Managing Food & Beverage Operations: Types of Businesses, Rating Systems, and Current/Future Trends

This report discusses the various types of businesses in the food and beverage industry, different rating systems used, and current/future trends that influence the business. It also compares and contrasts operational and marketing technologies for different types of businesses. The report focuses on WOW Food And Drinks, a food and beverages company in London, UK.

Unit 6: Managing Food &
Beverage Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Various types of businesses in food and beverage industry.................................................1
P2. Different rating systems used in this industry.......................................................................5
P3. Current and future trends which influence the business.......................................................6
TASK 2............................................................................................................................................7
Covered in PPT...........................................................................................................................7
TASK 3............................................................................................................................................7
P6. Compare and contrast various operational and marketing technology for different types of
business.......................................................................................................................................7
TASK 4............................................................................................................................................8
P7. Various factors which influence the decision making of consumers....................................8
P8. Different strategies used in order to attract and build loyal customer base..........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Food and beverages is known as one of the prominent and large industry which is
providing immense opportunities for job to various sectors. This sector is associated with various
activities which provides rights to their staff of purchasing raw material, preparing food,
managing quality in services, management of events and many more (Davis, B and et. al., 2018).
Besides this, this recognises outcomes of the business on which future policies can be decided.
The prominent goal of this sector is to attain good quality food services in significant manner.
This report is based on WOW Food And Drinks, which is food and beverages company
established in London UK. This report is covering various aspect of food and beverage
organisation, various system of rating, future and existing trends, technologies used in marketing,
operational tactics and so on. Besides this the report enlightens managerial skills required by
food and beverages department in which legal standards are undertaken. In the last part of the
report various factors are discussed those are drawing high impact on decision making and
enhancing customer loyalty as well.
TASK 1
P1. Various types of businesses in food and beverage industry
Food and beverage industry is the important factor in the hospitality industry and has
wide variety of scope in order to earn maximum profit. In this industry, there are various types of
businesses which are mentioned as under:
Sector Description Advantages Disadvantages Example
Quick services These restaurants
are regarded as
fast food
restaurant in
which short menu
is being kept by
the owner and
fast service is
being
 These are
providing
affordable
rates
foods.
 These
businesses
providing
food in
 Quality
offered by
these
businesses
are quite
low.
 Food and
beverages
supplied
Subway
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emphasised.
These can be
associated with
providing take
away and drive
through facilities
by which at lower
time food can be
delivered to
customers. As the
menu of these
businesses are
small so they are
providing quick
menu such as
sandwiches,
burger and many
other.
early
manner
due to
which
time of
customer
can be
saved
(Insch and
Collier,
2016)
(Thomas
and et. al.,
2018) .
by these
businesses
are high in
calories
and fat.
Fine dinning These are
managed by
highly trained
chefs and
managerial
personnels. Under
these food is
being prepared by
them in order to
satisfy needs of
customers.
 These
businesses
provides
quality
and verity
of food.
 Fine
dinning
restaurants
are having
prominent
ambience.
 These are
higher in
prices as
high
customer
satisfactio
n is
rendered.
 High taxes
are
required
to be paid
in fine
Adam's restaurant
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dining.
Casual dinning These restaurants
are providing
three time meal in
affordable prices.
Franchise chain,
independent
restaurants are
includes in casual
dining.
 These are
working
in order to
boost
customer
satisfactio
n.
(Allaoui,
Guo and
Sarkis,
2019)
 These
businesses
are trying
ti manager
their cost
with
delivered
quality.
 Customer
repetition
is low in
these
businesses
as
customers
are prone
to try out
new
things.
 Continuou
s
innovation
is not
possible
which
leads in
diminishin
g
customers.
Divine Dine UK
Restaurant
Coffee shops These are
regarded informal
restaurant in
which sitting area
is given to
customer along
with desire bale
menu of
 Customer
can spend
their time
by
investing
low
amount of
money.
 Lesser
ventilation
Small area and
lesser choices for
sittings.
Costa coffee
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beverages.  These
places are
mood
refreshing
for
visitors.
