.com/white-paper/innovating-for-the-future-in-the-food-and-
beverage-industry/>
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