Table of Contents Introduction.................................................................................................................................................................................................3 P1 Profiling of 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.........................................................6 P3 current and future trends affecting food and beverage businesses........................................................................................................7 P4 Professional food and beverage management skills within a food and beverage organisation..............................................................8 P5 legal requirements and regulatory standards that food and beverage service outlets must comply with..............................................8 P6 different operational and marketing technology for a range of different types of food and beverage businesses................................9 P7 factors that influence the consumers’ decision on which food and beverage outlets they choose.......................................................12 P8 Analyze strategies used in a range of food and beverage outlets to attract and build a loyal customer base.......................................12 Conclusion................................................................................................................................................................................................17 References...............................................................................................................................................................................................................18 2
Introduction Food and beverage section of any sector in involved in providing quality food to the clients. Its management is essential as it includes numerous areassuch as procuring of raw material, preparing food and beverage, maintaining hygiene, focusing on costing and inventory among others (Jensen and Ronit, 2015). Proper management of food and beverage section is required so as to improve guest experience which can then lead to consumer satisfaction followed by profitability. It can also assist the company in managing its costs, optimizing operational processes and also make informed decisions. The present study has thus laid emphasis on discussing the different businesses that are there in this section followed by emphasizing on rating system and regulatory procedures. Other than this focus has also been given on current trends and how will be evolve in coming future. This has been done for one of the pupil from a large private school of UK who wants to start his career in hospitality industry. P1 Profiling of different types of businesses within the food and beverage industry. Thereisapresenceofdifferentbusinessinfoodandbeverage industry. There profiling has been done in below mentioned section. SectorDescriptionAdvantageDisadvantageExample Employer 1HotelItisacommercial establishmentthat providesprimary serviceslike accommodation, food,refreshment etc.(Rashidand Ghose, 2015). It is very easy for freshers to get entry level jobs in this section. There is a good opportunity for career advancement. Employeesusuallyenjoy good bonuses, free food as well asFree or Discounted Theworkinghoursare usually long and odd. Thereisincreasedwork pressure during weekend and holidays. Theenvironmentisquite stressful as there is constant interactionwithconsumers (Swinburn and et.al., 2015). Imperial hotel, UK https:// www.imperialhotels.co. uk/ Thecompanyoperates its business all over the world but in London it is situatedinheartof Bloomsbury. 3
Travel. 2Fastfood joint These are a part of restaurantindustry and are also known asquickservice restaurant. Theseprovidefood andbeverage servicesinaquick manner.Someof themevenhavean optionoflive entertainment. Thesejointsofferflexible work schedule to employees. A person can get employed at a young age which increases chancesforcareer advancement(Hsieh,Chang and Wu, 2014). It is difficult to get a decent amount of pay raise. There is also a need to deal withrude consumers. Mc Donald’s, UK https:// www.mcdonalds.com/ gb/en-gb.html Thecompanyoperates its business all over UK be it malls, petrol pump, cinemas or theme parks. 3Theme park Itisalargeand permanentareathat hasapresenceof manyentertainment activities (Kock and Bosh, 2015) Working in theme park helps to add a large organization in CVforfuturejob applications. Provides benefits in area of health,retirement,discount coupons etc. Long work hours even during bad weather Handling of negative guest interaction Alton Towers, UK https:// www.altontowers.com/ The theme park operates itsbusinessin Staffordshire. 4Restaura nts Restaurant sector in UKisknownfor providingfoodand drinks to consumers thatareoften differentcuisines. The kinds of services offered by restaurant includetakeaway, casual dining, family restaurant, and cafes. An employer can earn good tipswhileservingfoodto consumers. They even get access to free food. Work may turn quite stressful during peak hours (Davis and et.al., 2018). WasabiSushiand Bento, UK https:// www.wasabi.uk.com/ Thecompanyoperates its business all over UK. 4
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5Hospital Catering Services Thissectoris involvedin providingcatering servicestopatients, visitors, doctors and other employees. Thesefirmsare involvedin providinghigh qualityaswellas nutritious food along withthecutlery (Chenandet.al., 2015). Theemployeeusuallygets discount in lunch. Thereisalsoaccessto retirementplanssuchas pension schemes. Theworkinghoursare usually long. Many posts in this sector are for part time. The wellington hospital https:// www.ccdhb.org.nz/our- services/wellington- regional-hospital/ It operates its careering serviceinwellington hospital. 6Golf ClubGolf club belongs to sportsindustryof UKandprovides recreational opportunities as well as enjoyment to the masses. Anygolfclub providesservices such as golf lessons, practicefacility, competitionsand events as well as fine dining service. These usually provide access to free food. Employee gets access to good benefitsinareaofhealth, pensionwhichis accompaniedbygood bonuses. The employee has to work in all kinds of weather. There is usually low pay. Sunningdale Golf Club http://www.sunningdale- golfclub.co.uk/ Sunningdale,Berkshire is the place where this golfcluboperatesits business. 7Culture & Heritage Food service consultant Thecultureand heritageindustryis involvedin organizingevents such as dance shows, Employeegetsgoodjob opportunity in future. Employeegetsaccessto Thereisalsoaccessto retirementplanssuchas Theworkinghoursare usually long. Have to handle all kinds of consumers with full patience (Renton,Daellenbach Triconfoodservice consultant https://tricon.co.uk/ sectors/arts-heritage- culture/ 5
plays,actsamong others.Itprovides manykindof servicessuchas practicefacility, competitionsand eventsaswellas food services. pension schemes.Davenport, 2016). Itislocatedatthe outskirts of East London and the Essex border, 8Wine barsIt is the place where differenttypesof wine is provided to the customers.The wine bars have large collectionofthe winesto fulfill the requiremnets of their customers. Thisseatorprovidehigh wagestotheworkersand havegreatcarrer opportunities. Theyhavelongworking hours due to whihc workers aredemotivatedand unstaisfied with ther job. Gordonwinebvaris locatedinukand providngitscustomers with different wines. Link: https://gordonswinebar.c om/ 9Coffee shops The coffee shop is the placewere the custonmeris providedwith differentkindsof coffeeand refershment drinks. It provide it employees with lowworkinghoursdueto whichtheemployeesare satisfied. They pay their workers low wagesfortheservices provided to the customers. CoffeeAromais providingits customers with different kinds of coffee. Link: http://www.coffeearoma .co.uk/ 10Sandwich bar Sandwich bar is a place where there are differenttypesof sandwichesare served to customers accordringtontheir requiremenst. It provide employees with high career opportunities and pay them high wages. Theyhavelongworking hourst when the customers are more due to which they are stressed out. Sindy's sandwich bar is locatredinUkand providngtheir xcustomerswith differentkindsof sandwiches. Link: http://www.sandwichsho 6
pchelmsford.co.uk/ P2 Different rating systems used for the food and beverage industrynationally and internationally There is a presence of different rating system that is used infood and beverage industry on national and international level. Scores On The Doors – This is a national rating system of UK that is given after food safety and hygiene inspection has been carried out by food business inspectors. It however does not showcase the quality of food or places where food is sold. The inspection results are published as a grade or score which can then be displayed by company in form of sticker (Jensen and Ronit, 2015). AA Rosettes – This is a UK wide scheme that is used for assessing food quality that is served in restaurants and hotels. The rating is given between 1 to 5 where one stands for high local standards and five for being the top restaurant in the world(Davis and et.al., 2018). Michelin Stars – this is a rating system that is used to grade restaurant on the basis of quality food offered by them. For example, 1 stands for very good restaurant; 2 for excellent cooking with decent décor and 3 for exceptional cooking (Barrows and et. al., 2017). Very few restaurants get 3 stars but those who do can be regarded as apinnacle for fine dining. Hotel Stars – this range from 1 to 7 star hotel that are given on the basis of services offered by them. The basis for this rating is food and beverage service; entertainment options; hotel view and location; ease of access; other amenities and overall size. P3current and future trends affecting food and beverage businesses There is a presence of many current and future trends that are affecting the food and hospitality businesses. Some of them have been discussed below. 7
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Trend1-Fusion cooking Galvin at Windows, Restaurant and bar in UK offers fusion cooking which is a mix of Korean and French cuisine. This has impacted there business on a positive note as it gets both kinds of consumers who prefer either Korean or French food. This has led to increased sales figures and may lead to long term survival if it is able to maintain quality. This trend is also going to impact overall restaurant industry as more and more fusions will be made and unique dishes may also be invented (Koenigsfeld and Dickson, 2017). The trend may evolve in future as cooking may not be restricted to food items only but may spread to alcoholic and non-alcoholic beverages as well. Trend 2 Lifestyle/healthy eating/Foods as medicines/Super foods Tanya’s kitchen has provides the consumers with complete organic menu where all the dishes are natural and gluten free. This has impacted its business as more and more consumers are flocking in which are health conscious and enjoying the delicacies that is good in taste. This trend is going to impact the industry as well as fast food and unhealthy food providers may soon have to close their businesses or adopt this new trend. The trends may evolve in coming future as more food options may be available for consumers that have absence of unhealthy ingredients and there may be creation of some new dishes as well. Trend 3 – Robot waiters Pizza Hut has hired robot waiters for taking orders and also processing payments. This trend has impacted the business as consumers can get a personalized ordering at stores followed by reduction in waiting time for take away. The industry is also impacted as sales will be more in those outlets who employ robot as waiters. New restaurants following this trend may further emerge in number. The trends may evolve in future as there may not be a need to appoint staff for taking orders. More focus can be given of food quality and other areas of business. 8
P4 Professional food and beverage management skills within afood and beverage organisation An employee working in F and B organization is required to adopt someprofessional food and beverage management skills which are as follows; The employee must be able to manage all food and beverage operation within budget and also adhere with quality standards. For example, a chef must use ingredients in an optimal manner so as to be in budget but should not compromise with quality of food. An employee should be able to provide for a good consumer service by responding as per need and preference of consumers(Jensen and Ronit, 2015).For example, the server must use his intellect and experience to assess what is demanded by consumer and then pass the information to chef. The employee must be involved in a two way communication with not only the consumer but other members of organization who are working with him. This skill set applies to manager who should be in constant touch with consumers about their preference. He must also guide employees by communicating with them from time to time(Renton, Daellenbach Davenport, 2016). He ought to have a basic knowledge about hygiene and sanitation norms to be practiced while preparing or serving food. This should be followed by adhering with them at all times with no excuse for non-compliance. P5 legal requirements and regulatory standards that food and beverage service outlets must comply with. The food and beverage outlets are required to comply with many legal requirements and regulatory standards which are as follows; Use of correct temperatures – this is most needed to limit the development offood poisoning bacteria. This especially applies potentially hazardous food that must be kept between 5 to 60 degree Celsius of temperature. Use of proper cooking and processing steps – This is most required strategy to avoid food poisoning. For example, minced meat and chicken should be cooked right till the middle to kill unwanted bacteria. 9
Use of proper processes - Food can be prevented from contamination if it adheres with small principles like supervision of display area; using different utensils for serving food and use of protective barriers. Maintenance and cleaning of equipment – Food contact surfaces such as equipment etc. must be cleaned and sanitized on a regular basis to keep them at safe levels which is away from microbes. The equipment and machinery should also be in working state and must be repaired as soon as any flaw is observed.Chipped or broken utensils should not be used. General Food Law Regulation – This has been introduced to ensure that there is proper safety, labeling as well as quality of food produced by different outlets. Law for nutrition labeling – the prepacked foods must declare nutrient content that is present in it. They should also be correct so as to provide right information to consumers. Law for allergen labeling – this especially applies to food that contain nuts, dairy products that can cause allergy in a few people. Food makers should include this information in a clear manner. P6different operational and marketing technology for arange of different types of food and beverage businesses There is a range of operational and marketing technology that are used in different types of food and beverage businesses. These are as follows. Operational technology 10
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Whatisthe technology? What it does ?Who might use itBenefits Orderingfrom suppliers Mobileorderwriting software It helps in taking orders byusingamobile device. Can be used bysales representatives, drivers,and merchandisers Ithelpstomake orderingprocess faster and easier. Monitoringof equipment wirelesstemperature and humidity monitors Itaidsinmonitoring thetemperatureof fridge,freezersand cookingequipment’s. Analertcanthenbe sendtoconcerned employeebymessage ofmail(Renton, Daellenbach Davenport, 2016). Chefs and serversPaperless temperature monitoringgives peaceofmindto employees.Italso helps to save time Stock takingRFID technologyThistechnologyhelps inscanninglarge quantityofinventory stock items. Inventory employeesIthelpstoimprove stocktakingactivities byincreasing accuracy,efficiency aswellas productivity of stock countbyactof scanning (Jensen and Ronit, 2015). Marketing technology WhatistheWhat it does ?Who might use it ?Benefits 11
technology? Consumerrelationship management CRM technologyThis technology allows company to store data aboutconsumerand other prospects Marketers,market research,research anddevelopment team,production manager Ithelpstoimprove business relations with consumers. It also aids inproducingproducts as per needs of clients. Thereisalso streamlining of business processesandincrease in profitability. Loyalty systemsPobuca technologyIt enables the company to find out consumers thatvisitedthe restaurant or hotel. The technologyfurther maps there journey and engage them by use of omni-channelstrategy. The rewards can then be given to consumers accordingly(Renton, Daellenbach Davenport, 2016). . Marketing department, consumer service and sales team. It helps to develop and grow repeat consumers. The above set of technologies is similar as all of them are making sure that company works in the right direction so as to increase sales and revenue figures. The difference is that operational technology focuses on operations of company with respect to kitchen, supply chain among others. On the other hand, marketing technology focuses on consumers and means by which they can be attracted towards organization(Jensen and Ronit, 2015). 12
P7 factors that influence the consumers’ decision on which food and beverage outlets they choose There is a presence of many factors that impact the decision taken by consumers as to which food and beverage outlet should be selected by them. Convenience – the outlet must be in easy reach of consumers and there should also be a proper place of car parking. If a consumer has to waste time in searching for a parking slot then he or she is most likely to select another restaurant. Quality food – As consumer go to afood and beverage outlet to fulfill their hunger and thirst hence they will select that restaurant which offers good food which is freshly prepared and offers better taste. Good ambiance – A consumer usually visits food and beverage outlet to be away from home and relax for some time. Hence ambience plays a very big role in this respect. Presence of good ambiance is most likely to make him or her pay a visit to the outlet quite often. Good consumer service – This is the most important feature that is sought by a consumer when he searches for a food and beverage outlet. He should be provided good service in form of timely delivery of food and beverage; courteous staff members and the ones who are knowledgeable about the dishes and drinks. P8 Analyze strategies used in a range of food and beverage outlets to attract and build a loyal customer base Brandedcoffeeshop: Starbucks Café/restaurant: WasabiSushiand Bento Your Choice of Hospitality Business Business Name: Hilton 13
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Tariff Board/ Menus Does the business have a full menu or tariff boardattheentrance,orabovethe counter? Yesmenuisdisplayed over the counter No,Menuisprovided only when the person is seated. Menuisprovidedonly whenthepersonis seated. EPOS System Does the business have an EPOS system? What manufacturer’s name appears on the system Terminal? Doesthesystemlook easy for the staff to use Yes, Name of manufacturer is Microsystems, Inc. Yes it is easy for staff to use. No, there is an absence of EPOS system HiltonusesAgilysys hospitalityPOS. Staff can use it with ease. Card reader Is there a credit card payment facility? Does it take contactless payments? Will it accept Apple Pay, Google Pay, Samsung Pay and similar applications Thereisanoptionof credit card facility and contactlesscardsare accepted.Howeverit doesnotacceptApple Pay,GooglePay, SamsungPayand similar applications. Creditcardfacility payment is there but an absenceofcontactless paymentandaccepting byuseofother applications. Allkindsofpayments andapplicationsare accepted. Product Display Areproductsdisplayedinalogical order? Are they attractively displayed? Yesproductsare displayedinaquite attractivemannerand they also look delicious. Yes,productsare displayedattractively and they look delicious. Thereisnodisplayof products. 14
Do they look delicious? Purchase Boosts What does the business do to encourage Customerstopurchase, andtemptthemto spend more? Areallitemsindividually priced? Are there Impulse Purchaseitemsnearthe till? Do members of staff upsell? Inordertoencourage consumersforselling more, I suggest them to try our new options after they have finished with the coffee Alltheitemsare individually priced. Impulse Purchase items in form of cookies are displayed on the counter. Yesstaffmembersuse upscaletechnique discussed above to encourage Customers for purchase theyaskthemtryout new dishes on the menu thatarealittlehigh priced. Yeswepriceallour items individually. No, we do not keep any Purchase items near the till. Upsellingtechniqueis frequentlyusedbyour staffmembersby describing a menu item. The brand name of Hilton is enough for consumers to spend more. Still we suggest our consumers to tryoutpremiumroom that has a good view. All the services come in a bundleandarealso individually priced. Upsellingtechniqueis usedbystaffby describingotherhotel services such as spa and bar facility. Posters/Advertisements Are there posters and advertisements? What are they promoting? Are they appealing and likely to succeed? Postersand advertisements are used topromoteStarbucks coffee which is primary product for this business. Theyhaveappealing enough and have led to successastheadsare aboutquality.As Starbucksprovidesthe samequalityas mentioned in posters and ads hence the strategy is successful one. Posters and ads promote the food items offered by Wasabi. They have not led to much success as consumers usually come to restaurant on account ofwordofmouth publicity and are usually repeat clients. Hilton in itself is a big brandnamehencethe hotel does not carry out muchofpromotional work. PricingCappuccino (Grande) - £2.60 FriedPrawnhandroll £2.89 SmokedBaconand Chicken£6.00 15
Writedownfourormore typicalitems,andtheir prices. Dothepricesrepresent goodvalueformoney? Arethereanyspecial offers,discounts,meal deals, etc.? Mocha (Tall) £3.20 RaspberryBlackcurrant (Venti) £3.50 Prices do not represent goodvalueformoney due to less quantity. Yesitoffersdiscounts and special offers during festive time. Salmon Onigiri £1.99 Nigri Tofu £0.60 Pricesdoshowgood value for money due to quantity and quality. Yesitoffersdiscount during happy hours. Ham and cheese £7.50 Lousiana Shrimp £5.5 Pricesdonotrepresent goodvalueformoney due to less quantity. Specialoffersand discountisseldom present Repeat Business Whatisthebusiness doingtoencourage customerstoreturn? Arethereloyaltycards available? Doesstaffencouragecustomersto return? Are there any advertisements Promotingforthcoming eventsorsoon-to-be- launched products? Inordertoencourage consumerreturnit focusesonproviding good service and quality coffee to consumers. Yes thereisapresenceof loyalty cards. Staffalsoencourages consumers to return. No, thereisanabsenceof anyforthcoming eventsorsoon-to-be- launched products. Inordertoencourage consumer return Wasabi restaurantfocuseson providingloyaltycards tothem.Consumer return is also encouraged bystaff.Somenew menu items are soon to be launched by company which will be a fusion of JapaneseandKorean food. Repeatconsumersare encouraged by Hilton by adoption of practices like giving discount coupons and loyalty cards. As of now,thereisno advertisementfor promotingupcoming products or events. Other ObservationsStarbucksprovidesan exceptionalconsumer Therestauranthasa presence offresh sushi None 16
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Whatelsehaveyou noticed,thatisrelevant totheoperationofthe business,duringyour visit? service to visitors. They dothisbycalling consumer by their name; offeringcongenial greetingsand customizingproductas per need of consumer. and friendly atmosphere thatmakesthe consumers feel at ease. Website/Advertising Before, or after, your visit, go to the Company’s website and look at this. Isitinspiring, informativeand professional? Does it provide all the information that customers might need (Openingtimes,location, menus, prices, etc.)? Dotheyadvertisetheir business in any other Way? The website of Starbucks is quite informative as it describes a lot about its products and services. It alsoprovides informationabout opening hours, location, menu as well as prices. The company has been usingsocialmediafor advertisement. The website of Wasabi restaurantisvery innovative.Ithasused vibrant pictures of Sushi to attract consumers. All thenecessary information required by consumer is present on website. Thecompanyuses banners and posters that are placed in prominent places of London. The website of Hilton has beenmadeinavery professional manner and providesallthe informationthatis needed by consumers. It hasadvertiseditselfon social media sites such as Facebook and Instagram. Conclusion From the above report it can be concluded that there is a presence of different types of hospitality business such as theme parks, hotels, restaurants, café, catering service providers among others. Management of food and operations in any business of hospitality sector is not an easy task. This is as a lot of focus is required to be given on many areas such as consumer service; food quality; meeting 17
demands of consumers; provision of customized offerings among others. The food and beverage providers in this industry are rated on different scales and are also required to adhere with regulatory and legal norms. 18
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Imperial hotel.2018. [Online]. Available through: <https://www.imperialhotels.co.uk/> Wasabi Sushi and Bento. 2018.[Online]. Available through: <https://wasabi.uk.com/who-are-we> Woodard, 2015.Notorious egg seller ‘Jack’ DeCoster gets jail time for salmonella outbreak.[Online]. Available through: <https://www.pressherald.com/2015/04/13/maine-businessman-jack-decoster-gets-jail-for-selling-tainted-eggs/> 20