Managing Food and Beverages Operations

This document explores different types of businesses within the food and beverage industry, rating systems used nationally and internationally, current and future trends affecting the industry, and factors influencing consumer decisions.

UNIT 6: Managing Food
and Beverages Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................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)Explain different rating systems used for the food and beverage industry nationally and
internationally.............................................................................................................................4
P3)Discuss the current and future trends affecting food and beverage businesses.....................5
TASK 2............................................................................................................................................6
Covered in PPt............................................................................................................................6
TASK 3............................................................................................................................................6
P6) Compare and contrast different operational and marketing technology for a range of
different types of food and beverage businesses.........................................................................6
TASK 4............................................................................................................................................7
P7) Investigate the factors that influence the consumers’ decision on which food and beverage
outlets they choose......................................................................................................................7
P8) Analyse strategies used in a range of food and beverage outlets to attract and build a loyal
customer base..............................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The food and beverage industry made up many segments, including groceries, food
additives, functional food and beverage, packaged food, health and natural food etc. The industry
is driven by customer demand and management of these are includes management of different
type of business within the food and beverage industry. It is a sector that processed as per
completion of different activities and that is as food preparation, quality and service
management, event management and many others as well (Bloom and et. al., 2020). The report
below consists of Fortune Foods Ltd as it is a part of food Wholesalers industry with having
employee all across globe. It was founded in 2009 and having a headquartered in London, UK.
The following report is based on food and beverages industry that consist of various styles of
service outlets, rating system and current industry trends, different ways that is used by food and
beverages to improvise operational efficiency. Furthermore, various ways used to motivate
customers and its behaviour to manage food outlet.
MAIN BODY
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 beverages industry is an essential prospect within hospitality industry and
include wider scope and attains higher profit. There is different type of food and beverages
industry that is as explained below as:
Sector Description Advantages Disadvantages Example
employer
Full service
restaurant.
It defines as a sit down
entry where food is
served directly to the
customers' table. These
establishments may sell
alcoholic beverages and
provide take out,
Full service
restaurant have
Well establish
names, most of
franchise have
a well known
and establish
Full service
restaurant have high
level of employee
turnover rate. That
increase expanses
for restaurants.
Many employee
Capeesh
restaurant
located in
London.
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delivery or present live
environment.
name that
increase their
potability
(Borovčanin
and Kilibarda,
2020).
could get low pay
because of it.
Fine dining This restaurant is
specific dedicated with
meal courses. Décor of
such restaurant features
high quality materials,
with establishments
having some rules of
dining which visitors
are expected to follow.
Fine dine
franchises do
not required the
owner to
necessarily be
experienced.
Anyone how
has knowledge
and guidance
can start dining
restaurant
(Najafi, 2019).
Limited growth,
growth of any
restaurant franchise
is limited due to
parent company
territorial
restrictions.
Dining, located
in London, UK
Quick service A quick service
restaurant is one which
is focused on providing
customer with food as
quickly and efficiently
as possible, generally
there is no table service
available.
The most
obvious
advantage of
quick service is
there is very
low or no
waiting period
and it save the
time.
Generally in quick
service restaurant
there is no table
service available for
customers, it could
be the reason
customer can
choose other
restaurant over
quick service.
SUBWAY is
quick service
restaurant.
Self service these restaurants is one
where customer get
Less human
staff is required
Person to person
interactions are
Pavillion is self
service
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things for their self
rather than being served
by another person.
to serve to
customers,
resulting in
resource saving
for the
businesses.
limited, some
customers wants
human interaction
for enjoyment.
restaurant
located in
London.
Mobile food
service
Mobile catering is the
business of selling
prepared food from
some sort of vehicle
(Chen and Voigt,
2020).
Its less risky
than opening a
brick and
mortar
restaurant
There's considerable
competition in this
business.
Five star
catering ltd
located in
London.
Wine bars A wine bar business is
focusing on selling
wine rather than liquor
or beer.
Operating cost
of owning wine
bar tens to be
cheaper than
opening
traditional
restaurant
There are many ups
and downs in wine
bar business.
Gordon's wine
bar located in
London, UK.
Gastro pub It is a hybrid pub, bar
and restaurant, notable
for serving alcoholic
drinks and food.
Smaller start-up
cost, starting
business cost of
pub or bar is
lower than
other business.
Gestro pub
tendency is not only
one option, there are
several option
available in market
The Anchor
and hope
located in
London.
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P2)Explain different rating systems used for the food and beverage industry nationally and
internationally
Rating system allow customer to review or rate a company's product, service, or any
media. A customer rate an organisation based on their hygiene standards is good or not. They
rate company on the good, very good, and excellent services that has been offered to them. There
are several rating systems are available in UK like TripAdvisor, Trivago and bookings. Com that
provides customer knowledge about the ratings of food and beverage companies (Lodolo, 2020).
