Managing Food & Beverage Operations

This report explores different types of businesses within the food and beverage industry, including hotels, golf clubs, theme parks, prisons, restaurants, cafes, and more. It also discusses rating systems, current and future trends, management skills, legal regulations, and the use of digital technology in the industry.

MANAGING FOOD & BEVERAGE
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1. Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry........................................................................1
P2. Different rating systems used for the food and beverage industry nationally and
internationally..............................................................................................................................4
P3. Current and future trends affecting food and beverage businesses.......................................8
M1. Analyze how current and future trends are affecting food and beverage businesses
products and services to meet business objectives......................................................................9
D1. Critically analyze how different types of food and beverage businesses have adapted to
current and future trends to meet business objectives.................................................................9
P4. Demonstrate professional food and beverage management skills within a food and
beverage organization................................................................................................................10
P5. Legal requirements and regulatory standards that food and beverage service outlets must
comply with, giving specific reference to the maintenance and cleaning of equipment...........11
M2. Discuss the importance and value of having to meet professional food and beverage legal
and regulatory standards on operational performance and the consequences on performance if
they are not adhered to...............................................................................................................12
D2. Analyze the implications of failing to meet the professional food and beverage legal and
regulatory requirements upon the overall operational performance..........................................13
P6. Compare and contrast different operational and marketing technology for a range of
different types of food and beverage businesses.......................................................................13
M3. Evaluate how digital technology enhances business performance for a range of different
types of food and beverage businesses to meet business objectives.........................................14
P7. Factors that influence the consumers’ decision on which food and beverage outlets they
choose........................................................................................................................................14
P8. Analyze strategies used in a range of food and beverage outlets to attract and build a loyal
customer base.............................................................................................................................15
M4. Evaluate the effectiveness of strategies used in a range of food and beverage outlets to
attract and build a loyal customer base......................................................................................16
D3. Critically evaluate the impact of digital technology both on the operations of food and
beverage businesses and the significant influence it has upon consumer buying behavior......16
REFERENCES..............................................................................................................................18

INTRODUCTION
Foods and Beverages services are one of the largest sectors in terms of preparing,
producing and serving of food. There are many skills required to sustain in this industry by
understanding the commercial advantages and its effects. This report is going to put insights on
various types of businesses, rating systems, current trends of this sector, management skills, legal
regulations and requirements established here, use of operational and marketing through digital
technology.
MAIN BODY
P1. Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry
Sl.No
.
Sector Description Advantages Disadvantag
es
Example Employer
1 Hotels It includes
Accommodatio
n services
including
overnight stay
and other
facilities like
TV, AC, etc
Easy
layover or
stay with
security,
based on the
rating that
hotel has
received.
Sometimes,
during peak
duration, it
gets clustered
with high
prices, low
services
performance
and more.
The Witchery by the Castle; 352
Castlehill, Edinburgh EH1 2NF,
UK; www.thewitchery.com;
Edinburgh.
2 Golf Clubs These have
Long grounds
with golf cart
for recreational
purpose.
Prestige in
working this
field, good
prospects in
career
developmen
t.
Over
exploitation
of low level
employees,
more stress
on customer
driven
The Golf Cart Company
Limited; 187A Liverpool Rd,
Southport PR8 4NZ, UK;
http://southportgolfcentre.co.uk/;
Liverpool.
1

services.
3 Theme
Parks
It is based on
Adventurous
and
Recreational
activity based
rides and many
small outlets of
fast food are
available there
to entertain
customers.
Enhancing
knowledge
about
technical
aspects
related to
such rides.
Long hours of
word,
pressure on
health due to
continuous
tasks, poor
pay
THORPE PARK Resort,
Staines Rd, Chertsey KT16
8PN, United Kingdom;
https://www.thorpepark.com/;
Surrey.
4 Prison
Catering
Services
Simple
cooking
methods used
with edible
quality food at
low costs with
occasional and
seasonal
Criminals
understand
the value of
food, family
and social
lives.
Ill effects on
health and
exploitation
by making
them work in
inhuman
conditions.
Sodexo; 1 Southampton Row
London
WC1B 5HA;
https://uk.sodexo.com/home/abo
ut-us/contact-us.html; Dublin,
Gwent, Camberley etc.
5 Restaurants
’
Ambience
based on
concepts, good
quality food
with varieties
in cuisines,
relaxation
services.
Employmen
t generation,
good
progress in
career front,
learning and
developmen
t
Exploitation
can occur,
long hours of
work
The Ledbury; 127 Ledbury Rd,
London W11 2AQ, UK;
[e-mail]; Ledbury
6 Contract
Catering
Applied in
hostels,
colleges,
offices etc.
with
reasonable cost
Instant
recognition
if quality of
food is
edible.
More
Restriction
while
establishing
in particular
location like
socio-
The Clink Charity; Brixton -
0208 678 9007
[e-mail];
https://theclinkcharity.org; Styal,
Cardiff etc.
2

