P1 Different type of businesses within the food and beverage industry

Managing Food &
Beverage Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type of businesses within the food and beverage industry.....................................1
P2 Different rating system used for food and beverage industry nationally and internationally4
P3 Current and future trends affecting food and beverage businesses........................................5
TASK 2............................................................................................................................................6
P4 Professional food and beverage management skills within a food and beverage industry.6
P5 Legal requirements and regulatory standards to the maintenance and cleaning of equipment
.....................................................................................................................................................6
TASK 3............................................................................................................................................7
P6 Different operational and marketing technology for food and beverage businesses.............7
TASK 4............................................................................................................................................8
P7 Factors that influence the consumers’ decision on which food and beverage outlets...........8
P8 Strategies used in a range of food and beverage outlets to attract and build loyal customer
...................................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................13

INTRODUCTION
Food and beverage industry is includes all companies that involved in raw food material,
packaging and distributing them. Mainly, it includes prepared food, packaged foods and
beverages as well. It also create various opportunities to the people which directly contribute in
making economy strong. In context of this, international food & beverage industry provide
variety of meals and food services in over the world (Cho and Yoo, 2015). The main aim of this
industry is to provide high quality products to its customers as per their requirement. This will
aid in generating large amount of profitability. This report is based on managing food and
beverage operations to enhance the chances of establishing positive image. In addition of this,
different types of rating systems are mentioned i.e. applied by food and beverage outlets to
analyse their overall performance. Legal regulatory and requirement is also mentioned in this
report which is followed by food and beverage industry to offer quality food services at market
place.
TASK 1
P1 Different type of businesses within the food and beverage industry
Sectors Description Advantage disadvantage Example
Employer
Hotels This type of
sector provide
nourishment to its
customers as per
their needs and
wants. These type
of hotels are
categories in 1
star, 5 star and
many more.
The main
advantage of this
is that the housing
facilities are
offered to the
customers as per
their requirements
which directly
contribute in
enhancing their
satisfaction level
(Chung and
This type of
services are more
expensive which
reduce the
customers
demand towards
its offerings.
Dorsett Shepherds
Bush is one of the
famous hotel in
UK. It provide
elegant rooms to
its customers as
per their needs
and wants.
1

Parker, 2010).
Fast food centres It set their outset
at small and high
level which offer
fast food services
like pizza,
Burger, Sandwich
and many more.
Its main
advantage is
provide quality
products at
affordable cost
which may help
in increasing
customers
demand towards
the products.
Its major
disadvantage is
low quality of
products.
Patty & Bun is
popular and
famous fast food
centres that
provide variety of
fast food services
to its customers at
market place.
Hospital catering
services
It provide food
services to
patients and staff
of hospital.
It serve best and
healthy quality
services to
patients in
hospital.
The main
disadvantage of
this sector is,
sometime it
provide high
quality food
which directly
affect on patients
health conditions.
Ramtek is also
famous catering
service provider
in UK which
provide better
services in
hospitals to
patients.
Theme parks This sector highly
contribute in
capturing
customers
attention which
may contribute in
enhancing overall
growth of the
nation (Davis,
Lockwood and
The main
advantage of this
sector is to retain
visitors and
customers for a
longer period of
time.
Major
disadvantage is
that it charge high
price of the
products at park
side.
Paultons Park is
family theme park
which is owned
by Richard
Mancey in UK.
2

