Unit 6: Managing Food & Beverage Operations

Managing food and
beverage operations
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types of businesses within food and beverage industry profiling the chosen
organisation.................................................................................................................................3
P2 Different rating systems for food and beverage industry nationally as well as
internationally.............................................................................................................................6
P3 Current and Future trends affecting food and beverage industry..........................................7
LO2..................................................................................................................................................8
P4 And P5 Covered in power point presentation........................................................................8
LO3..................................................................................................................................................8
P6 Compare and Contrast different operational and marketing technology for range of
different types of food and beverage business............................................................................8
LO4..................................................................................................................................................9
P7 Factors influencing customers decision on which food and beverage outlet they choose.....9
P8 Strategies used in range of food and beverage to attract customers and built loyalty.........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals...................................................................................................................12
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INTRODUCTION
Food and beverage sector comes under hospitality industry which includes restaurants,
cafes, pubs and so on. This industry involves packaging, preparing, serving food and beverages
and so on. It is considered as the biggest category of consumption and needs the help of
agricultural sector. People's lifestyle has changed and now most of the consumers prefers to eat
outside and try various beverages. People living in urban areas prefers more to go in restaurants
and pubs in comparison with people living in rural areas. There are many sectors that are
involved in food and beverage industry like food retail, grocery supply, food services, dairy
products and so on. The main thing which comes under the category of food and beverages is
catering as well as hotels. The below analysis is based on Proof drinks restaurant, UK. (Raimo
and et.al,2020)
MAIN BODY
LO1
P1 Different types of businesses within food and beverage industry profiling the chosen
organisation.
There are various types of food and beverage businesses like cooperation, sole
proprietorship, manufacturing business, partnership and so on.
Type of business Meaning Advantages Disadvantages Example
Sole
Proprietorship
It is defined as
when a business
or organization
is owned by a
single member
only. It includes
small family
restaurants or a
family business.
This type of
business is really
easy to set up
and does not
involve much
cost as compared
to other
businesses.
The owner has
complete control
over business.
Investors do not
like to provide
funds for a small
business; they
mostly focus on
large chains of
organizations. As
the business if
started by a
single individual
only so all
responsibility
McCainFood Ltd
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regarding
organizations is
handled by them
only. Due to
more
responsibilities it
becomes
stressful for the
owner.
Partnership This type of
business is
started by two or
more individuals.
If a business
earns profit or
face losses then
it is shared
among both
individuals.
Partnership
businesses are
also easy to set
up and are not
expensive as
compared to
large chain
organizations. In
this type of
business there
are two or more
people and all are
not same, they
have different
skills, different
talents and
through this
many new ideas
come and
implied in the
organization.
As business is
started by more
than one
individual so
there many an
issue regarding
different ideas
like some may
like it and some
may not like it
due to which
many type of
disagreements
occur in an
organization and
at the same time
profits are also
shared between
all the people.
Burger king and
Mc Donalds
Cooperatives It means when a The major An organization
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business is
started by
multiple
individuals and
certain portions
are allotted to
every member
who has started
business.
advantage of
cooperative
business is that
they receive
discounts on all
sort of materials
and government
sponsors various
programs
through which
they get help to
initiate start up.
can achieve its
goals and be
successful only if
there is
cooperation
between all
members and if
any members
does not show
interest or does
not participate in
any activity or
make ideas then
it affects
business.
Brace’s Bakery
Limited liability
business
This business
includes both
advantages of
cooperation as
well as
partnership. This
business is
started for larger
organizations.
It includes less
paper work and
restrictions are
not put much on
profit sharing.
The organization
has to face
burden also
because members
can leave
organization at
any time so all
responsibilities
and burden
comes on them.
Rollsberg
There are different type of businesses like restaurant, coffee shops , bars and it is been explained
as below:- Restaurants:- It is defined as a place where people sit and eat different kind of meals
according to their wants. They serve food in their premises also but some restaurants
offer take away services also.
