Types of Business in Food and Beverage Industry

This article discusses the various types of businesses in the food and beverage industry, such as restaurants, cafes, bars, and takeaways. It explores the advantages and disadvantages of each type of business and provides insights into their operations.

Managing Food and
Beverage Operation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Discuss the types of business in food and beverage industry..........................................1
P2. Discuss the international and national rating system used within food and beverage
industry...................................................................................................................................3
P3. Explain the current and future trends of food and beverage industry..............................4
M1. Critically evaluate the impact of current and future trends on the business objectives of
food and beverage...................................................................................................................4
D1. Critically analyse the methods by which different sectors of food and beverage industry
adapt to meet current trends...................................................................................................5
TASK 2............................................................................................................................................5
P4. Discuss the professional skills required for food and beverage management in 215
Hackney..................................................................................................................................5
P5. Discuss the legal laws and regulatory standards that 215 hackney restaurant should
comply with............................................................................................................................6
M2. Discuss the advantages of adhering to legal standards to the performance of organisation
................................................................................................................................................7
D2. Discuss the implications of not adhering to legal and regulatory requirements upon the
performance of organisation...................................................................................................7
TASK 3............................................................................................................................................8
P6. Differentiate between the operational and marketing technology for the food and beverage
organisation............................................................................................................................8
M3. Discuss the importance of technology in enhancing performance and meeting business
objectives................................................................................................................................8
TASK 4............................................................................................................................................8
P7. Discuss the factors that influence the customer’s decision on choosing food and beverage
outlet.......................................................................................................................................8

P8. Discuss the strategies used by food and beverage outlets to gain more customers and to
build loyalty............................................................................................................................9
M4. Discuss the importance of strategies used by food and beverage outlets to gain more
customers and to build loyalty..............................................................................................10
D3. Critically analyse the impact of digital technology on operations of the food and beverage
business and how it influence consumer buying behaviour.................................................10
CONCLUSION..............................................................................................................................11
References:.....................................................................................................................................12
Books and Journals...............................................................................................................12

INTRODUCTION
The food and beverages industry is one of the largest sector of hospitality industry of a country
that offers large number of employment to different segments of citizens as well as the most
appealing industry to the lot of people in the hospitality sector (Oricchio and et. al., 2020). The
food and beverage sector includes different types of businesses such as takeaways, pubs, food
chain and trucks, bars, restaurants cafes and lounges etc. In food and beverage industry is a wide
scope of profit as well as the most important aspect to focus is the quality and taste of food. The
present report is the study of 215 Hackney restaurant based in London. 215 Hackney is the
restaurant as well as a local casual cafe which was founded by two friends Ali & Cemal. The
restaurant has a compact as well is relaxed cafe that serves locally sourced middle eastern cuisine
as well as the whole day brunch. Report aims to explain the different businesses of food and
beverage industry as well as their trading systems and current trends of food and beverage
industry. Further in the report the professional skills required for the food and beverage
management as well as the legal requirements and regulatory standards that food and beverage
should adhere with are discussed.
TASK 1
P1. Discuss the types of business in food and beverage industry
Food and beverage industry includes the various types of business that starts from lower level
fast food trucks to the luxurious restaurants in middle of which are cafes, bars and other small
food outlets. The types of businesses in Food and beverage are discussed below:
Types description Advantage Disadvantage
Restaurants Restaurants are the eatery
business that prepares and
serves the drinks and food
at its own place. The
restaurants serve three
time meal breakfast, lunch
and dinner and drinks like
beer, wine. The
restaurants also serve the
The advantage of
restaurants is food and
drinks are served on table
by the waitress or waiter
and are in the entire
ranges basic low price to
high price luxurious
restaurants (Raimo and et.
al., 2020).
Opening a Restaurants
requires the high
investment because
along with the kitchen
it requires fine dining
place, furniture, plates,
good ambience, waiters
etc.
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cuisines.
