Managing Food & Beverage Operations

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This document discusses the different types of businesses within the food and beverage industry, the rating systems used nationally and internationally, the current and future trends affecting the industry, and the professional skills required for food and beverage management.

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Managing food & beverage
operations

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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
organization.................................................................................................................................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
...................................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................15
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INTRODUCTION
Managing food and beverage operation are refer to the provision of foods and variety of
beverages within the business organization. In this, the international industry of food and
beverages provide millions of meals and variety of food services operations in the world. Mainly
it includes multitude activities which help in engaging and keeping the inventory of material. In
addition of this, now days the food and beverage sector is growing rapidly. The main reason
behind this is increasing the use of internet of people (Dopson and Hayes, 2015). As it provide
support to food and beverage sector to grow their business in market place. This report is based
on the managing food and beverage operation. As it mentioned the type of rating systems of food
and beverage outlets, trends that directly affect the whole business of food and beverage
business. Legal requirement and regulations are also mentioned in this reports which in
important for food and beverage outlets to follow.
TASK 1
P1 Different type of businesses within the food and beverage industry
Sectors Description Advantage disadvantage Example Employer
Hotels Hotel are
commercial
body that
provide meals,
lodging factors
to their
customers.
Mainly, it is
based on their
size and rating
of services like
1 star, 5 star
and 7 stats
hotels.
In this, the lodging
facilities are helps
travel sector to
engage at great
level which directly
contribute in
enhancing the food
services.
Its services
are more
expensive
which fail in
meeting the
customers
demands.
Imperial hotel is famous
hotel in UK. It was
demolished in 1966 and
also replaced with new
building. It is a 3 star hotel
which provide various
services to the customers as
per their demand.
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Fast food
centres
This type of
sector can be
start their
business at
high and small
level. Mainly,
it provide
dishes, fast
food like
Burger, Pizza
and many
more.
The main
advantage of this
sector is that it
provide variety of
fast food at
affordable cost to
customers.
The mar
disadvantage
of this is that
it doest not
maintain their
food quality
best because it
operate their
business at
small level.
Little Chef is a road side
restaurant in UK which was
founded by entrepreneur
Sam Alper in 1958. Mainly,
it specialised in the
Olympic Breakfast.
Hospital
catering
services
These sectors
provide food
in hospital
staff and
patients that
admitted. As
the services
are provide as
per contractual
basis.
Mainly, this sector
provide quality
services to patients
in hospitals which
contribute in
maintaining better
focus on the
patients treatment.
Some time
poor quality
of food
products are
negatively
affect the
patients health
conditions.
The Pie Man Catering is a
famous in UK. It was
established in 1984 by
Murray Tollemache.
Mainly it provide hospital
catering services in various
hospitals in UK.
Theme parks These are the
attractive
destinations
which
influence
visitors to
enjoy their
holiday in
One the main
advantage of this
sectors is that it
help in increasing
the number of
people who are stay
at theme park for
longer period of
In this, the
food and
beverage
services are
more
expensive at
parks campus.
Alton Towers is a famous
theme park which located in
England. As it operated by
Merlin Entertainments
Group in 1980.
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which food
and beverage
are also
provide at
resort.
time (Arendt and
Zannini, 2013). It
also may contribute
in increasing the
earning and
enjoyment as well.
Restaurants These sectors
are operate
their business
at big and
medium level.
It provide
variety of food
and beverage
services to
their
customers.
Restaurants are
play vial role in
meeting customers
needs by providing
them variety of
food services at
reasonable cost.
This sector
operate their
business at
high level as it
directly affect
the whole
earning of the
other catering
and hotels as
well
(Subramaniam
and Wareing,
2016).
The Five Fields is famous
restaurant in UK which
provide food and beverage
services to its customers as
per their needs and wants.
Prison
catering
services
These service
provider
provide their
food and
beverage
services for
the prison in
jail. It also
provide as per
contractual
basis in
One of the main
advantage of this
sectors is to reduce
the burden of
Prison in jail at the
time of cooked
food.