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 Bars:- It is considered as a drinking place where alcoholic as well as non alcoholic drinks
are also served. Bars are allowed only for specific age group like children are not allowed
in bars.
 Coffee shops:- It is a small cafe which offers mainly coffee like latte, cappuccino and so
on.
In context with Proof drinks restaurant it is a bar which offers various drinks in both alcoholic
and non alcoholic also.
P2 Different rating systems for food and beverage industry nationally as well as internationally.
Scores on the doors: - It is the rating system which involves ratings regarding hygiene and in
today’s world it matters the most. In UK, it was analysed that around 2.4 million cases were
there who went ill due to bad hygiene. Food hygiene rating systems implies where should people
go and eat or from where they should buy food products. There are many things which are
involved in scores of the doors like proper cleanliness in restaurants, all facilities should be there,
the kind of food quality they are providing, ventilation, physical condition of all hotels and so on.
There are many hygiene standards also which are rated like everything is perfect in hotel, some
kind of improvement should be there, necessary facilities should be upgraded and so on. (Long,
Looijen and Blok, 2018)
 AA Rosettes:- It refers to award rating system which is given to all luxury restaurants based
on their standards regarding quality and all hotels in UK gets an award starting from one
start till five star. The restaurants also receive merit % score so that it can be compared in
the better way than another restaurant. It is also considered as the trusted standards and
around 284 restaurants were ranked with 3 rosettes and above. There are various elements
which are considered for AA rosette award like services should be provided with proper
attention and all facilities should be according to the luxury restaurant.
 Star rating system:- This kind of rating system starts from one start to five stars. Star rating
is given according to hotel standards, qualities, cuisine and so on. In context with One star
rating, these hotels provide only basis facilities like a guest can get a room to sleep. This
rating system does not mean that hotels are not at all good or remain in a bad condition. Two
star rating system means customer can get better facilities than the facility which one star
hotel were providing and it is not expensive in comparison to higher rating restaurants.
Three star hotel provides various facilities and of good quality. (Weber. and Saunders-
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Hogberg, 2018) These hotels fulfils expectations of customers and located mostly near
airports so that tourists can get attracted to their services and like to stay in that hotel. Four
star hotels provided much more facilities like good quality bath products, television, towels
and so on. These hotels also include lounges, gym, services related to spas. Five star hotels
are the luxury ones and provide services like laundry, 24 hour room services, bars, free Wi-
Fi, spa facilities; Bluetooth enabled door locks and so on.
P3 Different current and future trends which affects food and beverage industry
By analysing the situation of 2020 and covid-19 that is being harmful for all the people
across world, there are many current trends that has an impact on restaurants and is also
initiated by them. Its a fact that all guests want advanced facilities, luxury services so there
are some future trends that restaurants can establish. The current and future trends are
explained as below:-
Current trends:- Contactless payments:- The trend that has initiated by restaurants are contactless payment
which means payment being done with the help of debit or credit cards, Google pay and so
on. As due to covid-19, people don’t shake hands with each other and close interaction is not
done so the facility of contact less payment started. It is also considered as a quick way to
make payments and has become the most famous and important trend among food and
beverage industry. (Kearns and Bero, 2019) Delivery at home: - Home delivery facility started by almost all restaurants because people
don’t want to go outside and sit in a restaurant or do human interaction so they just order
food online and receive their order which is a convenient facility for all the people. There
are also some people who is disabled and can’t go so this trend became very much
successful. Safety: - Health and safety is the most important thing on which food and beverage has
focused. This is considered as current trend because safety is the main thing to deal with
current situations. All restaurants have started to provide sanitizers, face masks so that
people feel while sitting in a hotel. Mobile check in service: - This service satisfies customer as they don’t have to wait at front
desk department. So, mobile check in as well as check-out services started almost by every
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restaurant. According to research, it is analysed that around 60% of guests prefers to go into
hotel where they can get the facility of mobile check-in as well as check-out.
