Different Types of Businesses in the Food and Beverage Industry

Managing Food &
Beverage Operations
1

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Different types of businesses within the food and beverage industry...............................3
P2 Different rating systems used for the food and beverage industry nationally and
internationally.........................................................................................................................5
P3 Current and future trends affecting food and beverage businesses...................................6
Task 3...............................................................................................................................................7
P6 Comparison between different digital operational and marketing technology for different
types of food and beverage businesses...................................................................................7
Task 4...............................................................................................................................................9
P7 Factors that influence consumers’ decision of choosing food and beverage outlet..........9
P8 Strategies used in food and beverages outlets to build a loyal customer base................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
2

Introduction
Hospitality industry is a wide group of businesses that aims to provide service to customers.
It includes lodging and accommodation services, food and drink services, theme parks, etc. Food
and beverage (F&B) industry includes all the businesses and companies that are involved in
production, processing, packaging, transporting and distributing edible goods – from farm or
factory to fork. It includes restaurants, cafeterias, fast-food joints, pubs, delis, caterers, food
transportation services, etc. (Bresciani, 2017) This report is aimed at discussing businesses in
F&B industry and analysing factors impacting them. Analysis and profiling of different types of
businesses within food and beverage industry is discussed in this report. Also, discussed below
are different rating systems used to assess food and beverage industry and current and future
trends which affect businesses in the industry in meeting their business objectives. Marketing
plays a very important in enhancing business performance and in present times, digital marketing
technology plays a critical role in operational and marketing strategies. Discussed below are the
influence of digital marketing tools over businesses and consumer buying behaviour. In the final
part of the report are discussed strategies that used in food and beverages outlets to build a loyal
customer base and their effectiveness in various businesses.
Task 1
P1 Different types of businesses within the food and beverage industry
Food and beverages services form a substantial part of hospitality industry and the scale
has now grown so much that it is considered a separate industry known as food and beverage or
F&B industry (Tardivo and et. al., 2017). It includes both types of outlets which are
independently owned or are operating units of large corporations managing global brands. In
UK, different types of businesses are grouped together and classified by government under
Standard Industrial Classification (SIC) (Condensed SIC list in CSV format, 2018). Food and
beverage division of SIC includes activities that provide complete meals or drinks which are fit
for immediate consumption. These services are to be provided in either traditional restaurants or
concept restaurants such as self-service or take-away restaurants. These places can be of both
the types, permanent stands or temporary stands, with or sans seats. Facility that can offer meals
fit for immediate consumption is deciding factor to be included in F&B industry as all other
3

facilities like wholesale and retail trade of packaged food products are excluded from this
category of industry. SIC for F&B industry includes below mentioned groups:
 Hotels and others accommodation – It include foods and beverages services provided
in hotels, resorts, motels, holiday homes, homestays, camping grounds, etc. (Cleave,
2020) For example, food services provided at Hotel Marriott to its staying customers or
dining-in customers at its restaurants.
 Restaurants and mobile food services activities – It includes two sub categories – first
category is where services are provided to customers either when they are seated or they
serve themselves from a displayed menu. It includes restaurants, cafeterias and fast-food
restaurants, either licensed which are allowed to serve meals and alcoholic drinks like
Melissa’s Kitchen, London or unlicensed which are allowed to serve meals but only
non-alcoholic drinks. These places usually offer BYO for drinks like Adams Café,
London. Second category is take-away food shops and mobile food stands. These
facilities provide food services for customers as take-away or delivered to them. It
includes take-out eating places, mobile food carts, ice-cream vans, etc. For example,
Mister Creamy Ice Cream Van Hire, London.
 Event catering and other food service activities – This includes catering of food
services for a single event or for a definite time. It generally includes services provided
on the basis of the contractual agreements with the clients. It includes providing services
at some specific location or for a specific event. It excludes manufacture and retail sale
of perishable food items for resale. For example, services provided by The Hill Food
Company across London. Other food service activities include class of service providers
like industrial catering i.e. providing food services on the basis of contractual
agreements with client for specified period of time. For example, services provide by the
ABM Catering Solutions across UK.
 Beverage serving activities – This group includes businesses that prepare and serve
beverages for immediate consumption at the premise only (Boix and De Propris, 2015).
It includes alcoholic licensed clubs like night clubs and social clubs but excludes
reselling packaged beverages. For example, Corsica Studios Nightclub, London. Other
than clubs, this group includes bars, taverns, cocktail lounges, licensed discotheques,
4