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MANAGING FOOD AND BEVERAGE OPERATIONS
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Table of Contents INTRODUCTION...........................................................................................................................4 MAIN BODY...................................................................................................................................4 LO 1.................................................................................................................................................4 P1 explain the different types of the with food and beverage industry.................................4 P2 Different rating systems used nationally and internationally for the food and beverage industry...................................................................................................................................5 P3 Evaluate the trends in current and future that are effecting the food and beverages business. ................................................................................................................................................6 M 1...................................................................................................................................................7 D 1....................................................................................................................................................7 LO 2.................................................................................................................................................7 P4 Evaluate beverage service standards and professional food service in the real working environment............................................................................................................................7 P5 State the legal requirements and regulatory standards that food and beverage service outlets must comply with, giving specific reference to the maintenance and cleaning of equipment...............................................................................................................................8 LO 3...............................................................................................................................................10 P6 Comparison of the different ways used by food and beverage operations regarding technology to improve operational efficiency......................................................................10 M 3.................................................................................................................................................12 D 3..................................................................................................................................................12 LO 4...............................................................................................................................................12 P7 analysis the factors that effect the consumer decision making and the selection of the service outlets.......................................................................................................................12 P8 Analysis of strategies used in a range of food and beverage outlets to attract and build a loyal customer base..............................................................................................................12 M 4.................................................................................................................................................13 D 4..................................................................................................................................................13 CONCLUSION..............................................................................................................................14
INTRODUCTION One of the dynamic industry is food and beverage industry in the world around, there is the plenty of risk that the mangers need to prepare themselves. The company should build up there intellectual and physical qualitiesto prevent themselves in this competitive environment. The restaurant offers offal and various type of the meat cut which is rarely available at any other restaurants. The restaurants follow the traditional British recipes which added the fame to name. To evaluate the recent trends in the market to meet the customer demand according to the transparency and safety measure.It will critically evaluate how the digitalisation which can be helpful in the service outlet in the food and beverage industry. MAIN BODY LO 1 P1 explain the different types of the with food and beverage industry. In the food and beverage industry, there are majorly two types of the diversification is there. The first one is the profit oriented sector(commercial) and the second one is the institutional sector(non commercial sector). In thecommercial sector the main aim of the organisation is to earn profit. On the other hand the industrial establishes restaurants are for there institution(employee catering).Following are the different types of the business in food and beverage industry- Quick service restaurants- these are the commercial food restaurant privately owned and also known as the QSR and they have the minimal table in-service. These restaurants mainly serves the fast food cuisines. InUKthese types of the business are common. Through the controlled supply channels, ingredients are standardised to each and every restaurant for the food and beverages. The restaurant mainly have the difference in there catering service and hospitality. Examples of such QSR restaurants are St. John, Sam's chicken, and chicken cottage. Full service restaurants- it the full-time restaurant where people can sit for a longer period to enjoy their food. In these type of the restaurant the food is servedto your tableIn these type of the restaurant there is the opportunity to attract the customer from all over the world through the interior designing using different themes style or ethnic style. This type of the restaurants are best for the family get together. Best of some restaurants in this category are Zizzi, Bella Italia etc. 4