Cafe’s The cafe’s are the small
establishment for serving
limited food options and
drinks. Primarily cafes
were known as coffee
shops are their main
offering is coffee. The
younger are the focused
customer’s of cafe due to
privacy and warn
environment.
The cafe’s are small yet
profit earning food and
beverage type as it
requires less investment
and serves the best types
of shakes and coffees.
The Cafe’s have less
worker’s and
responsibilities are high
also the expansion is
slow due to limited
space.
Fast food
outlets
The fast food outlets are
the moderate size place
that serves fast food and
snacks. There are mostly
in the form of food trucks
and contains low seating
area (Chen and Voigt,
2020).
The fast food outlet serves
local famous dishes that
can be easily consumable
and accessible to any
crowd and are cheap.
They also provide take
away service.
The fast food outlets do
not serve meals and
sometimes lacks in
sanity.
Bars and
night clubs
The bars serve the drinks
and beverages such as
alcoholic drinks and
cocktails. The bars mostly
contain of dancing place
along with low snacks
items.
The advantage of bars is
they are separately owned
with full security away
from eatery and has its
own privacy for
consumers.
The bars are super
expensive and require
government license and
permission to open.
Take away
counters
The take away are the
types of food and
beverage outlet where the
consumers places order
In the current pandemic
this is the best pick up
service provider to avoid
infection and also it does
The takeaway does not
contain waiting area
and also the consumers
are required to wait for
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and wait till the food is
prepared and then picks
the food and drinks to eat
it off premises.
not require sitting place or
furniture etc.
long time to pick their
order (Varner, 2020).
P2. Discuss the international and national rating system used within food and beverage industry
When people search for the good place to eat or drink they look at the review sites for the
customer reviews on taste, serving, hygiene and quality of food and drinks. Along with that the
consumers also look at the rating of the food and beverage outlets. In UK there are different
rating and grading system for the hotels, accommodation, guest service and food and beverage.
In the food and beverage industry food safety is the most essential factor throughout the food
chain from the farm to the fork of the consumer. Unhealthy and unhygienic food can be
dangerous to the health of a person as well as can harm the image of the restaurant or the other
food and beverage outlets. To protect the unwanted threats related to the unhygienic food the
food industry has undertake the necessary measures related to the food safety among which
rating system is one of the most important factor which improves and maintains the quality as
well as hygiene of the food and beverage (Setiawan and et. al., 2020). There are different rating
system for the food and beverage industry at the national and international. The types of rating
system are:
Scores on the door: The food standards agency introduce the scores on doors rating system in
relation to the food and beverage industry which aims at hygiene rating system used by the
national authorities of UK to determine how the food outlet store, prepare and distribute their
offerings to the public. This is a 6 star rating system in which zero represents there is the urgent
improvement required are required due to major food hygiene breach, 1 represents major
improvements are required due to lack of training among staff related to hygiene, 2 represents
improvements are necessary as per the food hygiene practices as there outdated, 3 represents
satisfactory score which means there is little room for improvement, 4 represents good concern
for food hygiene in the organisation, 5 represents outstanding standards of cleanliness and
hygiene in providing and storing the food.
Michelin star rating system: The Michelin star rating system is a three-tier star rating system in
which one star represents to the very good restaurant, 2 represents to the excellent cooking style
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and worth a detour 3 stars represents exceptional cuisines that represents mystery diners and
worth the special journey (CHEE and REDDY, 2021). In this Rating system the authorities judge
restaurant on the basis of five criteria the quality of ingredients, flavours and cooking techniques,
the mastery of chef in cuisine, money value consistency of improvement.
P3. Explain the current and future trends of food and beverage industry
Consumer behaviour and market trends directly impact the business of the food and
beverage industry as the complying with the trends is highly necessary for this industry to
operate successfully and sustainably in the hospitality industry.