Juice and
smoothie stalls
These business
are providing
fresh juices and
smoothies which
are made of
natural or
artificial
ingredients.
 Fresh
juices can
be
received
by
customers.
 These
businesses
uses eco-
friendly
preparatio
n
processes.
 Freshness
of juices is
not
certain.
 There is
no surety
of hygiene
(Serhan
and
Serhan,
2019).
Crussh
Buffets Under these
meals are placed
at public areas
and diners fill up
their plates
according to their
needs and desires.
 Availabilit
y of huge
options
 pocket
friendly
 Compromi
se in
quality.
 Options
are not
available
according
to
demands.
COSMO world
Buffet restaurant
Shopping centre
food mall
These are
established within
 These are
helpful for
 These are
costly as
Westfield London
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shopping centre
so as to give
leisure space of
visitors.
visitors to
relax after
tiring
shopping
experience
 These are
supported
with
variety of
food
which are
hyped by
customers.
rent of
malls are
quite
heavy.
 Only
hyped
food are
available
over malls
(Fukey,
2016).
P2. Different rating systems used in this industry
Safety of food is one of the prominent issue within food industry which is being handled
by chefs and managers (Mahidin, Mohd Saifudin and Othman, 2017). This is described as
hygiene and food services given by the company through which customer satisfaction can be
attained and with the help of feedbacks this can be determined. Impact over customer feedback is
determined by unsystematic policies due to which unhygienic environment can be created and
this may cause high negative effect over health of individual. On the other hand bad internal
environment can damage goodwill of the organisation in marketplace and negative implications
can be seen over profitability as well. In order to protect customer from any hazards food and
beverages industry is undertaking various safety measures within food preparation and guest
treatment so as to enhance quality of their services and food. Ratings are given to food
companies in which they are required to enhance these ratings by using various measures and
methods. For taking care of food safety, various measures are being taken by businesses these
are called rating system. By management of business various functions are executed in order to
meet standard of food. Within this industry ratings are given and on the basis of these ratings
visitors selects their own place for food. Star rating system is followed by most of the businesses
within food and beverages industry. In the context of food and beverage industry, star system is
being explained as under:
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 1 Star: Under this guests are expecting properly managed accommodation in which
significant facilities are provided (de Oliveira, 2020). Various elements are included in
this such as storage space, door locking, parking facilities, ventilation etc. For instance
Central hotel is an one star hotel which is situated in UK. 2 Stars: These are considered as mid range accommodation provider and provides
enhanced level of services to their customer as compared to one star. For example,
Greenville Hotel is two star hotel (Mabandla and Makoni, 2019). 3 Stars: These are offering huge services along with attached amenities such as furniture,
mattresses and many more. These organisations are providing average services to their
customers. For instance London House Hotel is regarded as Three stars. 4 Stars: These describe additional quality in which various prominent services are also
being rendered such as laundry and valet services. For instance, Sunborn London is a
three star hotel.
 5 Stars: These business are offering luxurious services to their guests in which high
customer satisfaction can be given. For example Intercontinental Hotel is one of the
prominent 5 star hotel headquartered in UK.
P3. Current and future trends which influence the business
There are varied number of opportunities which are existed within food and beverages
industry. These trends are leading to attain customer satisfaction and customer involvement as
well. In the context of hospitality industry some of the current and future trends are listed below:
Current trends
Veganism
This trend is significantly followed by food and beverage industry in which those
products and process are being avoided those are obtaining any negative impact on animals. This
means veganism is a process in which several practices are adopted those are abstaining from use
of animal products. By adopting this process health of individual can be upgraded and resultantly
various benefits can be given to them through which healthy life style can be promoted.
Coffee culture
This is the trends of food and beverages industry that they are initiating keeping an area
specific for coffee. This enable customer to feel relaxed due to which customer retention can be
increased (Suratty, 2018). As customer turnover in food and beverages industry is high so in
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order to attain customer satisfaction this trend in helping them to achieve their goals and
objectives.
