Managing Food & Beverage Operations: Trends, Ventures, and Customer Decision Making

This research paper discusses the various forms of ventures in the food & beverage industry, profiles a chosen venture in each area, and explores the rating systems used internationally and nationally. It also analyzes the current and future trends that affect food & beverage ventures, the impact of these trends on services and products, and the strategies used to meet business objectives. Additionally, it examines the use of digital technology in marketing and operations and the factors that influence customer decision making.

Unit 6 - Managing Food &
Beverage Operations
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Different forms of ventures within Food & beverage industry, and profiling a chosen venture
within each area of sector.......................................................................................................3
Varied rating systems utilized for food and beverage sector internationally & nationally....4
Current and future trends that affect food & beverage ventures............................................5
How recent and in further trends affect services and products of businesses to meet its
objectives................................................................................................................................6
Critical analysis based on adaptive manner of businesses in context of current and future
trends......................................................................................................................................6
Profile of each Food and beverage service outlets.................................................................6
Differences and similarities between marketing digital technology and operational utilized by
each venture............................................................................................................................7
Ventures have used digital operational & marketing tools....................................................8
Factors that influence customer decision making procedure.................................................8
Use of tactics in three different ventures for attracting consumers and building a loyal
customer base.........................................................................................................................9
PART 2..........................................................................................................................................10
Covered in PPT.....................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Food and Beverage sector includes all organizations included in making, processing,
transporting, packaging and then distributing cooked products for customers. It is one of the
world biggest sectors with context of employment and revenue. The current assignment will be
divided into two parts. Part one will explain variety of businesses within Food and Beverage
sector, profiling a selected venture within each area of sector and several rating systems used at
national and international. It will define current & future trends that will impact companies and
will also describe use of different marketing and operational technology by variety of Food and
beverage ventures. Furthermore, this report will justify impact of factors upon consumer decision
making process and it will also define strategies usage in range of outlets to attract a buyer.
PART 1
Different forms of ventures within Food & beverage industry, and profiling a chosen venture
within each area of sector
Food and beverage sector includes different forms of businesses that enhance its
productivity and profitability in effective manner (Dressler and Paunović, 2019). Size of this
industry can define by describing number or types of companies work under it.
Partnership-
This type of businesses has operated its functions and operations within food and
beverage sector for longer period of time by conducting collaborative and participative practices.
In simple words, partnership ventures by making formal agreement with other brand or venture
serve its customers within chosen industry (Ferraris and et.al., 2020). In Partnership Company or
business, all partners needs to share profits and losses equally. Hotels, lounges and resorts are
types of partnership businesses which can effectively operate in F&B industry.
Sole proprietorship-
It is one of the simplest and easiest forms of businesses that can operate in Food and
beverage industry under which only person or entrepreneur can manage his or her ventures
activities, without waiting for approval relate to anything (Williams, 2020). The owner of this
business is accountable for debts and losses. Local restaurants, coffee shops, pubs and fast food
chain are examples of sole proprietorship, which can manage without making partnership with
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other person or firm. With this type of businesses, there is not legal distinction between venture
and individual.
Limited liability company-
This is a kind of venture structure where the owners of a company are not liable for
venture’s debts at personal level or any kind of liabilities (Morcillo-Bellido, 2019). This is type
of hybrid entities which could combine traits of an organization with those of sole proprietorship
or partnership. Large chain of restaurants and resorts are included in category of limited liability
firms. With this type of businesses, members are protected themselves from personal problems
for any decision relate to venture.
Varied rating systems utilized for food and beverage sector internationally & nationally
Because of technological development and advancement there are ranges of rating
systems available in world of chosen industry that could different forms of ventures use.
21st century ratings-
In recent time, instead of obtaining feedbacks or reviews from consumers face to face, at
international level Food and beverage industry take review or rating after serving its service by
using Trivago, TripAdvisoror and other rating systems. These are reliable and comprehensive
index of hotel ratings which takes accessible rating sources from boundaries of web. These types
of programmes provide several benefits to consumers and businesses as well. It helps new
consumers to understand and determine quality services to hotels and restaurants.