Current and future trends
Growing health consciousness among consumers: there is increasing demand of food and
drinks are healthy and contain nutrients and vitamins and are low in fat, and calories. With
growing concern for health and skin the consumers are shifting their eating habits more into
veggie and low or no sugar drinks and food.
Current Covid-19 impact: Due to covid-19 there is growing trend of takeaway or home delivery
in the food and beverage industry as to have safe consumable food people are highly demanding
and looking forward towards the restaurants cafes that provides the pickup service for the home
delivery service (Kim and et. al., 2021). There is the more concern for hygiene and sanitization
in the kitchens of the food and beverages organizations to avoid the risk of Covid-19.
Trend of veganism and meat free: Due to concern for environment and the health allergies and
issues the consumers are looking forward towards the green vegetables and fruits and avoiding
the consumption of meat and milk products thereby becoming vegan. Due to this consumers are
demanding milk alternatives like almond milk soya milk, oat milk, Greek yoghurt etc.
Demanding for plant based meat alternatives such as pea protein, mushrooms, chickpeas etc.
Growing trend of social media: with the growing social media there are multiple food bloggers
that looks for the presentable food that are well garnished, plated and are vibrant in colour to post
on their social media channels. This growing trend of posting food pictures is demanding more
for presentation of food apart from taste.
M1. Critically evaluate the impact of current and future trends on the business objectives of food
and beverage
It is analyse to that current and future trends in the food and beverage industry is beneficial
as well as contains the consequences for the business to meet its business objectives. For
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example the growing health consciousness and the trend of veganism and meat free are
developing the food and beverage industry menus diversifying the product list and growing the
demand of local farmers for green vegetables and fruits (Cankul, Ari and Okumus, 2021). But
this also has a consequence as it is declining the sales of those food and beverage businesses that
completely operate on meat and dairy products. The trend of social media is a boost for food and
beverage industry in meeting their objectives as this increases the presence of brands among
multiple consumers and also helps in gaining new customers.
D1. Critically analyse the methods by which different sectors of food and beverage industry
adapt to meet current trends
It is critically analyse to that in order to meet the current and future trends within the food
and beverage industry the restaurants and other outlets should use the technology effectively in
order to connect with consumers through social media thereby increasing their presence among
thousands of consumers through one platform. Restaurants can also start take away your home
delivery service in order to meet the current trend of take away after the covid-19 impact this
will increase the sales as well as decrease the cost of renting or buying big space for sitting area.
The company should also adopt new menu that is completely for vegan as well as for the health
conscious people so that organisations can meet the current trend of veganism (Zhou and et. al.,
2020).
TASK 2
P4. Discuss the professional skills required for food and beverage management in 215 Hackney
Professional Food and beverage management skills are essential for the business of 215 Hackney
to run the place smoothly in an order to avoid confusion and hassle so that the workforce of
restaurant can focus on providing good customer service and kitchen department can focus on
innovating new dishes and drinks with exotic taste. The professional food and beverage
management skills are:
Time management skills: for managing the various tasks and to have the speedy service for the
consumer’s time management skills is highly demanded for the management of the 215
Hackney. The time management skills facilitate the manager of the staff to plan the task as per
the time scale so that every department can finish their job roles at required time (Sonawane,
2020).
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Organisational skills: in the food and beverage organisation like 215 Hackney restaurant there
are multiple segments such as kitchen, bar, dining area for which good organisational skills are
must in order to set up the furniture effectively in dining area, to arrange the glasses, bottles and
other essential items of the bar impressively as the bar is open and outdoor therefore should be
arranged well to bring good impact on consumer.
Team working skills: In 215 Hackney there different operational department and functional
department and all are interrelated therefore team working skills are important in the restaurant
for the conflict free workforce. The team working skills not only make the work productive but
also make it efficient.
Excellent communication skills: In the hospitality business the customers are the lifeblood
therefore for providing them best customer service excellent communication skills are highly
required to create the good impression in front of guest (Furtado and et. al., 2020). Hence
excellent communication skills helps in listening effectively to consumers to influence them for
trying new services and products of 215 Hackney.