of operations
and standard
quality of food.
revenue
generation.
economic
factors.
7 Cafes Small
businesses set
up at small
scale to give a
place for
having coffee,
tea or snacks.
Reasonable
pricing,
soothing
environment
, easy and
accessibility
towards
technologic
al progress
Rate of return
might
sometimes
not as
effective as
cost of
investment.
Promoting
such cafes
can be a
difficult task.
The Table Café; 83 Southwark
St, London SE1 0HX, UK;
https://www.thetablecafe.com/;
London
8 Culture and
Heritage
Foodservice
s
These are
established to
provide local
food via stalls,
packaged
foods, drinks,
bottled water
so those
tourists who
come to visit
can have
something
authentic.
Emphasis
on
promoting
local
cuisines
with
authentic
flavors.
Establishing a
link with
tourists need
proper
execution of
planning
which might
be a long
process with
low degree of
career
advancement.
Heritage Food Service;
www.hfse.com; Cambridge, East
of England, England.
P2. Different rating systems used for the food and beverage industry nationally and
internationally
There are many rating systems used for showcasing the quality parameters of services
such as location, price, hotel size, staff, design etc. of this industry.
3

Michelin Stars: This is a grading system where the basis of quality checking is on three stars,
where the highest one signifies “exceptional cuisine and must have on the list”, two stars mean
excellent cooking and must be a visit and one star is very good restaurant. This lists those
restaurants in many countries and gets updated once a year. For e.g: The Araki, Alain Ducasse
at the Dorchester and many more.
AA Rosettes: This scheme is an award, which is purely based on meal served by the restaurants
in more than one visit. This provides an insight with a direction to enhance the tastings, make
food health and more (Tefera and Govender, 2015).
Number of Rosettes Description
1  This is given to those which stand out
in their local area.
 Around 50% of hotels/restaurants have
been given this.
2  This is given when higher standards are
achieved with better consistency.
 Around 40% have been conferred by
this.
3  Here, timing, flavor combinations in
order to innovative and seasoning are
the criteria to present this award.
 Around 10% of the restaurants/hotels
have 3 rosettes or above.
4  Here, at national level, the cooking gets
recognition. The included restaurants or
hotels which have a passionate
intensified ambition with outstanding
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culinary skills.
 Very few restaurants have got this.
5  This one is an exclusive one, which is
yet to be achieved as hotels/restaurants
must have spectacular technical
knowledge with high standards.
Hotel Stars: This is the most common system to measure the high degree of services involved in
hospitality sector. In this, one to five is the numerical scale,
Hotel Star Description Criteria
One star
 Hygienic and spotless
condition in the
ambience area.
 Simple furniture with
fittings is offered.
 Daily room cleaning
 Table and chair
 All rooms have
shower, or bath tub,
TV with remote
control
 Reception service
 Publicly available
telephone for guests
 Extended breakfast
 Beverage offer in the
hotel
 Serviceable and
functional fittings with
comfort are provided.
In addition to the facilities
mentioned in one star hotels,
these also provide the following:
 Offer of sanitary
5