It could help customer to know about the particular restaurant before going there. There are five
rating system is below that help customer to know about the company:
Michelin star (international): It is remembered that Michelin star is usually considered as an
honour as in this one star review is not dependent on dishes criticism rather than praise them.
 Three star: It includes those services that is exceptional about cuisine that offer worth
about travelling visit. In this restaurant is at destination that provides distinct dishes as
per perfect execution.
 Two stars: These services provide offer excellence cuisine in a unique way and in
addition also offer exceptional service that is detour to adequate worth.
 One star: It is considered in very good restaurant as it is not limited in which quality
services are provided on consistent basis.
FSA (national) Five stars: It include those restaurant that maintain higher level of hygiene standards and
having smooth and very good working operations. Four stars: It is provided to those restaurants that has maintained its hygiene standards
with better mode. Three star: It consist of restaurant that has required higher level of hygiene and its
standards that is usually induced to satisfy customer services (Maier, 2016).
 Two stars: These consist of restaurant that requires some limited amount of requirement
as per necessity.
 One star: This kind of restaurant has involved major level of improvements that is
induced as per accordance to time.
 0 Star: It includes that service provide as at where there is an urgent requirement of
improvements.
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In the terms of Fortune Foods UK LTD, restaurant is four star rating they provide good hygiene
and good quality of food and beverage. Customer of Fortune Foods UK LTD is quite satisfied
with their services they offer to them. Because of extraordinary comfort level customers stay
loyal to the restaurant and enjoy their food and beverage (Merkle and Lewis, 2016).
P3)Discuss the current and future trends affecting food and beverage businesses
Current trends affecting businesses of food and beverage:
In current scenario there are various trends affecting the businesses of food and beverage.
Because of pandemic situation in overall world customers are focused on more safety and
hygiene needs from restaurant and hotels. Customers are more concern about restaurant's
hygiene maintenance; they prefer more safety over more quality. Furthermore, customers wants
healthy and organic food and drinks for healthy life style, they reduce eating fast food and
beverages. Food and beverage business are affecting because of these trends now they are
focusing on hygiene maintenance for customer safety rather than other factors. To fulfil
customer's hygiene and safety needs food and beverage businesses can start take away system in
their restaurants (Miglietta, Battisti and Campanella, 2017). That could help restaurant business
to increase customer satisfaction. However, they also can start serving their customer's healthy
meals in their existing menu so that customer who wants healthy food can buy it. Thus food and
beverage industry are affecting from current trends in market, they should focus on hygiene and
safety more than other factors.
Future trends affecting businesses of food and beverage:
In food and beverage industry there are many future trends are in market. Restaurants are
using innovative ideas for their businesses like using of robot waiters, fusion cooking, and
mobile phone as a menu card. These trends are affecting the businesses of food market, customer
attracts to innovative services, and they want app based service for saving the time limits. Many
restaurants are opening voice activated services by using latest technology. Furthermore, there is
also safe cooking from home trend in some restaurant so that it could give employment to the
works that cannot come to restaurants for employment. Thus, these are future trends are very
important for the food and beverage businesses to increase customer loyalty and profitability.
They can use these trends to attract customers towards to their restaurant or hotel (Muteshi and
Awino, 2018).
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TASK 2
Covered in PPt
TASK 3
P6) Compare and contrast different operational and marketing technology for a range of different
types of food and beverage businesses
The food and beverage is a sector that has worked on to enhance the profitability and
long terms sustainability in terms of sale and profit credibility. It provides higher benefits to the
business as in terms of social connectedness with the people. In relation to a hospitality
management programme a new start up is launched that is worked for to gain higher sales and
attain long term sustainability in productive manner (Couto and et. al., 2017). The name of start
up business is “BoogyWoggy” restaurant and it provide better services in terms of cuisine and
better drinks so that attractiveness of business is increases over continuous period of time. In
addition business makes sure that modified level of changes is addressed as per the requirement
of marketplace so that effectiveness among working is enhanced on regular basis. There is a
difference in between operational and marketing technologies that is as furthermore explained
below as:
Operational Technologies Marketing technologies
 “BoogyWoggy” make supportive
usage of different software through
which easy connectedness with the
customer’s is getting advanced. In
this they have develop their own
portal and application at where
various options and discount is
offered to customer so that they get
flexible with the business for
example point of sales system.