P5. Discuss the legal laws and regulatory standards that 215 hackney restaurant should comply
with
In the food and beverage industry it is very important to comply and adhere with legal
requirements and regulatory standard related to the hygiene and cleaning and maintenance of the
equipments. The restaurants should never overlook the importance of good food hygiene and the
food handlers of the restaurant should be aware of the food hygiene regulations as well as legal
standards that they should apply within their kitchen production in order to meet the safe food
standards in UK there are some legal requirements and regulatory standards for the cleaning
equipments as well as for the hygiene.
In UK there is the food standards agency that rates the business like restaurant food trucks cafes
for their food hygiene standards and has a purpose to encourage the restaurants and other food
and beverage outlets to comply with the food hygiene standard in order to provide the public safe
and hygienic food (Putri Adhelia Ciwijaya, 2020).
The HACCP (hazard analysis and critical control points) is one of the legal requirement in UK
that aims for analysing the storing and preparing of food in the various food and beverage
business so that save food is produced and provided to the customers and the this legal
requirement there are some principles which are developed for the food processing industry. If
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ask these principles the organisation does not a deal to legal requirements and its restaurants they
are implemented with legal implications and penalties for the non compliance of food safety
procedures and specially the importance of staff training. As per the FDA the process approach
should be used in HACCP to meet the increased complexity of food preparations within food and
beverage industry for which there are seven principles which includes that premises with the
food is prepared and stored is required to be maintained hygienic and prevent from the build up
of Dirt such as proper ventilations at kitchens and toilets, adequate lightening, facilities for
workers to change clothes, storage of cleaning chemicals and disinfectants. The food preparation
area of the restaurant should have the washing facilities for the equipments both hot and cold
water should be used to wash the foods and utensils and there should be regular pest control in
order to avoid any kind of germs for viruses that can harm the food provided to the public. The
restaurant should also comply with the 14 allergens (Tseng and et. al 2020).
M2. Discuss the advantages of adhering to legal standards to the performance of organisation
In the food and beverage industry it is very important to deal with the legal requirements
and regulatory standards as per the hygiene of food and workplace where the food is produced.
Along with the necessity it is also beneficial for the performance of the restaurant and other food
and beverage outlets as this increases the brand image of the organisation as well as helps the
organisation to meet the certain quality standards thereby increasing the performance as well as
sales (Saryatmo and Sukhotu, 2021). Adhering to legal requirements helps the businesses to meet
the certain quality as well as hiding standards that attract the consumers and thereby making the
performance exclusive.
D2. Discuss the implications of not adhering to legal and regulatory requirements upon the
performance of organisation
Hospitality industry and especially food and beverage sector deputation is everything
therefore it is highly essential for the organisations to meet and greet to legal requirements and
regulatory standards in order to maintain quality standards and hygiene in their food and food
producing area. If restaurant is not a deal to the legal rules and regulated standards can bring bad
reputation to the restaurants which is a downfall of a business. The inadequate food hygiene as
well as negative online reviews destroys the business and also leads to the penalty notice for not
complying with food hygiene standards for which restaurants can be suit for completely shut
down for their poor food hygiene rating (Arora and et. al 2020). If restaurant is inspected to have
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extremely bad hygiene condition and aunt failures in meeting the food safety and hygiene
regulations then legal authorities implement 14 days notice to recommend the changes and
phrase student fails then results in penalties in form fines, prison or forever closure of hotel.