Pantelidis, 2018).
Restaurant This type of
sector provide
food and services
as per customers
needs and wants
as per
requirements.
This type of
business operate
their business at
small level and
high level for
generating large
number of
profitability.
Advantage of this
sectors is that it
provide food
products as per
affordable cost
which may
directly
contribute in
increasing
satisfaction level
of the customers.
It negatively
impact on other
restaurant
because it operate
their business at
advanced level.
The Ledbury is
famous restaurant
in UK which
provide
innovative French
fare in tranquil
space to serve
quality products.
Contract catering This type of
sector provide
food and
beverage services
as per contract
base for events
and another
occasions.
Its main
advantage of this
sector is to
understand
customers needs
and wants to offer
quality services
(Decker, Elias
and McClements,
2010).
Under this, main
disadvantage of
this sector is to
negative effect on
the other industry
supply at market.
Nourish Contract
Catering Ltd is
famous catering
in UK which
provide better
food services as
per contract basis.
Culture and
heritage food
services
Under this, they
provide quality
food services to
their customers as
The main
advantage of this
sector is that the
customers can
Disadvantage of
this sector is that
they charge high
price of the
Aqua London is
famous service
provider in
cultural and
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per their needs
and wants.
easily receive
food services as
per their culture
and tradition in
any country.
products and
services as well.
heritage sector in
UK which
provide quality
food services to
visitors as per
their needs and
wants.
Street Food Stalls This type of stalls
provide variety of
food to customers
at reasonable
cost. It also invite
number of
customers over
there.
The main
advantage of this
type of stalls is to
invite number of
customers. The
main aim of this
type of stalls is to
deliver best and
variety of food
products as per
customers
demand.
The major
disadvantage of
street food stalls
is less hygiene in
products which
may reduce their
customers base.
Lemlem Kitchen
is best example of
street food stalls
which provide
variety of food
items to
customers in
London.
Full service
restaurants
This type of
service
restaurants has
been largely
influenced by
market trends and
customers
preferences as
well. It improve
overall
performance of
The main
advantage of this
type of restaurant
is to invite
number of
customers
towards products
and services. It
also help in
retaining their
customers base.
Some time this
type of
restaurants fail in
serving best
quality to their
customers in peak
time. It reduce the
positive
experience of the
customers
towards
The Five Fields is
famous full
service restaurant
which provide
quality food
services to its
customers as per
their needs and
wants. Mainly it
is located at
London
4

the restaurants. restaurant
products.
P2 Different rating system used for food and beverage industry nationally and internationally
Rating system is consider as an important aspect for food and beverage industry to
maintain food quality, hygiene nationally or internationally. With the help of this, customers can
easily understand about the food qualities. Along with this, it is also beneficial for food
industries to maintain their food quality with the aim of offering better services to its customers.
This will also helps different companies to establish their image in market whether in
international or national trade. Mainly, rating system is considered as a marketing tool for
industries to determine their actual performance at market place (Del Chiappa, Martin and
Roman, 2016). With the assistance of this, customers easily select hotel and restaurant as per
their needs and also differentiate among them as per rating. In this regards, there are different
rating systems which used by food and beverage industries nationally or internationally. These
can be understood by following points:
Scores On the Doors: It is one of the important rating system which mainly used by
restaurants and cafes to maintain their good quality and hygiene. In this, restaurants have to
follow effective safety process at the time of making quality food items. It provide support to
cafes to define the complicity level towards the food hygiene by displaying inspection in their
doors. This will directly contribute in making food hygiene and quality as well.
Michelin stars: It is also an important rating system which provide grading to restaurant
as per their product quality. Basically, it is best guide by awarding one to three stars to hotel and
restaurants. In this, 1 rating is related with high quality products which provide to customers. In
addition of this rating '2' relate with those hotel which use best cooking strategies to invite their
target customers towards its offerings. Apart from this, rating '3' is given to selected hotels which
provide best hospitality services to customers.
AA Rosettes: This rating system also play an important role because it is granted by AA
inspector of hotel management (Dopson and Hayes, 2015). In this, rating is done as per scale of 1
to 5. It is highly based on the food quality of hotels and restaurants as well. Along with this, one
Rosette is given to those hotels which are focusing on improving their performance level in the
market where they are are performing their working. Two Rosettes are given to restaurant which
5

operate their business at high consistency level to offer good quality of food to customers. Three
Rosettes are given to those hotel who are focusing on cooking high quality products by
considering high quality of ingredients (Arendt and Zannini, 2013). Four Rosettes are awarded to
those hotel who considering better technical skills. Lastly, five Rosettes are given to those
restaurant which are consider in all 1 to 4 Rosettes. Thus, it can be stated that, with the use of
this system, hotel industry can easily invite customers towards its products and services.
Hotel stars: This rating system is also an important aspects which help hotel to improve
their performance level at market. In this, it provide those hotel who have well ambiance, best
services, proper accommodation within the hotel. Mainly, it awarded as per 1 to 5 grading scale.
With the assistance of this, hotel and restaurants can easily improve their offering and
established competitive image at market place.
P3 Current and future trends affecting food and beverage businesses
As per current market, food and beverage industry is growing day-by-day. Thus, it is
important for hotel to understand customers needs and wants at market place. Change in
customers preference may affect the food and beverage businesses. In this context, there are
some trends which directly affect the food and beverage industry. This can be understood by
following points:
Street food: As per current scenario, number of people are attracted toward street food as
compare to restaurant and hotel because street foods offer their services at low and reasonable
price. Along with this, street food also provide tasty and attractive products to its customers. This
will aid in enhancing their satisfaction level.
Chefs at homes: Number of people appoint chefs at home for cooking themselves as it
directly affect the food and beverage industry. Along with this, people also use online sites and
order their food from nearby hotel which is major drawback for food and beverage industry as it
reduce their profitability level (Subramaniam and Wareing, 2016).
App based services: This factor also play an important role as it also affect the entire
activities of food and beverage businesses. In this context, food delivery apps are more popular
and customers are highly engaged with all the app services. As every person use mobile apps
which decrease the food and beverage industry sales. The main reason behind this is providing
offers at quality foods which will directly affect the food and beverage industries at market place.
6