Future trends
Fusion cooking
As customers are prone to use new and innovative food items and for this businesses
under food and beverage industry is required to inculcate fusion cooking in their food items. In
the context of WOW food and drinks, they are involving fusion cooking in their menu in order to
grab more audience and to maintain market prominence as well. On the other hand fusion
cooking helps organisation to attract foodie people in which enable the business to set up new
goals and insight.
Touch screen technology
Customers are attracted towards those services and products in which innovations and
differentiation is used. In terms of current trend food and beverages industry is using touch
screen technology in which sitting on their tables orders can be placed by customers using touch
screen devices kept over there. Businesses those are tasting good and using innovative
technology are able to earn huge profit and market prominence as well (Kabir, 2019).
Thus these trends can be used by food and beverage industry in order to influence their
customer in such a way that positive outcome can be attained. On the other hand these trends are
helpful for businesses in attaining competitive edge and distinct position at marketplace.
TASK 2
Covered in PPT
TASK 3
P6. Compare and contrast various operational and marketing technology for different types of
business
Food and beverage department is contributing high in the context of profitability and
sustainable of hospitality industry (Graham, 2018). As in current time business meetings and
social events are increasing so this is providing more direct advantages to F&B department and
to the whole industry. A new start-up is being launched in London named Spicer treat which
provides novel foods and drinkable options. The industry of F&B is getting hype in recent times
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in which huge technologies is being used and customers are assisted towards marketing and other
operations. These elements are elaborated as under:
Operational Technologies Marketing technologies
There is a software which is used within
Spicer treat restaurant called tablet restaurant
software in which real and appropriate
reviews are being placed by customers
(Wallis, 2019). On the other hand with the
help of this software real order can be placed
by customers just by one click which provides
ease to customers. This software is helpful in
boosting sales of the organisation. In the
context of WOW food and beverages, this
software enable the management to undertake
record of employees those are involved in
food preparation by which any prominent
misconduct can be examined in early stage.
Besides this, the software enable the company
to regularise their policies and business ethics
through which proper management can be
rendered in most effective manner.
One of the prominent mistake made by a Food
and Beverage organisation is that they are not
having appropriate amount of funds in which
they cannot serve desired food to their
customers. There is an approach which can be
used by managers of Spicer treat in order to
manage their funds and expanses in such a way
that desired efficiency and productiveness can
be attained. Automatic purchasing tool can be
used by managers in order to get assistance
over process of purchase and expenditure.
Under this smart recommendations can be
received by manager which helps them to
forecast their quantity of sales and purchases in
order to minimise additional expenditure.
Under this manager can place automated order
so by which stock out situations can be avoided
and customer base can be enhanced. This is
helpful in enhancing effectiveness of
purchasing process by which various vendors
can be communicated at once in lesser time.
TASK 4
P7. Various factors which influence the decision making of consumers
In the process of decision making there are numerous factors which plays an essential role,
these are elaborated as under:
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 Quality of service: Service is regarded as one of the essential element which is related to
effectiveness of product or service delivery (Hill and Hill, 2017). Quality is considered as
another aspect which is highly influencing decision of customers. These are the attributes
which are associated with customer satisfaction and customer retention. These attributes
are helpful in making delivery process highly effective which enable the business
organisation to attain prominent competitive edge. Under this aspect, customer are having
proper role of receiving prominent amount of services which leads the customer to stick
on that particular brand or organisation but in absence of these services switching
chances of customer get increased. Physical Environment: This is regarded as the factor in which customer are existed
within service premises. This is the surrounding under which customers are staying and
attaining services as well. In the presence of friendly internal environment performance
of services get enhanced and positive implications can be seen over receiving customer
repetitiveness. In this regard surrounding, communication and other aspect plays
significant role in which prominent product or services can be delivered to customers.
 Word of Mouth: This is regarded as marketing technique which is used by all the service
industry and specifically food and beverage industry. This is defined as the
communication which involves passage of information in respect of personal opinion and
interpretation drawn by an individual to others. This element is related with customer
satisfaction and in this manner positive or negative word of mouth information can be
passed by customer to another one (ESarkis, 2017).
