Managing Food & Beverage Operations in the F&B Industry

This document provides an overview of managing food and beverage operations in the F&B industry. It covers different types of businesses, rating systems, current and future trends, and legal requirements. It also discusses professional food and beverage management skills and the impact of failing to meet legal and regulatory requirements.

Unit 6: Managing Food &
Beverage Operations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Different types of business in Food & Beverage Industry..........................................................3
Different rating systems in Food and beverage Industry.............................................................4
Current and future trends which affects the Food and Beverage Industry..................................5
Adaption to current and future trends to achieve the business objectives...................................6
LO 2.................................................................................................................................................7
Professional food and beverage management skills....................................................................7
Legal requirements and regulatory standards..............................................................................8
Importance of the legal requirements and the consequences of not following them...................8
Impact of failing to meet the F&B legal and regulatory requirements........................................9
LO 3 & LO 4....................................................................................................................................9
Food and Beverage service outlets..............................................................................................9
Similarities and difference between the operational and marketing digital technology............10
Critical evaluation of the ways the businesses use the digital operational and marketing tools
...................................................................................................................................................12
Factors that influence the consumer decision making process..................................................12
Critical evaluation of strategies used for increasing customer base..........................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Food and beverage industry has become the largest manufacturing sector in UK which
contributes greatly to the economy and also in employing jobs to millions of people. The market
of food and beverage is always uncertain but the industry always remain resilient and adaptable
as they are having wider opportunities which allows the companies to sell the British food and
drink. This is why the companies strive hard to make use of all the opportunities to enhance their
productivity and the growth potential (Tourky and et.al., 2020). Farmstand is a plant-powered
cloud catering marketplace. The mission of the company is to feed the world plants along with
reinventing the way of eating followed by people at various places. It is helping a large
population of UK by delivering the food at different places and also have numerous canteens
(Farmstand, plant powered people, 2020). The report will basically describe all the aspects of
Food and Beverage Industry including various businesses, rating systems, trends along with the
service outlets marketing through digital technology, consumer decision making process and the
strategies as well. It will also evaluate the management skills, legal requirements and the impact
of all these factors on the operational performance.
LO 1
Different types of business in Food & Beverage Industry
Food and Beverage Industry is contributing a lot in terms of profit in the hospitality
industry. The food and beverage professionals works with full hard work and dedication to
enhance the experience of the customers by delivering their service. The businesses in the food
and beverage industry serves the food to the customers at particular location such as restaurant,
hotel which is known as on premise and if it is delivered at the intended premise of customers
then it is off-premise (Long, Looijen and Blok, 2018). Farmstand is the on premise as well as
off-premise restaurant which facilitates the customers coming at the place also who are at remote
location and orders from their place. The types of businesses in the F&B industry are as follows:
Commercial: In this case of commercial type, the F&B is considered as the primary business.
The most common and well-known establishments in commercial catering includes all the
hotels, different kinds of restaurants, cafeterias, clubs, pubs, lounges and bars. These are
basically established to attract the large number of clients and customers in order to increase the
customer base and profitability (Triguero, Fernández and Sáez-Martinez, 2018). Farmstand in
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UK, in order to satisfy the customers, provide large number of choices which can help it to make
itself differentiated and becomes able to compete with the competitors (Mansour and et.al.,
2019).
Non-Commercial: These are considered as the secondary businesses which is in alliance with
the main or primary business. But these business offers very limited choice in terms of food and
beverages to the customers. These are mostly run under various contracts (Bresciani, 2017). The
services of food and beverage which are provided at the hostels, hospitals, prisons etc. comes
under these businesses.
These can further be divided into following classifications which are as follows:
Catering: This is the business under which the food and beverage services are provided to the
people at remote location. For example, the arrangement of food services at a wedding location.
QSR: These Quick Service Restaurants are mainly the fast food outlets where the preparing,
purchasing and consuming the food takes place. The main thing about this is they run according
to their convenience. For example, McDonalds and Nandos (Köbnick, Velu and McFarlane,
2020).
