Managing Food and Beverage Operations

This report examines the food and beverage industry, covering various business types, rating systems, current and future trends, professional management skills, legal requirements, and marketing technologies. It also analyzes factors influencing customer decisions and presents strategies for attracting customers in a range of food and beverage outlets.

Managing Food and Beverage
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Presenting different types of business within food and beverages industry.....................1
TASK 2............................................................................................................................................4
P2 Explaining different rating system used for food and beverages industry........................4
TASK 3............................................................................................................................................5
P3 Presenting current and future trends affecting business....................................................5
TASK 4............................................................................................................................................6
P4 Presenting professional food and beverage management skills in an organization..........6
P5 Describing legal requirements and regulatory standards for food and beverage industry 7
TASK 5............................................................................................................................................7
P6 Comparing different operational and marketing technology for various types of business7
TASK 6............................................................................................................................................8
P7 Presenting the factors that influence customer decision on food and beverage industry..8
P8 Presenting the strategies which is used in a range of food and beverage outlets to attract
customers..............................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Operations plays an important role in food and beverages industry. Food and beverage
industry have their own importance and contribute good amount in the economy of a country.
The aim of this report is to provide deep understanding regarding food and beverages operations.
Report present different types of business within food and beverages industry and also explain
different rating system used in this sector. Report further explain current and future trend that
affect food and beverages business. Project describes about professional food management skills
in an organization and also explain legal requirements as well as regulatory standards. In
addition to this, report compare and contrast different operational and marketing technologies for
different type of business and present some factors that influence customers decision. It analyses
strategies which is used in a range of food and beverages industry in order to draw attention of
their loyal customers.
TASK 1
P1 Presenting different types of business within food and beverages industry
Sector Description Advantage Disadvantage
s
Example
Employer
1 Fine dining It is an commercial
establishment which
provide accommodations
services to their
customers as well as
meals and food services
Hotel industry
provide career
advancement
prospects and their
pay scale vary
from season to
season and
customer also
provide them tip
for an extra
services.
Biggest
disadvantage
of doing work
in hotel is the
long and odd
working hours
and sometimes
during season,
environment is
stressful
Hilton is the
leading hotel
who operates
its unit in more
than 85
countries and
have more
than 750000
employees.
Website:
www.hilton.co
m
2 Cultural and In this sector, the food People or customer There is no Bacon Rolls in
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heritage fast
food
environment is directly
relate to the culture so
that people come and
meet with each other and
understand the meaning
of each others culture.
learn cultural
importance and the
employees work in
sociable hours.
career
advancement
under this
sector and
every poor pay
to their
employees.
Even there is
no
opportunities
to groom
themselves.
UK is an
heritage fast
food restaurant
that offer best
variety of
food.
Website:
www.baconrol
ls.com
3 Full service
Restaurant
It is a place where people
sit and eat meals in which
food is cooked and served
in the premises only.
Prestige is the
biggest advantage
of working in this
sector because
restaurant are
popular and the
pay scales is
average but
customers also
provide tip to
them. Offer
healthy food to
them
There is no
prescribed
working hours
allotted to the
employees
because
normally
restaurant are
run at late
night which
means
employee did
not enjoy their
social life.
Core by Clare
Smyth is a
popular
restaurant in
UK. Also
received an
award of best
Chef.
4 Food service
(contract
Catering)
It is a business who
provide food service in a
remote site or event
venue
Employee who
working in this
have no stress
related to work and
It includes
high cost that
are associated
with catered
Top Hat
Catering is an
example who
provide best
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it also provide
good opportunities
for their future
improvements.
meals food services
in UK who
work in
wedding
seasons
specially.
Website:
www.tophatcat
ering.co.uk
5 Hospital
Catering
It is a service who
provide food to their
patient as per prescribe
by their doctors or
hospitals only.
Advantage of
using this is that
they provide
healthy and
hygienic food,
saves time and
convenient for
their customers.
There is no
learning and
development
opportunities
for the
employees.
Just Hospital
is an example
who provide
food and
beverages
services to
their
customers.