Michelin Star-
This rating system has been utilized by red Michelin Guide to grade specific food and
beverage business and that is restaurants on its service quality (Giousmpasoglou, Brown and
Cooper, 2018). Level of rating under this system is distinguished into three extents. One star sign
indicate a good service level, two stars are refer to excellent food that is value a detour and three
stars define exceptional cuisine that is appeal a particular journey.
AA rosettes-
In food and beverage industry, around 50 percent of hotels and restaurants are using this
rating system which is quite beneficial for its ventures as it help management to known where
improvement is require (Nguyen, 2019). It supports to recognize demand and further needs of
consumers in ethical manner. It is often held in extreme esteem with Michelin stars, 3 to 5
rosettes tend to be indicative of a Michelin stars.
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Star rating-
It is one of the most effective approaches of grading accommodation to aid buyers make
a selection that best suits their budget and needs relate to food and other services offer by Food
and beverage industry businesses (Mellinas and Reino, 2019).
Current and future trends that affect food & beverage ventures
A trend is a development or change towards something unique and new, which is
profitable for individual and businesses as well. It is important because it allow person to grow
and take steps towards further opportunities. It also permit people to connect make themselves
up to date according to current moment or environment in the world.
Street food-
Instead of eating fast food at restaurants or hotels, in recent time people like to eat street
food that directly affecting Food and Beverage businesses in negative manner, because when
people eat from stress outlets and like to take each step towards this trends it directly decrease
consumer base of ventures and profitability as well (YAHAYA, 2018). It can be said that this
trend influence negatively.
Veganism progressing on from vegetarianism-
Just like above current trend, this one also put negative impact on recent practices and
activities of businesses operate in F&B sector (Rosenfeld, 2018). For example, those restaurants
and hotels who cook fish and meat according to demand of its guests were affected because of
this trends because these consumers goes towards become vegetarian as it decrease profits
margin and leads of minimize sales.
Fusion cooking-
It is one of the future trends examples that can influence food and beverage companies in
positive manner because by following this trend they can gain attention of new guests by
offering innovative dishes which never been offer by any other restaurants or street food owners
(Tan and et.al., 2019). It can be recognize as combination of different elements that originate
from varied regions, nations and cultures.
Robot waiters-
The most profitable trend that businesses while operate in Food & Beverage industry will
adopt is this one, as it influence and affect positively in term of gaining attention of new guest
and retain existing one for longer period of time.
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How recent and in further trends affect services and products of businesses to meet its objectives
As discussed above two different types of current and future trends has been discussed
that directly influence or impact varied types of food and beverage companies’ services and
products in different manners (Ivkov and et.al., 2018). For example, Robot waiter is further
trends that impact positively by gaining attention of new customers as they would feel attraction
in regards to male and female robots that are excellently able to serve food and drinks. It has
definitely increase sales and profitability of ventures, as it helps to meet objectives of businesses
successfully. While, changing need and preference of guests in form of switch to veganism from
vegetarianism decreases productivity level.
Critical analysis based on adaptive manner of businesses in context of current and future trends
Restaurants, sole proprietorship and partnership as types of F&B ventures have adapt
current as well as future trends, by considering recent needs of customers and cooking food items
by collecting everything accordingly that help to meet aims and objectives of companies in term
of increasing sales and consumer base. Furthermore, Food and Beverage ventures can adopt
future trends by support to gain similar outcomes by serving services and products via Robots as
they are capable to manage work and have ability to cook meal even faster than human resource.
Profile of each Food and beverage service outlets
Bars-
These types of service places are known for offering ranges of liquor drinks to customers.
Skilled and experienced applicants within these forms of outlets take order from consumers and
then pick up drinks to serve them.
Banquets-
This type of food and beverage service outlet is a formal wide feast or meal, where a
number of consumers consume food together in a group.
Family restaurants-
It is one of the most comfortable Food and Beverage service outlets where wide number
of people with family members and friends can visit to celebrate special day or occasion.
