Food and Beverage Management Strategies

The assignment provides a detailed overview of the food and beverage management industry, emphasizing the need for outlets to identify factors that influence customer choice. It suggests formulating strategies to attract customers and remain competitive in the market place.

Managing Food And
Beverages
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Type of businesses within food and beverage industry....................................................3
TASK 2............................................................................................................................................7
P2. Different types of rating system used for food & beverages industry nationally and
internationally.........................................................................................................................7
TASK 3............................................................................................................................................7
P3. Current and future trends affecting food and beverage businesses..................................7
TASK 4............................................................................................................................................7
P4. Professional food and beverage management skills within a food & beverage organisation
................................................................................................................................................7
P5. Legal requirement and regulatory standard that food & beverage service outlets must
comply with reference to maintenance and cleaning of equipment’s....................................8
TASK 3............................................................................................................................................9
P6. Compare and contrast different operational and marketing technology for a range of
different types of food and beverage businesses....................................................................9
TASK 4..........................................................................................................................................10
P7. Factor which influence consumers' decision for selecting food and beverage outlets...10
P8. Strategies used by food outlets to attract and build loyal customer base.......................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Food and beverages industry includes various types of business which provide services
related to the processing, packaging and delivering of food to customers. In consists of
businesses such as hotels, restaurants, catering services, theme parks, cafes and many more.
McDonald is an American fast food company headquartered in California, United States and
maintains a range of franchise store throughout the world. It deals in offering product related to
food and beverages such as burger, French fries, coffee, desserts etc. are few of them (Davis and
et. al., 2018). This report elaborates about various types of businesses within food & beverage
industry as well as management skills required within such companies. Further it talks about
legal standards that food outlet must follow. It also describes about factors that influence
consumer decision for selecting a restaurant and strategies to build loyal customer base.
TASK 1
P1. Type of businesses within food and beverage industry
Food & beverages industry refers to the sector that includes various types of companies
that are involve in processing of raw food material into eatables, its packaging and distributing
them. It includes prepared as well as packaged food, alcoholic and non alcoholic beverages or
any product which is meant for human consumption (Dopson and Hayes, 2015). Food &
beverage industry include various types business that can be better understood using following
table:
SNO. Sector Description Advantages Disadvantages Example
Employer
1 Hotel Hotel industry includes
certain type of
institutions that provide
accommodations, lodge,
meal and other services
to tourist or travellers. It
provide services like
accommodation, food
It provide
various
promotional
opportunity
based on
performance.
Customers
demand always
rises related to
services this
sometimes may
affect the
performance of
individual.
Hilton Hotels
& Resorts was
founded by
Conrad Hilton
and it now
offer services
in 85
countries.

services, special featured
room, leisure &
amenities, business
meeting centres etc.
https://
www3.hilton.c
om/en/
index.html
2 Fast Food
restaurants
It refers to a type of
restaurants that prepare
& sale quickly made and
ready to eat food at their
premises with minimum
table services (Leabman
and Brewer, 2015). Fast
food restaurants provide
services like serving
food, beverages and
variety of snacks.
It involve
interaction
with people
belongs to
different
culture that
help in
developing
inter-personal
skill
Income of an
individual is
relatively low
as compare to
fine dine
restaurants.
MC Donald's
is an American
fast food
company
which is
founded by
Richard and
Maurice
McDonald in
California,
united State
and is operate
its business in
over 100
nation.
https://
corporate.mcd
onalds.com/
corpmcd.html
3 Hospital
catering
services
It refers to the type of
companies that offer
nutritious and healthy
food to patient as well as
staff working within
hospital (Bujisic,
Hutchinson and
It provide an
regular
income
opportunity to
individual
working in it
as these
Growth
opportunity is
minimal as
these business
always perform
similar
operation and
OCS is
international
business which
offer catering
services to
hospital
worldwide and

Bilgihan, 2014). It
provide services like
processed and cooked
food as per the demand
of hospitals.
services are
not seasonal
or event
specific.
doesn't involve
diversification
is formed by
Frederick
William
Goodliffe.
https://
www.ocs.com/
uk/services/
catering/
hospital-and-
healthcare-
catering/
4 Theme parks Theme park refers to the
large outdoor area in
which buildings,
landscaping and
attractions are based on
specific theme (Ahmed
and et. al., 2015). It
provide various services
such as games, event,
food, entertainment,
musical concert etc.
It involves
staff members
to work in a
dynamic and
diversify
environment
that develop
interpersonal
skill that
further
support in
future growth.
This business
involve high
work pressure
during specific
occasion.
Disneyland is
a theme park
which is
situated at
Anaheim,
California and
is established
by Walt
Disney.
https://
disneyland.dis
ney.go.com/
5 Restaurants It refers to the businesses
that prepare as well as
serve food and drink to
its customers.
Restaurants generally
offer food at its premises
but some of them
Main
advantage of
working in a
restaurant is it
help in
developing
team oriented
It require staff
member to
work for extra
hours during
festive seasons.
Jimmy John's
Franchise,
LLC is a
restaurant
which is
headquartered
in Champaign,