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Fine Dining Restaurants-these are the luxurious restaurant serving the unique dishes with perfect linen covered dinning table and high quality crockery in beautiful location having something to be said as perfect. These are the expensive restaurants offering multi course menu along with extensive list of cocktail and mock tails(Kennedy, 2016). The best quality ingredient's food id served with perfect style giving you the pleasure of the dream. So some restaurants are Iona restaurant, Midsummer house in Cambridge etc. So in the above description it can be clearly analysed that the differentiation of the types of business in the food and beverage industry are on the basis of their style in serving, processing, storing, purchasing and presenting. P2 Different rating systems used nationally and internationally for the food and beverage industry. Using different rating systems to analyse the quality of food is a good measure to gain consumers trust. Good ratings ensure that the food and beverages manufactured are healthy and hygienic whereas bad ratings signifies that the quality of the consumable product has been compromised with. St. John restaurant has been using various national and international rating mechanisms to improve its brand value. Aninternationaltrademark,Michelin Star; is a rating technique for the quality of dining in the restaurants. As their basis of rating, they use the reviews of passionate restaurant reviewers having a great taste and their comparing ability between different restaurants and their service. On this basis, Michelin Star gives their ratings which are :- 'One Star' indicating a “good restaurant” with high standard of food quality. 'Two Stars' are used for indicating “excellent cooking” where the food is excellently cooked and crafted. ' Three Stars' indicate “exceptional cuisine” for the food which is distinctively cooked using exceptional ingredients. This list of restaurants which are starred is updated once in a year and restaurants fight hard to get featured in their list. Another suchinternationalrating isAA Rosette Awardswhich has been inspecting, rating and awarding restaurants for past fifty years. They review the taste of the food and whether what is delivered matches to the expectations of the consumer(Bakalis, Knoerzer and Fryer, 2015). The order in which they give their ratings are :- 'One Rosette' is given for food with good quality food and skills. 'Two Rosettes' for those local restaurants which have higher standards and better quality and consistency. 'Three Rosettes' for those restaurants which deserve national recognition 5
and 'Four Rosettes' for restaurants which are already been recognized and can be further improved. 'Five Rosettes' are awarded to those select restaurants which are best in the world. Visit England Quality Schemeis anationalrating company which reviews each aspect of hospitality business and inspect the efficiency and quickness in solving customer's grievances and problems. P3 Evaluate the trends in current and future that are effecting the food and beverages business. Transparency And Safety OfFood-Now days the industry is getting more concern about the safety issues. Consumers are getting more concern about thereproductand the ingredient used in it.. They are thinking about the safety issues and the effect of these issues in curing them. To solve the safety issues, various block chain are developed to continue the balance in thefoodand beverage industry(Riley, 2018).Due to these safety issue the company is paying more attention on the description of ingredients and the demand if the product is increasing. St. John will soon make tempting effect to understand what the block chain is and how to apply it in the business. Mergers And Acquisition (M&A) in the last decade the food and the beverage industry in getting up the significant growth. The activity ofM&Ain the food and beverage industry has shifted parallel along with the desires of consumer foe having the healthier and eco friendly choice in environment. To save money and time by investing in the new investment project, the food and beverage company are trying to merge or acquire various food business for the extension and development of there company. St. John is paying attention in the market, to grasp the better projections as tit will help increasing the demand of the product. Functional food –now days' customer are paying more attention on the ingredients that are beneficial to there health. They will look after the ingredients in which there is added fruits, omega 3, vegetables and the packaging of the products(Del Chiappa, Martin and Roman, 2016). They will only buy the food which is suitable to them at the particular moment of the time. Plants only-now the people of the UK are moving towards the plant based food only. There is the dramatic change in Attitude of UK people recently regarding the meat contained food. There is awareness in the citizens of the country regarding what they are eating. St. John is the specific restaurant for the meats and offals so due to this trend the demand is decreasing. 6