Website:
www.justhospi
tal.com
6 Theme Park It is an area in which
people come and enjoy
their day. This also
provide meals to their
customers.
Prestige,
promotional
opportunities are
the advantage
Odd and long
working hours
Drayton
Manor Theme.
7 Retail stores This store also provide
some food facilities when
customers come to
purchase.
Prestige, social
working hours
Lack of career
advancement
TESCO who
operates more
than 50
countries and
also provide
3

food services.
8 Street food
stalls
Where food is allowed to
provided in the public
place
saves time and
convenient for
their customers.
Lack of career
advancement
Borough
market
9 Bars and
Pubs
Where wines and starters
are served
saves time and
convenient for
their customers.
Lack of career
advancement
Royal Oak
1
0
Quick
service (Fast
Food)
These are those services
which provide all kinds
of food quickly
Maintain the
hygienic services
Long hours of
work
Poppies
TASK 2
P2 Explaining different rating system used for food and beverages industry
Different rating system are as follows:
 Scores On The Doors: It is a system in which is widespread in public use and generally
it is used in the terms for publication as well as displaying of food hygienic or inspection
related to result of food business (Chisti, 2018).
 AA Rosettes: It is a award or another type of grading system which is done by the hotel
as well as restaurant inspectors to those hotel who provide a best quality of food products
to their customers.
 Michelin Stars: It is an award that is give to those hotels of who has a fine dinning
quality with restaurant and done at international level.
 Hotel Stars: This rating is done on the basis of fine quality of accommodation as well as
food to their customers and also provide those facilities which satisfy their customers
(Silva Lopes, 2015).
Hotels Description Rating system applicable
Five star Have highest level of accommodation
services , personal services best quality
of food, stylish furniture ad large
Scores on the Doors and AA
rosettes
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seating area.
Ex: Ritz Carlton
Four star Hotels are large and smarter reception
area and found in near shopping malls.
Good service of room and restaurant
dining is available.
AA rosettes
Three star Have well appointed room and
decorated lobbies. Bellhop services are
not there and typically offer breakfast
services through to dinner.
Michelin star
Two Star Smaller hotel and have 2-4 stories,
located near affordable attraction point.
Furnishing facilities are clean but in
basic terms.
Ex: Days Inn.
Michelin Star
One star Usually in medium size and located in
moderately price attraction. Provide
facilities of TV in bedroom but any
extra facility included.
Example: Holiday Inn.
Hotel Star
TASK 3
P3 Presenting current and future trends affecting business
New trends will definitely affect company's overall performance in positive way. If food
and beverage industry will follow all new trends in an effective manner then it will definitely
affect company's financial status and also help in sustaining its brand image in market. These
new trends are as follows:
Authenticity: Food and beverages industry must use all ingredients in proper way such
that it will help to provide best quality of food products to their customers. Authenticity means
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that all the ingredients which are used while making food products should be of best quality such
as oil, sugar etc. is of best quality (Steinbrook, 2017). If these elements are used in proper way
then it will definitely help to increases their offered quality services.
App- Based services : These services are now so popular among students who live
alone. At that time, these services help them to order food by using app and the food are deliver
at their home only without going anywhere. With a quick search on their smartphones, customers
can make informed and speedy food without any workout. Even these mobile app based services
are also present with a variety of menu cards which allow them to place their order online
without any much hassle. Another advantage of using this technology is that it provides some
loyalty programs which help to retain existing customers and also to attract new ones.
Mobile Phone as a Key: Using mobile phone as a room key is another new trend which
basically five star hotel uses. Under this, customers uses their smartphone in order to open their
room without any key. Hence it will consider a biggest advantage for their customers.
Lifestyle : This is another new trend which help an industry to attract new customers
because every people wants to eat healthy and safe food (Venkatachalam and et.al., 2018).
Therefore, the food and beverage industry now come with new concept of eat healthy and stay
healthy concept. Under this services, restaurant and industry provide them good as well as
healthy food which help a customers to attract so that it will affect company's overall
performance. A healthy food is the basic requirement of every individual. Therefore, it will also
affect their preferences.
