Managing Food and Beverages Operations

This document discusses the different types of businesses within the food and beverage industry, the rating systems used, current and future trends affecting the industry, and how businesses adapt to these trends. It also provides insights into the profile of food and beverage service outlets and the use of digital technology in operations and marketing. Additionally, it explores the factors influencing customer decision-making and strategies for building a loyal customer base.

Unit 6: Managing
Food and Beverages
Operations

Table of Contents
INTRODUCTION......................................................................................................................3
Different types of business within F&BI...............................................................................3
Different rating system used in F&BI....................................................................................4
Current and future trends affecting business..........................................................................4
Analyzing how the trend affect the business product and service.........................................5
Critically evaluating how different type of business adapt future trend to meet goals of
business..................................................................................................................................5
Profile of each Food & beverage service outlets....................................................................6
Difference and similarities between operational and marketing digital technology used......7
Ways the business has used digital operational and marketing tools to promote their
product and services...............................................................................................................7
Factors that influence an affect the decision-making of customers.......................................8
Strategies used in three different businesses and building a loyal customer base.................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
Food and beverage management is the form of hospitality industry and it is also
focused upon daily food and beverage related operations. In the same way, current study is
also assist to improve the knowledge related to food and beverage operation. The study is
based upon The Oceanic hotel, which is a medium size hotel in the UK and attract range of
customers towards it by offering high quality of food product. The report will explain
different types of business operating within food and beverage industry (F&BI) and explain
different rating system used in this area. Also, study will compare and contrast different
operational and marketing technology for different types of business and how the factor
affect customer decision making process.
Different types of business within F&BI
There are different types of business working under food and beverage industry. Such
as:
 Restaurants: It is a business where food and drinks are prepared for the customers
and meals are also offered or served at the premises. On the other side most of the
restaurant offer take out and food delivery services as per a need of customers
(Köbnick, Velu and McFarlane, 2020).
 Catering business: It is another type of entity who offers food service to their
customers at remote site or at hotels, hospitals and parks with an aim to offer high
quality of food service to customers. It is also used in events such as wedding where
different variety of food is offered to a customers.
 Bar and Pubs: this type of business are also establish with a license in order to serve
alcohol beverage. Hence it is a short organization who mainly serves beverages
whether it is alcoholic or non-alcoholic.
 Hotels: It is a premises where people accommodate and they also provide different
types of food services to their customers (Raimo and et.al., 2020). It is consider the
highest revenue generating business under food and beverage industry because it
provide both types of facilities to their customers.

Different rating system used in F&BI
 Michelin star: This type of rating system indicates the restaurant is very good at its
service and quality. Under this, one start rating shows, a good restaurant while two
star signifies excellent cooking and 3 star means exceptional cuisine.
 Score on the Door: It is an official hygiene rating system provided by customers.
This also displays the results of regular inspection of food premises (ARICA and
SABBAĞ, 2020). In this score rating, customer share their views through software
and mobile application that assist to determine the performance manage their
compliance and compare with competitors.
 AA Rosettes: Another rating system which clearly signifies that quality standard of a
hotel for inspecting and rating accommodation. In this, star rating falls under 1 to 5 in
which different standard of quality for hotel is measured along with guest
accommodation and self-catering. Further, pennant rating also relies upon 1 to 5 in
which 1 refers to simple standard of facilities, while 2 means better level of facilities
and customer care (Memarzadeh and Anand, 2018). 3 refers to good standard with
well facilities and 4 refers to hotel attain extremely high standard in all areas. Last is 5
which is extremely high standard set in attractive surroundings.
 Star Rating: It assist to rate the questions which help to let people rating about the
services of hotels. It is varies from 5 to 10 stars and it assist others to identify which
hotel got high start ratings.
Current and future trends affecting business
Safety and Hygiene: It is the common current trend that affect the food and beverage
business. As due to pandemic, now visitors are highly concerned with safety and they also
expect the same with hotels. That is why, most of the hotels are performing different things in
order to attract range of customers.
Mobile check-in service: For the ease of a customer, business operating under F&BI
also start offering easy check-in facilities to their customers (Abdullah and Othman, 2019). In
the same way, The Oceanic Hotel also offer this facility in order to save their customer time.
Virtual Reality Tours: It is a future trend that affect the entire business, such that it is
a simulation of an existing location which is usually composed of a sequence of videos and