 Voice search: - This facility is related to bookings in restaurant. Now, people can book a
restaurant with the help of smartphones and can research regarding hotels. (Triguero,
Fernández and Sáez-Martinez, 2018)
Future trends:- Robot waiters:- Everyone expects that new technologies should occur in every industry. In
case of food and beverage industry also , advanced technologies should be used. According
to the current time, there are employees who are working in restaurants but a future trend is
established where everything would be through robots. In case of proof drinks restaurant the
owner decided to apply robotic trend so that customers can get attracted to hotel. Fusion cooking:- This trend means as there are different type of cultures so according to
that tow or more items are combined together in order to attract tourists. In today's period,
fusion cooking is not in a trend but it is considered as a future trend in food and beverage
industry. (Asaithambi and et.al,2019) Room key through mobile phones:- In today’s world everything is done through
technologies, the world is becoming digital. So, a future trend has occurred where guests
would easily access room key through mobile phones. Almost all restaurants are accessing
this facility to provide full guests satisfaction, good experience and so on.
 Touch screen technology:- Food and beverage industry has decided a future trend of using
touch screen technology which will involve digital menus through which customers will not
have to touch paper, mobile order and pay and so on. Everything is done on a digital basis so
restaurants also decided to use such technologies which will improve their productivity.
LO2
P4 And P5 Covered in power point presentation.
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LO3
P6 Compare and Contrast different operational and marketing technology for range of different
types of food and beverage business. Flow through sortation:- It means to keep all stock of inventory a distribution centre is
opened which helps company in restocking shelves on the same day. Through this, high
availability of shelves are there and no handling is required for inventories and leads to
better customer satisfaction as quality of product also gets increased and business also grows
at a high level. Robotics:- In this type of technology everything is done in a digitalised way. Robotics is a
new technology that hotel industry introduced where everything would be done with the use
of robots rather than employees. All services are been offered with the help of Robot waiters
only. Less paper work:- No one want to waste papers so food and beverage industry establish the
concept of using touch screen technologies, everything is done through their tablets. If
customer wants to order food then they can simply order food through their smartphone and
no menu card is printed. (Tourky and et.al,2020)
 Flexibility:- In food and beverage industry, flexibility and adaptability is very much
necessary. Flexibility is a type of operational technology which has led to e-commerce
websites and has become a convenient thing for customers. Restaurants provide the facility
of delivering their orders wherever customer wants, at any time and what kind of food they
want to order. Through this their rating as well as their productivity also increased.
LO4
P7 Factors influencing customers decision on which food and beverage outlet they choose.
There are various factors that influence customer decision regarding all their food and
beverage outlets. It is explained as below:- Taste:- It is the most important factor that influence customer decision regarding their
choice or preferences of customers. Every individual has different taste preferences,
different choice regarding food and it all depends on their age, genetics and so on. Taste is
not only related to the food taste but also related to smell or presence of food. If an item is
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looking attractive then it would be preferred by most of the customers. (Salim and
et.al,2018) Culture:- All individuals don’t belong from same culture or tradition so they have their own
preferences of food. Some people like to consume only that item which they are eating since
their childhood but other may like to taste something new regarding other culture. It depends
on us what type of food we want to eat and it also depends on our own culture that we want
on a particular food item. When an individual change their home or go at another place
where there is a complete different culture then it influences their decisions regarding the
outlet they choose. Social support:- People living around us also impact our decisions regarding our
preferences and choices. If our family choice is that they only want healthy food then our
decision would also change because we our surrounded by them and habits will impact on
our choices. Economic status:- People economic status affects decisions of consumers regarding type of
food they want to eat. If a person belongs from low class families then won’t chose high cost
food outlets but if a person belongs from rich family then it won’t affect them. So, all
consumer decisions are affected regarding the food and beverage outlet they chose. Health:- Consumer decisions are affected by health of individuals because if they think that
they are healthy so they won’t pay attention on whatever type of food they are eating but at
the same time their preferences may change if they have any health issues then it will led to
impact on their decisions. (Salim, and et.al,2018)
 Stress:- This factor is considered as a psychological factor which impacts all consumer
decisions regarding their choice of food and beverage outlet. If a person is in stress then
some people don’t like to eat and some may eat more also so it affects their decisions also.
