Managing Food & Beverage Operations

This report explores different types of businesses within the food and beverage industry, profiling a chosen business within each area. It also discusses rating systems used in the industry and current and future trends affecting food and beverage businesses. Additionally, it compares and contrasts operational and marketing technology for different types of F&B businesses and investigates factors that influence consumer's decision on which food and beverage outlets they choose.

Unit 6: Managing
Food & Beverage
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry...................................................................3
P2 Explain different rating system used in nationally and internationally by F&B industry.7
P3 Discuss current and future trends affecting Food and beverage businesses.....................8
TASK 2............................................................................................................................................9
Covered in PPT.......................................................................................................................9
TASK 3............................................................................................................................................9
P6 Compare and contrast different operational and marketing technology for a range of
different types of F&B businesses..........................................................................................9
TASK 4..........................................................................................................................................10
P7 Investigate the factors that influence the consumer's decision on which food and beverage
outlets they chose.................................................................................................................10
P8 Analyse strategies used in a range of food and beverage outlets to attract and build a loyal
consumer base......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality sector has a broad field in the service industry which includes hotels, tourism
and restaurants. It offers wide range of services which includes accommodation, food and
beverage, recreational activities and many other. Food and beverage operations are has been
considered as the most important part of the hospitality industry which involves multiple
activities which includes engaging staff in purchasing raw materials, keeping inventory,
preparing food stuff and beverages, maintaining the service quality and many more. This
industry earns maximum from the food and beverage sector where people tend to show their
purchasing power by investing in food the most (Salim and et. al., 2018). The management of
food and beverages has been considered as the most important task for the companies in order to
their maintain quality standards. The company chosen for completing this report is JD Food
group, a London based organisation dealing in distribution of food and drinks with large variety
of products. This report shall cover the different types of business in F&B industry, rating
system and future and current trends affecting business. Further the management skills with
legal requirements and regulatory standards to be complied with for maintenance and cleaning
equipment together with a comparison which involves ways in which different operations of
F&B use technology. Lastly the file shall cover the factors which influence the consumer's
decisions to choose outlet together with strategies used in outlets to attract and build customer
loyalty.
TASK 1
P1 Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry.
The food and beverage industry involves different business which help the organisations
to earn profits and generate high revenues. These businesses have have their advantages and
disadvantages which are discussed below-
Sector Description Advantages Disadvantages Example
Fast food or quick
services
This type of
business involves
limited menu with
 This
business
attracts
 The food
offered
under this
McDonalds

Sector Description Advantages Disadvantages Example
service
availability of
takeaway service
though seating is
provided.
large
customers
from
across the
globe as it
targets
younger
generation
s as their
customer.
 The food
offered is
cheap and
is
prepared
in
transparen
t manner.
business
involves
unhealthy
ingredient
s which
has high
calories
and fact.
 It offers
low
quality
food
(PRYCE,
2020).
Casual Dining This business
provides wide
variety of choices
to the customers.
The ambience of
the restaurant is
attractive enough
to appeal to the
customers to avail
its services.
 The
physical
evidence
of this
business is
appealing
with high
standard
quality of
infrastruct
ure.
 It involves
high cost
in
establishin
g the
business.
 It involves
little
modificati
on in the
recipes.
Nando's

Sector Description Advantages Disadvantages Example
 It works
on to
bring
customer
satisfactio
n by
offering
them large
variety of
food
items.
Fast causal It is of hybrid
nature because it
involves fast food
and casual dining
together. There is
no seating space
in this business,
customers are
allowed to place
order and collect
from an assembly
area where food
is ready
(Paulisic,
Tankovic and
Hrvatin, 2016).
 It saves
time of the
customers
while
seating in
the
restaurant
space and
consumin
g food.
 It gives
variety of
both
dining and
fast food
altogether.
 The
ambience
is of quite
high
standard
as
compared
to quick
service
sector
which
involves
heavy
cost.
Five Guys Burger
and Drive
Coffee shops It is a restaurant
which involves
 It provides
both
 It is an
informal
Prufrock Coffee

Sector Description Advantages Disadvantages Example
wide range of
beverages and
little snacks
variety being
offered to the
customer. It is an
informal business
with seating space
provided to guest.
sitting and
take away
services,
whichever
the
customer
prefers.
 It provides
beverages
in all
range
from
prices low
to high.
restaurant
which
targets
younger
generation
s only
with little
seating
space.
Shopping centre
with food court
It involves food
services being
offered to the
people at the
shopping mall by
fulfilling their
both objectives of
shopping and
eating (Oyedele,
2019)
 It provides
leisure
experience
to
customers
after tiring
shopping.
 It provides
wide
variety of
food by
targeting
every
market
segment.
 It offers
costly
food to the
customer
as the rent
at
shopping
malls are
high.
Westfield
Stratford City