TASK 4
P4 Presenting professional food and beverage management skills in an organization
Customer services and good communication skills: If an employee is working in a
restaurant then they must have knowledge of customer service skills. The staff and waiters
should also make their customers feel happy and good so that they can enjoy the environment of
a hotel or a restaurants (Nurein, Din and Mohd Rus, 2015). On the other side, managers
sometimes need to be have a good communication skills in order to explain policies as well as
addressing problems but that does not mean that they have no ethics related to their work.
Leadership Skills: Managers must have leadership skills which help to lead a team in an
effective manner. These skills help to take a better decision for an organization so that it will
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help them to keep maintaining their customer base. A good leadership skills will definitely help
to take a business in further level of success (Mhurchu, Eyles and Choi, 2017). So that not only
in a manager but in employees too have best qualities of leadership so that it will creates positive
impact upon customers.
Management Skills: this skills must be posses by the professionals of food and beverage
industry because they are the person who run an organization. They must arrange the entire
system in such an effective way so that it will automatically attract wide range of customers. If
the professionals have good management skill then it will definitely affect the customers and
overall increases the sales of food and beverage industry.. Manager should also have a
knowledge related to hygiene because this is the most important part which will help to attract a
customers (Marriott, Schilling and Gravani, 2018). Safety consciousness should b their first
priority and management should also look after this things in proper way.
P5 Describing legal requirements and regulatory standards for food and beverage industry
Health and safety Law: This law states that the food which are provided to their
customers should be of good quality and further the employees who work in an organization
should be safe and an organization must provide the all the first aid services to their employees
in the case of any risk (Laws related to food and beverage industry, 2018).
Food Safety Act, 1990: This law states that it is the responsibility of a food business to
ensure that the food which they provide must be of good quality or treat the food in such a way
which may damage the health of their customers while eating. Even the food which are advertise
and labelled or should present in a way that it should not lead to any false information (Kunkel,
Castonguay and Filer, 2015). Even the organization should also combine the ability to
demonstrate the commitment of food safety and it is their duty to provide best quality of food
which should not cause any harm to the health of their customers.
Safety and Hygienic regulation: The food industry should also meet the requirement of
hygienic regulation. Such that the floors, walls and ceiling should be clean and the utensils which
are used in kitchen should be clean and dirt free. Even workers in processing and preparation to
use clean aprons and hand gloves as well as head wears in order to produce best quality of food
products (Khusaini, Jaffar and Noriah, 2014).
Regulatory Standard: The company should also makes sure that the floor and the wall
must be cleaned and they should also uses the utensils which are clean. The table should also be
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clean and proper in order to serve for the customers. The maintenance and sanitation regarding
things should be kept in proper way.
TASK 5
P6 Comparing different operational and marketing technology for various types of business
For food and beverage industry, there are so many operational tactics are used which help
to creates positive impact upon an organization. Some of them are as follows:
Operational technology: It is the hardware and software system that helps to detect or
cause some changes by direct monitoring or control of some physical devices.
Monitoring of an equipment: It is an under which an industry can easily monitoring
their equipments so that it will help them in their better operational functions. Using this, tactics,
a company or a firm an easily provide best quality of services to their customers. Such that by
monitoring cooking temperatures which will help them to cook or baked a food in well manner
while on the other hand by maintaining the temperature of refrigerators will help to keep their
food fresh and cool (Jensen and Ronit, 2015).
Order Taking: under this, waiter has to take an order from their customers in an
effective way so that its operational methods will also affected. If the waiter have good
communication skill then it will help to present good impression among their customers.
For food and beverage industry, there are so many technological tactics are used which
help to creates positive impact upon an organization. Some of them are as follows:
Marketing Technology: It is the method which help to promote the business by using
some promotional tools in order to let people know about new offers.
Social Media: It is a most common digital technology which help to attract wide range of
customers towards them (Gschwandtner and Hirsch, 2018). Facebook, twitter is most common
media which are used by food and beverage industry in order to let people know about their new
offerings in a company. Even through this, customers also placed their offer and the products or
service come quickly without any exercise.
