Business Development Report: BHM202 Food and Beverage Management

This report presents a business plan for a health-focused food and beverage establishment, emphasizing the creation of toxin-free juices and snacks sourced from farm-fresh produce. The report covers various aspects of food and beverage management, including business objectives, a mission statement, and innovative concepts. It delves into market analysis, feasibility studies, and a SWOT analysis to evaluate the business's potential. The planning and design section outlines operational details, including service styles and a sample menu. The report also addresses purchasing, storage, production, and marketing strategies, including the application of the 7Ps. Staffing requirements and financial projections are also discussed, alongside quality management considerations and references. The report's executive summary encapsulates the key findings, emphasizing the unique selling points of the restaurant and its approach to the market.

Food and
Beverage
Management
BHM202
Business development Draft

Food and Beverage Management BHM202
Executive summary
The "fruit juices and snacks" restaurant is objected at offering healthy juice and snacks that are
free from the toxins. The juice and snacks will be processed from farm produce such as fruits,
cucumber, black beans, vegetables, whole grains, etc. The major objective is to introduce juices
and snacks which are not contaminated with any impurities. Juices and snacks that exist in the
markets use a chemical to uplift their flavor and lifespan. Some of the substances used to raise
the lifespan of these products.
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Food and Beverage Management BHM202
Table of Contents
Introduction......................................................................................................................................3
Business objectives..........................................................................................................................3
Concept Development for F&B Operation Innovation of Concept.................................................3
Mission statement............................................................................................................................3
Innovations......................................................................................................................................3
Market analysis................................................................................................................................4
Feasibility analysis...........................................................................................................................4
SWOT analysis................................................................................................................................4
Planning and design.........................................................................................................................6
Purchasing, Storage and Production................................................................................................7
Marketing Strategy..........................................................................................................................8
Staffing............................................................................................................................................9
Financial projections and quality management.............................................................................10
References......................................................................................................................................11
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Food and Beverage Management BHM202
Introduction
Food and beverage management is a very important aspect that needs focus. This report deals
how food and beverage will be processed without harmful toxins, and the generation of the
produce will majorly cater on a farm produces. The main aim in context to the business venture
is to procure good and quality food at reasonable prices. The sole purpose of the business venture
is to make the menu of the restaurant favorable and qualitative. This study incorporates the
mission statement, business objectives and innovation criteria's and analysis of the market. This
business venture is different from that of other food, and beverage business as the restaurant will
offer quality food in context to reasonable prices. The management will take special care that
customers get quality and effective service. The technical innovations will also make the food
free from radicals and toxins. The market strategy will be incorporated in details to study the
competition in context to this business arena.
Business objectives
1. To provide quality food and beverage products at a favorable price
2. To attain cost ratios which are below 55%
3. To uplift the health of consumers through the production of food and beverage products
which are free from toxic-substances
Concept Development for F&B Operation Innovation of Concept
Mission statement
The main mission is to offer a dining experience that is unique and genuine. We will
work hard to obtain this goal by the provision of menu items incorporating quality juice and
snacks products at fair prices. The restaurant will also take care of all the stakeholders by
handling every individual with dignity and respect (Aras et al., 2017).
Innovations
 The management will innovate in offering training lessons to the employees to upgrade
the service quality.
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Food and Beverage Management BHM202
 The restaurant management will high innovate on technology to make the whole process
mere effective.
 The restaurant will innovate on location to make it accessible by many consumers.
Market analysis
As commented by Chen et al., (2015, p. 570), the market analysis is used to determine the
market in context to evaluate the position of the established or emerging markets. Evaluation of
the current market helps to perform the actions that are not undertaken by the others. The future
and the current risks are also estimated by this strategy. In this case, the market analysis will be
based on the restaurants operating in the same area and providing the same food and beverage
items. The characteristics in context to the market analysis need to look amply at the outlook and
the description of the industry, identification of the target market and position of the market.
Market needs and positioning
As commented by Bahl and Chandra (2018, p. 10), the rate of consumption of juice and
snacks in the country portrays a growth rate of 13 % (as analyzed by IBISWorld statistics). With
such a high growth rate there is a need to provide food and beverage products which are free
from chemical substances which are added to improve the lifespan. As commented by Grekova
et al., (2014, p. 175), several cases have been noticed where some substances caused heart
diseases and cholesterol. The main attempt needs to be to cater to public demands without
affecting their health.