FSR: These full service restaurants are the fine dining, family, ethnic, specialty and theme
restaurants which meets the high expectations of the customers by giving wide menu.
Farmstand performs all the above mentioned functions of different businesses in order to satisfy
the needs of maximum customers. It plays the role of QSR sometimes and sometimes FSR while
the other times some other.
Different rating systems in Food and beverage Industry
Food safety has become a significant issue throughout the food chain from the farm to the
consumer’s fork which must be considered for every business in F&B industry in UK. In order to
meet the Food and Safety standards, Farmstand implements the Food Safety Management
System (Salim and et.al., 2018). Also, the company follows the Safer Food Better Business
(SFBB) under which the small business units and the restaurants are approached and facilitated
by ensuring that the food prepared in the unit is prepared by following the guidelines of food
safety management schemes.
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The company also adopts the Food hygiene rating scheme which rates the companies on the
basis of hygiene standards. The highest score given by this is 5. Also, Farmstand use various
Food Rating Schemes such as SFBB, HACCP and scores on the doors. Under the score on the
doors scheme, the consumers are allowed to select the places from where they can buy the food
to eat. These set some standards according to the latest inspections of food hygiene. The
consumer can also check the ratings of others and can rate through the star rating system adopted
by the companies (The food hygiene rating system, 2020).
HACCP mainly focuses on the chemical, biological and physical dangers to inspect the food
rather than inspecting the final food. The company needs the approval of HACCP to ensure the
better safety of food and the enhanced awareness about the business.
Current and future trends which affects the Food and Beverage Industry
Current trends
Buy Local
Consumers are more preferring the fresh and local foods by concerning about the climate
change as they choose brands which has a clear sustainability vision. For this, the company must
reduce the carbon emissions having link with climate change.
Zero waste
Consumers started thinking of helping the planet. For this, the companies take zero waste
initiatives by banning the disposable straws, single use coffee cups of plastic, plastic water
bottles.
Free-from foods
The consumers of UK want to avoid the allergens and irritants by consuming the free-
from foods such as dairy free and gluten free. For this, Farmstand also focus on producing these
products to attract large number of customers (Top 10 Food and Beverage Industry Trends for
2020, 2019).
Mindful eating
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It was observed that the consumers in UK want safe, high-quality and ethical choices.
This forces the restaurants to label their products with branded names which demonstrates their
commitment to quality. This attract the mindful shoppers who seek nutritious and ethically
sourced foods.
Future trends
Meat free
After observing the current conditions in UK, it can be analysed that the choice of the
consumers is shifting from non-vegan to vegetarian, vegan and cruelty-free options (Boelsen-
Robinson and et.al., 2020). The vegans of UK are avoiding the animal products which
categorizes them into flexitarians which means they are avoiding meat for some days. So,
Farmstand must introduce meat-free products and display the product’s traceability details on the
website or the packaging.
Instagram-able meals
It can be identified that due to rapid advancement in the technology, the people are
depended on the digital platforms which forces the companies in F&B industry to influence the
public through the colourful and interesting pictures of the food and drinks posted on the online
platforms.
Adaption to current and future trends to achieve the business objectives
 The main aim of the companies in Food & Beverage industry is to satisfy the needs of the
customers by adapting themselves and its products and services according to the current and
future trends. The companies also choose local distributors focused on the sustainability.
 Farmstand also adopts the sustainability standards in all the processes like packaging and
transportation which attracts the customers who are environment friendly.
 The company is also thinking about the ways in which it can offset or reduce the emissions
of greenhouse gas and the ways in which the single-use plastics can be replaced by the eco-
friendly or compostable packing materials (Food and Beverage Services- Basics, 2020).
 The company chooses the dairy and meat suppliers who tries to meet the high animal welfare
standards.
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 Farmstand needs to clarify and simplify the labels of food freshness.