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Differences and similarities between marketing digital technology and operational utilized by
each venture
In recent time, restaurants, bars and pubs are using different types of marketing and
operational technologies that bring a lot of benefits for ventures in varied terms like increase
customer satisfaction and profitability level even better.
In bar-
Contactless payments one of the most emerging term that depends on use of technology
for collecting money which can consider as operation of food and beverage venture (Bounie and
Camara, 2020). It is beneficial because it helps to keep guests secure and safe from pandemic
and farm full disease. Furthermore, social media marketing is advance technology that
contributes boost productivity and profits margin as well.
Banquets-
Touch screen point of sales terminals is advance operational technology that increase
operational efficiency and effectiveness even better. Modern points of sales technologies are
capable to withstand rigors of banquets with durable hardware. Smart phone technologies are
also beneficial in term of promoting ventures at global level.
Restaurants-
Kitchen display screen is most effective technology that can use for food ordering
operation within ranges of restaurants that saves time and efforts as well (Garg and et.al., 2020).
Along with this tech, firms can use social media channels like Instagram etc, to promote its
products and business operations at international level.
Similarities-
The main similarity between operation and marketing technology is that it provides
benefits in term of increasing profitability and productivity. Another similarity is it increase
consumers base by satisfying buyer.
Differences-
While marketing and operational technology are different from each other because they
work differently in form of increase sales for example operational technology use to satisfy
customers by making payment option easier for them through countless payment technology.
While marketing technology is utilize for promoting goods and services of restaurants, bars and
family restaurants.
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Ventures have used digital operational & marketing tools
Either restaurants or bars can utilize digital marketing and operational tools effectively
which allow them to obtain desire outcomes in form of gaining competitive advantages and
attracting new consumers while being operate venture in international market under Food and
Beverage industry. For example, social media channels can use by creating account of Instagram
and mention overall information about businesses and its products or services. It can help to
advertise goods as well as a service in market and also help to generate growth even better.
Furthermore, it can be analysed that operational tools or technologies generate progress for
businesses like bars, and restaurants by increasing satisfaction level of customers. For instance,
when people pay exchange of food and drinks services at restaurant by maintain social distance
and without toughing hand of workers it can increase his or her satisfactory level, which could be
done by using machines through which payment is easier.
Assess which firm have made out of using above elements to enhance quality of consumers
services-
Restaurants is one of the food and beverage business that have made the most out of
utilizing multimedia platforms as well as operational technology in order to enhance quality of
consumer services and promoting customer loyalty programmes.
Factors that influence customer decision making procedure
A group of target market or consumers are the most important elements of business
success and growth because they help to increase profitability and sales of a company by
purchasing products and services exchange of money. A customer take decision relate to
purchase after considering everything about a specific item or by influence from different factors
that are accessible in the world.
Social factors-
Family, friends and colleague are included in this category of force that influences
decision making process of consumers in negative or positive manner (Cheah and et.al., 2019).
For example, when friends and family member visit restaurant or other ventures of food and
beverage industry where food quality is good, it can influence buyer mind and then decision. He
or she tries to goes at one time and then like to visit again after obtain satisfaction.
Psychological factor-
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Attitudes, perception and beliefs are examples of this category of factor that directly
influence mind of customers in context of product or service selection (Fitrayanti, 2020). For
instance, when consumers things and believe that eating healthy food and using organic items is
good for health, they could take decision to visit restaurant where organic food products has been
used to prepare a meal.
Culture factor-
Every one in the world follow specific values & culture which support people to act
accordingly especially during purchasing eating items and considering services relate to it. For
example, some customers like to eat vegetarian food instead of non-veg because their culture
could not allow. As it influence decision making in context of restaurants and banquet visit.
Personal factor-
Profession, age and lifestyle are recognize as personal factors that directly influence and
affect mind of consumers and decision making as well in regard to select food and beverage
outlets for different purpose like party, dinner etc.