TASK 3
P6. Differentiate between the operational and marketing technology for the food and beverage
organisation
There are different operational and marketing technologies is used for different types of foods
and beverages companies (Qomariah, 2020). Some of the examples are given below-
Hackney Restaurant uses various types of operational and marketing technology, they
use that technology which will save their time and increase their efficiency in completing their
task. They use online payment mode for bill payment of customers. They allow credit card or
debit card payments and other online sources of payments for their customers. For measuring the
performance of employees they also have cameras in their restaurants. This will help to monitor
each and every person and their activities in restaurants. On the other hand marketing technology
is refers to those technology which is used by companies to achieve their marketing goals on
time (Nelson and et. al., 2020). In context of Hackney restaurant their marketing goals is to
promote their business in a proper way and adopt trendy services for customers. To analyse their
marketing trend they supposed to take the feedback from their customers about the ratings of
their services that whether the customers likes or dislikes the services. For this they send a
feedback form through email or through social media account. Customers fill the feedback and
resend it to restaurant. Hence, by this method they get to know their customers’ needs and wants.
For promotional activity they choose to have digital technology like hoardings, social media, TV
ads and many others. Therefore, it is clear that they uses digital technology to achieve their
marketing goals.
In context of bars and night clubs their operational technology are those which handle
all their operational activities like serving drinks to customers, managing sounds and music in
the bars, peaceful entry and exit for customers and many others. Trivia Tablets are those tablets
which show the various pictures and benefits of different types of drinks to customers. Here,
customers will choose any drink whichever they want to have by analysing prices and other
benefits through these tablets. Self serve bar taps is another good technology which help the bars
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to lower the burden of their employees to serve drinks for crowded areas. Here, different taps for
different drinks are attached through which customers need to choose the tap by them self by
analysing which tap will provide them which drink by a digital screen then they can have their
own choice drinks.
M3. Discuss the importance of technology in enhancing performance and meeting business
objectives
Technology plays an important role in enhancing business objectives and most of the
businesses adopt digital technology for their most of the work (Ramos and et. al., 2020).
Cameras are essential part of technology for many types’ food and beverages companies where
they can keep their eyes on their customers and employees activities. For promotional tool most
of the restaurants and other businesses opt social media to aware customers because today most
of the customers use social media to gather any required information. Technology is used
everywhere from monitoring the employees to serving services to customers and making final
payment of foods and beverages. Technology is helpful to make operational task easy and it also
helpful to reduce the burden of employees which further help to increase their efficiency.
.
TASK 4
P7. Discuss the factors that influence the customer’s decision on choosing food and beverage
outlet
 Food and drink type: the type of food or drink a customer desires to consumer has great
influence in choosing the food and beverage outlet. for example if a customer desires to eat
Chinese cuisine he will search for best Chinese restaurant or food outlet, if customer needs
to drink alcohol based drink or wine he/she will choose bar or pub, if a customer desired to
consume coffee and some snacks then he will choose cafe similarly there are many such
types of food that influence the customer’s decision to choose the food and beverage outlet.
Food quality: the quality if a priority of the customer therefore the customer chooses the food
and beverage outlet that serves quality and taste together. For maintain the quality and hygiene
standards the food and beverage restaurants are have rating system that brings the attention of
consumers while decision making (Tseng and et. al 2020).
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 Value of money: the customers have different income and spending limit therefore the value
of money always play role in deciding the food and beverage outlet they will go for dinner
or eat something for example a high income customer will choose luxurious restaurant, pub
or bar to have food and drinks and a consumer with low income will choose cafe or low
range affordable restaurant.
 Speed of service: the speed of service a restaurant provides to their customer’s matters a lot
as customer does not like to wait much after ordering the food or drink. Customer’s always
preferred and chooses the place that has fast speed delivery service. Therefore the
restaurants train their staff like waiter, cook, and bar tender to work fast for speedy service.
 Recommendation: the word of mouth advertising has great impact on consumer’s decision
to choose food and beverage outlet. As when the consumer listens or gets recommended
from the friend or colleague for a particular place or restaurant to explore or heard the
praising from someone’s mouth related to food, service, taste or ambience brings the major
influence on the consumer’s decision (Saryatmo and Sukhotu, 2021).