 The restaurant must also make investment in advanced technology which can help in
measuring and minimizing the waste throughout the processes.
 Also, the company must choose those suppliers who focus on the transparency and
traceability.
 In order to increase the online presence, the company must also monitor its social sites and
adjust its supply chain so that it can earn large profit before the popular ingredients become
scarce.
 Farmstand also lays emphasis on avoiding cross contamination with the allergens in the
products which are free-form.
LO 2
Professional food and beverage management skills
The major management skills needed for food and beverage operations are leading and
communication. The role is to manage the operations within the budget and manage them the
highest standards (Spence and Wang, 2017). Also, its responsibility is to lead the team of F&B in
order to attract, recruit, train and appraise the talented personnel. The skills needed to perform
these roles are the communication and leadership skills, ability to manage personnel and meeting
the financial targets, ability to spot and resolve problems etc. (Food and Beverage Manager job
description,2020).
The famous dish in Farmstand is the grilled harissa chicken.
Composition: It is plump with a high quality. In this dish, the pairing of cinnamon-roasted
heritage carrots with raw Romanesco cauliflower is done and also peppered with mustard seeds.
Generous portions are served to the customers.
Decoration: Olive oil and herbs to couscous and toss to coat. It is divided evenly between 4
serving plates, topped with chicken and Harissa drizzle (Square Meal Review of Farmstand,
2020).
Display: It is served on trays in compostable packaging and everything is free of wheat, gluten
and dairy.
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Labelling: Every dish of Farmstand is labelled with its name ‘Farmstand’ along with its tissues
are labelled with the same.
Signage: Various frames are kept on the tables in the stalls of Farmstand which attracts the
customers and creates a sense of positivity in them.
Legal requirements and regulatory standards
Food standards Act 1999
The main aim behind following this act is to establish the company as the food standards
agency (Purpose of food law, 2020). It provides the company with various functions and powers
and also Farmstand becomes able to transfer certain functions according to the food safety and
standards. Under this the company ensures that it protects the public health relating to food (Cillo
and et.al., 2019). The Act gives the company the power to act in the favour of the interest of
consumers in every stage from the food production and supply chain.
Food safety Act 1990
It provides a complete framework to the company for all the food legislation. Under this,
the company tries that they do not include anything in food or remove anything from the food
which damages the health of the people. It serves the food according to the consumers’
expectations (Magnusson and et.al., 2019). The label, advertisement and the presentation of the
food is not at all false or misleading.
Importance of the legal requirements and the consequences of not following them
There are various laws and regulations which are imposed on the food and beverage
companies to minimize the harmful effects of unsafe foods. The laws allow the food businesses
to do whatever they can in order to assure that the product is safe. It also prohibits the businesses
from taking the actions which proves their product unsafe. It also gives commitment to the
consumers about the information they need regarding to make decisions. It also prohibits
businesses from providing the consumers with the misleading information (Key
8

regulations ,2018). The laws also assure that the consumers are having the complete opportunity
to get the information about nutrition, techniques for food preparation and many more. Though
the laws of food do not guarantee safe food, but it assures that the risk of unsafe food is very low
(Let’s nurture, 2020).
If the company do not follow these food safety laws and regulations, it cannot give commitment
to the customers which decreases the loyalty of the customers in the company. Also, the
company impose taxes on the company for not following the rules. It cannot confirm regarding
the transparency of its package and the label.
Impact of failing to meet the F&B legal and regulatory requirements
If the company does not follow the laws of the food safety, it cannot protect its consumers
against the fraud. It also cannot protect the consumers from intentional attacks on the food
system. The company needs to be compliant with the laws and guidelines of concerned
government and authority (Mahdewi and Banjarani, 2020). It is because the health of the humans
is depended on this. The companies come under certain sections according to the law they did
not follow which forces the company to pay various penalties for breaking the law. If the
company is found guilty of such offense under any of the acts, then the adjudicating officer
forces the company to take corrective measures in order to amend actions. This affects the
goodwill of the company (Consequences and penalties of non-compliance and FSSAI, 2020).
