Managing Food & Beverage Operations

This report explores the different types of businesses in the food and beverage industry, rating systems used, and the impact of current and future trends. It also provides an overview of food and beverage outlets, the use of digital technology in operations and marketing, and strategies to promote products and services.

Unit 6: Managing
Food & Beverage
Operations
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART-A...........................................................................................................................................3
Different types of business within food and beverage industry..................................................3
Different rating system used in food and beverage industry at both national and international
level..............................................................................................................................................4
Analysis of impact of current and future trends on F&B industry..............................................5
PART-B...........................................................................................................................................6
Profile of each of the food and beverages services outlets..........................................................6
Differences and similarities between operational and marketing digital technology used by
business........................................................................................................................................7
The way business used digital operational and marketing tool to promote products and
services........................................................................................................................................8
Factors that influences and motivate customer decision making process...................................8
Strategies that are used in three different business in order to build loyal customers base.........9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Tourism and hospitality is one of the growing industries in London as large number of
tourist visitor came to London to spend their vacation or leisure time. It is further slip into two
parts such as food and beverage and accommodation that helps in satisfying needs of customers
in best possible manner. Management of food and beverage involves several activities right from
purchasing of material, preserving resources and preparing food and beverages so that people
have health, tasty and delicious food to eat and have fun at place outside from home. This report
is based on The FizzBang Beverage in London that aims to provide best soft and other drinks,
food to customers. It includes information related to different types of business, rating system
used nationally and internationally and the way current and future trends impacting on food and
beverage industry. It also covers comparative analysis of three food and beverage services
outlets, factors that impact on decision-making of customers and strategies that are used to attract
and build loyal customers.
PART-A
Different types of business within food and beverage industry
Food and beverage is a industry that provide several services related to food and
beverages so that requirements of customers can be satisfied. There are number of business in
food and beverage industry such as services, manufacturing, hybrid, sole proprietorship and
Limited Liability Corporation (Allman-Farinelli and et.al., 2019). Among them three are most
common business in food and Beverage industry that are illustrated below:
Sole proprietorship: It includes enterprises owned, managed and controll by single individual in
order to earn profit for itself and its family members. Single individual is only responsible for all
losses and gain of business as it has invested money.
Limited liability Corporation: It is type of business structure in which entrepreneur is not
personally liable for associated debts and liabilities of firm. It has characteristics of both sole
proprietorship and partnership firm thus it types of hybrid entities.
Partnership: When two or more group of people decide to start new business operations in order
to earn profit in particular ratio as specified before. They all have authority to take all major
decision of business as they have invested certain amount of money, time and efforts. Thus, they
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all contribute a share of their capital in business so that it can be smoothly operated (Del
Chiappa, Seijas Giménez and Zapata-Aguirre, 2017).
Restaurant: It is place at which food or meal is offered to people so that their respective needs
can be fulfilled in the best possible manner.
Fine dining: Full services' restaurant that offers high quality food with having specific rules of
dining or dress code which needs to be followed by staff members.
Street Food: In such type of restaurant ready to food is delivered by vendor to key people so that
it can earn revenue.
Coffee shop: These are small shops that offer varieties of coffee to people to drink so that they
can have fun and enjoyment.
Different rating system used in food and beverage industry at both national and
international level
Most of the people or tourist before selecting particular restaurant, food and beverage
companies evaluates or see rating in order to types and qualitative services provided by
respective firm in F&B. There are number of rating system that are used at both national and
international level in food and beverage industry such as Michelin star, scores on the door, AA
rosettes, star rating and 21st century system.
Michelin Stars: This is rating system which is now considered as hallmark for fine dining or
used to grade restaurants on the basis of qualitative services render by it to several number of
customers. The first starts represent “ very good restaurant”, second “ excellent cooking that is
worth a detour” and third state “exceptional cuisine that is worth a special journey (Zim and
Zahan, 2019). Getting Michelin star is not easy for any restaurants thus only awarded to
restaurants that have ensured quality of services while operating their respective functions.