P2 Explain different rating system used in nationally and internationally by F&B industry.
The Food and Beverage industry requires quality and safety measures which are to be
taken care of by the managers and chef of the organisations. Quality is something to which a
customer cannot compromise at all so the managers have to take care of all the measures through
which quality can be maintained and further improved. Food safety has been a significant issue
in this industry and unhealthy food prepared or consumed by the customers can directly harm the
goodwill of the restaurant. Hygiene of food is considered as the most essential factor for the
success of the business where unhygienic food prepared and eaten by the guest can harm its
health. So the managers are entrusted with a role to take necessary measures for food safety and
the rating systems so that their quality is maintained (Lai and Becher, 2020). Ratings are given in
this industry according to the quality standards and on the basis of these ratings, consumers
select the outlet to consume the food and beverage. In order to give star rating in this industry,
factors such as service, restaurant, dining room, cleanliness, exteriors, public areas, wash rooms
and many other are considered. The star rating system is discussed below in context with The JD
Food Group-
 1 star- Under this rating, the guest expect proper accommodation where managed
facilities are provided. The companies under this rating have limited services and
facilities. Example – The Ninth restaurant in London.
 2 star- Under this, expanded services are offered by the companies as compared to 1 star
which gives high level of comfort. Example- La dame de Pic.
 3 star- The companies under this rating offers accommodation at good level. It has good
spacious areas, facilities of high quality and wide range of services. Example- Club
Gascon- French Michelin Starred restaurant.
 4 star- The properties of 4 star rating have stylish and refined accommodation where
services are responsive and includes extensive range of facilities. Example- Angler in
London
 5 star- These are the reflection of luxury and sophisticated services being offered by the
companies. The level of customer satisfaction is high as it is beyond their expectations.
Example- Hotel Marriott (Knollenberg and et.al., 2020).

The JD food Group is a 3 star rating company which offers wide range of food and drinks
to cater different businesses from the brand names to the continental products.
P3 Discuss current and future trends affecting Food and beverage businesses.
Trends are basically the opportunities for the businesses which exist in the food and
beverage industry. There are two types of trends which includes upward trends where the
business can seek opportunity to adopt it and downward trend refers to the trend from which
company must plan to exit. Some of the current and future trends for JD Food Group in order to
maximise its profitability are -
Current trends
 Veganism- It is a growing trend which people have followed for a longer term. It
involves avoiding those processes and products which are having negative impact
on the animals. It is a process of abstaining the use of animal products into the
food so that the health of the people can be improved. This may benefit the
individual to lead a healthy lifestyle (Knollenberg and et. al., 2020). JD Food
Group can use this in order to give healthy food to its customers.
 Sandwich lunch- This trend involves changes in the flavour and variety of the
sandwiches which the company is offering. The JD Food Group can use this
current trend and provide wide variety of healthy sandwiches which an individual
can consumer in its lunch and feel full.
Future trends
 Fusion cooking- It is an extension version of traditional dining which involves mixture
of different flavour in one single dish. The millennials are the target audience in every
market segment so they need a twist in the traditional dishes by giving a creative turn to a
ordinary food by turning it into a special dish. The JD Food Group can use this fusion
cooking as a new opportunity to take more market share from its competitors so that it
can grab new target audience.
 Touch screen technology- This is a new emerging trend which eased the customer to
avail the service of the restaurant or hotel. It prevents the long queues and provide easy
access to the customers to order the food online through an application while sitting at the
seating space (Fikru, 2017). The JD Food Group can encourage use of mobile

applications to place an order so that it gives comfort to the people for availing the
service.
TASK 2
Covered in PPT
TASK 3
P6 Compare and contrast different operational and marketing technology for a range of different
types of F&B businesses.
Operational technology: It is a tool that detects and monitors events, equipments and
processes in an organization. It is comprised of software that supports information processing. In
context to Food and Beverages business, this technology helps in improvising product quality,
enhances product sorting and simplifies business operations. With the use of technology in
operations firms can manage to reduce time taken in production and packaging of goods. Even
safety measures for food can be improvised through this. Employment of operational technology
further leads to enhancement product quality. It increases output level of firm which enables firm
to achieve higher economies of scale.
Marketing technology: It indicates digital improvisation of marketing tactics of business.
It allows business to interact with customers through various digital channels. F&B business to
promote its values among large customer base. It provides various platforms, such as, Instagram,
Facebook or company's own website which helps business to promote their products. It also
enables firm to analyse trends and perception of customers, for example, trend of organic or
vegan foods. It encourages business to align its objective with customers need and wants. It can
also use influencer marketing technique to create awareness of its products.
Differences between operational and marketing technology in context of food and
beverage businesses are as follows:
Operational technology Marketing technology
It means category of software that control the
operation department in the organization which
include industrial equipment, assets, processes.
It means the technology used for marketing the
product or services. It can be done through
digitally over social media.
It examine the equipment and tools used in It is used for the promotion of the product such