Two Star (Standard)
products (e.g.
toothbrush, toothpaste,
shaving kit)
 Credit Cards
 Breakfast buffet
 Reading light next to
the bed
 Other toiletries include
Bath essence or
shower gel, Bath
towels, Linen shelves
Three Star(Comfort)
 Hotel with guest house
format, free breakfast
that also includes up
market service
provision (reception,
drinks, snacks etc) and
standardized fittings
(bath/shower, meals,
drinks etc).
In addition to the facilities
mentioned in two star hotels,
these also provide the following:
 Internet access in the
room or in the public
area.
 Reception with phone
accessibility of 24
hours from inside and
outside.
 Hiring of Bilingual
employees (e.g.
Hebrew/English)
 Beverages can be
offered, telephone in
the room with
amenities like Hair-
dryer, cleansing tissue,
ironing,
6

shelves/cupboards,
laundry etc.
 Additional pillow,
bedding, blanket on
demand.
Four Star(First class)
 Here, there will be an
assurance of high
quality fittings that
includes spacious areas
and many facilities.
E.g. swimming pools,
spa-centers, parlor,
sports area, conference
rooms and many more
with high service level.
In addition to above three stars
facilities, the following are
involved:
 Availability of “À la
carte” based restaurant
 24 hours Reception
open hours.
 Lobby with seats and
beverage service
 Extensive buffet
system via room
service at all times.
 Mini-bar, Upholstered
chair/couch with side
table, Cosmetic
products, tray of a
large scale in the
bathroom
 Internet access and
internet terminal
Five Star(Luxury)
 This consists of
ubiquitous structural
design, setting of
furnishings, elite
luxurious fittings with
 In addition to the four
star hotels,
 These include
multilingual staff.
 Valet parking and
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integrated design; and
sumptuous level of
accommodations and
services.
Doorman-service.
 Spacious reception hall
with several seats and
beverage service.
 Personalized greeting
with fresh flowers for
each guest, 24 hours
room service and many
more facilities.
P3. Current and future trends affecting food and beverage businesses
Current trends include Mergers and acquisitions regarding fusion cooking, changing
consumer’s behavior due to lifestyles, transformations due to digitalization and touch screen
technology; and food safety and sustainability with corporate responsibility. Recently,
acquisitions are done at lower costs to avoid spending time, energy and resources for R&D
internally to innovate newer products with better techniques, methods and quality (Brotherton,
2014). As there is a radical change in consumer’s preferences due to cultural disparities in
lifestyles has witnessed 360 degrees behavioral shift for food safety and overall sustainability.
This will provide a platform for companies to inculcate this sense of responsibility to promote
health awareness by supporting campaigns for leveraging green systems for cost effective tax
credits such as food donation deductions etc.
Future trends hold emergence of organic and healthy food products, snacks etc; fuss-free
flexibility and convenience and no priority to pricing. Due to globalization, use of social media
platforms and technological advancements, there will be a rise in the flexibility of current system
of eating out. Everything can become virtual by harnessing Internet of Things and big analytics.
Since customers are getting aware about the benefits of following nutrition, diet for increasing
strength that regulates sleep patterns by promoting “wellness” in the mainstream order. Along
with this, pricing will also take a backseat because of booming economic growth, high standard
of living towards plant based diet.
8

Figure 1. Survey on eating pattern of population in UK
(Source: Griffith, T., 2018)
M1. Analyze how current and future trends are affecting food and beverage businesses products
and services to meet business objectives
Trends can keep any enterprise of any sector on toes to analyze and understand the
ongoing competition in the labor market. It also helps in building fusion cooking at multi-
dimensional image with growth opportunities on global level by keeping up with the ever
changing lifestyles, preferences and tastes of customers, which has boosted the overall economy
in terms of GDP (Tanford, Shoemaker and Dinca, 2016.). The phenomenal interest in touch
screen technology has led the consumer driven convenience that has been combined. The effects
of such trends are progressive and streamlined the manufacturing processes by bringing
improvements in the cold chain facilities for enhanced shelf life.
D1. Critically analyze how different types of food and beverage businesses have adapted to
current and future trends to meet business objectives
These trends have made lives convenient, customer friendly with easy accessibility
towards the choices prevailed in the market. Fusion cooking adopted by Radissons by adding
environmental friendly packaging without compromising the quality and safety has brought
revolutionized change. However, on the other hand, people are becoming guilty pleasure, and are
adopting the home delivery offer and more available such choices frequently that affect their
health adversely. Thus, Wimpy got rebranded after acquisition to match with the lifestyles of UK
people. Also, there has been acceleration at J.B.Cole for driving profitability based business due
9