Use of tactics in three different ventures for attracting consumers and building a loyal customer
base
Bars, coffee shops, restaurants and cafeterias are different types of food and beverage
outlets that can develop and use several strategies in order to gain attention of new customers and
build loyal base of existing one along with new.
Discounts-
The most common and effective as well as beneficial strategy that restaurants can utilize
is this one. With this tactic management could reduce some amount from total when its guest
orders product or service (Rohlfs, 2020). It can help to build a loyal consumers base and also
support to gain attention of new buyers. This tactic could be use in different manners for instance
firm can offer it through coupons, price deduction, promo codes or referral. Implementing this
strategy is quickest and fastest way that help to draw consumers into restaurants and bars.
Rewards points-
With above method or strategy, bars and restaurants can build loyal buyer base and
attract new guest towards purchase food items and consider services by develop rewards point
strategy through which it can cater rewards to regular visitors (Kim and Tanford, 2019). It could
build loyal consumer base when people obtain rewards which he or she can use while paying
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money after eating specific food product or chosen drink. By obtaining this benefit, each
consumer can receive satisfaction which in return conducts word of mouth promotion.
Update social media pages-
Another tactic that can different Food & Beverage outlets use to build loyal consumers
base and attract them successfully by updating social media accounts or pages where all content
about products and services has been mentioned (Lepkowska-White, Parsons and Berg, 2019).
For example, when marketing team update social media account on Instagram and mention info
about new existing offers like discount. It attract new customer and build wide base.
Advantages & disadvantages of strategies-
Basis Discounts Rewards Points Update social media
pages
Advantages The best thing about
this tactic is that it
satisfies customers
because of choosing
right food and
beverage outlet.
The benefit of this
strategy is that it
attracts new
consumers by
providing rewards
point to existing
buyers.
It attract youngster
who are profitable for
growth and success of
food and beverage
outlets.
Disadvantages Drawback of this
strategy is that it
could not work
successful because
few consumer think
that offer could be
provide when quality
of products are not
good.
It could not provide
benefits to firm in
form of attracting new
buyers because
rewards points could
give to regular guests.
It consumes a lot of
time and efforts while
updating content on
sites.
PART 2
Covered in PPT
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CONCLUSION
By summing up above discussion, it has been concluded that by using Michelin Star, AA
rossttee and other rating systems, all the food and beverage ventures obtained benefits in term of
understanding needs of buyers and making further improvement within existing service
standards. Furthermore, it has been identified that by complying and adopting future trends along
with current one, businesses has gained competitive edge. It has been summarized that by using
social medic channels and contactless payment technologies companies gained benefits in term
of gaining attention of new buyers and satisfied existing target market for longer period of time.
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REFERENCES
Book and Journals
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models in the food and beverage industry. British Food Journal.
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may conduct to better performances?. British Food Journal.
Fitrayanti, V., 2020. The Influence of Personal and Psychological Factors toward Consumer
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Garg, L and et.al., 2020. Kitchen Genie: An Intelligent Internet of Things System for Household
Inventory Management. In Proceedings of ICETIT 2019 (pp. 3-20). Springer, Cham.
Giousmpasoglou, C., Brown, L. and Cooper, J., 2018. Alcohol and other drug use in Michelin-
starred kitchen brigades. International Journal of Hospitality Management. 70. pp.59-65.
Ivkov, M and et.al., 2018. Innovations in the restaurant industry–An exploratory
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distance matter?. International Journal of Contemporary Hospitality Management.
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Mellinas, J.P. and Reino, S., 2019. Average scores integration in official star rating
scheme. Journal of Hospitality and Tourism Technology.
Morcillo-Bellido, J., 2019. Strategic alliance trends in the Spanish food and beverage
industry. IUP Journal of Supply Chain Management. 16(1). pp.22-36.
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structure monitoring. U.S. Patent 10. 209. 060.
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Rosenfeld, D.L., 2018. The psychology of vegetarianism: Recent advances and future
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IN BAUCHI METROPOLIS, NIGERIA.
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