Feasibility analysis
The analysis is used to determine the viability of the business idea involving the food and
beverage restaurant. As commented by Hanssens et al., (2014, p. 535), the analysis is conducted
by checking the technical, market and commercial feasibility. Overall risk assessment activity is
also conducted during the analysis. Checking the business against the feasibility analysis
description the restaurant business can be said to have met the market requirements (Meggitt,
2013).
SWOT analysis
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Food and Beverage Management BHM202
Strengths of the business
 The restaurant will produce products which are free from any chemical contamination
which will make the restaurant win many customers from the competitors
 It is easy to make any required adjustment as per customers' needs because the food and
beverages are produced within the restaurant.
 With cheap production process, there rises a big chance of making more profits.
Weaknesses
 The process of acquiring and training employees is expensive and problematic.
 There arise high chances of making a loss as the products have a short lifespan.
Opportunities
Since the food and beverages will be preservative free, so the number of consumers will come
which in turn will lead to business profits.
Threats
The common threat to this industry lies from the competition. There are so many restaurants in
the market arena that are catering to the same consumer demands.
Strengths Weakness Opportunities Threats
The beverage and the
food products will be
free from
contamination.
Expensive training. The innovation of
food products.
Completion from
others from this
industry.
Customer friendly
restaurant.
The short lifespan of
the products.
The good location
will incorporate more
consumers.
A threat of new
entries.
New technological
innovations that will
offer competition to
Training employees
can give rise to
several problems.
To make more
innovative and
healthy dishes.
Lack of food items.
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Food and Beverage Management BHM202
the emerging
businesses.
Table 1: SWOT Analysis
(Source: Created by the Learner)
Planning and design
Operation
The restaurant will operate seven days a week as shown.
Days of week Working Hours
Monday to Friday 8am-9pm
Saturday 8am-2pm
Sunday 1pm-6pm
As stated by Lim et al., (2018, p. 20), to make sure effectiveness is portrayed in
operations; the working team will be sub-divided into several departments such as financial,
purchasing, production department, and customer-services departments. Every department will
perform specified tasks. Financial duties will be performed by the financial department. The
Purchasing department will be making sure that raw materials are available. The Customers will
be served by "Customer service team/department.
The following is the menu of food and beverages:
List of food and beverages
 Fruit juice@ 1dollar per 1litre
 Apple slices @ 2dollars
 Bitterballen @3dollars
 Carrots chips @ 1dollar
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Food and Beverage Management BHM202
 Almonds @ 5dollars
 Cookies @ 7dollars
 Dried fruits @ 4dollars
 Sliced fruits @ 3dollars
 Fruit salad @ 5 dollars
 Fruit cocktail @ 9 dollars
Purchasing, Storage and Production
The restaurant management will create a research team which will always keep the restaurant-
finance department updated on the current cost of the raw materials. The created team will also
help the restaurant in purchasing and searching the raw materials. Insurance will be applied to
the properties of raw materials to ensure safety in case of theft or fire accident. The restaurant
will keep in mind a HACCP approach. As commented by Jung and Yoon (2012, p. 370),
HACCP plan will be documented by the principles in the context of the system. The business
strategy is that it will rely in c upon context to the self-production of food and beverages. The
products will be incurred free from chemicals. The lifespan of the raw materials will be
improved through the investment regarding the latest technology. They will generally
incorporate technology-based storage such as the use of refrigerators. Food hygiene and safety is
the foremost thing when it comes to the HACCP system. As opined by Wallace et al., (2018, p.
456), the restaurant needs to follow the regulations regarding storage, production, and purchasing
of the products. The principle in context to the HACCP needs to be followed to ensure food
safety:
Conduction of hazard analysis
 Establishment of the critical limits
 Identification of CCP (Critical control points)
 Monitoring the CCP
 Verification
 Establishing corrective action
 Recordkeeping
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Food and Beverage Management BHM202
Marketing Strategy
To create an effective and friendly marketing environment the business will highly
implement the 7Ps marketing strategy.