provide an option of
take-out and food
delivery services. It
provide services like
lunch, dinner, alcoholic
and non-alcoholic
beverages, food delivery,
take away services and
many more.
skills which
help further
career
enhancement.
Illinois and
now operates
in around 2800
location
throughout
world. It was
founded by
Jimmy John
Liautaud.
https://
www.jimmyjo
hns.com/
6 Contract
catering
It can be define as type
of businesses that cook
and delivery food to its
client by taking contract
either over some special
event or for a particular
institute like school,
business houses etc. It
provide services related
to delivery of cooked or
processed food in
various events or parties.
The income
of event
caterers are
relatively
higher.
This business
involve work
pressure or
staffs have to
work for long
hour while
festival season.
Aramark
corporation is
American food
and catering
service
company
which is
founded by
Davre
Davidson in
North America
and now it
operates in
more 20
countries.
https://
www.aramark.

com/about-us
7 Prison
catering
service
It refers to the type of
businesses which
prepare food for
prisoners in correctional
institution. It provide
services related to the
cooking and serving of
food related product to
prisoners.
This work
includes
handling the
unique set of
challenges
that can arise
while
working
within
industry that
help in further
development.
Salary of
prison catering
service staff is
relatively lower
as compare to
other catering
businesses.
The Clink
Restaurants is
a institution
headquartered
in Banstead,
Surrey. It is
established by
Chef Alberto
Crisci.
https://
theclinkcharity
.org/
8 Fine dine It refers to the
restaurants which serve
food in a casual
atmosphere over a
moderate price. Fine
dine provide services
related to food &
beverages, but it doesn't
offer alcohol.
Advantage of
working in
this field is
that an
individual
learn about
culinary art
which is very
essential part
of restaurant
servicing.
Staff has to
always remain
active and
stand near to
customers for
making sure
that each
service must be
well delivered
which never
allow them to
take a rest.
The English
Grill is a fine
dine restaurant
situated in
London. The
founder of
restaurant is
Mrs Bea
Tollman.
http://
www.louisvill
ehotbytes.com/
english.shtml
9 Casual dine Casual-dining
restaurants have a casual
Main benefit
of working in
Dissatisfaction
among
Casual
Dinning Group

and more relaxed
ambiance with a vast
seating arrangements
and provide high prices
food then others. It
provide services related
to food items for lunch,
or dinner, but it also
offer wine menu of full
bar services.
this field is
the creativity
regarding the
management
of restaurant
interior will
be enhanced
among staff
members.
customers may
affect the
performance of
an individual
that may also
make it harder
for them to
continue job.
which operates
approx 300
restaurants in
UK and is
founded by
Martin
Robinson.
https://
www.casualdi
ninggroup.com
/
10 Wine bar It refer to the place
where where people can
buy and drink wine and
may also order
something to eat. It
provide services related
to alcohol and food
items.
Main
advantage of
working in a
wine bar is
that the
income is
relatively
higher as
compare to
other
restaurants.
The
disadvantage of
being an
employee in
wine bar is that
, they have to
work for long
hour which is
very frustrating
and harder to
manage.
Noble Rot
Wine Bar &
restaurant was
founded by
Mark Andrew
and Dan
Keeling.
https://
noblerot.co.uk/
about
TASK 2
P2. Different types of rating system used for food & beverages industry nationally and
internationally
Will covered in classroom
TASK 3
P3. Current and future trends affecting food and beverage businesses
Covered in PPT

TASK 4
P4. Professional food and beverage management skills within a food & beverage organisation
Management of Food & Beverages business includes forecasting the food material
required and managing them as per the demand of customers in order to keep them satisfied.
Managers of Food & Beverages business are responsible for administrating the availability of
stock and finance of the company (Rezitis and Kalantzi, 2016). Main responsibility of a F&B
manager is to purchase stock, prepare a budget, design and update their menu, provide training to
staff members, ensure quality of customer services etc. In order to perform these operations, it is
very essential for the managers of McDonald's to have certain professional and management
skill. These are explained below:
Leadership skill: - Being a professional at Food & Beverages company, a manager is
responsible for handling a team of cooks and waiters. So in order to manage them properly, a
manager must have leadership skill that support them in motivating them toward providing
quality services. The managers of McDonald's must have an ability to inspire and guide its team
for serving its customers effectively by complying with all health & safety related standards.
Communicational skill:- In food & beverages related company, management has to
interact with several customers that belong to different culture and in order to satisfy them with
its services good communicational skill is very essential (Somuyiwa and Adebayo, 2014).
Therefore, the managers of McDonald's must have good communicational skills so that they
interact with customers in more appropriate manner.
Customer servicing skill:- Being a professional at food & beverages company it is very
essential for a manager to have an ability to satisfy its customer by providing service as per their
expectation. As being friendly to customers help them in winning the heart of guest which is a
first step to keep them satisfy. Manager of McDonald's must have a skill to severe its customer
better and most satisfactory services that help them in retaining the client for long period of time.
P5. Legal requirement and regulatory standard that food & beverage service outlets must comply
with reference to maintenance and cleaning of equipment’s
Companies that deals in food & beverages sector have to comply with certain laws and
regulations related to safety as well as distribution of food to its customer (Denkenberger and
Pearce, 2014). These companies are required to meet certain standards and legal requirement