M 1 Nowadays the company like St. John Trying to maintain their business by the chasing the current preference and the trend of the consumer. Training is provided to the employee of the company for the safety and transparency needs of the consumer. The senior assistant of the restaurant St. John is to look after there employee in handling the instructions properly. Rewards and incentives will be given to the employee who is performing well in handling the instruction properly. This work as the motivational incentives to the employees. Due to the transparency and safety measure the company is looking for the total quality control of the product. D 1 Mergers and the acquisition have been adopted by the different types of the food and beverages industry just like the quick service restaurant or full-time service. The main objective of the restaurant St. John is to acquire the market in the UK with parallel increase in its efficiency and effectiveness by using the merger and acquisition strategy. To reduce the risk in the innovative ideas, synergy is used by the companies to generate more effectiveness and efficiency in the restaurant. LO 2 P4 Evaluate beverage service standards and professional food service in the real working environment. Various management skills re required by the employee of the St. John in order to work in such a competitive world. These management skills such s the communication skills, problem solving skill, leadership skill, experience in the food and beverage industry and service minded is required. St. John should put in the job description that the applicant must have the knowledge about the transparency and safety that has to bee follow in the food and beverage industry. The applicants should also have the critical thinking on the current trends of the market. Meeting the customer demands is the sign of good quality. In St. John every member should look after the important aspect of the service industry which includes trust, cleanliness, politeness, serving manners, and fast serving. The food should be served with the right temperature to the customer along with it offering them some cold beverages and dessert will surely increase the level of satisfaction. Waiter should have the proper skills of greeting there customers, soft spoken, written and verbal communication, skills in maintaining personal hygiene and table setting 7
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experience. The chef is the one who manage the food properly along with the skills of knife, taste, recipe design, problem solving, sanitary practices and safe food handling. M2 St. John restaurant business is effected by the safety and transparency policy of the united kingdom. Food safety policy asks the business to have the total quality control over the product through cost effective management system. Other than FPS, theFood Safety and Hygiene Regulations 2013 also have the long term implication on the St. John business. Health of the customer is the foremost concern for the organisation. Because of the implementation of FSP, the quality of the food product has been standardised. Nevertheless, it has increased the efficiency and effectiveness in the business of the St.John. D2 If St. John failed to meet the legal and regulatory requirement of the professional food and beverage, then for surely the company will loss its potential customer. in the current scenario , there is majorly changes of having the contamination of food in the open street,so there is the golden opportunity for the St.john to grasp it. But if the company fails to follow the food and security policy then the business of the hospitals and the clinic will flourish. The company will suffer huge loss , the company will lose there best staff, cooks and employees. The turnover of the company will also be affected. P5 Statethe legal requirements and regulatory standards that food and beverage service outlets must comply with, giving specific reference to the maintenance and cleaning of equipment. For ensuring the success of St. Johns Restaurant, the management keeps up to date and properly functioning equipments for their restaurant. The restaurant equipment requires a great deal of maintenance and are highly expensive. So regular maintenance of these equipments reduce the costs of St. Johns Restaurant by avoiding major repairs. This also helps in avoiding hazards and maintaining the hygiene of the food manufactured(Radzi, Saidon and Ghani, 2016). At St. Johns Restaurant, special training is given to their staff to maintain, clean and regularly check the equipment used by them. Some of the legal requirements and regulatory frameworks which the St. Johns restaurant is required to comply are :- The Food Safety and Hygiene Regulation Act, 2013 :-To ensure that the equality of food manufactured is fit for human consumption and the environment surrounding the restaurant or 8