The main
disadvantage
of this is that
the
government
provide less
amount as it
leads low
quality food
items to
prisoners in
HM Prison Thameside is a
private prison in south-east
London. It was established
in 2012 with the aim of
serving better food and
beverage services to prison
in Jail.
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market. jail.
Contract
catering
These are food
and beverage
provider as per
contract basis
like in parties,
wedding and
another events.
It directly
contribute in
delivering food
services as per
customers demand
and event as well
(Pillai and
Shayanfar, 2014).
On the other
side, it
directly affect
the hotel and
another fast
food sector
earnings.
Eden Caterers is one of the
famous catering services
which serve food and
beverage services at
destinations of the
customers to provide them
better satisfaction.
Culture and
heritage
food
services
It is service
service
provider of
traditional
food of
various
country in
other
countries.
With the assistance
of this, person can
easily get their
country food in
another countries.
The main
disadvantage
of this is its
high price of
he food
products.
Aqua London is also a
famous food services
provider which provide
different food to its
customers and restaurants as
well.
Branded
restaurants
Under this
category,
restaurants
serve hygienic
and quality
products to its
customers with
the aim of
enhancing
their brand
image at
market place.
The main
advantage of this
type of restaurant is
to create strong
customers base by
serving best quality
food items. This
will help customers
to easily get best
products.
Major
disadvantage
of this
branded
restaurants is
that it serve
high price
products
which is not
affordable by
every
customers.
The best example of this
restaurant is Zizzi. It is
famous chain of restaurant
offer quality dishes by
Italian cuisine in UK.
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Quick
service (fast
food)
This type of
restaurants is
provide quick
services on the
basis of
customers
requirement.
Mainly, it is
categorised on
the basis of
menu of food.
The main benefits
of this services to
retain customers
because it provide
fast services to
customers. It also
provide quality to
services to
consumers as per
their requirements.
Along with
this, the major
disadvantage
of this type of
services is it
not easy to
find healthy
items for
customers. It
can be
unhealthy to
east.
McDonald's is best example
of quick service in which it
provide quality products to
its customers as per their
needs and wants.
P2 Different rating system used for food and beverage industry nationally and internationally
Ratings and Grading are played an important role in food and beverage industry to
evaluate the overall quality of the products and services. Mainly, ratings are highly based on the
the food quality that is offered by the company to its customers. As it allotted by score on the
doors and many more. With the help of this, hotels and another food and beverage industry can
easily improve their performance level at market place. In addition of this, star rating technique
is one of the important and common tool which used by the industry for giving rates as per its
food quality (Grekova and et. al., 2014). Mainly, the hotel rating system includes five level
which are decided as the act of Food act 2006. This will help hotel industry to analysis their
overall performance level.
There are various tools used to rate the food and beverage industry internationally which
are explained below:
Scores On The Doors: It is a programme that is used to recognize and present good
standard of food hygiene. This is a best strategy to rate the standard of food industry
internationally. As the drive to consider that customers get satisfied with good scores on doors
will result in achievement of excellent incentives and required standard in the market.
AA Rosettes: It is a award or a mark given by the association. This is compiled by a
aggregation of examiner and the consumer writers who will visit and write up their experience
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(AbuKhalifeh and Som, 2012). The role of inspector is to look upon the accuracy of cooking and
displaying of kitchen skills and accordingly rate them.
Michelin Stars: It refers to the award which is given to only those food and beverage
industry which have a fine dining system. This tool is used to boost brand image and to render
travellers with quality stay and beverage facility.
Hotel Stars: This tool is useful in identifying the standard of food and beverage industry.
In UK mostly five stars is used by autonomous firm to rate hotels. One star rating is considered
as the lowest rating style. Similarly, five stars industry have the highest score providing high
standard services.