to touch screen technology, which led to sometimes frauds and scams on basis of cultural
ethnicity by compromising on quality.
P4. Demonstrate professional food and beverage management skills within a food and beverage
organization
The following managerial skills are needed within any F&B organization:
Problem-Solving Skills: This involves quick solving ability and conflict resolution power
between employees. Examples are insufficient stock in inventory, ill behaved customers and
wrong orders etc.
Speaking Skills: The entire staff must be well spoken to convey their specialties, facilities etc
with clarity. Along with, they also must have knowledge in multilingual languages for better
presentation of their business (Battour and Ismail, 2016.). The cited company must hire efficient
managers so that they can accurately and easily communicate standards and cooking methods to
staff, to take orders and speak with customers clearly.
Endurance and strength: Hospitality sector members must be on their feet always as it is one of
the most uncertain jobs without any time or schedule so one can expect long days around hot
cooking elements, or treating people proficiently.
Customer-Service: Food and beverage employees interact with customers on daily basis, so there
is a necessity for them to be professionally well behaved, courteous and welcoming.
Attention to Detail: This is the key step of presenting their signature style in the best possible
outcomes in context to food standards, costs, safety, etc. in order to attract their customers’
attention to make them coming back again.
Management Skills: This consists of operational costs, scheduling of work, pricing, and more,
which must be done by the managers or administrative unit to work in smooth manner during
heavy shifts, festival time and more.
Organizational Skills: these are necessary to keep the establishment’s working in proper
conditions by organizing various tasks like assigning people their duties, scheduling the staff on
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cyclic rotation, following up on inventory and shipments, etc which helps in overall management
of operations.
P5. Legal requirements and regulatory standards that food and beverage service outlets must
comply with, giving specific reference to the maintenance and cleaning of equipment
The legal requirements vary on the type of food businesses such as hotels, cafes,
restaurants’, bars etc as scale of production might differ and preparation and handling of food
processes must be safe. Registering the food business is the first step which includes premises of
food preparation, storage, and retail and delivery area with vehicles (Lakhtina, 2015). The local
authorities should be updated with all the latest details with respect to the place, equipments
used, hiring process of staff, food handling methods, future changes to the business, etc. Food
hygiene authorities like FSS (Food Standards Scotland), FSA (Food Standards Agency) etc. can
visit premises to examine whether they are in compliance with legal requirements. It can include
taking samples for scientific analysis and inspecting records. In UK, authorities issue hygiene
ratings in public or sometimes exhibit it in front of the premises, which can improve or damage
business reputations, along with put a pressure to provide high quality food.
There are many legalities and regulatory standards such as The Health and Safety at
Work etc Act 1974 to provide and maintain safe plant and equipment and to ensure a healthy
environment for employees. The requirement to maintain plant, machinery and equipment is also
present in other regulations, including the Provision and Use of Work Equipment Regulations
1998, the Pressure Systems Safety Regulations 2000, the Control of Substances Hazardous to
Health Regulations 2002 and the Electricity at Work Regulations 1989.
FDA has also recommended Process Approach for hazard controlling and balancing out
the complexity arises between staff while preparation of food; refer figure for better
comprehensive understanding.
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Figure 2. Steps involved in Process approach
(Source: Food safety for hotels and restaurants, 2013)
M2. Discuss the importance and value of having to meet professional food and beverage legal
and regulatory standards on operational performance and the consequences on performance if
they are not adhered to
When F&B sector follows all regulations legally and appropriately then it includes many
benefits for proper movement of their businesses. It is significant as the following:
 Implementing HACCP System effectively
 Risk assessment and management can be controlled and also prevent, before hand when
things can turn towards wrong direction.
 Maintenance costs will be minimized by following a proactive and planned plan of
routine check-ups.
 Health and safety of customers and employees can be kept in line by ensuring proper
implementation of environmental rules
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D2. Analyze the implications of failing to meet the professional food and beverage legal and
regulatory requirements upon the overall operational performance
Any mis-happenings or accidents can take place resulting in putting dangers to people
lives at workplace. In addition to, unsafe wet cleaning methods after cleaning, use of hazardous
chemicals, faulty plugs, cables etc; incorrect and poor maintenance of gas appliances and guards
leads to slips or machinery accidents can result in electrical injury or fire and explosion. These
can be expensive, both in economic aspects and pain or suffering. Such poor standards of
maintenance are major causes of failing to meet professional requirements.
P6. Compare and contrast different operational and marketing technology for a range of different
types of food and beverage businesses
Both operational and marketing technologies go hand in hand for sustainable
performance of the food and beverages businesses.
Order taking is an art; one must understand the nuances attached to it in order to attain
maximum gain by making their customers and suppliers satisfied with their services. Large
hotels or restaurants’ must take initiatives to crack deals with suppliers first, rather than focusing
on their clients so that their emphasis is to cut their budgeting on initial steps through bargaining
(Setiawan, Emvalomatis and Lansink, 2012). However, cafes focus on their customers while
taking orders as their capital generation s depended on it mostly. Personal records are great tool
to keep a track of all the investments and work done manually. Along with it, pricing sheets are
also good way to maintain records but it is time efficient and easier way to conduct these
calculations.
Marketing is one of the functional units used for promoting or advertising products in a
more unified and personified manner. These days, traditional methods like word of mouth, TV,
newspapers have been replaced with use of information technology and internet as well. E-mail
or E-brochures can be used but it might be effective when done at an individual level. Rather, it
is better to use social media platforms as it is more reachable, convenient and just a click away.
For e.g. Facebook is the best platform to showcase or promote any offers or new innovations.
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M3. Evaluate how digital technology enhances business performance for a range of different
types of food and beverage businesses to meet business objectives
Digital Technology has both tangible and intangible benefits to make money as per the
customers’ demand. A Technological infrastructure has stirred the culture, efficiency and
relationships of a business in a more translational aspect (Öğüt and Onur Taş, 2012). Its
inclusion has added positively to the growth and development of this sector by improving
customer service through delegating all tasks efficiently, increasing revenue, generating ideas for
promotion, renovations etc and reducing operational costs and distractions as well.
P7. Factors that influence the consumers’ decision on which food and beverage outlets they
choose
Cultural factors: Culture can be defined as the set of beliefs, values, ethics and tradition within a
group of people and this can be changed but, it is a slow process as it is deeply rooted into a
person’s personality. Therefore, it is better to have a flexible viewpoint for marketing food as it
is directly linked with culture in a subjective and arbitrary order.
Societal factors: Socio economic classification is the permanent distribution and is measured by
combination of diverse factors such as occupation, power, ownership, property, lifestyles,
income and many more.
Personal factors: here, either immediate family members or any reference group are involved
(Chen and Chiu, 2014.). They are not exhaustive in nature, yet affect the decision making of an
individual while purchasing or buying anything.
Psychological factors: the most important internal elements included perception and motivation.
If the buying motive seeks satisfaction that activates goal-oriented behavior and can be of two
types: Biogenic (hunger, thirst etc) and psychogenic needs (for recognitions and success).
Economical factors: Consumer buying behavior is strongly influenced by this factor (Rahimi and
Kozak, 2017). There are many key aspects that have influenced the customers such as savings,
personal and family income, consumer credit and other factors.
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Figure 3. Factors influencing Consumer’s decision making
(Source: Ramya and Ali, 2016)
P8. Analyze strategies used in a range of food and beverage outlets to attract and build a loyal
customer base
Pricing strategy: Family income especially personal income is one of the determinants which
affect the buying behavior of customers. Along with, quantity and feasibility with viability plays
pivotal role in making decision making of individuals before buying stuffs from it.
Culture and social class: The subjectivity must be clear to make the selectivity for categorization
in various available options in the market.
Promotion: Word of mouth or using social media platforms like Facebook, YouTube etc can be
used to create the buzz to build a loyal customer base in positive mode.
Quality: The parameters set for maintaining the taste, combination of rich flavors, overall
presentation and quantity provided on the basis of price can definitely attract the potential
consumers.
Hygiene and sanitation: Cleanliness is considered as the most important strategy to pull
individuals towards restaurant or hotel (Cattermole, Johnson and Jackson, 2014). If the food
15