Score on the Door: It is another type of rating system or websites that allows easy and quick
access, check to information about food hygiene rates in restaurants and pub. It find out the
whether hygienic has prospered managed or not while food have been prepared thus it rates in
terms of hygiene standard are very good, good, satisfactory, improvement need to be made,
major improvements or urgent important. So, on basis of all this rating individual are able to
select particular restaurants and food shops for enjoying their meals.
AA Rosettes: It is rating system that was founded by another company with an view to monitors
or inspect hotels and restaurants and scale them in range of 1-5. Thus usually 1 state- high local
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standard and 5 top restaurants in world. Approximately, 10% of restaurants that is over 2000 in
UK have one or more Rosettes so these are award instead of classification given to several
companies operating in food and beverage industry (Ramos and Castro, 2017).
21 century system: Trip advisor and Trivago are some application that rates several hotels,
restaurants so that customers can take accurate decision regarding particular hotels to choose for
fulfilment of their needs.
Star system: In this rating system star are given from ranging one to five which state highest to
lowest regarding quality of care and customer services provided by several organisation
operating their business in hospitality sector.
Analysis of impact of current and future trends on F&B industry
There are various current and future trends that are impacting adversely on growth and
sustainability of organisation that are operating in F&B industry. Covid-19 is one of the
pandemic situation that have brought threat on operation of business as people have become
more concerned about their health and safety. Customers are demanding robots, artificial
intelligence in restaurants and mobile check in services so there are numerous that are affecting
organisation. Some of them are discussed below as:
Customers want to purchase local fresh food: Now- a day’s most of the people want to have
fresh local food or more hygiene products for their better health. Fizz band beverage emphasis on
providing more organic, healthy and fresh foods, beverages to customers so that can feel happy
and satisfied (Liu, Zhu and Seuring, 2020).
Safety and Hygiene: People due to increasing number of disease across worldwide have become
more concerned about their health and safety. Thus they are demanding more hygiene and
organic food products for satisfaction of their needs. As per recent trend, company have also
taken all crucial safety measures so that no harm or threat can be caused to health of individuals.
Mobile check in services: Due to development and advancement in technologies customers are
demanding mobile check in services so they need not have to wait or stand in queue for taking
services of hotels.
Sustainability: People have become more aware and concerned about natural resources and
environment due to increasing pollution or wastage of resources by F&B industry. So, they want
to be with organisation that incorporates sustainability practices such as Fizz band beverage
while operating its functions.
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Contactless payment: Due to covid-19, people prefer firms that provide them option of mobile
payment or online or contactless payment so that they can stay safe and healthy for longer time
frame. Thus, Fizz band beverage has offered option of online payment to customers so that they
can get easily delivery of products at their home and enjoy their foods and beverage.
Future trends
On the basis of current trends in F&B industry it have been accepted that there will be
demand of all such services in future circumstances. Such as:
Mobile phone as room key: In hospitality industry, people wants to have mobile phone as their
room key so that they can easily lock and unlock rooms as per their conveniences and ease. They
want to make use of innovative technologies and personalised services to enjoy their leisure time
and money (Shangguan and et.al., 2019).
Robot waiters: People also started demanding robots waiters or more use of artificial
intelligences in F&B industry while delivering services to customers. As it contribute in quick,
effective and better deliver of services as per their expectancy.
Lifestyle/ healthy eating: Increasing number of diseases across worldwide have create demand
of health eating or more intake of organic products so there would be more demand of organic
food and beverages in near future.
PART-B
Profile of each of the food and beverages services outlets
Food and beverage outlets are areas at which different types of dishes, drinks or food are
served and sold to customers within hotels and restaurants. So there are number of outlets that
may or may not be present in particular hotels such as bar, multi cuisines, bar, room services,
family restaurants and banquets or cafeterias. Customers can enjoy food and beverage at all such
outlet presents in hotels so outline of three main food and beverage outlets present in hotel are:
Bars: It is outlets that have varieties of alcohol beverages for customers that are operated for
specific hours and various operation of its are strictly governed so that no harm can be caused to
others. Such as manager of Fizz band beverage ensure the hour, location of inventory and client
to whom it have been served as per strict rules and regulation.