Various restrictions are made in the company to perform its operations which decreases the
productivity as well as the profitability of the company.
LO 3 & LO 4
Food and Beverage service outlets
In today’s emerging markets, the companies came up with various food and beverage
service outlets by providing wide range of food and drinks accessible to the customers (Food and
Beverage Services – Outlets, 2020).
Outlet Menu Ambience Service
Bars Light snacks with Relaxed atmosphere with Quicker service of
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broader menu of
alcohols and soft
drinks.
energetic music along with
colourful flashy lights.
cocktails, mocktails,
push-low seating and
snacks.
Cafeterias Less food options with
the short dining.
Mostly attached with
institutions or industries.
Low priced service along
with pre-plated.
Coffee shops The menu is short with
hot and cold drinks and
light meals (Nirino,
Miglietta and Salvi,
2019).
Ambience with light music
and moderate lighting.
Service is quick and
mid-priced in order to
make the customer
turnover high.
Family or
Casual
Dining
restaurants
The menu consists of
single or multiple
cuisines which changes
with respect to
operating hours.
Atmosphere is casual with
modest furniture.
Service is mid-priced
and assisted.
Ethnic
restaurants
The menus are very
specific such as Italian,
Chinese, Thai, Indian or
Mexican.
It follows particular theme
which is in line with the
interior decoration.
The theme also affects
the uniform and the
service ware and are also
according to the country
from where the food
originates.
Similarities and difference between the operational and marketing digital technology
The evolution of information technology has already changed the infrastructure, baseline
and the operations of every type of business in the Food and Beverage industry whether it is an
established restaurant or the individuals. It helps in developing new and innovative business
plans and also in designing the bridge to gap between physical world and virtual platforms
(Dunford and et.al., 2019).
The digital marketing is also an advertising technique which is used in delivering to the audience
through social media, digital advertisements, search engines, and applications. Marketing helps
in connecting the audience to the company’s brand, services or products which removes the
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problem of going directly to the audience as the company can go to the audience through internet
(Chen and Voigt, 2020).
Therefore, digital business is the approach or medium to use the digital technologies and the
relevant online platforms whereas digital marketing helps in providing the audience the best
possible taste of the services of the company through the mobile technology and internet.
Digital business mainly deals in interacting and negotiating between the things and the business.
All the tools of the digital marketing help in making the things started acting like the agents
themselves and which helps in changing the view of perception of the opportunities of business.
The technology is growing so rapidly which is adding values to the business models, experiences
of customers and the business’ internal capabilities (The food and drink industry, 2020). These
help in replacing the traditional methods of operations in producing different type of food and
beverages. For example: in the production operation the traditional method was to cook the food
using the pan but using the digital technology this task became much easier as the food can be
cooked on induction or heaters and also microwaves.
The main use of digital marketing is to interact between the target audience and the brand. This
became easier due to the emergence of AI which helps in building a broader scope in the digital
marketing due to the automation of the content (Driver and et.al., 2020). The Food and Beverage
company’s advertisements for which the customers surf the internet and the various online
platforms like YouTube, social networking sites such as Facebook, Instagram etc. or even
through the search engines such as SEO and SEM are considered as the digital marketing
solutions in the businesses of F&B industry.
Therefore, doing any work in the different departments in business is not digital business. This
can be obtained only when the plan is made by managers solely based on the technology and
internet. This is referred to as digital transformation in which disruptive technologies are used for
integrating the plans and the strategies to the paths of digital work and the economy for
producing the techniques of holistic business optimization (Köbnick, Velu and McFarlane,
2020).
So, the digital marketing is basically pool of tools, platforms and applications in order to conduct
the campaigns hyper efficiently which helps in creating awareness about the brand which in turn
helps in achieving the market bar which is set by the groups. This leads to real time interaction
by facilitating and encompassing the tools by the internet.