served in appropriate order then through word of mouth, it popularity can gain momentum and
become famous.
Professional outlook of staff: The hospitality sector needs professional approaches like formal
look, while dealing with clients to make them aware about their facilities effectively in superior
manner.
M4. Evaluate the effectiveness of strategies used in a range of food and beverage outlets to
attract and build a loyal customer base
All the mentioned above strategies can affect the complex as well as habitual buying
behavior that can influence any individual for seeking variety in taste and cuisines. If followed
appropriately by putting sincere efforts, then it will lead to positive outcomes that can assist in
building a loyal and trustworthy customer base. Overall, when components suh as hygiene,
professionalism, promotional mix, pricing and others have been implemented on logistics then it
impacts the entire set up in a more valuable and significant way.
D3. Critically evaluate the impact of digital technology both on the operations of food and
beverage businesses and the significant influence it has upon consumer buying behavior
With the onset of digitalization, it has brought many pros and cons. The pros comprises
of time efficiency, use of high end equipment in kitchen, availability of massive culinary set and
methods on how can it be used would be on just a single click. High efficiency facilities are
invented too. Besides, it has few drawbacks such as security concerns, easy copying of recipes or
ideas, lack of use of authentic spices or equipments which have been replaced by machines.
Consumers have become smart on how to use this technology in their favor. It is
interesting and appealing to get attracted towards it, but with patience and intelligence, one can
differentiate and develop sense of awareness regarding varied processes involved.
16