Website and E-mail: It is another digital technology which is also used by food and
beverage industry. Under this, many restaurant make their own websites which help to let people
know about new offers in a restaurant. Through websites, people also track direction and see
reviews that further help to know best result (Fortin, 2016).
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Impact: This creates positive impact upon industry because using social media as a
promotional tool will help to creates good impact upon company overall performance. Through
social media, an organization will easily attract wide range of customers towards them so that as
a result, company maximizes their sales and sustain its brand image in market and further help to
enhances their productivity level.
TASK 6
P7 Presenting the factors that influence customer decision on food and beverage industry
 For food and beverages industry, the most affect factor is pricing. Generally people prefer
those services who offer cheap price and good quality of products to their customers.
Even if the restaurant offer some discount strategy and loyalty schemes them people
prefer to go there in order to enjoy their facility (Dunford and et.al., 2017).
 Another factor is hygienic services such that people now become more quite concern
related to their sanitation and hygiene. If they found any restaurant who did not maintain
their sanitation and hygienic equipments then they will not prefer to go there. Therefore,
maintaining some hygienic and sanitation equipments will helpful for an organization in
order to attract new customers.
 Best quality of offered food is the another factor that influence customer decision such
that if the restaurant offered best quality of products to their customers then it will help
them to attract wide range of customers (Davis and et.al., 2018). If the quality of products
or taste of food is not proper and good it will not help to maintain customer base.
 Management is the another factor that affect customer decision. If a customer entered into
a restaurant then they found a good management there then it will definitely affect their
decision. If the waiter have a good communication skill which help to attract and draw
their attention towards them. Such that the convenience of the customers will help to
attract their customers at wide range.
P8 Presenting the strategies which is used in a range of food and beverage outlets to attract
customers
There are so many new strategy which Food and Beverage system can follows such as:
9

 By offering low price strategy, the industry can easily enhances their sales as well as
profit (Contreras-Manzano and et.al., 2018). Generally people prefer only those
restaurants who offer products to their customer and they can also offer combo meals so
attract wide range of customers.
 Using modern promotional tool will also enhances their sales. Industry should uses
internet as well as social media in order to let people know about their new offerings.
Today's generation is available on social media platform and it is consider as a best way
to increases their sales. A regular updates on the pages and uploading new post about
upcoming events will help to raise restaurants brand image in market.
 Providing online orders to their customers is another strategy which further help to raise
their sales and attract wide range of customers. Online order is consider the best way to
raise their sales (Chisti, 2018). Many peoples prefer to order food home rather than going
out and indulging into a meal. Therefore, they uses online system in which no exercise is
done from their side.
 Offering happy meal hours and discount or loyalty system will further help to attract wide
range of customers. Loyalty and reward system are one of the most common system that
help to raise their company's profit system.
Strategies Description Cafe Restaura
nt
hotel
Posters and
Advertisements
1. Are there
posters and
advertisements?
2. What are they
promoting?
3. Are they
appealing and
It is the promotional tool which is used
by the company
9 8 10
10

likely to succeed?
Pricing
1. Write down
four or more
typical items and
their prices?
2. Do the prices
represents good
value for money?
3. Are there any
special offers,
discounts and
meals?
It is the price system which help to
attract wide range of customers
Barley
Coffee
bar have
fixed
pricing
strategy
with some
discount
system for
their
regular
customers
It follow
seasonal
pricing
strategy in
which
company
offer
discount
vouchers
Hilton
also
follow
seasonal
pricing
strategy
and also
offer
discount
to their
regular
customers.
Repeat Business
1. What is the
business doing to
encourage
customers to
return?
2. Are there
loyalty cards
available?
3. Do staff
encourage
customers to
return?
4. Are there any
advertisements
promoting
Follow different things in order to
expand their business.
Follow
both cash
as well as
credit
card
system
Both cash
and credit
card
system.
Have both
credit as
well as
cash
system
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forthcoming
events or soon to
be launched
products?
Other
observations
1.What else have
you noticed, that
is relevant to the
operation of the
business, during
your visit?
Online system is the way which further
help to attract wide range of customers.