many images. Hence it may also use other multimedia elements such as sound and music that
exactly feel people to be in different country.
Personalisation: Now a days, hotels and the restaurant uses this current trend to
attract range of customers such that they design the interior in such a way that assist to meet
individual’s requirement. For example, online checking, asking customer requirement etc are
followed by hotel to fulfil the demand of guest.
Smart Hotels: Most of the hotels uses this trend in order to attract the customer.
Under this, they installed a system whose aim is to replace the registering to hotel, opening
door, changing airy system with a press button (Liu, Huang and Shih, 2018). Therefore, it is
reflected that an entire system is based upon mobile application that provide new
opportunities for improvement within the company.
Analyzing how the trend affect the business product and service
Current and future trend affect a F&BI in positive manner because the entire system is
based upon advance technology, which in turn assist to improve the overall operations in
positive manner. For example, during this pandemic time, The Oceanic Hotel also clean their
floors thrice in a week and make sure that proper sanitization facilities is available. On the
other hand, with the help of the smart hotel system the time of customer saves and they do
not have to wait in a queue in order to get proper registration (Zheng and Forgacs, 2017).
Therefore, it is clearly analysed that current and future trends increases the performance of
the business operating within food and beverage industry. Hence, most of the hotels uses
robotic system in which they guide visitors with regards to the visiting place in a specific area
which in turn reduce the burden of official staff members. Thus, it is analysed that food and
beverage business meet the business objectives by adhering with new and advance techniques
in effective manner.
Critically evaluating how business adapt future trend to meet goals of business
Most of the business operating within Food and beverage industry uses all the future
and current trend of the business. Such that the hotel uses smart system in order to provide
ease to their guest. However, it is critically analysed that the chances of security issues are
increases while implementing this new trend (Lestari, 2019). On the other side,
personalisation are mostly used in restaurant where they offer the product as per the need and

wants of customers. Also, Robotics and artificial intelligence is used in Pubs and restaurants
in which they serve a food products to their customers that assist to create positive impact
upon the business. Therefore, it is clearly examine that for every business, there is a different
requirement and to stay ahead in the competition, there is a need to comply with the same.
On the critically note, it is also examine that most of the hotel and restaurants are also
offer the food and beverage at home which clearly reflected that business are trying to
comply with new trend and offer the best services that assist to meet the set aim of a
companies (Schrock and et.al., 2019). In the same way, The Oceanic Hotel also uses smart
hotel system, contactless payments and local experience which assist to meet the objectives.
Profile of each Food & beverage service outlets
Outlet Menu Ambience Services
Bars Wide menu of soft
drinks, alcoholic
beverages and
snacks
Relaxed atmosphere
with energetic music
that provide positive
environment to
customers
Fast service of
cocktails and mock
tails, along with
snacks.
Cafeterias Short menu with less
food options and this
outlet following the
cyclic meal plan for
customers
Offer relaxed
atmosphere where
the customer read
their books, perform
job work without
any disturbance
Low price service as
compared to other
outlets in order to
attract customers.
Some cafeterias offer
self-plated service.
Coffee shops Small dining menu
with range of hot
and cold beverage,
offer light meals to
Offer light music
that provide a chill
atmosphere and
moderate lightening
as compared to
cafeterias
There is a high
customer turnover
with quick service
(Lydekaityte and
Tambo, 2016).
Nightclubs Only offer snacks
and beverage to their
customers
Well-furnished
interior and casual
atmosphere
Average price of
products along with
self-assisted service.
Food court Limited, but high
quality menu where
hot and cold,
beverages are also
served (Food and
Beverage Services-
outlets, 2020).
Along with this fast
meals cooked in
advance and kept
warm as well.
Catchy and trendy
furniture that pull
visitors.
Very light music
Speedy service, but
it offer minimum
personal attention to
customers. It is so
because customers
pick up a food and
beverage of their
choice and then sit in
a central dining area
as well.
Theme Restaurant Offer menu which is Architectural, Assisted service

based upon themes lighting and music
that provide a feel of
theme.
only.
Difference and similarities between operational and marketing digital technology used
Similarities: The business operating with food and beverage industry uses plastic free
disposals which do not cause negative impact upon an environment. Also, personalized and
special diets are also offers in range of business, which in turn assist to meet the demand of
customers. In addition to this, it is also analysed that technology assist the business to
produce more efficiently in order to grow the world population (MARITZ, BYRNE and
SIMON, 2018). Along with this, the technology also assist operations by ensuring that
business are offer food products at good quality and easily affordable to each other.
Differences: Operational technology help to deliver the best quality of food to
customers while on the other side marketing digital technology uses to promote the offered
food to their customers. Such that the hotel uses social media to encourage people to visit the
place on the other side, restaurants uses personalisation technique to fulfill the demand and
let customer know about the products. This in turn creates a direct impact upon the operations
of business that leads to meet defined objectives. Moreover, with the help of marketing
digital technology, most of the customers attracted towards business and increase the
performance level of a firm as well.
Ways the business has used digital operational and marketing tools to promote their product
and services
The Oceanic hotel has huge benefits from digital operation and marketing tools used
to buy them (Bresciani, S., 2017). They are using technology within their organization such
as automatic doors Anne windows that helps to satisfy customers and create good experience
for them. Similarly they have also used online room booking application where customers
can easily book their rooms and take services from Oceanic hotel this online technology not
only helped them too take customer loyalty but they can also grow their business and
generate higher Probability. To improve their quality of a food and services both they are
using trending technologies within the food and beverage industry that is helping them to take
competitive advantages. The Oceanic hotel has a experts in marketing team who uses
different digital marketing tools to promote company's product and services. They are
promoting product of the Oceanic hotel on the different online marketing platform through