TASK 2
P4 Professional food and beverage management skills within a food and beverage industry
Professional management skills are important for every food and beverage industry to
produce quality food services (Pillai and Shayanfar, 2014). This will help in increasing the
chances of attaining set organizational goals and objectives. In this context, there are some
important professional skills which can be understood by following points: Effective communication skill: It is one of the important management skill for
professional manager of food and beverage industry to having good communication skills.
With the help of this, they can easily invite and attract large number of customers towards
its products and services. Ability to solve issues: Professional manager of food and beverage company is able to
resolve issues that arise within the business. With the assistance of this, hotel and
restaurant can easily improve their brand image at market place. To manage entire operational activities: As a professional manager, it is important duty
to have better control on entire activities which relate with operational department. This
will directly contribute in making smooth function within the business.
 Staff should be skilled and trained: For attaining set goals and objectives, it is important
for professional manager of food and beverage industry to hire capable and skilled
workers so that they can easily perform their task in effective manner. Along with this,
providing better training and development programs is also beneficial for workers. This
will directly contribute in enhancing the chances of attaining positive results.
P5 Legal requirements and regulatory standards to the maintenance and cleaning of equipment
The maintenance and cleaning of equipment is very important for the food and beverages
industry. Unfollow of such regulations and standards can cause harm to the visitors (Grekova
and et. al., 2014). So for that, some legal requirements and standards have been set for
maintenance and cleaning of equipment for food and beverages industry which can be described
as below:
World Health Organisation (WHO)
7

The main objective of WHO is to attain all peoples with high stage of health. In food and
beverage industry, WHO plays an important role in assisting health safety to the customers. It
also works on the promotion of health and biomedical research (AbuKhalifeh and Som, 2012).
Food And Agriculture Organisation (FAO)
The main goal is to remove malnutrition, hunger, poverty, assess and sustain natural
resources for future use. FAO has helped food and beverages industry in providing long term and
short term which help in maintaining and cleaning the equipment within the industry (Food and
beverage industry regulations and compliance, 2018).
Food Safety Modernization Act (FSMA)
The main objective of this act is to protect better health of the public by providing proper
food safety act. This also helped food and beverages industry on focusing prevention on food
safety before the problem arises.
Department of Agriculture and Water Resources
The main aim of this is to provide import and export inspection certification to keep
favorable human health status, plant. It help in maintaining and cleaning of equipment in food and
beverage industry.
TASK 3
P6 Different operational and marketing technology for food and beverage businesses
In every aspect, technology advancements has taken place which result in increase in
economic stability of the country (Ferreira, Maier and Johanson, 2012). Specially in food and
beverage industry, advancement in technology has led to increase in productivity and efficiency
of goods and services. This has taken place due to more use of internet which helps in marketing
and advertising of products in the market. Some of the operational and marketing technology
which result in promoting and developing of food and beverage industry are as stated below:
Operational technology: This technology controls and monitors overall different types
of operational activities that are being undertaken by food and beverage industry in order to
produce good quality products. Some of the operational activities like; monitoring of equipments
by maintaining fridge and cooking temperature so that the products can be stored for long period
of time.
8