that are fixed by government in order to perform their operation effectively without any legal
compliances. One of the important act that each food & beverage company must comply with is
“The Food Safety Modernization Act (FSMA)”. This law focuses on improving the nation's food
safety system with an aim to prevent food-borne illnesses by keeping food safer to eat despite of
place where it produce. This involve certain standards that must be fulfil for keeping food
hygienic and healthy to eat. In addition to this “The Safe Quality Food (SQF)” standard guide
companies related to food & beverages for setting up a process of food safety in their premises
and check its progress by performing annual audit.
“Hazard Analysis Critical Control Point” standard is a king of management system which
address food safety by analysing and controlling the biological, physical and chemical hazard
from procurement and handling, raw material production, manufacturing, distribution and
consumption of finished product. Apart from this “ISO22000” is an international standards
addresses food safety management that focuses on identifying and controlling the food safety
hazard. It focuses on mapping out the need of an organisation for demonstrating its ability to
control the food safety hazards for keeping the finish product safe and healthier to eat. Hence,
hygiene is one of the major consideration that must be ensure by food & beverage services
company in its regular practices. They must keep their equipment’s and tools clean that are used
for processing of food in order to meet criteria of this law. Following are certain factors that must
be consider within food & beverage outlets related to maintenance and cleaning of equipment’s
as per the legal standards:- Cleaning:- Equipments and tools used for cooking as well as serving must be kept clean
as per the standards fixed by industry. According to the guidelines, all the junk must be
removed from these tools properly as it will help in preventing food from bacteria. These
tools must be clean with a detergents that are approved in industrial standards. Sterilizing/ Disinfecting:- As per the cleaning standard fixed by the Food & beverages
industry the utensils must be cleaned by chemical sanitizers after being washed by
detergent (Bakalis, Knoerzer and Fryer, 2015). This help in ensuring that the germs will
not remain in equipments that may become a part of food served in future.
 Tools life span:- Management of food & beverages businesses must keep on inspecting
the equipments that are used for the processing and serving of food. As broken
equipments may harm or injured the customers. Apart from this when the tools are used

in excess then it may get a permanent stain over these equipments which sometimes may
causes germs over that area which in turn can affect the food.
TASK 3
P6. Compare and contrast different operational and marketing technology for a range of different
types of food and beverage businesses
Food & beverages industry is one of the fastest growing and highly competitive sector
which always attract people to bring innovation as well as new technology in marketplace in
order to remain competitive (Hill and Hill, 2017). These technologies help in serving customers
that better satisfy their need. Apart from this use of technologies help manager in improving and
controlling the quality of services, managing stocks effectively and enhance the speed of sorting
the goods. This support in enhancing services offered by company. Following table describe
about the various tools that may be used by businesses in Food & Beverages industry
Technology Hotel Restaurants
Payment
technology(Operati
on management)
For simplifying their management
operations hotels generally offer an
options to its customers for making
their payment digitally using various
technologies. It includes online
banking, use of credit or debit card
etc. by swiping up at its terminal.
As compare to hotels various types
of restaurants are still taking cash
over their services instead of online
payment.
Websites
(marketing
technology)
Hotels generally maintain their
websites where they keep on updating
their information related to price, new
offers etc. in order to market their
brand. Apart from this for marketing
their services hotel also place certain
pictures over their website to attract
customers (Haniff and Halim, 2014).
This help them in making its
customer inform about the services
In contrast of hotel, restaurants
doesn't maintain their own website
rather they use social media sites to
place their advertisement in order to
grab attention of customers.
Therefore, instead of creating their
own website restaurants generally
uses other's website for placing their
pop up advertisement which gains