 Price. As commented by Hamzah and Sutanto (2016, p. 200), the will involve all
the pricing method to absorb competition force from competitors who are affected
by the pricing issues. Some of the pricing strategies include; premium pricing,
economy pricing penetration pricing, etc.
 Product. As stated by Arias et al., (2016, p. 110), the quality of the products
offered by the restaurant is highly valued. The restaurant has put in place the
health concerns of the customers by obtaining foods and beverages free from any
chemical. This will result in the attraction of a higher number of customers.
 Place. As commented by Huang and Sarigöllü (2014, p. 114), to achieve the
celebrity of the business, it will be located in a station where there existed a
related restaurant-business before. The place is also accessible to many people.
With these location advantages, the restaurant will experience a super marketing
environment.
 Promotion. As opined by Helm and Gritsch (2014, p. 419), the restaurant
management will invest in an advertisement to expand the celebrity.
Advertisements will be made through televisions, radios, and Facebook.
 People. As commented by Datta, Ailawadi and van Heerden et al., (2017, p. 5), to
provide an excellent customer service process the management will introduce
various departments in the restaurant. The department. Skilled personnel will be
deployed to the introduced department. to upgrade the skills of the employed
personnel the restaurant management will be offering training to all the
employees respective to their working department
 Process. As stated by Jung and Yoon (2012, p. 370), the management will
innovate on the process which will be fast and effective for the customers. By
employing skilled personnel acts as a way of perfecting the service offering
process.
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Food and Beverage Management BHM202
The business venture stands different from other ventures because of its unique concept of food
and beverages. As stated by Psomas and Kafetzopoulos (2015, p. 135), preservatives are
generally present in all the drinks that are provided by the restaurants. But this restaurant will
cater to provide no added preservatives and contamination free drinks. The food will be
examined by hazard analysis. HACCP will be given innate importance to ensure food safety.
Staffing
List of staffs
The staff of the restaurant includes:
 Customers services employees
 Accounting employees
 Production employees
 The managing employees
 Cleaning employees
List of skills
 The employee should have at least one year of experience in the applied department.
 He/she should be literate.
 He/she should be ready to work under minimal supervision.
Financial projections and quality management
The business will be a partnership entity where two or more investors will contribute fund for the
launching of the restaurant. At the beginning of the business, the operation will be run using the
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Food and Beverage Management BHM202
funds contributed. As commented by Hamzah and Sutanto (2016, p. 332), the business will then
be run using the acquired funds from the customers. A certain portion of the profit acquired will
be used to expand the business. Remaining profit will be equally shared among the investors.
Proper analysis of the quality of the products needs to be done with the use of total quality
management, and it would be beneficial for the business in the coming future. This would
enhance the sustainability and competitiveness.
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Food and Beverage Management BHM202
References
Aras, M., Syam, H., Jasruddin, J., Akib, H. and Haris, H., 2017, July. The effect of service
marketing mix on consumer decision making. In International Conference on Education,
Science, Art, and Technology (pp. 108-112).
Bahl, S. and Chandra, T., 2018. Impact of Marketing Mix on Consumer Attitude and Purchase
intention towards' Green'Products. A Journal of research articles in management science and
allied areas (refereed), 11(1), pp.1-11.
Chen, E., Flint, S., Perry, P., Perry, M. and Lau, R., 2015. Implementation of non-regulatory
food safety management schemes in New Zealand: a survey of the food and beverage
industry. Food control, 47, pp.569-576.
Datta, H., Ailawadi, K.L. and van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing, 81(3), pp.1-20.
Grekova, K., Bremmers, H.J., Trienekens, J.H., Kemp, R.G.M. and Omta, S.W.F., 2014.
Extending environmental management beyond the firm boundaries: An empirical study of Dutch
food and beverage firms. International Journal of Production Economics, 152, pp.174-187.
Hamzah, S.B. and Sutanto, J.E., 2016. The Role of Marketing Mix (7P) for Consumer Buying
Decision Pastry Cake in Malang City.
Hanssens, D.M., Pauwels, K.H., Srinivasan, S., Vanhuele, M. and Yildirim, G., 2014. Consumer
attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4), pp.534-550.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International Business
Review, 23(2), pp.418-428.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to the market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer, New York, NY.
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