P8. Different strategies used in order to attract and build loyal customer base
Employees, managers and supervisors of the organisation are regularly trying to inhale
new and innovative ideas which helps the business to deal with cost and profit and attaining high
number of customers. As employees and manager of Spicer treat are working in the
organisation in order to attract huge number of customers so that to minimise cost and enhance
overall profit. Special offers: This is the most significant and influential aspect which can be used by
Spicer treat in order to pitch huge customers. This aspect is helpful in intensifying sales
and overall profitability of the organisation in shorter period as Spicer treat is a start-up
so for them making customer is highly required. For making more customer this is
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requisite by a start-up that potential offers are taken to the market so that customer can
compare offerings and prices in their needed manner. People are prone to opt for offered
prices so this approach is helpful for Spicer treat to assemble more customer in such a
way that they can amplify their customer base in their early stage (Rai and Ojha, 2018).
 Quality of food: This is desribed as quality of food provided in the given amount of
money. In this context, Spicer treat is a start -up so maintaining quality is their primal
responsibility because customer are keen to get higher quality products in comparability
lower prices. This enhances market reputation of the organisation and in this manner high
edge benefits can be received in making loyal customer in sufficient manner Pal,
(Gebregabiher and Singh, 2016)
CONCLUSION
From the above report this can be concluded that F&B department is one of the
prominent department within hospitality industry. This sector is working in order to provide
ultimate satisfaction to their customer in their opted services or products. Grading system is
helpful in meeting expectations and needs in optimal manner. In the current time future and
current trends are helpful in meeting organisational success and effectiveness together. These
terms are helpful within F&B industry to make profits and meeting business standards as well.
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REFERENCES
Books and Journals
Allaoui, H., Guo, Y. and Sarkis, J., 2019. Decision support for collaboration planning in
sustainable supply chains. Journal of Cleaner Production, 229, pp.761-774.
Davis, B and et. al., 2018. Food and beverage management. Routledge.
de Oliveira, M.G., 2020. Controlling costs and purchasing food. In Food and Society (pp. 447-
471). Academic Press.
Fukey, L.N., 2016. Qualitative Information Analysis on Managing Quality Service: Issues and
Challenges. Asian Journal of Social Sciences and Management Studies, 3(3), pp.163-
172.
Graham, A., 2018. Managing airports: An international perspective. Routledge.
Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
Education.
Insch, A. and Collier, A., 2016. 7 Food manufacturers’ adoption of eco-labels. A Stakeholder
Approach to Managing Food: Local, National, and Global Issues, p.88.
Kabir, T., 2019. Event Marketing Practices of Akij Food and Beverage Ltd.
Mabandla, N.Z. and Makoni, P.L., 2019. Working capital management and financial
performance: evidence from listed food and beverage companies in South
Africa. Academy of Accounting and Financial Studies Journal, 23(2), pp.1-10.
Mahidin, N., Mohd Saifudin, A. and Othman, S.N., 2017. Halal food logistics: the challenges
among food & beverages small and medium sizes manufacturers. International Journal
of Supply Chain Management (IJSCM), 6(3), pp.337-346.
Pal, M., Gebregabiher, W. and Singh, R.K., 2016. The role of hazard analysis critical control
point in food safety. Beverage & Food World, 43(4), p.34.
Rai, R. and Ojha, P., 2018. Role of Employee Engagement Measures in Managing Attrition: A
Study of Hospitality Industry. Amity Global HRM Review, 8.
Sarkis, J. ed., 2017. Greener manufacturing and operations: From design to delivery and back.
Routledge.
Serhan, M. and Serhan, C., 2019. The Impact of Food Service Attributes on Customer
Satisfaction in a Rural University Campus Environment. International Journal of Food
Science, 2019.
Suratty, D.H., 2018. MANAGING DEMAND GROWTH FOR HALAL FOOD. Fulfilling The
Trust: 50 Years Of Shaping Muslim Religious Life In Singapore, p.199.
Thomas and et. al., 2018. Smart Systems Implementation in UK Food Manufacturing
Companies: A Sustainability Perspective. Sustainability, 10(12), p.4693.
Wallis, T.L., Green Grubbox LLC, 2019. Reusable food or beverage related product
management system. U.S. Patent Application 16/271,177.
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