Strategic food and beverage management

STRATEGIC
FOOD AND
BEVERAGE
MANAGEMENT
Name of the Student
Name of the University
Author Note

INTRODUCTION
 Assessing food and beverage performance is
always a challenging task, given the fluctuating
preferences of customers (Chaturvedi and Kartik
2019).
 The food and beverage industry continues to
grow and expand with every passing day, and
there are many new innovations and
developments that need to be kept in mind when
assessing business performance (Chaturvedi and
Kartik 2019).
 This assignment evaluates the performance of
the RMT restaurant and provides a number of
recommendations using which this performance
can be improved.

RMIT RESTAURANT
PERFORMANCE
 Food Sales –
 The food sales figures have not been to high in recent
times.
 It could well be that the types of food preferred by the
target customer of the restaurant tend to be along the lines
of healthy and nutritious food.
 While the restaurant is committed to providing its
customers with meals of a high quality, maintaining highly
nutritious standards is a difficult affair, given that the
restaurant operates on a low budget.
 Food sales have thus dropped by a considerable degree, in
the year between 2018 and 2019. The company has
managed to meet only 74 percent of its sales target with
respect to food (based on case study).
 Customers may prefer to order or buy heir food from
restaurants and bistros offering healthier eating options to
their customers (Chaturvedi and Kartik 2019).

RMT RESTAURANT
PERFORMANCE
 Average Spend per head
 The RMT restaurant charges customers
approximately 500 INR per head yet the amount
of money it has to spend per head is around 1000
INR to say the least with the total operating costs
of the business being valued at 136,420 INR
 Production costs are high in the cities where the
restaurant is seen to run its operations, such as
Bangalore, Delhi, Hyderabad, Ahmedabad,
Kolkata and Pune.
 The company also has a loan to pay off, the
amount of this being as high as 49500000 INR
(based on given scenario).

RMT RESTAURANT
PERFORMANCE
 Beverage Sales –
 The beverage sales of the company is
something that is valued at 49,350,00
which is only 25 percent of the sales target
(based on case study).
 The above figure indicates that customers
are not procuring beverages from the
restaurant in large numbers.
 The sale of beverages tends to be down
either because of quality issues or because
customers are able to procure the same at
a reduced price from rival restaurants, cafes
and bistros (Mehra et al. 2018).

RMT RESTAURANT
PERFORMANCE
 Wages – The RMT restaurant has spent
close 60,450 on wages alone.
 As much as 31 percent of its revenue is
seen to go in wages while the profit or
sales continue to remain so low (based
on case study).
 Clearly the restaurant is paying its
employees the market rate, and far
more than what it can afford to do so,
given the amount of debt that it is in
and also given the fact that sales are
not high (Mehra et al. 2018).

RMT RESTAURANT
PERFORMANCE
 Marketing –
 The amount that is being spent by the
business on marketing activities is a meagre
9,519 INR.
 The company is spending or investing very
less in marketing activities.
 The company clear does not rely the value of
in-depth marketing for ensuring effective
sales.
 The lack of investment in marketing the
business could also be a reason why sales
figures with respect to food and beverages are
so low (Mehra et al. 2018).

RECOMMENDATIONS
 The company should immediately hike
the amount of money that it has set
aside for marketing activities (Deshwal
et al. 2019).
 The restaurant should consider retain as
part of its labor force, only the most
essential members of its team (Deshwal
et al. 2019).
 Money needs to be spend on marketing,
be it social media marketing or regular
marketing, in order to make the
restaurant and its services adequately

RECOMMENDATIONS
 The quality standards that are adhered
to at the RMIT restaurants in different
parts of India have to be scrutinized
with care (Kala 2019).
 A quality control supervisor needs to be
appointed by the restaurant owners to
ensure that food and beverage quality
standards are not being compromised
with (Jain 2019).

RECOMMENDATIONS
 An effort needs to be made to re-think
or relocate the restaurant in the various
cities and towns where it operates, to
more strategic places within these same
cities and towns (Lim and Ting 2019).
 Ideally, the restaurant owners should
look to set up the restaurant in the
heart of the city from where it can be
accessed with ease by people (Kala
2019).

CONCLUSION
 Thus, there are quite a few ways by
which the current performance of RMT
restaurant can be improved upon.
 The restaurant needs to take a re-look
at its quality standards.
 It needs to reconsider its investment
with regard to marketing activities and
should hike up its investment in this
respect so that it can spread awareness
about its services among wide sections
of the target audience.

REFERENCES
Chaturvedi, M. and Karthik, T., 2019. A study on online food ordering companies in India. EPRA International Journal of
Multidisciplinary Research.
Deshwal, P., Kothari, A. and Agarwal, A., 2018, October. The Effect and Penetration of Social Media Marketing on
Restaurants in New Delhi. In proceedings of the 4th International Conference on “Computing for Sustainable Global
Development”. Bharati Vidyapeeth's Institute of Computer Applications and Management. Accessed (Vol. 27).
Jain, R., 2019. An Analytical Study of Customer Satisfaction towards KFC Restaurant chain in Udaipur City. Journal of the
Gujarat Research Society, 21(16), pp.999-1004.
Kala, D., 2019. Examining the Impact of Food Attributes and Restaurant Services on Tourist Satisfaction: Evidence from
Mountainous State of India. Journal of Quality Assurance in Hospitality & Tourism, pp.1-24.
Lim, W.M. and Ting, D.H., 2016, May. Restaurant Marketing for Special Occasions: A Psychological Perspective.
In International Conference on Contemporary Marketing Issues (ICCMI).
Mehra, T., Agarwal, I. and Swami, S., 2018. Ephemeral Marketing: Conceptualization and Measurement of its
Effectiveness in Restaurant Industry. Asian Journal of Management, 9(1), pp.87-91.