that hotel offers which influence the
choice of customers to a large extent.
the attention of visitors.
TASK 4
P7. Factor which influence consumers' decision for selecting food and beverage outlets
Food & Beverages is one of the most competitive industry which includes several players
that brings on innovative approaches to attract and satisfy customers. So in order to deal with
such competition and remain competitive in market place Mcdonald's must analyse the factors
that can affect the choice of customer regarding selection of restaurants (Hall and Cousins,
2015). It support them in analysing the area that area required to improve by them for attracting
and fully satisfying customers which in turn will enhance the profit generated by company.
Following are factors that influence choice of customers:
Food quality:- It is one of the most essential factor that influence the choice of customer
regarding selection of a restaurant as customer will be agree to pay any cost if the quality of food
is high. Therefore, MacDonald must put more emphases toward the quality of its food in ordered
to attract and retain customers for long period of time.
Environment within outlet:- Atmosphere, physical ambience, behaviour of staff
members etc. all are the major factor that help in satisfying the customers which further influence
their choice over other restaurant. McDonald's have the culture of self services which sometime
may restrict the customers to visit outlet. So in order to influence their choice McDonald's must
try to improve its culture by providing table service to its customers.
Location of outlet:- Place at which the outlet is located also affect the choice of
customers to select a restaurant. If it is not at prime location and may be present at a place which
is harder to visit or external view is not appealing then it may restrict the customer to visit the
outlet. So McDonald's must try to setup its outlet at a Porsche location which attract customers to
visit their stores.
P8. Strategies used by food outlets to attract and build loyal customer base
Restaurants and food outlets is one of the fastest growing sectors that always tries to
bring new method of serving customers for increasing the customer base (ATTRACT MORE
CUSTOMERS TO YOUR RESTAURANT, 2018). This has bring huge competition in
marketplace so in order to cope up with situation it is very essential for food & beverage outlets

to formulate certain strategies that help in developing loyal customer base. As failure in
satisfying customer may directly affect the existence of company within market place. So in
order to remain competitive in market and creating a broader loyal customer base following are
certain strategies that may can be used by food & beverage outlets:
Offer discounts:- By providing discount coupons over meal help a restaurant to attract
customer and influencing them to try services offered by a restaurant (Green and et. al., 2017).
Under this strategy food outlets may offer discount coupon over first meal that customer can use
over second visit to get food for free or price deduction up-to certain limit. This help in
influencing customers to visit the outlets in order to avail the opportunity.
Embrace big events:- A restaurant can organise events or some game show at the time on
some special day as well as festival such as new year, Christmas, valentines day, friendship day
etc. This help them in attracting the customers and satisfying them with services in order to
achieve their loyalty. As by satisfying customer with these event restaurants may get an
opportunity to influence customer to revisits the outlets.
Use loyalty & reward:- Food outlets must keep record of some loyal customers or regular
visitor and this information can be used in developing a healthy relation with them. For instance,
restaurants can send birthday or festival greetings to them and they can also arrange some contest
in order to provide them gifts or reward. This help in keeping customer happy and stay
connected with the restaurants.
CONCLUSION
From the above report it can be concluded that food & beverages industry is one of the
fastest growing sector which brings several technologies to remain competitive in market place
and offer better services to customers. But in order to deal with changing demand and
competition it is very essential for food & beverage services outlets to identify the factors that
influence the choice of customers in selecting a company over another. This further support in
formulating strategies that help in attracting customers toward its outlet.

REFERENCES
Books & Journal
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Dopson, L. R. and Hayes, D. K., 2015. Food and beverage cost control. John Wiley & Sons.
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regulator for food and beverages. U.S. Patent Application 13/960,560.
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.
Ahmed, M. and et. al., 2015. Food production and service in UK hospitals. International journal
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Rezitis, A. N. and Kalantzi, M. A., 2016. Investigating technical efficiency and its determinants
by data envelopment analysis: An application in the Greek food and beverages
manufacturing industry. Agribusiness. 32(2). pp.254-271.
Somuyiwa, A. O. and Adebayo, I. T., 2014. Empirical Study Of The Effect Of Reverse Logistics
Objectives On Economic Performance Of Food And Beverages Companies in Nigeria.
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Denkenberger, D. and Pearce, J. M., 2014. Feeding everyone no matter what: managing food
security after global catastrophe. Academic Press.
Bakalis, S., Knoerzer, K. and Fryer, P. J. eds., 2015. Modeling food processing operations.
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Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
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Haniff, S. B. M. and Halim, M. S. B. A., 2014. MARKETING CAPABILITIES AND
PERFORMANCE OF SMEs IN FOOD AND BEVERAGES INDUSTRY IN
MALAYSIA. International Journal of Academic Research. 6(1).
Hall, R. and Cousins, B., 2015. Commercial farming and agribusiness in South Africa and their
changing roles in Africa’s agro-food system. Paper delivered on, pp.20-21.
Green, J. M. and et. al., 2017. Research priorities for managing the impacts and dependencies of
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Online
ATTRACT MORE CUSTOMERS TO YOUR RESTAURANT. 2018. [Online] Available through
<https://restaurantden.com/attract-customers-to-your-restaurant/>.