 In support of online applications
customers are able to book their table
and services before time and that is
 “BoogyWoggy” has uses different
marketing technologies so that
productive amount of changes and
alteration is processed in terms of
customer’s attraction.
 In this sufficient level of
modification is induced and for this
usage of digital platform and
applications, portals, search engine
optimisation and other basis also
considerate. For example mobile
technology.
 In this ability of business to provide
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processed by just one click. For
instance payment technology.
 It improvises the sales and profit
ratio of business under which
effectual monitoring and controlling
is addressed systematically.
 The support of operational
technologies “BoogyWoggy” is able
to maintain long term record of its
sales and customer relatedness.
 It also assist to make better changes
as by considering it with its
competitor so that ability to attain
more profit within timely basis is
increases on repetitive mode.
clarity among potential customer’s
or to get attract more of customer’s
is enhanced and for this probability
of business to gain success is
increases (Donnelly, 2016). For this
social media platforms are used as
Facebook, Twitter etc.
 It is an effective tool under which
working sufficiency is increases and
with this managers of
“BoogyWoggy” make sure that
selective content is promoted within
the marketplace that make easy for
customer to get recognise and match
up their demand and requirement
with business supply. For instance,
managed food delivery system.
TASK 4
P7) Investigate the factors that influence the consumers’ decision on which food and beverage
outlets they choose
The consumer decision making is always be a special working aspect for Fortune Foods
Ltd as in this ability of customer’s is increases so that better connectedness is induced with
perfection. In this ability to get connect with marketplace as those are in range or reach and with
those as well who are not in reach. In this working potential and its share both get advanced by
making systematic improvement. There are different factor that is required to considerate by
food and beverage outlet and it is as explained below as: Qualitative product and service: It is a service that is most essential for the business as in
this productive supply and delivery of services and goods is processed by managing
certainty. It is an aspect that comes in parallel to timely services as it also having direct
impact over increment of sales and profit of business. It this Fortune Foods Ltd make a
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preference to satisfy most of its customer’s as by making and processing timely delivery
so that rate of effectiveness is increases (Dsouza, 2020). It brings better competitive
advantages within which specified amount of profit is addressed so that long term growth
is measured with effectiveness. Physical Environment: It is an environment under which requirement and demand of
customer’s is considerate. In has suitable impact over the customer’s presence and its
efficiency under which they get easily connect with marketplace in easier manner. In this
balanced desire of potential customers are fulfilled by the business. It furthermore,
promotes tangible benefits under which productive amount of changes is addressed in
selective basis. In this physical surrounding is also considerate that consist
communication methods, personal equipments, effectual understanding of marketplace by
which suitable services and its delivery is processed with perfection.
 Word-Mouth marketing: It is a basis under which Fortune Foods Ltd has design its
promotion in ordinate manner. It is also being used to spread more awareness within the
marketplace as by managing clear communication channel. It is a part of marketing at
where business has maintain clear focus about to satisfy most of customer’s and try to
show their concern so that suitable connection is developed that promote working
standards and values of business (Han and et. al., 2019).
These are different prospect that is followed by Fortune Foods Ltd in order to promote its
services in effective and efficient manner.
There are different factors that influence decision making process of Fortune Foods Ltd
that is as explained below as:
 Certainty: There is a different decision that is developed as per gaining of enough
information that is based on certain outcome. In this manager maintain clear alternatives
about to acknowledge varied conditions and consequences that is changes as per actions
under which possibility of decision making is affected.
 Risk: It is understand by managerial department of Fortune Foods Ltd by which several
decisions are in taken so as to maintain lead as per attaining awareness towards varied
consequences.
 Uncertainty: It reflects the rate and probability that is resulted into an unknown prospect
as with this reasonable framework is offered that affect decision making of business. As
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it involve defining, identification, development, analysis and implementation of decision
and its alternative as per suitability.
P8) Analyse strategies used in a range of food and beverage outlets to attract and build a loyal
customer base
To develop loyal customer’s base it is essential that business has induce various ideas and
thoughts so that sustained and long term relationship with the customer’s is developed. In this
cost modification is considerate and under which balanced level of improvements is considerate
so that long term effectiveness is achieved with higher suitability. In order to attract more of
customers business has worked over to reduce total production cost so that rate of profitability is
increases in ordinate manner. There are a different strategy that is used by food and beverages
operator which is as furthermore explained below as: Special discount/ offers: It is an aspect that is used by business while providing better
benefits to the customer’s. In this operator has offer various discount and offers so that
attraction of customer’s and market accessibility is increases over repetitive basis. It
induces better sales under which substantial outcome is attained with perfection. In this
willingness of customer’s also get increases under which loyal and potential customer’s
base is developed with perfection (Knollenberg and et. al., 2020). It is a best and most
suitable solution to get related with marketplace and a kind of promotional strategies so
that productive outcome is considerate within timely basis. Quality services: In this business has worked on to enhance its quality and taste so that
customer’s effectiveness is increases. It is required prospect and for this profitable service
is promoted as by considering price and cost. In this business value, image, attribute and
reputation both get enhanced. To grab attention of general public it is required that
balanced level of attraction is increases and for this development of loyal customer base
is also enhanced on regular period of time.