food & beverage industry. It also assess the
operational department of the industry.
as advertising, sales promotion, personal
selling which is done online.
TASK 4
P7 Investigate the factors that influence the consumer's decision on which food and beverage
outlets they chose.
There are many factors which affect the consumer experience and influence their decision
in choosing the outlet t consume food and beverage which are discusses below-
 Food quality- The Food and beverage industry is mainly dependent on the quality of
food which it offers. The consumers tend to get influence from the quality of food while
choosing any outlet. Since from many generations, the first priority for a customer in its
checklist is the quality of food with which it cannot compromise (Dzwolak, 2019). The
JD Food Group must focus on maintaining and improving the quality standards in the
food which it is offering so that customers do not have other option rather than choosing
this company.
 Staff behaviour- The workforce is the representative of the F&B outlet. The managers in
the F&B industry continuously work on giving rigorous training to its workforce so that
they can influence the customers in choosing their outlet. The customers get influence
from the behaviour of the staff as to how they greet them, with how much enthusiasm
they provide service to the customers and many other. The staff of JD Food Group must
have a politeness and active listening capacity in order to influence them from their
behaviour so that they chose this organisation for availing service.
 Convenience- The customers tends to loose their patience when it comes to delayed
order serving or taking. The another factor which may influence the customer is the easy
convenience of availing the services which may include easy ordering, multiple modes of
payment or an interactive feedback (Girardon, Gabard and Peyer, 2019). The JD Food
Group can work on providing easy convenience service to its customers so that existing
as well as potential customers can be attracted.
 Value for money- This is the major factor which influence the customers. The
consumers does not care about the pricey restaurant rather they need to get the quality

food which must match the price they pay for it (Bresciani, 2017). The JD Food Group
must ensure that they provide the quality of food according to the price so that they can
get satisfied from the services of the company.
P8 Analyse strategies used in a range of food and beverage outlets to attract and build a loyal
consumer base.
In order to make the business survive and grow, the organisations in food and beverage
industry must focus on building the customer loyalty so that they can retain them. Through a
loyal customer base, the company can depend upon the word of mouth publicity so that it can
attract the potential customers. The JD Food Group must adopt the following strategies in order
to build the customer loyalty to maximise their profitability which are discussed below-
 Special Offers- In order to drive sales or build customer loyalty, the companies in F&B
sector must bring special discount, offer and promotions so that customers are attracted
to avail the service. The offers which an organisation brings must be tempting enough to
attract potential customers because people usually don't waste money on restaurant or
hotel they have never gone to. Offers like buy one get one free or gift on special dishes
etc. can be used by JD Food Group in order build customer loyalty base.
 Organise events to give people reason to avail service- Events work as great way to
get the customers on the door of the outlet as it bring a extra element of eating out during
the experience. The existing customers get a new excuse to avail the service of the F&B
organisation and helps in marketing the name of the restaurant in front of the potential
customers so that they can get attracted on non event days (Blatstein and et.al., 2020).
The JD Food Group can organise an event offline or online so that their customers are
attracted and they find new way of building a customer loyalty with potential consumers.
 Communicate with consumers- One of the easiest and important strategy for building a
customer loyalty base is to have interactions with the customers so that they can openly
discuss upon the likes and dislike about the services. The JD Food Group can
communicate with the customers through posting survey links on digital platform,
redress complaint mechanism for resolving the complaints of customers, face to face
interaction and many other.

CONCLUSION
From the above report, it is concluded that the food and beverage industry is the most
powerful sector of the hospitality industry. There are many types of business which F&B
industry offers like casual or fine dining, quick services, coffee shops and many other. The star
rating system help the companies under this sector to mark their standard and help in improving
their quality standards by maintaining hygiene and food safety. The current and future trends
helps the JD Food Group to adopt the opportunities to attract the customers and expand the
market share by offering what is trending in the market (Bellido and Heras, 2017). Further a
manager in this industry must posses the communication, creative, problem solving skills in
order meet the standards. At last it is summarised that factors like staff behaviour, food quality,
convenience in service influence the customers in availing the service of the industry. Strategies
like communication, offers and organisation of events help the company in building the customer
base for the success of the organisation.

REFERENCES
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(Torlak, Demir and Budur, 2019) (Zheng and Forgacs, 2017)