CONCLUSION
It is summarized that this sector is prospering at an alarming rate. However, it is essential
to bridge the gaps for sustenance and application of new technologies with innovation to provide
the customers with better services. To sum up, this sector is going to expand exponentially but is
in need of strict regulations for improved performance.
.
17

REFERENCES
Books and Journals
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Tourism management perspectives. 19. pp.150-154.
Brotherton, B., 2014. Critical success factors in UK budget hotel operations. International
Journal of Operations & Production Management. 24(9). pp.944-969.
Cattermole, G., Johnson, J. and Jackson, D., 2014. Employee engagement creates a brighter
economic future at Jupiter Hotels. Strategic HR Review. 13(2). pp.81-85.
Chen, C.M. and Chiu, H.H., 2014. Re-examining the market structure effects on hotel
performance using market share inequality. International Journal of Hospitality
Management. 41. pp.63-66.
Lakhtina, K., 2015, April. Value Formation of Loyalty Programs in the Hotel Industry: Starwood
Preferred Guest, Marriott Rewards, Hyatt Gold Passport. In ISCONTOUR 2015-Tourism
Research Perspectives: Proceedings of the International Student Conference in Tourism
Research (p. 59). BoD–Books on Demand.
Öğüt, H. and Onur Taş, B.K., 2012. The influence of internet customer reviews on the online
sales and prices in hotel industry. The Service Industries Journal. 32(2). pp.197-214.
Rahimi, R. and Kozak, M., 2017. Impact of customer relationship management on customer
satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism Marketing.
34(1). pp.40-51.
Setiawan, M., Emvalomatis, G. and Lansink, A.O., 2012. The relationship between technical
efficiency and industrial concentration: Evidence from the Indonesian food and beverages
industry. Journal of Asian Economics. 23(4). pp.466-475.
Tanford, S., Shoemaker, S. and Dinca, A., 2016. Back to the future: progress and trends in hotel
loyalty marketing. International Journal of Contemporary Hospitality Management.
28(9). pp.1937-1967.
Tefera, O. and Govender, K., 2015. Hotel grading, service quality, satisfaction and loyalty–
proposing a theoretical model and relationship. African Journal of Hospitality, Tourism
and Leisure. 4. pp.1-17.
Online
Food safety for hotels and restaurants, 2013. [Online]. Available through :<
https://www.rentokil-pestcontrolindia.com/hospitality/food-safety-for-the-hospitality-
sector/>
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Griffith,T., 2018. Emerging trends in the food and beverage sector. [Online] Available through:<
https://www.grantthornton.co.uk/insights/emerging-trends-in-the-food-and-beverage-
sector/>.
Ramya,N. and Dr. Ali,M., 2016. Factors affecting consumer buying behavior. [pdf]. Available
through:< http://www.allresearchjournal.com/archives/2016/vol2issue10/PartB/2-9-151-
281.pdf>.
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