P3 Current and future trends affecting food and beverage businesses
In modern era, it can be seen that food and beverage industry are turning into a complex
situation. It is just because consumers preference in respect to variety of food defines the future
of food and beverage industry. Some of the trends which can create a vast impact on food and
beverage industry are as follows.
Street foods: People have started consuming more of street foods instead of going to
some restaurant. This is just because of change in consumer preferences as well as people get
street food at reasonable price. This is one of the first reason which have adversely affected food
and beverage industry.
App based service: Consumers have also started ordering food online with the help of
different apps. This is just because people don't have much time to visit up restaurant and
consume foods, so app based services are helpful for them as it manages their time schedule.
This in turn create a huge impact on food and beverage industry (Ferreira, Maier and Johanson,
2012).
Chefs at home: This is also one of the major reason for decrease in value of food and
beverage industry. In modern era, people becomes themselves chefs at home with the help of
others chefs showing their shows on you tube. This in turn affect the food business enterprise at a
large scale.
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TASK 2
P4 Professional food and beverage management skills within a food and beverage organization
In a food and beverage organization, it is important to includes professional management
skills because it may contributes in enhancing the chances of attaining success at market place
(Del Chiappa, Martin and Roman, 2016). In this context, manager of the company is also
responsible for following all the professional food and beverage management skills which can be
understood by following points:
Skills for managing entire task: As a professional manager, it is important for them to
having best skills to make alternative ways to manage multiple task. This will directly help
in meeting food quality standard in most effective manner.
Good communication skills: It is also important for manage to having est communication
skills so that they can easily communicate with their customers and workers as well.
Along with this leadership skills is also play vital role in leading and guiding workers at
workplace. BY this employees can easily perform their task in food and beverage
company to attain predetermined goals and objectives (Asaolu, Agorzie and Unam, 2012).
Ability to resolve issues and problems: In food and beverage industry, it is important for
professional manager to resolve all the issues that occur in food company as it helps in
influencing as well as attract customers towards industry food and beverage services. In
this context, they also have to provide the excellent level of customers services which may
aid in making positive image of the company in-front of customers.
Hire train and skilled people: For attaining better outcomes, it is important for professional
manager to hire and and recruit capable workers so that they can easily perform task
effectively. In addition of this, manager also responsible for providing better training ad
development programs to the workers to enhance their skills and knowledge towards the
food and beverage services. As it directly contribute in meeting customers exceptions.
P5 legal requirements and regulatory standards to the maintenance and cleaning of equipment
Taking into consideration the safety of health, Food and Health council of UK
government made it compulsory for all food industry to strictly follow up the rules and
regulations in order to maintain the quality standard of the product (Borges Lopes, Freitas and
Sousa, 2015). The operational activities undertaken by food and beverage industry are
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processing, producing, proper packaging, labelling and distributing to final customers are
controlled by the International regulatory bodies. Some of the regulatory bodies controlling this
industry are as follows:
World Health Organization: The major purpose of establishing this organization is that,
it takes into consideration the health safety of all over the world customers and accordingly ask
business to produce product and give services (Giritlioglu, Jones and Avcikurt, 2014).
FAO: The main purpose of this organization is to maintain food quality and standard. It
goal is to consider that to decrease the rate of food borne illness and to support improved
livelihood and security .
One of the law which explained about the rules and regulation that a food and beverage
industry should follow which is explained below:
Food Safety Modernization Act of 2010(FSMA): This act was developed in 2010 so as
to regulate and maintain the operation that are being followed up while the foods are grown ,
harvested and refined. Taking into consideration the increase in level of food borne illness this
law was established so as to overcome such issues.