P8. Discuss the strategies used by food and beverage outlets to gain more customers and to build
loyalty
In the food and beverage industry it is very important to have the loyal customers for their
good brand reputation. The 215 hackney is the restaurant cum cafe that serves the local sourced
multi cuisines for which cafe requires the strategies to gain more customers and to retain their
existing customer for build the loyalty customer base. Hence to do so the cafe owner and
marketing adopt various strategies such as:
Connecting through social media: in the contemporary digitally oriented world where the
consumers are available on the social media platform it has become easy for the food and
beverage organisation like 215 Hackney to connect to their consumers via platforms like
instagram, twitter, facebook etc. through these channels the restaurant offers multiple discounts
and offers (Ramos and et. al., 2020).
Offer packages to local business: the 215 Hackney operates it business in London is known for
it’s locally sources cuisines; therefore this strategy helps the restaurant to increase their bottom
line. Local businesses often conduct events that require the food and beverages for which they
hire catering. As a restaurant the 215 hackney can provide great food to the event which will help
in promotions as well as gaining new customers.
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Set out affordable prices: in order to gain loyal customer base along with the taste and quality of
food setting the reasonable and affordable price is very important so that customer does not
hesitate and look its pocket for coming. This strategy is best especially to gain the customers like
college students who are not only loyal customers but also has good at word of mouth
advertising that helps in gaining new customers.
Organise events to give reason to customers to eat out: events like live music, wining tasting,
celebrity appearance, open mic etc. are the events that can help restaurants like 215 Hackney to
gain the customers thereby making the VIP entry for the loyal customers to gain their trust.
Events not only attract consumers but increase presence in the market thereby boosting sales and
revenue (Arora and et. al 2020).
M4. Discuss the importance of strategies used by food and beverage outlets to gain more
customers and to build loyalty
In food and beverage industry is very important for the organisations to gain customers and
to build loyal customers in order to keep their business running for the long term. East from the
above strategies that offering affordable price for food not only helps in gaining more customers
but also increases the value of organisation. Offering packages to local business or conducting
events helps the restaurants and other food and beverage outlets to gain the presence in the
market there by gaining new customers and VIP entry system for regular customer build loyalty
and trust (Qomariah, 2020). Hence the above strategies are highly beneficial to gain larger
customer base and loyal customers.
D3. Critically analyse the impact of digital technology on operations of the food and beverage
business and how it influence consumer buying behaviour
To analyse that technology is not only improving the performance of the operations of food
and beverage businesses but are also influencing the consumers buying behaviour because there
is the trend of food delivery at homes and takeaway service which are the major examples of
digital technology in the operations of food and beverage business that are easing the buying
decisions of consumers to order food directly e through their mobile phones from home rather
than waiting hours in the restaurant. The technology like social media is highly influence for the
consumers buying behaviour as consumers read reviews and ratings over the websites and social
media channels in order to choose food and beverage outlet. The technology has also increased
the speed of operations in food and beverage business for example the vacuum cleaners has
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made the cleaning process fast the latest equipments and such as events and other digital
equipments are fasting the process of baking (Nelson and et. al., 2020). Hence, technology is
highly useful for the operations of food and beverage business and also to positively influence
the consumers buying behaviour.
CONCLUSION
It is concluded from the above report that food and beverage industry is never ending industry
and always keeps on growing with new flavours and new dishes and drinks. The industry has to
comply with hygiene and food safety laws to provide the safe and healthy food to consumers. It
is also concluded from the above report that this industry is more turning itself into take away
and home food service due to impact of covid-19. Hence the industry has every segment of
consumers and is adopting the technology effectively to produce food and drinks fast with new
techniques. Hence in this industry a food or drink that tastes, smells and looks radical and exotic
is the best strategy to attract the consumers.
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References:
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Media Applications for the Tourism and Hospitality Sector (pp. 136-148). IGI Global.
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Varner, C.M., 2020. Evaluation of Ethical Leadership on Job Satisfaction, Organizational
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Zhou, M and et. al., 2020. An accountability evaluation for the responsible use of celebrity
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