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Family restaurants: It is place or outlet where group of individuals or family are invited to have
fun and tasty, delicious and healthy meal. It have elaborate menu that consist of number of
varieties of food and beverages so that people have number of option to select best dish for
satisfaction of their need (Ferrone, 2019). Modest furniture, casual atmosphere and mid prices is
set for family restaurants so that people can come with their family and enjoy their leisure time
by eating different dishes.
Banquets: These are mostly present in most of the restaurants and hotels which caters needs and
requirements of number of people that are assembled in banquet hall for having a party,
conferences or seminar. It is formal lunch or dinner and lot of guest needs to be served food in
limited time frame so it can be said that it is highest revenue generating operating of F&B outlet
in any hotel.
Differences and similarities between operational and marketing digital technology used
by business
It can be stated that operational digital technology that manage each and every function,
activities and process of organisation so that overall objectives can be attained. Difference in
operational and marketing technology in context of three different F&B outlets can be illustrated
as follow:
In Bar: Operational digital technology handles entire function of bars, ranging from acquiring
alcohol to serving it to customers. It helped in maintain records of data related to number of
client have intake type and varieties of alcohol and all rules have been followed or not and
services were delivered as per customers expectancy or not. While digital marketing technology
is used to promote services provided by bar in specific hotels so that more and more individuals
are motivated.
Family restaurants: In family restaurants, operational digital technology are used to ensure that
all ingredients are stored, preserved so that they can be immediately produced as per their
requirements. On the other hand digital marketing is used to promote family restaurants so that
families can come and have fun, entertainment.
Banquets: Marketing digital technology is used to promote banquet to businessman or
entrepreneur or individuals that are interest to have a wedding or birthday party. Whereas
Operation digital technology is used to ensures that all task, activities or resources have been
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well organised and arranged so that number of guest can be quick delivered food and beverages
in limited time (Khojasteh and Raja, 2017).
Similarities between operation and marketing digital technology are that both are used in
three different businesses to enhance customer’s satisfaction level so that it can enjoy more profit
margins. So, it can be stated that they are operational and marketing digital technologies ensure
quality of services in order to retained customers.
The way business used digital operational and marketing tool to promote products and
services
There are different ways in which business makes use of digital operational and
marketing tools to promote products and services to end users so that it can earn more profit
margin.
 Firstly manager understands needs and preferences of customers in order to decide
accurate digital operation or marketing tool that could be used or fruitful in motivating
individuals (Brownsword, 2019).
 Email or content marketing are another digital marketing tools that are used by manager
of bars, banquets and family restaurants to create awareness among people. It can also
make use of social media platform such as facebook, intragram to post videos, images so
that customers can be influences to select it as compared to others.
 It can make use of digital operation in collection of data, information related to diverse
individuals through online platform or social media. So that they can be influences as per
their needs, taste and preferences for benefits of business.
 Hubspots is marketing solution software that helped in attracting and retaining each and
every customer within organisation. It provides access to several tools such as email,
websites, blogging and social media.
So, all these are some way through which business makes use of digital marketing tools and
operation so that they can growth their operation.
Factors that influences and motivate customer decision making process
Customers are most important for any business as they generate sales and revenue by
purchasing specific products or services for satisfaction of their requirements. There are
numerous factors that influence customer’s behaviour such as psychological, social, culture
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personal and economical. Thus, it is responsibility of marketer to understand all such factors that
impact decision making of individuals such as:
Psychological factor: It includes elements like attitude, belief, learning, motivation level and
perception of individual that influences to select particular outlet for fulfilments of its needs.
Social factors: People live around many individuals such as their families, friends thus they try
to imitate or behave or look like them (Daskin, 2019). So, number of people in family, references
given by friend or group of individual’s impact on decision making of customers.