Book
online
order
No online
system
available
for their
customers
.
Have
online
system.
Websites/
Advertising (Before
or after your visit, go
to the company's
website and look at
this)
1. Is it inspiring,
informative and
professional?
2. Does it provide all
the information that
customers might
need?
3. Do they advertise
their business in any
other way?
It is the promotional tool which
enhances their products sales.
Follow
traditional
as well as
modern
method to
let people
know
about
their new
offers
Only uses
modern
method
such as
advertisin
g and
social
media
Only uses
social
media
such as
Facebook,
twitter to
let people
know
about their
new
offers.
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CONCLUSION
By summing up above report, is has been concluded that food and beverage industry have
their own importance. Report presents different rating system which are used in the industry
nationally and internationally. It also concluded that by using online services and authenticity
will further help to raise company's profit and increases their sales. Further, it also presents that
to run a company in more efficient way, professional must have skills such as leadership and
management skills which help to run a company in better way. In addition to this, industry must
comply with some legal requirement as well as regulatory standards and follow some new
marketing technologies which help to raise industry's brand image. Further it also concluded
many factor that affect customers' decision making and present some strategy in order to attract
or build a loyal customers.
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REFERENCES
Books and Journals
Chisti, Y., 2018. Fermented foods and beverages
Contreras-Manzano, A. and et.al., 2018. Comparative Analysis of the Classification of Food
Products in the Mexican Market According to Seven Different Nutrient Profiling
Systems. Nutrients. 10(6). p.737.
Davis, B. and et.al., 2018. Food and beverage management. Routledge.
Dunford, E. K. 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.
Fortin, N. D., 2016. Food regulation: law, science, policy, and practice. John Wiley & Sons.
Gschwandtner, A. and Hirsch, S., 2018. What drives firm profitability? A comparison of the US
and EU food processing industry. The Manchester School.86(3). pp.390-416.
Jensen, J. D. and Ronit, K., 2015. The EU pledge for responsible marketing of food and
beverages to children: implementation in food companies. European journal of clinical
nutrition.69(8). p.896.
Khusaini, N. S., Jaffar, A. and Noriah, Y., 2014. A survey on lean manufacturing tools
implementation in malaysian food and beverages industry using rasch model.
In Advanced Materials Research (Vol. 845, pp. 642-646). Trans Tech Publications.
Kunkel, D. L., Castonguay, J. S. and Filer, C. R., 2015. Evaluating industry self-regulation of
food marketing to children. American Journal of Preventive Medicine.49(2). pp.181-187.
Marriott, N. G., Schilling, M. W. and Gravani, R. B., 2018. Principles of food sanitation.
Springer.
Mhurchu, C. N., Eyles, H. and Choi, Y. H., 2017. Effects of a voluntary front-of-pack nutrition
labelling system on packaged food reformulation: The health star rating system in New
Zealand. Nutrients. 9(8). p.918.
Nurein, S. A., Din, M. S. and Mohd Rus, R., 2015. Nonlinear Relationship between Investment
in Working Capital and Performance: Innovative Evidence from Food and Beverages
Industry. European Journal of Economics, Finance and Administrative Sciences. 77.
pp.63-72.
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Setiawan, M. and Oude Lansink, A. G., 2018. Dynamic technical inefficiency and industrial
concentration in the Indonesian food and beverages industry. British Food
Journal. 120(1). pp.108-119.
Silva Lopes, T., 2015. A Systems View of Corporate Diversification: The Case of the Global
Alcoholic Beverages Industry. International Studies of Management &
Organization.45(4). pp.342-358.
Steinbrook, R., 2017. Physicians, industry payments for food and beverages, and drug
prescribing. Jama. 317(17). pp.1753-1754.
Venkatachalam, M. and et.al., 2018. Partial characterization of the pigments produced by the
marine-derived fungus Talaromyces albobiverticillius 30548. Towards a new fungal red
colorant for the food industry. Journal of Food Composition and Analysis. 67. pp.38-47.
Online
Laws related to food and beverage industry. 2018. [Online] Available through:
<https://www.hg.org/food-and-beverages-law.html>.
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