TASK 3
P6 Different operational and marketing technology for food and beverage businesses
Now a days, technology advancement take place in every sector in which food and
beverage sector growth is also increased (Bujisic, Hutchinson and Bilgihan, 2014). This is
because the use of internet is also increased as per continuous basis as it promote the marketing
of the company. In this context, there are some operational and marketing technology which
helps in enhancing the overall growth of the food and beverage sector. These can be understood
by following points:
Operational technology:
It is a technology which controls every operational activities which are being undertaken
in an organization in order achieve successful growth rate in the market. Some of the operational
activities are as follows:
Payment technology: This is one of the operational technology used by the food and
beverage industry (Alonso and Liu, 2012). This technology has made payment system easier for
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the customers as they don't have to carry cash in hand, just because the service provider of
industry accept credit card payment system.
Monitoring of equipment: There are several equipment which need to be monitored on
time in order to maintain the quality system of food (Dello Stritto and Schiraldi, 2013). It include
monitoring and controlling of fridge temperature and cooking temperature which will help in
increasing the productivity and efficiency of food items.
Marketing technology:
As food and beverages industry are now expanding its roots to capture more number of
its consumer they are referring towards the use of technology. Technology play a vital role in
marketing any product which can be reached to numerous number of people at the same time.
One way of using this technology is E brochure for any product to become successful it
is advised that it should reach to the masses as e brochure is the good way for the same
(Mutunga, Minja and Gachanja, 2014). It provides with user static report which enable the
person to check the statistics and make his decision accordingly. It provides with the interactive
feature that enable the user to change the pages and play video so that he can make himself feel
much more attached to the product virtually.
The other way of doing it is Social Media as number of people are connected socially. it
helps the industry to get the response of the product virtually and it can help the industry in
expanding its product marketing. Many social media sites which uses advertisement can be
accessed and can be used to market the product. As there are different tools which industry can
use for marketing, some includes Facebook as widely used for marketing the organization can
make there social page to promote its products , Twitter which also allow the user to view several
advertisement like wise Instagram is also available and lastly Linked in provides you to connect
to remaining user for promotion of the product.
TASK 4
P7 Factors that influence the consumers’ decision on which food and beverage outlets
In food and beverage industry, customers needs and wants are change as per continuous
basis because they select the outlet as per their needs and financial condition as well (Dauda and
Ismaila, 2013). In addition of this, various factors that directly influences customers decision are
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money availability, comprises needs and so on that change their decision towards the food and
beverage outlets. As this can be understood by following table:
Influencing factors Description Costa Coffee C & R Cafe
Restaurant
Marriott
Hotel
Internation
al Ltd.
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
9/10 8/10 9/10
Tariff Board/Menus
Does the business
have a full menu or
tariff board at the
entrance, or above the
counter?
Yes, all are having tariff
broad above the counter. 8/10 9/10 7/10
EPOS System
1. Does the business
have an EPOS
system?
2. What
manufacturer's name
appears on the system
terminal?
Yes,
6/10
8/10
5/10
6/10
9/10
7/10
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3. Does the system
look easy for the staff
to use?
Yes, all the systems are
easy to access for staff
members.
7/10 8/10 8/10
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
applications?
Yes
Yes.
Yes
7/10
6/10
9/10
7/10
7/10
8/10
8/10
7/10
7/10
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.
Yes
Yes
6/10
6/10
8/10
7/10
5/10
8/10
9/10
8/10
7/10
Purchase Boosts
1. What does the
business do to
encourage customers
to purchase and tempt
them to spend more?
Business offer various
discounts and offers to
their customers on special
meals.
7/10 9/10 8/10
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2. Are all items
individually priced?
3. Are there impulse
purchase items near
the till?
4. Do members of
staff up sell?
Yes
Yes
Yes, by fun and games
staff up sales.
6/10
9/10
8/10
8/10
7/10
8/10
9/10
9/10
9/10
P8 Strategies used in a range of food and beverage outlets to attract and build loyal customer
Food and beverage outlets are use various strategies to invite large number of customers
towards its offering. With the assistance of this the can easily build loyal customers within the
industry (Manzouri and et. at., 2013). In addition of this overall profit is highly based in the
customers so that it is important for industry to use effective strategies which can be understood
by following points:
Strategies Description Costa
Coffee
C & R
Cafe
Restaura
nt
Marriott
Hotel
Internatio
nal Ltd.
