Food and Beverage Industry: Operational and Marketing Analysis

This report provides a comprehensive overview of the food and beverage industry, examining various aspects such as different types of businesses, rating systems, current and future trends, and the skills required to succeed in the industry. It delves into the importance of adapting to these trends and their impact on business performance. The report also discusses legal requirements and regulatory standards, including the Food Standards Act 1999 and food hygiene certificates. Furthermore, it explores operational technologies like robots and lean manufacturing, analyzing their impact on business performance and customer buying behavior. The report also covers different marketing technologies used in the food and beverage sector. It identifies factors influencing consumer decisions and highlights strategies used by companies to build customer loyalty. The report uses fact sheets to organize the information and provide a clear analysis of the industry.

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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
LO 2.................................................................................................................................................5
Professional food and beverage management skills under food and beverage company...........5
Legal requirement and regulatory standards which needs to be followed..................................6
LO 3.................................................................................................................................................6
LO 4.................................................................................................................................................8
Factors influencing consumers decision for selecting food and beverage outlet........................8
Strategies used by different food and beverages outlet for building a loyal customer base.......9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Food and beverage industry are a major part within the hospitality sector. This is because
of the reason that in the hospitality sector comes the travel and tourism, hotels and resorts and the
most important thing attached with all these sectors is the food and beverages sector. It is so
because of the reason that without food any person cannot work. The present report is based on
the whole food and beverage industry. The report will start outlining the various types of
business within the food and beverage industry (Dopson and Hayes, 2015). Further the
assignment will discuss about the main rating system present at the national as well as
international level.
Next it will highlight the current and future trends within the industry and its impact on
the various business within the industry. Furthermore, it will demonstrate the skills required to
work within the industry. Next the assignment will discuss about the different legal requirements
which the companies under this industry needs to follow. Next it will outline different
operational and marketing technologies and their impact on the buying behaviour of the
consumers. However, next it will identify some factors which influences consumer decision. In
the end the report will highlight different strategies used by different companies under the
industry to attract and maintain loyal consumer base.
LO 1
Fact sheet 1
Different type of business within food and beverage industry
Generally, the businesses in food and beverage industry is divided into two categories. Such as -
Commercial – It involves organizations whose main business is food and service.
Catering and banqueting :
Term catering means the service of offering food and drink items to another like in a
hotel, restaurant etc. Banqueting refers to meal taken by large mass. Example – in a wedding etc.
Non Commercial – It involves organisations that offers food and beverage but it is not their main
business.
Institutional :
It includes various institutions that provide food and beverage alongwith main business.
This segment includes cruise ships, airports, corporate staff cafeterias, hospitals, universities and
colleges, etc.

Fact sheet 2
Main rating system at national and international level
The ratings of food and beverage industry like restaurant ratings identifies the restaurant
on the basis of quality of services they offer to customer's with the help of stars. Hotel rating is
also provided according to the service quality. In UK there are various organisations that
provides rating to food and beverage establishments from one to five stars. In UK there is an
agency that checks the quality which is known as Food Agency Standard. The agency uses rating
scale for providing rating from 0 to 5. The rating in USA is given on a large scale and also assist
government to determine area which is required high attention. So that, level of hygiene can be
improved. Score of 0 is provided when there is breach in quality.
Fact sheet 3
Current and future trends
With the globalization and modernization in the business world there have been many
developments and changes taking place. This is because of the major reason that because of
globalization and internet access many changes have been implemented within the food and
beverages industry (Gibson and Parkman, 2018). The current trends and future trends going on in
the industry are as follows-
Zero waste- this is the latest trend going on because earlier there was much of food
wastages but now the consumers have become conscious in respect of food and to avoid its
wastages. This is because of the reason that there is much poverty within the country and many
people do not have food to eat. Therefore, these foods and beverages company saves the food
and provide it to the needy person.
Organic and healthy food- this is another trend where the company produces the food
which is organic and healthy to eat. This is because of the reason that the consumers have
become health conscious, and they prefer more of healthy food.
Impact of current trend
These current trend impact the business of food and beverages to a great extent because
of the reason that if the industry does not adapt to these latest trends then it will come behind in
the race of competition. In this globalized era the competition is very tough and hard and to face
this competition the companies under food and beverages industry needs to adapt to these trends.
If the company will not adapt to these trend then they will become obsolete in their working and