Marketing technology: In order to enhance the company, food and beverage industry are
adopting modern marketing technology so as to create awareness about the products in the
market. For example E-brochures and social media (Facebook and Instagram) are the marketing
technology that can be adopted by the industry in order to attract and retain customers for the
products and services. This in turn result is generating revenue for the industry (Manzouri and et.
at., 2013).
TASK 4
P7 Factors that influence the consumers’ decision on which food and beverage outlets
Customers taste and preferences are highly influenced by food and beverage industry. In
this context, income level of the customers are more important factors that directly affect the on
the industry (Mutunga, Minja and Gachanja, 2014).
 Picture of Establishments: There is huge contribution of pictures in attraction of
customers. This will aid in influencing their behavior.
 Tariff boards or menus: This will aid in providence of information to the clients about
their stated services. This will help to spread awareness.
 Card reader: This is unique facility which provides the opportunity to pay out their bill
from their credit cards. This will influence the behavior of customers as they have an
option to pay from their cards too if they don't have cash.
Influencing factors Description The Coffee
Club
Suda Thai
Cafe &
Restaurant
Imperial
Hotel
Picture of
establishments
Take a 'selfie' of your
group outside the
restaurant that shows
the front of the
restaurant and its
name in the pictures
also
8/10 7/10 9/10
9

Tariff Board/Menus
Does the business
have a full menu or
tariff board at the
entrance, or above the
counter?
Yes, it has menus and
tariff board above the
counters so that they can
easily influence their
customers.
8/10 7/10 6/10
EPOS System
1. Does the business
have an EPOS
system?
2. What
manufacturer's name
appears on the system
terminal?
3. Does the system
look easy for the staff
to use?
Yes, they has proper
EPOS system.
Yes the system is look
easy to access for
workers.
6/10
6/10
5/10
5/10
4/10
8/10
9/10
9/10
6/10
Card Reader
1. Is there a credit
card payment facility?
2. Does it take
contactless payments?
3. Will it accept
Apple pay, Google
pay, Samsung pay
and similar
Yes, there is a availability
of card payment facility.
Yes, it take contactless
payments.
Yes. They are accepted.
5/10
8/10
7/10
9/10
9/10
6/10
5/10
6/10
9/10
10

applications?
Product Display
1. Are products
Managing Food &
Beverage operations
displayed in a logical
order?
2. Are they
attractively
displayed?
3. Do they look
delicious?
Yes, all the activities of
operational are well
managed in logical way.
Yes, they attractively
displayed.
Yes. It look delicious.
6/10
8/10
9/10
5/10
9/10
8/10
6/10
5/10
6/10
Purchase Boosts
1. What does the
business do to
encourage customers
to purchase and tempt
them to spend more?
2. Are all items
individually priced?
3. Are there impulse
purchase items near
the till?
4. Do members of
staff up sell?
Business provide
discounts and offers to
retain customers. Like
they are provide games,
music and many more to
spend more time over
there.
Yes, all items are
individually priced.
Yes, they have impulse
items to purchase.
Yes. Through games and
fun staff can easily up
6/10
5/10
8/10
6/10
8/10
9/10
6/10
8/10
7/10
8/10
7/10
7/10
11

sales.
P8 Strategies used in a range of food and beverage outlets to attract and build loyal customer
For attaining success and retain customers, food and beverage company use various
strategies which may help them in inviting large number of customers towards its products and
services (Frederick and Elting, 2013). This can be understood by below mentioned table:
 Poster and advertisement: This will aid in attraction of large number of customers. The
front image of paper create appearance, positioning and shapes perception of service users
and potential buyers,
 Pricing: This is the main factor which help to influence the behavior. If proper pricing
strategies are not adopted then this negatively impacts sales.
 Other observations: There are numerous other factors such as repeat business, offered
services/products etc. which is required to consider as this will help to ascertain the views
of customers and fulfill their requirements.
Strategies Description The
Coffee
Club
Suda
Thai Cafe
&
Restaura
nt
Imperial
Hotel
Posters and
Advertisements
1. Are there
posters and
advertisements?
2. What are they
Yes, they use posters and advertisement
to invite customers by creating awarness.
They promote brand image at market
5/10
8/10
5/10
6/10
8/10
7/10
12

promoting?
3. Are they
appealing and
likely to succeed?
place.
Yes, they are likely to succeed by
appealing regarding promotion of the
brand.
5/10 8/10 10/10
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 on
meals?
Different type of tea is offering to its
customers.
Yes. There are high prices of the
products as per products demand and
brand name.
Yes, it provide various discounts on
special items to their loyal customers so
that they can easily influence towards
company offerings.
8/10
5/10
4/10
5/10
9/10
5/10
9/10
8/10
8/10
Repeat Business
1. What is the
business doing to
encourage
customers to
return?
2. Are there
loyalty cards
available?
3. Do staff
Businesses doing to specific services to
customers as per their needs to build
loyalty towards the company products.
Yes, there are availability of loyal cards
to their regular customers.
7/10
9/10
8/10
5/10
8/10
7/10
8/10
6/10
6/10
13