Factors which
effect
McDonalds Burger King
Special offers McDonalds provide special offers as
buy one get one for $1 in deal as with
Big Mac, Quarter pounder with cheese,
Filet-O-fish, Chicken McNuggets (10
They are offered Egg burger combo,
Chicken burger combo, flat 60% to
new users and free delivery at about
9

piece) etc. Rs 299.
Loyalty schemes The loyalty program claims the loyalty
program that is implemented within
brands or in mobile applications. It is
based on customer designed that
leverage individual consumer data to
offer higher target.
BURGER KING rewards has a
loyalty program as of participating
restaurants as with this customers
gain 7BK that redeemed for free food
and beverages.
Promotions They make use of advertisement with
usage of notable tactics that is
corporate with TV, radio, print media
along with discount coupons and
freebies in bundle.
Burger king promote advertising to
promote its goods and services and
for that print media and TV
promotion is used.
Payment systems McDonald’s has uses an electronic
system that assist to customer pay in
order to induce cash free keytag that is
developed as by Mobil gas stations.
They offer varied range of mobile
payment as customer uses scan or
QR code that registered to drive
window.
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CONCLUSION
It is concluded from above report, food and beverage industry is fully examine fulfilment
of needs and wants of relevant customers. So for this, many types of businesses are analysed in
this firm and also made grouping system for getting ratings about firm. In addition, it also
analyse current and future style for maintaining better working environment. Furthermore, it also
includes professional management skills and legal standards which are required to organisation
outlets. In addition, observations, inspections and so on are considered to analyse decision
making for consumers and different strategies are also discussed to attract more and more
buyers.
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REFERENCES
Books and Journals
Bloom, J.D., and et. al., 2020. Food and beverage item identification and tracking device and
system for improving supply chain logistical operations and inventory management.
U.S. Patent Application 16/565,391.
Borovčanin, D. and Kilibarda, N., 2020. Assuring good food handling practices in hospitality,
financial costs and employees’ attitudes: A case study from Serbia. Scientific journal"
Meat Technology". 61(1).pp.82-94.
Chen, X. and Voigt, T., 2020. Implementation of the Manufacturing Execution System in the
food and beverage industry. Journal of Food Engineering. 278. p.109932.
Couto, C.A., and et. al., 2017, September. Managing Enterprise Resource System (ERP) and
Balanced Scorecard (BSC) in Food Industry in Brazil-Food and Beverage Products: A
Multiple Case Study. In IFIP International Conference on Advances in Production
Management Systems (pp. 99-104). Springer, Cham.
Donnelly, P., 2016. Managing 8 Venue Operations for a Newly Opened PAC. Performing Arts
Center Management, p.142.
Dsouza, A., 2020. Managing Food Loss and Food Waste in the Supply Chain (Doctoral
dissertation, Arizona State University).
Han, H., and et. al., 2019. Role of airline food quality, price reasonableness, image, satisfaction,
and attachment in building re-flying intention. International Journal of Hospitality
Management. 80.p.91-100.
Knollenberg, W., and et. al., 2020. Creating Competitive Advantage for Food Tourism
Destinations Through Food and Beverage Experiences. Tourism Planning &
Development, pp.1-19.
Lodolo, E.J., 2020. Sustainability through Management of Water, Process and Product Hygiene
on Food and Beverage Sites. Journal of the American Society of Brewing
Chemists. 78(1). pp.1-15.
Maier, T.A., 2016. Convention hotel food and beverage operating efficiency profile. Journal of
Foodservice Business Research.19(5). pp.514-524.
Merkle, T. and Lewis, R.A., 2016. Managing food safety in airline catering in an emerging
market: The case of lsg chefs são paulo. International CHRIE.
Miglietta, N., Battisti, E. and Campanella, F., 2017. Value maximization and open innovation in
food and beverage industry: evidence from US market. British Food Journal.
Muteshi, D.C. and Awino, Z.B., 2018. Strategic alliances and performance of food and beverage
manufacturing companies in Kenya. DBA Africa Management Review.8(1).
Najafi, A., 2019. Comparison between staff outsourcing and in-house staffing in food and
beverage operations at hotel Kämp.
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