Posters and
Advertisements
1. Are there
posters and
advertisements?
2. What are they
promoting?
3. Are they
appealing and
likely to succeed?
1. Yes, poster and advertisement is
important in inviting customers.
2. It promote brand image of the
company.
3. Yes, it help in inviting loyal
customers.
7/10
6/10
6/10
8/10
9/10
9/10
8/10
8/10
7/10
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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 and
meals?
1. It offer four type of typical items like
coffee in different prices.
2. In this outlets are change high price as
per brand name.
Yes, they are offer special discounts to
their customers to influence them and
attaining loyal customers base.
7/10
9/10
6/10
9/10
8/10
7/10
10/10
4/10
7/10
Repeat Business
1. What is the
business doing to
encourage
customers to
return?
2. Are there
loyalty cards
available?
3. Do staff
encourage
customers to
return?
4. Are there any
advertisements
promoting
1. Business serve special offers to its
customers on special meal to encourage
their customers.
2. Yes, loyalty cards are provide to
regular customers.
3. Yes
4. Yes, some advertisement are there that
relate with embrace of big event.
8/10
5/10
9/10
5/10
7/10
7/10
8/10
6/10
9/10
7/10
8/10
8/10
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forthcoming
events or soon to
be launched
products?
Other
observations
1.What else have
you noticed, that
is relevant to the
operation of the
business, during
your visit?
I noticed that, they have to provide their
food and beverage services to customers
as per their culture, family that directly
influence to them towards the particular
food.
4/10 6/10 8/10
Websites/
Advertising (Before
or after your visit, go
to the company's
website and look at
this)
1. Is it inspiring,
informative and
professional?
2. Does it provide all
the information that
customers might
need?
3. Do they advertise
their business in any
other way?
No
Yes
Yes
6/10
9/10
7/10
9/10
8/10
8/10
8/10
7/10
9/10
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CONCLUSION
From the above mentioned report, it has been concluded that food and beverage business
are played a vital role in enlarging the overall profitability margins. Along with this, the
information towards the customers needs and wants is also help in ensuring their loyalty towards
the company products and services. This will directly contribute in inviting new and potential
customers by providing them quality food products as per affordable cost. On the other side,
development in technologies is also may contribute in improving the quality of food products
within the operational and managerial level as well.
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REFERENCES
Books and journals
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.
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.
Asaolu, T. O., Agorzie, C. J. and Unam, J. M., 2012. materials management: an effective tool for
optimizing profitability in the Nigerian food and beverage manufacturing
industry. Journal of Emerging Trends in Economics and Management Sciences. 3(1).
p.25.
Borges Lopes, R., Freitas, F. and Sousa, I., 2015. Application of lean manufacturing tools in the
food and beverage industries. Journal of technology management & innovation. 10(3).
pp.120-130.
Giritlioglu, I., Jones, E. and Avcikurt, C., 2014. Measuring food and beverage service quality in
spa hotels: A case study in Balıkesir, Turkey. International Journal of Contemporary
Hospitality Management. 26(2). pp.183-204.
Alonso, A. D. and Liu, Y., 2012. Visitor centers, collaboration, and the role of local food and
beverage as regional tourism development tools: The case of the Blackwood River
Valley in Western Australia. Journal of Hospitality & Tourism Research. 36(4). pp.517-
536.
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.
Dello Stritto, G. and Schiraldi, M. M., 2013. A strategy oriented framework for food and
beverage E-supply chain management. International journal of engineering business
management. 5(Godište 2013), pp.5-50.
Dauda, A. and Ismaila, M.Y., 2013. Influence of technological environmental factors on the
strategic choice of quoted manufacturing firms in Nigeria's food and beverage
industry. International Journal of Business, Humanities and Technology. 3(8). pp.159-
169.
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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.
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