encourage
customers to
return?
4. Are there any
advertisements
promoting
forthcoming
events or soon to
be launched
products?
Yes, they encourage because they
provide discounts to its customers.
Yes, they do advertisements to promote
their services to be launched.
5/10 7/10 8/10
Other
observations
1.What else have
you noticed, that
is relevant to the
operation of the
business, during
your visit?
I have noticed that food and beverage
should provide quality services to its
customers as per their needs and wants
to influence them towards its offerings.
5/10 8/10 6/10
CONCLUSION
From the above mentioned report it can been summarised that food and beverage industry
is fastest growing sector which may directly contribute in creating opportunities for number of
people. It also helps in enhancing the economic growth of the nation. Mainly, food and beverage
companies play an important role in increasing the profitability level by influencing customers
towards its services. Along with this, the main aim of the organization is to capture higher
market growth which helps in establishing competitive advantage from rivals. For providing
better satisfaction to customers, organisation focused of their needs towards the offerings. This
will contribute in maximizing overall profitability of the company at market place. In context of
this, various factors such as street food vendors, chef in house and many more are directly affect
the food and beverage companies in market. Thus, it is important for companies to focus on
their qualities so that they can easily invite large number of customers towards its products.
14

REFERENCES
Books and journals
Cho, H. M. and Yoo, B., 2015. Rheological characteristics of cold thickened beverages
containing xanthan gum–based food thickeners used for dysphagia diets. Journal of the
Academy of Nutrition and Dietetics. 115(1). pp.106-111.
Chung, L. H. and Parker, L. D., 2010, March. Managing social and environmental action and
accountability in the hospitality industry: A Singapore perspective. In Accounting
Forum (Vol. 34, No. 1, pp. 46-53). Elsevier.
Davis, B., Lockwood, A., and Pantelidis, I.S., 2018. Food and beverage management. Routledge.
Decker, E. A., Elias, R. J. and McClements, D. J. Eds., 2010. Oxidation in foods and beverages
and antioxidant applications: management in different industry sectors. Elsevier.
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.
Dopson, L. R. and Hayes, D. K., 2015. Food and beverage cost control. John Wiley & Sons.
Arendt, E. K. and Zannini, E., 2013. Cereal grains for the food and beverage industries.
Elsevier.
Subramaniam, P. and Wareing, P. eds., 2016. The stability and shelf life of food. Woodhead
Publishing.
Pillai, S. and Shayanfar, S. eds., 2014. Electron beam pasteurization and complementary food
processing technologies. Elsevier.
Grekova, K. and et. al., 2014. Extending environmental management beyond the firm
boundaries: An empirical study of Dutch food and beverage firms. International
Journal of Production Economics. 152. pp.174-187.
AbuKhalifeh, A. N. and Som, A. P. M., 2012. Service quality management in hotel industry: a
conceptual framework for food and beverage departments. International Journal of
Business and Management. 7(14). p.135.
Ferreira, R. R., Maier, T. A. and Johanson, M. M., 2012. Food and beverage levels during the
2008-2010 economic downturn in clubs. International Journal of Contemporary
Hospitality Management. 24(4). pp.614-627.
Manzouri, M. K. and et. at., 2013. Lean supply chain practices in the Halal food. International
Journal of Lean Six Sigma. 4(4). pp.389-408.
Mutunga, S.L., Minja, D. and Gachanja, P., 2014. Innovative adaptation and operational
efficiency on sustainable competitive advantage of food and beverage firms in
Kenya. European Journal of Business and Innovation Research. 2(2). pp.32-50.
Frederick, H. and Elting, J., 2013. Determinants of green supply chain implementation in the
food and beverage sector. International Journal of Business Innovation and Research.
7(2). pp.164-184.
Online
Food and beverage industry regulations and compliance. 2018. [Online]. Available
through:<https://www.business.qld.gov.au/industries/hospitality-tourism-sport/food/
food-beverage/regulations>.
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