P8 Strategies used in range of food and beverage to attract customers and built loyalty.
There are many marketing strategies which hotel industries should follow. It is explained
as below:- Product packaging: - It is very important for food and beverage industries to manage proper
packaging of products. It is considered as a very important strategy of marketing because
customers gets attracted if packaging of products is properly done like design of menu card,
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presentation of food and so on. In case of Proof drinks restaurant, customers were mainly
happy because of the packaging services they were providing. Uniqueness in product: - A product should always unique from other beverage industry
products so that it becomes unique and customer gets attract to it. Through this customers
always have in their mind that they want to eat that particular product only. Digital marketing:- This strategy should be done by owners because in today’s world
everything is going digital so various facilities should be provided by restaurants so that
customers can get attracted by these marketing efforts put up by restaurant owners. Discounts, Offers: - To build customers loyalty the industry should provide various benefits
like discounts, offers and so on. When any guest receive discount they become happy and it
attract them through this company built loyalty. (Fabbriani and Calili, 2018) Social media: - When any customer gives feedback whether in a positive way or negative
way the industry should focus on that and perform regarding their surveys. Food and
beverage industry should always make its presence attractive while clicking pictures of their
food products or hotels it should be properly clicked.
 Word of mouth marketing:- It means when customers are satisfied with their services they
tell other people to try their products, as they are highly satisfied with all services related to
beverage industries.
CONCLUSION
According to the above analysis it is concluded that there are many types of businesses
which comes under the category of food and beverage industries. There are many restaurants
which are started by single owner only while others come under the category partnership or
cooperatives. There are many rating systems which are considered in evaluating hotels like one
star, two stars and till seven stars. In food and beverage industries many trends also got changed
due to covid-19 situation and is are also applying new trends for future aspects. There are many
consumers who belong from different regions, have different taste and preferences so it depends
on that what type of food they prefer. So, in food and beverage industry management make
various strategies in relation to operational as well as marketing strategies.
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REFERENCES
Books and Journals
Asaithambi, N., and et.al,2019. Hydrodynamic cavitation and its application in food and
beverage industry: A review. Journal of Food Process Engineering, 42(5), p.e13144.
Fabbriani, L. and Calili, R., 2018. Proposal of energy efficiency policies for food and beverage
industry in Brazil. Journal of Renewable and Sustainable Energy, 10(6), p.065903.
Kearns, C.E. and Bero, L.A., 2019. Conflicts of interest between the sugary food and beverage
industry and dental research organisations: time for reform. The Lancet, 394(10194),
pp.194-196.
Long, T.B., Looijen, A. and Blok, V., 2018. Critical success factors for the transition to business
models for sustainability in the food and beverage industry in the Netherlands. Journal of
cleaner production, 175, pp.82-95.
Raimo, N., and et.al,2020. Non-financial information and cost of equity capital: an empirical
analysis in the food and beverage industry. British Food Journal.
Salim, H.K., and et.al,2018. An investigation of the drivers, barriers, and incentives for
environmental management systems in the Malaysian food and beverage industry. Clean
Technologies and Environmental Policy, 20(3), pp.529-538.
Salim, H.K., and et.al,2018. Evaluating the organizational intention to implement an
Environmental Management System: evidence from the Indonesian food and beverage
industry. Business Strategy and the Environment, 27(8), pp.1385-1398.
Tourky, M., and et.al,2020. New conceptualization and measurement of corporate identity:
Evidence from UK food and beverage industry. Journal of Business Research, 109,
pp.595-606.
Triguero, A., Fernández, S. and Sáez-Martinez, F.J., 2018. Inbound open innovative strategies
and eco-innovation in the Spanish food and beverage industry. Sustainable Production
and consumption, 15, pp.49-64.
Weber, O. and Saunders-Hogberg, G., 2018. Water management and corporate social
performance in the food and beverage industry. Journal of cleaner production, 195,
pp.963-977.
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 REFERENCES
Books and Journals
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