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Critical evaluation of the ways the businesses use the digital operational and marketing tools
There are various ways in which businesses in food and beverage industry uses the digital
tools in operations and marketing which are as follows:
 The restaurants must run a Facebook or an Instagram contest. This can be implemented
easily in increasing the exposure and the audience. In these contests, the audience gets
engaged in the social media profiles. Farmstand can use this by linking and sharing the page,
posting comments or introducing a caption on the images. This will force the customers to
give their feedbacks and also makes them feel valued. But on the other hand, they may not
prefer doing this due to security concerns and the fear of the personal information to be
leaked (Cornelsen and et.al., 2019).
 The companies use the way of promoting customer review videos through ads by engaging
the maximum number of customers to get the reviews. But the company must ensure that
these are promoted on the company’s official website only and also can be through other
platforms like Facebook and Google to reach to a larger audience. This makes the customers
more confident to make a purchase and this increases the customer loyalty. But sometimes
promoting through the other platforms can promote them rather than the company.
 Farmstand also implements the promoting by including the customer reviews on the websites
and the profiles of social media. As Farmstand is running a restaurant, it has its hand in the e-
commerce (Jagtap and Duong, 2019). It must ensure that they do not underestimate the value
which the customer reviews have. Individuals are attracted towards the positive feedbacks
which makes the online reputation better. On the other hand, the negative feedbacks can ruin
the reputation of the company greatly.
Factors that influence the consumer decision making process
Consumers mainly focus on three main attributes like quality, ambience and service in order to
choose for a restaurant. As the people of UK are becoming more diet conscious, the first thing
which the people of UK considers is whether the food is junk or not. This factor changes their
decision to consume that food or not.
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Figure 1: Model of consumer decision making
Source: Consumer decision making in restaurant selection, 2015
In order to analyse the consumer decision making process, EKB model was developed by Engel,
Kollat and Blackwell in 1973 for evaluating the factors which decides the consumer decision
making process which hinders or forces the decision of consumer to choose a particular
restaurant. Those factors are as follows:
Information present on the online platforms must be presentable so that the consumers can be
attracted by it. If the food and beverage products of a restaurant are of good quality and price, but
its online presence is not good than it becomes very difficult for the company to promote its
products. On the other hand, if the company’s products are not good enough, but its online
presence is up to the mark which was able to attract the customers then it can force the customers
to make a purchase (Czoli, Pauzé and Potvin Kent, 2020).
The customers’ decision can also be affected by the alternatives. For example, before making a
decision, the consumers find many options in which good quality product can be bought in less
prices. Therefore, the alternatives play a major role in the decisions of consumer.
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Critical evaluation of strategies used for increasing customer base
In the food and beverage industry, different businesses use different strategies to increase
the customer base. For example, the cafeterias and the restaurants use the strategy of enhancing
the online presence so that they can reach large number of customers. They also facilitate the
customers by delivering the products at the places they want whether it is home or somewhere
else. It has following advantages like lower cost of implementation, improved conversion rates,
trackable and measurable results, global reach and many more. On the other hand, proper skills
and trainings are required to implement this strategy. Also, it is time consuming and high
competition exists due to advanced technology (Whalen and et.al., 2018). There are various
security and privacy issues when the customers invest on the food and beverages through these
online platforms. But Farmstand strives hard to resolve all these issues and tries to establish it as
a leading restaurant in London.
CONCLUSION
The overall report focused on the food and beverage industry in UK. The company chosen
was Farmstand. The report explored the F&B industry and the different types of businesses in it,
its rating systems, current and future trends which affects the overall business. The report also
shed light on the management skills in F&B industry, the legal requirements and the overall
consequences of not adhering to laws and regulations related to food were mentioned. It also
evaluated the ways in which the food and beverage operations make use of the digital technology
to improve the efficiency of operations. Various service outlets were discussed along with the
operational and marketing digital technologies. Various factors were highlighted which
influences the consumer decision making process along with various strategies used by various
businesses.
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