no consumer will like to go to the place for food and beverage (El Demerdash, 2017). On the flip
side if the companies adapt to all the latest trends then it will have a positive impact on the
business as it will attract the consumers towards the latest trends.
Analysis of need of adapting to future trends
It is very necessary for the different outlets within the food and beverage industry that
they need to adapt to these future trends because of the reason that if they do not adapt to these
changes and the trends of the consumers then the company will become old and no consumer
will like to go to such place. This is because of the reason that there the consumer will not get
anything new. This way the consumer base of the company decreases. Therefore, this is the need
for adapting to these trends that is to attract more new consumers and to retain the existing
consumers to come to the place.
LO 2
Professional food and beverage management skills under food and beverage company
For doing any work a person needs to have some specialized skills. In the food and beverage
industry the managers and the workers need to posses some skills because the travellers which
comes to the place are from different backgrounds and cultures. Therefore, there taste and
preferences are also different. For handling these diverse consumers, the manager needs to
possess some skills. These skills are as follows-
Communication skills- this is the most important skill which the manager in companies
of food and beverage industry needs to possess. Communication is the essence of doing any
work effectively and efficiently. For instance, the manager was asked by the food processing
department to order the raw materials and the manager because of lack of communication did not
ordered for the raw material then the food production will be delayed due to lack of
communication of manager.
Time management- this is another skill need to be inherited in the manager. This is the
major skill because of the reason that the consumers like the services provided on time
(Alexandria). Therefore, if the manager will be able to manage the time properly of the food
making department then only the services will be rendered on time to the consumers.
Coordination- this is another essential skill to be possessed by the manager because if
there will not be proper coordination among different department of the company. This is

because of the reason that if there will not be coordination then the services will not be provided
in time to the consumers (Maier and Prusty, 2016).
Therefore, it is necessary for the manager to posses these management skills so that they can
manage the company effectively and efficiently.
Legal requirement and regulatory standards which needs to be followed
There are many different standards and laws which the food and beverage industry needs to
follow. These are discussed in the adjoining points below-
Food Standards Act 1999- the food industry needs to abide by the food standard act
1999. The main purpose of this law is to protect the health and quality in respect of food and to
protect the interest of the consumers in relation with food.
Food hygiene certificate- this is a certificate which needs to be taken by the companies
under food and beverage industry. If the company has this certificate then it means that they are
aware of the proper hygiene and health and safety regulations and they understand the
requirement of the maintaining a healthy and hygienic environment.
License for use of alcohol- this is also a necessary license which they need to have if
they deal in alcohol. This is because of the reason that alcohol is not good for the health of the
consumers. This is the reason why the food and beverage industry need to have license of
alcohol use and consumption with in the business.
Pest control regulation- also the food and beverage industry need to abide by the laws
relation to the pest control within the company. This is because of the reason that the company
operates with food and there can be many different types of insects and animals. Therefore, the
company needs to make sure that it carries on with all the pest control activities to ensure that the
food is totally safe and hygienic (Del Chiappa, Martin and Roman, 2016).
LO 3
Fact sheet 4
Different operational technologies
Use of robots- this is the latest operational technology which is used within the food and
beverage industry. This is because of the reason that the use of robots increases the efficiency of
the outlet as now for doing the services and for taking order the robots are used. This increases
the operational efficiency as now those people can be employed in some other task (Wood,
2018).

Use of lean manufacturing- this is a technique of manufacturing wherein the main focus
is on minimizing the waste from the process of manufacturing and making of the food. This is
used because of the reason that it tries to eliminate waste by way of producing only that much
which the consumers need and not much in excess of the requirements. This increases the
operational efficiency of the business because the waste is minimized and this increases the
efficiency of the company in producing the food for the consumer.
Evaluation of how these operational technologies improves business performance
These different operational technologies improves the business performance because if
these technologies are implemented within the company then this will increase the profits of the
company. This is because of the reason that the company hires robots which works in place of
waiters and employees who deliver foods to the consumers. This increases the profits for the
company as now it does not have to hire much of the waiters because they use robots in place if
the waiters. This saves the salary of so many waiters and this money can be used for different
purposes within the company.
Impact of these technologies on customer buying behaviour
The use of these operational technologies also have an impact in the buying behaviour of
the consumers. This is because of the reason that the these operational technologies increases the
goodwill of the company because these are the latest trend and if the company follows the trend
then it will build a good image with in the company and will attract more of the consumers. Like
for instance the use of robots and lean manufacturing the consumers thinks that the company is
working with more efficiency and also takes care for the unnecessary waste (Kasavan, Mohamed
and Halim, 2018). Therefore, this influences the consumers buying behaviour because the
company uses efficient technologies of operations thus, this influences the consumers in positive
way that they must go for the place only.
Fact sheet 5
Different marketing technologies
With more of the innovations and technologies there are many different types of
marketing technologies being used in the food and beverage industry. Some of the technology
are as follows-
Social media marketing- this is the most important and common type of marketing
technology (Bakalis, