(Solved) Managing Food & Beverage Operations

Managing
Food & Beverage
Operations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1. Different Types Of Businesses Within Food & Beverage Industry.................................1
P2. Different Rating System Used For Food & Beverage Industry Nationally And
Internationally.........................................................................................................................3
P3. Current And Future Trends Adopted By Food & Beverage Businesses To Meet Business
Objectives...............................................................................................................................4
LO2..................................................................................................................................................6
P4. Importance Of Having Professional Management Skills In Food & Beverage Industry.6
P5. Value And Importance Of Legal Requirements And Regulatory Standards In Food &
Beverage Industry...................................................................................................................7
LO3..................................................................................................................................................8
P6. Effects Of Digital Technology On Business Performance Of Different Types Of Food &
Beverage Businesses..............................................................................................................8
P7. Factors Influencing Customer's Decision While Choosing The Food & Beverage Outlets. 9
P8. Effectiveness Of Strategies Adopted By Food & Beverage Outlets To Attract Customers
And Build Customer Loyalty.................................................................................................9
CONCLUSIONS............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality services refers to the industries who offers food, beverages or meals to its
customers. It also provides the customers with accommodation facilities which means a place to
stay in. The industry focuses on managing the customers with care in order to gain the trust and
their loyalty. There are different types of sectors offering meals which is prepared outside the
houses. The various sectors are hotels, fast food shops, restaurants, hospital catering, etc. This
sector uses professional management skills to provide best services to its customers and satisfy
them. The study will research about the current and future trends affecting the hospitality
industry. The research will also include legal requirements and regulatory standards which
should be compiled with the food and beverage industries. And the study also explains different
operational and marketing techniques used by different types of hospitality sectors.
LO1
P1. Different Types Of Businesses Within Food & Beverage Industry
SECTOR DESCRIPTION ADVANTAGE DISADVANTAGE EXAMPL
E
EMPLOY
ER
HOTEL These industries are
one of the major
sectors which are
providing the growth at
global level.
 Benefits the
employees
with high pay
and incentives.
 Increased soft
skills, and learns
to communicate
with customers.
 Long working
hours with no
fixed
period(Bortolin
i and et.al.,
2017).
 Work
pressure to
fulfil\l
customer
satisfaction.
Hotel Taj is
providing
the best
opportuniti
es to
explore
around the
world.
Hospital This type of services  Working Red bean
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catering
services
provides quality food
services in hospitals for
staffs and patients.
 Provides
ability to work
in effective
time and in a
team
environment.
 Improve
efforts of
doing work
with a
sincerity.
hours are
long and
quite usual.
hospitality
is one of
the
organisatio
n which
provide the
best quality
services.
Restauran
ts
Restaurants business is
an eatery business
which dealing in
preparation and
servicing of food and
drink to customer in
exchange of some
valuable money(Salim
and et.al., 2018).
 Develop
creative skills
because you
just need to
bring
something new
to an old idea.
 Opportunity to
broaden the
services by
innovating
something
new.
 Pay is not as
much of
satisfaction.
Barbecue
nation is
one
restaurant
provide
good
quality of
service
across the
nation.
Theme
parks
This type of sector
provides relax from
everyday life of a
 Leadership
quality
develop by
 Stressful
work
environment
Disney is
providing
services of
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people. People choose
to here because it
makes them feel safe
and secure.
handling the
customer of
different
nature.
 Prestigious to
work in an
environment
which is full of
fun.
. 11 theme
parks
across the
world.
Fast food It is business which
provides food which is
speedily available with
good service quality.
Best for people who
does not have time seat
and eat.
 Improves
service skills
of worker by
face to face
interaction
with
customer(Che
n and et.al.,
2015).
 Earn extra
money by
getting tip
from the
customer.
 Stressful
when
customer
order whole
menu.
Fresin Fies
is doing
business in
this sector
and
providing
good
combinatio
n of food.
Contract
catering
The contract catering
services are actually
services provided on a
contract basis.(Palczak
and et.al., 2018).
 Build
responsibility.
 Develop team
management
work.
 Does not pay
as well.
 Long
working
hours.
Aramark
company is
the largest
food
network
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provides
service to
organisatio
n.
Golf club It is a service which
maintain high level of
customer satisfaction
expected by golfers.
 Pay scales
satisfy to
work.
 Enjoying
luxuriant
beauty of the
golf course
 Hard to
maintain the
big
ambiance of
golf course
Bigbury
Golf Club
catering
offers
catering
services in
golf clubs.
Casual
dining
Casual dining is a
restaurant which aims
at serving to its
customers and provide
them moderate priced
foods and also in a
casual atmosphere.
 Elegant staff
attract
customers
 impeccable
manner makes
customers
satisfied
 Casual
dining is
generally
very Costly
and
expensive.
Natraj
Dining Hall
and
Restaurant
provides
services of
casual
dining.
Sandwich
bars
It is a restaurant that
allows take-away food
services to its
customers and focus on
selling sandwiches.
 It is beneficial
as everyone
now-a-days is
health
conscious
which leads to
attract them
towards
sandwich bars.
 People can
 Hard to
attract
customers.
 Limited
product line.
Mic &
Munch
Cafe offer
services of
Sandwich
bars.
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enjoy variety
of sandwiches.
Wine bars It is business that
mainly focuses on
providing wines to its
customers and wide
range of wines are
available.
 People can
enjoy wide
array of wines.
 It provides
satisfaction to
liquor lover.
 Non-wine
drinkers
would not
get attracted
to wine bars.
Barbecue
Nation
offers
variety of
wines and
operates its
business in
wine bars.
P2. Different Rating System Used For Food & Beverage Industry Nationally And Internationally
A rating system is a system which is used to evaluate the quality of the service provided.
Rating system is used to measure the performance level, process and procedure followed in food
& beverage industry. Some countries have set standards by government for ratings, whereas,
some countries don't have uniform standards and they follow different rating methods to evaluate
or measure the quality of services. There are various types of rating system used for food &
beverage industry by different countries, which are explained below:
Scores On The Doors: This rating system is used to measure the safety and hygiene of
food and it is introduced for restaurants and cafes(Davis and et.al., 2018). This is awarded by
Environmental Health Officers to the cafes and restaurants who are providing hygiene food
products to its customers. The government aims at food & beverage businesses to adopt the
score-on-the -door system and score according to the level of food's safety and hygiene, and then
score will be displayed on doors of the shop. The scores or starts are given to the level of hygiene
of the products, and people can judge the restaurant by the scores earned. The 5 star indicates the
highest level of hygiene and food safety practices, 4 star indicates good hygiene and food safety,
3 star indicates general level standard of food and it also indicates attention needs to be made for
getting higher results. And then there are no grades which indicates major issues of food safety
and hygiene.
5

AA Rosettes: This rating system assesses or inspects the entire meal when served and
give ratings accordingly on a scale of 1 to 5. The AA rosettes ratings are given by AA inspectors
of the same food & beverage business, outside guiding influences are not considered. The food
prepared with full hygiene, good quality ingredients and achieving standards gets the AA rosettes
rating.
Michelin Stars: This rating system method is used to measure the quality of the services
offered by food & beverage businesses. This system is used by Red Michelin Guide and awards
on the scale up to 3 Michelin stars. This rating system does not consider the interior decoration
of the restaurant or table setting or quality of the services offered. The stars are given on the
quality of food, technique used, personality and uniformity in making the food. It may also
consider spoons and forks used to describe about the hospitality style.
Hotel Stars: This is a common rating system which is currently used by most of the
countries(Santoro, Vrontis and Pastore, 2017). The ratings are given on the scale of 1 to 5
according to the quality of services and food provided therein. Generally, five-star rating is given
to hotels or restaurants which provide the highest level of accommodations and providing
proactive services. The four-star hotels are mostly large and formal ones providing services
above average level and have well furnished rooms and interior. The three-star rated hotels are
generally medium-sized hotels having quite well-furnished rooms and decorated lobbies. And the
two-star hotels are typically small hotels which are operated by the appropriator and offers basic
facilities. And one-star hotel is a small size hotel and offers limited restaurant services.
P3. Current And Future Trends Adopted By Food & Beverage Businesses To Meet Business
Objectives
Every business including food and beverage business needs to adopt the trends to meet
the needs and wants of customers and satisfy them to bring their loyalty and meet the business
objectives. Hilton hotel management also focuses on to meet the expectations of customers and
adopts various trends. Different types of food and beverage sectors adopt different trends to
satisfy their consumers, which are as following:
Mobile phone as room key: hotels and restaurants provides meals and accommodations to
customers. This sector is growing globally and have large competition and in order to gain
6

competitive advantage, everyone adopts to the latest trend and apply new strategies. Mobile
phone as room key, fusion cooking, robot waiters, pubs and touch screen technology are some
trends adopted by hotels and restaurants to attract the customers. Hotel visitor uses their mobile
phones as room key to enter the hotel rooms raises security concerns and it attracts customers as
well. Guests of the hotel downloads the application which allows them to open the rooms, no
need of physical keys or card. It lacks the interaction of human resource of staff with the
customers which affects the organisation. The staff may not be able to present their skills and
build trust in the minds of the customer.
Street Food Vendors: The street vendors offers ready-to-eat foods and beverage service to the
customers and they operate their business from public spaces. This business sector is also
growing business sector and have competition. The street vendors attract customers by using
their skills and by following some market trends to retain customers.
 Gourmet fast food services are trending in today's world. People now-a-days attract
towards fast foods and street vendors attract customers by offering various fast foods.
 Healthy foods are offered by street vendors such as salads, mixed dishes to satisfy the
customers needs(Salim and et.al., 2018).
 The street food vendors provides local sourcing of food and beverages. UBER EATS:
The online websites allows users to order online from participating restaurants through
mobile phone applications and get delivered the food at their home or at place they want.
One of the online food ordering services are offered by UberEats which is also used by
Hilton Hotel. UberEats ensures to build loyalty of customer and in order to do that this
sector provides touch screen technology, fusion or gourmet food and also app-based
services are provided.
The online food service providers facilitates its customer by providing app-based services
which allow customer to easily manage its food ordering activity on the mobile phone-app.
UberEats supplies healthy food to its customer as people now-a-days are health conscious.
UberEats allow its customer to have variety of food, such as, fusion food, authentic food as well
as fast foods. It also allows the customers to track their order. The growing online services
provides the hospitality sectors to provide more choices and facilities to customers and it also
makes it easy and reliable.
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LO2
P4. Importance Of Having Professional Management Skills In Food & Beverage Industry
The food and beverage industry provides meal services to its customers(Petticrew and
et.al., 2017). This business sector includes restaurants, hotels, cafes, hospital catering services or
contract catering, fast food shops or gourmet fast food, etc. Hilton Hotel is growing in global
market and to sustain in the competitive market, one needs to have professional management
skills to attract and retain customers and some management skills are explained below:
 Communication skills: The employees of Hilton Hotel should have excellent verbal
skills to effectively communicate and convenience the customers to buy their food
products and also earn their loyalty(Chen and et.al., 2015).
 Teamwork skills: The employees in food and beverage industry must work in a team to
satisfy the customers needs. Hilton Hotel aims at managing proper teamwork leads which
to make customer happy and overall business also earns goodwill.
 Customer handling skills: Some employees are very concerned about their work and
they do their best to provide best experience to its customers. The hospitality industry
having these type of employees, tend to solve customer's problem and earn their trust,
and also brings customers loyalty ultimately overall objective are achieved(Palczak and
et.al., 2018).
By proving best services to its customers, Hilton Hotel can attract customers and bring
their loyalty. And in the hospitality sector, it is very essential to keep customer happy in order to
prosper in the competitive market.
P5. Legal Requirements And Regulatory Standards That Food & Beverage Industry Must
Comply With
Government provides some legal standards on food and beverage industries in order to
lower down the incidence of food-borne sickness and it is mandatory for hospitality industry to
follow these rules and provide safe and hygienic food to customers(Consumers and food safety:
A food industry perspective, 2018). Following are some requirements and regulatory standards
which are to be followed while preparing, storing and serving the food.
Storage Temperature: The management of Hilton Hotel should maintain the storage
temperature of food and beverages in order to keep it healthy and hygienic.
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 Personal Hygiene: The cooking staff should ensure personal hygiene while preparing the
food in order to avoid contamination and cross- contamination. Premises to be kept free
from all insects. Workers of Hilton Hotel are required to keep their finger nails trimmed,
clean.
 Preparation Methods: The staff should also ensure the cleanliness and safety of
working materials while preparing the food which includes chopping boards, cooking
utensils and should check whether they are clean and sanitised(Long, Looijen and Blok,
2018). Workers in processing and preparation to use clean aprons, hand gloves, head
wears.
 Cooking Methods: The temperature at which food is being should be checked and
methods used while cooking in order to maintain safety and hygiene of the food products
in Hilton Hotel.
 Cooling And Storage: After preparing the food with safety measures the food is to
preserved in definite temperature in order to maintain its hygiene. The management
should cool and store the food products properly so that it doesn't get contaminated.
 Reheating: If the food products are need to be reheated then it should be reheated on
proper temperature so that its safe and hygienic.
The hospitality industry and Hilton Hotel also should follow certain regulations and
follow legal requirements in order to supply safe, healthy and hygiene food products and
beverages and maintain its goodwill in the global market. Some legal requirements which needs
to be followed by food and beverage industry are health and safety at Work Act(HSWA), 1975
and Safety, Health and Welfare at Work Act, 2005.And if some industries fails to do so, they
losses their customers and they are also being fined and imprisoned by government's Health and
Safety Departments and the industry also faces closing down of their business sector.
LO3
P6. Effects Of Digital Technology On Business Performance of Different Types Of Food &
Beverage Businesses
The food and beverage industry uses different technologies to attract the consumers in
order to run its business and sustain competitive advantage(Davis and et.al., 2018). The Hilton
9

Hotel uses various operational as well as marketing technology to attract the customers and
improves its operational efficiency which results in meeting the business objectives.
Operational technology Marketing Technology
As nowadays, paytm is in trend which
allows cashless transactions, and this is
because of the advancement of technology.
And even small business firms can adopt
technologies in handling the operations of
the organisation.
Marketing technology is the software system
which helps the organisation to execute
marketing plans and activities. The
marketing technology allows business to use
technology and promote or advertise its
product or services through using
technology. This includes mobile phones,
advertising on displays, etc. The Hilton Hotel
can use marketing technologies to advertise
the product or services effectively
Adoption of PAYMENT TECHNOLOGY
is included in the options as it feels
convenient. The option like PAY-AT-THE-
TABLE, is a fast process to pay right at the
table. PAY-AT-THE-COUNTER is one
another option just like pay at the table.
Another option under this is to SELF-
SERVICE ORDER AND CHECKOUT,
which means that customer has to less wait
while ordering.
In the world of digital marketing there are
many opportunities to food and leverages,
one of them is EMAIL. This marketing has
improved the communication with the
customer for retailers in this business. It
includes promotional messaging, provide
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reliable information about deliver, shipping.
And because of this email marketing,
industry built loyalty among customer.
For a safety, quality, and sustainability
concerns, many issues are impacting on
food and beverage industry. For solving this
types of challenges COST EFFECTIVE
solutions are used for making the job
delivering the safe, secure, high quality and
better food products.
SOCIAL MEDIA is the another marketing
technology which provide easy way to reach
customer. It provides Hilton Hotel to market
their brands while having a policy on social
media. It also builds a community among
customers.
Third marketing technology by food and
beverages are WEBSITES that are attracting
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ORDER TAKING from customer is the
another method for taking an order with
customer either it is hand written or
electronically given. There are systems
where the menu is projected and customer
via iPad can give his/her order.
and helps industry to effectively convey
brand position. It provides flexibility to
customers across the nation to search for a
particular organisation they want to consider.
P7. Factors Influencing Customer's Decision While Choosing The Food & Beverage Outlets
The food and beverage industries are growing quickly and there is an increasing pressure
for leaders to keep updated with the changing trends in the business environment. There is
constant pressure for the Hilton Hotel to meet the ever changing needs of the customer in the
world of competitive market. The changing trends includes innovation of new product, demand
in the market, social trends etc. Some factors which influences the consumer decisions are
explained below:
Starbucks Cafe Coffee Day The Melting Pot
Restaurant
Media The media influences
the customers
decisions as Starbucks
uses marketing media
to advertise its product
and services.
Cafe coffee day uses
various marketing
media to attract the
customers, the
medium used are
websites as Facebook,
Instagram, etc.
The melting pot fails
to advertise its product
and services through
marketing medium.
But this restaurant's
marketing is done by
word-of-mouth by its
happy and satisfied
customers.
12

Taste The taste of products
of Starbucks is
attracting the
customers(Bortolini
and et.al., 2017). The
coffee of Starbucks is
famous and it helps in
gaining the trust of
customers.
The cafe coffee day
offers wide range of
good quality food and
beverages which helps
in attracting the
customers.
The melting pot offers
variety of food
products as cuisine
foods, fusion cooking
and authentic food as
well which attracts the
customers and loyalty
of them is built.
Convenience Of
Location
The Starbucks are
almost available in
every city which also
attracts the customers
as it is convenient for
them.
The cafe coffee day
restaurants have many
outlets around the
world offering
convenience to
customers.
The melting pot
doesn't have much
outlet as it has recently
established its business
and its still growing
and customers don't
have convenience of
location.
Innovation Starbucks uses
innovative
technologies to attract
the customers.
Cafe coffee day uses
innovation in making
food products and
provides wide variety
of coffees to
customers and attracts
them.
The melting pot uses
innovation in
preparing the food and
providing customers
with variety in services
offered and attracts
them.
P8. Effectiveness Of Strategies Adopted By Food & Beverage Outlets To Attract Customers And
Build Customer Loyalty
The food and beverage industry adopts some strategies in order to attract and retain its
customer in the global market and gain competitive advantage over its competitor. What's that
13

easy part which make customer to love the food. Well it only gets to happen when customer
comes in the door first. For this to be happen here are some strategies which are used by
industries to bring loyalty of its customer.
 Special offers: in order to bring new customer, organisation have to frame the offers which
drive the sales at cost. For this different coupons, discounts has to be offered by the industry.
 Free Wi-Fi : So in the world of internet, it is important to offer free Wi-Fi so that it can get
the customer at the door and keep them engaged for longer period.
 Happy hours: the happy hour is a time period of a day in which business provides
discounted rate product or service, and customers are attracted towards discounted products
and increase the sales and profits of business.
 Easy to order app : different apps in the markets are available for which they are ready to
serve the food delivery. It will be good for the organisation to collaborate with them for the
higher sales(Bayona-Saez and et.al., 2017).
 Host events: events like musical night are to be happened once in week which attract the
customer.
Starbucks Cafe Coffee Day The Delhi 6
Restaurant
Tariff Board/ Menus The Starbucks
restaurant provides full
menu at the entrance
which helps the
customer to decide.
The cafe coffee day
provides full menu at
the table as well on the
tariff board providing
customers the
convenience.
The Delhi 6 restaurant
doesn't provide tariff
board at the entrance,
the menus are
provided at the table
counter.
EPOS System The Starbucks have
EPOS system which
facilitates customers
which provides
cashless transactions.
Cafe coffee day
provides customers the
benefit of having
cashless transaction
with the use of EPOS
The Delhi 6 restaurant
does not provide
customer's the
convenience of having
cashless transaction as
14

system at the outlets. it does not have EPOS
system.
Card Reader The Starbucks provide
credit card facility and
allows cashless
transaction facilitating
customers.
The cafe coffee day
provides paytm as well
as credit card facility
to its customers and it
attracts the customers.
The Delhi 6 restaurant
does not provide credit
card facility to its
customers but it does
have paytm facility.
Product Display The products offered
by Starbucks are
delicious and it does
attracts customers.
The cafe coffee day
provides customers
with attractive
products and coffees.
Delhi 6 restaurant
provides customers
variety of delicious
and attractive as well
as healthy food
products which attracts
them.
Purchase Boosts The Starbucks offers
coffees with discount,
provide customers
facility of happy hours
which attracts them to
buy the products of
Starbucks.
The cafe coffee day
attracts the customers
by its attractive food
items and coffee and it
also provides free gifts
with it which helps to
attract customers.
The Delhi 6 restaurant
provides various gift
items to its lucky
customers, it also
offers various discount
to attract the
customers.
Posters/
Advertisements
The huge investment
is done for promoting
the Starbucks brand.
The cafe coffee day
uses various media
medium to promote its
brand.
The Delhi 6 restaurant
promotes its business
on a small scale.
Pricing The Starbucks charges
high money for its
products and services.
The cafe coffee day
does charge average
rate of money value
for its product and
The Delhi 6 restaurant
offers special discount
to its customers and it
does not charge much
15

services. money foe its product
and services.
Repeat Business The services offered
by Starbucks attracts
the customer, and it
has also built loyalty
of them.
The customers have
trust and loyalty for
cafe coffee day which
attracts them again and
again.
The Delhi 6 restaurant
provides good services
and offers which
helped the restaurant
in creating the trust
and loyalty of its
customer.
CONCLUSIONS
The food and beverage industry is a rapidly growing business sector around the world
and in order to sustain in the competitive market and bring customer loyalty, the management
should follow some legal regulations and requirements which are explained in the above study.
The study also explains different operational and marketing technology used by food and
beverage industries to attract the customers.
16

REFERENCES
Books And Journals
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Sustainable Design and Manufacturing (pp. 691-700). Springer, Cham.
Chen, E. and et.al., 2015. Implementation of non-regulatory food safety management schemes in
New Zealand: a survey of the food and beverage industry. Food control. 47. pp.569-576.
Davis, B., and et.al., 2018. Food and beverage management. Routledge.
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Palczak, J. and et.al., 2018. Sensory complexity and its influence on hedonic responses: a
systematic review of applications in food and beverages. Food Quality and Preference.
Petticrew, M. and et.al., 2017. ‘Nothing can be done until everything is done’: the use of
complexity arguments by food, beverage, alcohol and gambling industries. J Epidemiol
Community Health. pp.jech-2017.
Salim, H.K. and et.al., 2018. Evaluating the organizational intention to implement an
Environmental Management System: evidence from the Indonesian food and beverage
industry. Business Strategy and the Environment.
Santoro, G., Vrontis, D. and Pastore, A. 2017. External knowledge sourcing and new product
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Online
Consumers and food safety: A food industry perspective. 2018. [ONLINE] Available
through:<http://www.fao.org/docrep/V2890T/v2890t05.htm>
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