place of businesses should not be unhygienic. This law emphasizes on minimum quality which the restaurants should maintain to remain hygienic. The Consumer Protection from Unfair Trading Regulations 2008 :-As per this regulation, customer visiting the restaurant should be informed about the restaurants' goods and services. At St. Johns Restaurant, this act is completely applicable to the whole organisation and the customers visiting are regularly informed about the prices in case of any rise, contents of alcoholic beverages and quantity served. They also do not allow the customers below the age of 18 years to consume any alcoholic beverages of any kind. Food Standard Agency :-Under this Act which is applicable in Whales, Northern Ireland and England; a separate governmental department abbreviated as FSA, monitors all the restaurants operating in these areas. They basically protect the customers wider interest and the health of the public(Ahmed and et.al., 2015). Their main aim is to increase the awareness among the people regarding food quality and ensuring the sustainability, hygienic and security of the food consumed by the people. They have trained professional working for them who tackle the challenges posed by the market and give technological assistance to the company. At St. Johns Restaurant, they are supported vey much by FSA. Licensing Act, 2003 :-As per this Act, St. Johns Restaurant is legally bound to sell alcohol only to the eligible citizens and the measurement of the alcohol sold along with the equipment used for measurement, all are regulated by the legislation. LO 3 P6 Comparison of the different ways used by food and beverage operations regarding technology to improve operational efficiency. 9
In order to assist the operating functions of any business it is very important that there is a strong back up of the technology used in the business. It assists in the lowest level task like managing cash register to the top level management's decision making like implementation of a new digital method for making the operations of the restaurant easier(Maier and Prusty, 2016). A comparison has been made in the way technology is used in the operation of St. Johns Restaurant and Starbucks. The important methods through which technology is used are :- BasisSt. Johns RestaurantStarbucks Digitalisationof Inventory Thehospitalityindustryhascomea long way in improving their operational efficiency with technology's assistance. Today,atSt.JohnsRestaurant; employeesinputtheinventorycount directly when the raw materials enter the business area. They also monitor regularly the stocks maintained and are automatically intimidated as soon as the stock of any particular inventory hits a low level. The managers at St. Johns Starbucks having a greater hold intheinternationalmarket, usesagratertechnological innovation in itspractices. It has to integrate its business all over the world. Due to this, not onlyinventorybutallthe operations of the company have beenlinkedwitheachother through online portals, VPN's 10 Illustration1: Operations Source:Food and Beverage Services – Operation,2017
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Restaurantregularlysupervisethe incominggoodsandtheremaining goods in the production area so that the shortage of any goods never arise. etc. Mobile MarketingMobile market basically signifies the process through which the business tries to connect with their customers through socialmediadevices,audiencesand digital marketing techniques. St. Johns Restaurant has formed a special team which is dedicated towards researching the changing trends and preferences in themarketandtryingtotapthe untapped markets through such digital marketingtechniques.Todaythrough the widespread use of social media, it hasbecomeeasyfortheStJohns Restaurant'steamtotargetthe customersgloballyandmarketingof their services to a wider customer base. Starbucks also carries out an extensivemarketingthrough mobile i.e the social media and otherappstokeepitself trendingbetweenthe customers.Italsouseshash tagsetc.topopularizeitself (ManagingFoodandBeverage Operations,2016). Business Intelligence This comprises the technology that can be used easily to interpret and analyse the various statistics and data related to thecompanyanditalsoassistsin interpreting that data so that relevant conclusions can be drawn. At St. Johns Restaurant,businessintelligenceisa relevantdecisionmakingtoolwhich assists the management in estimating andincreasingthesalesofthe Starbucks has a more proficient technologyforanalysing figuresanddataandfor carrying out the interpretations. Their decision making is of a higher level and more complex in nature. 11