Culture: Each individual is associated to particular culture, ethical values and belief so there
culture and behaviour also contribute in taking effective decision regarding particular outlet.
Personal factors: Age, income, lifestyles and occupation are some key personal factors that
impact on selection of particular outlet by different customers living in society.
Strategies that are used in three different business in order to build loyal customers base
There are different strategies which have been used by different business to build loyal
customers so that company can enjoy high profit margin for longer run. Like bar have make use
of point system, family restaurants have provide discount offers and banquets have use asked for
feedback as well as discount offers to build loyal customers (Chen, Hussain and Low, 2020).
Advantage and disadvantages of each strategy used by three businesses is illustrated below:
Point system Discount Feedback and discount to
customers
Advantages
 Customers that visit
bar on regular basis are
given point on the
basis of that they can
purchase alcohol or
any other drinks.
Disadvantages
 It is too complex and
somewhat time
consuming process.
Advantages
 Company are happy
and satisfied or
motivated when they
are provided discounts.
So regular discount
helps in retaining
maximum customers.
So it increases sales
and profit.
Disadvantages
 Lower perceived value
Advantages
 Helps in improvement
of several functions of
organisation and better
services to customers.
Disadvantages
 Increase cost of
company as it has to
make improvement as
per feedback.
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and cut in profit
margin are two
limitations of discount
strategies (Chatterjee,
2019).
CONCLUSION
From the above report it can be concluded that there are drastic changes in hospitality and
tourism industry so manager needs to cope up with them all in order to promote growth of
enterprise. Good rating of hotels and restaurants help in attracting people from across worldwide
to have fun and enjoyment of qualitative services. At last it can be stated that different outlet
make use of different technologies and strategies to motivate and influences customers so that
they can be part of specific business.
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REFERENCES
Book and journals
Allman-Farinelli, M and et.al., 2019. A virtual reality food court to study meal choices in youth:
design and assessment of usability. JMIR formative research, 3(1), p.e12456.
Brownsword, R., 2019. Law, Technology and Society: Reimagining the Regulatory
Environment. Routledge.
Chatterjee, S., 2019. Explaining customer ratings and recommendations by combining qualitative
and quantitative user generated contents. Decision Support Systems, 119. pp.14-22.
Chen, R. Y. S., Hussain, K. and Low, C. K. L., 2020. Perception and preferences of hiring
managers. Worldwide Hospitality and Tourism Themes.
Daskin, M., 2019. The role of job satisfaction and intrinsic motivation on hygienic attitudes and
behaviours in fast-food restaurants. Tourism: An International Interdisciplinary
Journal, 67(1). pp.59-72.
Del Chiappa, G., Seijas Giménez, M. N. and Zapata-Aguirre, S., 2017. Travelers satisfaction
with food and beverage services in airports. Journal of Hospitality Marketing &
Management, 26(8), pp.829-845.
Ferrone, A., 2019. Digital marketing in the hospitality industry.
Khojasteh, M. and Raja, S., 2017. Agents of change: how immigrant-run ethnic food retailers
improve food environments. Journal of Hunger & Environmental Nutrition, 12(3).
pp.299-327.
Liu, Y., Zhu, Q. and Seuring, S., 2020. New technologies in operations and supply chains:
Implications for sustainability. International Journal of Production Economics, 229.
p.107889.
Ramos, Y. and Castro, A. O., 2017. Point-Of-Sales Systems in Food and Beverage Industry:
Efficient Technology and Its User Acceptance. Journal of Information Sciences and
Computing Technologies, 6(1), pp.582-591.
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Shangguan, S and et.al., 2019. A meta-analysis of food labeling effects on consumer diet
behaviors and industry practices. American Journal of Preventive Medicine, 56(2).
pp.300-314.
Zim, Z. S. and Zahan, M., Local versus global brands: The internationalization process in Food
and Beverage Industry.
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