marketing tools. They attract or target customers through the social media marketing because
it is one of the most effective marketing tool.
Elements that determine an affect the decision-making of customers
There are some elements that can influence the decision-making of the customers Ann
make them buy or not to buy a product and services. Here are some factors that influence
customer decision-making personal factors. The personal factor include social, Occupation
age Anne there status and also a gender of the customers. This can also affect the customers
decision-making to buy product and services (Potvin Kent and et. al., 2019) . If customary is
leaving lifestyle then they will prefer to go with the premium class hotel services.
Physiological factors
When it comes to physiological factors there are four important things that affect customers
buying a purchasing decisions. It includes perception, learning, believes an attitude of the
person. For example every customer have different beliefs an attitude, and they take decision
accordingly.
Social factors
Social factors can include the social status, groups and family. This factor to affect the buying
decision-making of the customers. For example – If customer is going to the vacation with
their family then they will always look for the hotels where the whole family can stay or
enjoy.
Customers Choice
Customers choice is also an decision making factors because company have to
develop product and services as per the customers demand and their choices and company
take decision accordingly.
Location
Location factors affect before if company have their location in urban area a then
decision will be according to the people live in that are and similarly with the rural area.
price

Price of the product affect the decision making of the customers, if the price is higher
as per their buying capacity then customers will deny buying.
Strategies that are used in 3 different businesses and constructing a customer loyalty base
Food and beverage (Hospitality)
One of the best strategy within a food and beverage hospitality industry to Build a customer
loyalty is that providing a fast services to customers (Caro and et.al., 2017). The Customer
will be loyal with the brand if they are getting a service is on time and with the quality. They
can also provide strategies like discounting the customers on their food product and services.
Retail industry
Within a retail industry customer loyalty can be built if a company gives quality in
their product with the differences. Customer in this industry always demand for the different
product and better quality. Most of the companies within the retail industry like TESCO use
the promotional activities like social media marketing. They advertise their product and
services in the market to attract customers.
Banking industry
Companies within a banking industry can build a customer loyalty if they provide a digital
facilities a first priority to the customers. This is how they can build trust among the
customers and take competitive advantages.
CONCLUSION
By summing up above report it has been concluded that there are range of business
run under F&BI such that pubs, bars, restaurants and the hotel. Also study summarized that
there are four types of rating system used by the industry such that AA Rosettes, Star Rating,
Score to the door and Michelin star and there are different criteria are set which help the
customer to rate the thing on the base of quality, standard and ambiance. Further study
concluded that by analysing the current and future trends, company applied the same such as
smart hotel, safety and hygiene, personalisation. Also, there are range of food and beverage
service outlet which have some difference as well as similarities.

REFERENCES
Books and Journals
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Köbnick, P., Velu, C. and McFarlane, D., 2020. Preparing for Industry 4.0: digital business
model innovation in the food and beverage industry. International Journal of
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Marketing and Physical Retailing. In Encyclopedia of Organizational Knowledge,
Administration, and Technology (pp. 2056-2069). IGI Global.
MARITZ, M., BYRNE, J.L. and SIMON, R., 2018. An Investigation into the use of the
Marketing Mix in the Food and Beverage Industry in Grahamstown, South Africa: An
Exploratory Study. The Bucharest University of Economic Studies Publishing House,
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Memarzadeh, F. and Anand, S., 2018. The Impact of Frequency of Stay on Business
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Schrock, G and et.al., 2019. Appetite for growth: Challenges to scale for food and beverage
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Spence, C., 2020. Food and beverage flavour pairing: A critical review of the literature. Food
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Online
Food and Beverage Services-outlets. 2020. [Online]. Available through: <
https://www.tutorialspoint.com/food_and_beverage_services/food_and_beverage_servi
ces_outlets.htm >.