company.Ithasalsohelpedthein gettingaclearerideaofStJohns Restaurant's customers expectations and in increasing the knowledge about its customer base. M 3 St. Johns restaurant is a multi cuisine restaurant based in U.K. Its various activities like mobile marketing, digitalisation of inventory, business intelligence etc. improve the sales as well as the growth of the business by attracting more customers and thus increasing revenue generation. D 3 Business Intelligence simplifies decision making and helps in formulating better plans and strategies. It also assists its customers in identifying the best dishes and enhances the quality of the service provided by screening the market elements. LO 4 P7 analysis the factors that effect the consumer decision making and the selection of the service outlets. Food trends- the people of united kingdom are the one who are very specific in selecting there choice in food. It was stated the UK people mostly prefer to consume the American dish, followed by French, Indian and the Italian. There is the high demand value of the food dishes in UK. Lifestyle-the type of the food a consumer consumes depends on his /her life style. It may be simple to understand some consumers don't have the enough time to set there preference in burger,sandwiches,frieswhereassomeconsumersliketohavethemselvesinluxurious restaurants. P8 Analysis of strategies used in a range of food and beverage outlets to attract and build a loyal customer base. Blogging :-Blogging is a digital platform technique where online reviews or articles are published y independent individuals referred to as Bloggers. St. Johns Restaurant can take benefit of this technology to attract online customers and create a separate base. This blogging technique is also used by cafes, hotels and other hospitality industry. It helps the company in 12
easy targeting of the customers and it is quicker as well as more convenient than the other marketing techniques used(Kanyan, Ngana and Voon, 2016). Providing After Services :-At St. Johns Restaurant, they give high importance to maintaining relationships even after the customer has left the restaurant. The complaints, if any, arises by the customers than it should be immediately attended to and after providing them with solution, the management should ensure that they are satisfied and do not carry any negative image of the restaurant in their mind. Specialized Service Providing :-The restaurant should begin marketing by extending special benefits to their customers. This helps in creating a more loyal customer base and also enhances the retention of their customers(Dopsonand Hayes, 2015). Special service providing tries to connect the customers to the restaurants and thus increase their numbers.This is an effective techniquefor other hospitality industries as well like hotels, cafes etc. Internet Marketing :-Internet Marketing is at present one of the best medium which used in all types of industries. Through social media apps like Instagram, Twitter and Facebook, St. Johns Restaurant can market their products and services. Various Promotional Techniques :-St. John Restaurant can use various promotional and marketing techniques like discounts, offers, seasonal or festival offs etc. this gives the customer a hope for earning these benefits and utilising them thus increasing the customer base of St. Johns Restaurant. M 4 The various techniques specified above, if applied will help St. Johns Restaurant in attracting more customers. The major expansion can be done by optimum utilisation of internet sue to the limitless options this technology provides. This has assisted in better integration of the various outlets of Sir Johns Restaurant spread through different parts of the country. D 4 The increasing facilities that are available online have really eased the whole process of eating out. Today, just by speaking into their phone, they can order the best food in an economical range.Functionslikevoicerecognitionetchaveproved tobeextremelyconvenientfor consumers and also profitable for the food and beverage businesses. 13
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CONCLUSION After going through this report, it can be ascertained that there are many aspects related to the food and beverage industry. The report described the different types of business within the hospitality industry and the different rating systems used. Further, this report also illustrated the various legislative requirements of the government and how St. Johns Restaurant complies to it. Then, the different technologies used in different types of food and beverage industries was analysed by presenting a comparison between St. Johns Restaurant and Starbucks. Lastly, factors and strategies to enhance customer loyalty and improving the base were discussed. 14
REFERENCES Books and Journals Dopson, L.R. and Hayes, D.K., 2015.Food and beverage cost control. John Wiley & Sons. Maier, T.A. and Prusty, S., 2016. Managing customer retention in private clubs using churn analysis: some empirical findings.Journal of Hospitality Marketing & Management. 25(7). pp.797-819. Ahmed, M. and et.al., 2015. Food production and service in UK hospitals.International journal of health care quality assurance.28(1). pp.40-54. Del Chiappa, G., Martin, J.C. and Roman, C., 2016. Service quality of airports' food and beverage retailers. A fuzzy approach.Journal of air transport management.53.pp.105- 113. Bakalis, S., Knoerzer, K. and Fryer, P.J. eds., 2015.Modeling food processing operations. Elsevier. Kennedy, S. ed., 2016.Food Protection and Security: Preventing and Mitigating Contamination During Food Processing and Production. Elsevier. Riley, M., 2018.Managing People in the Hospitality Industry. Routledge. 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. 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. Online ManagingFoodandBeverageOperations.2016.[ONLINE]Availablethrough :<http://www.haaga-helia.fi/fi/opinto-opas/opintojaksokuvaukset/RES2RZ003> FoodandBeverageServices–Operation.2017.[ONLINE]Availablethrough :<https://www.tutorialspoint.com/food_and_beverage_services/food_and_beverage_services_operations.htm> 15
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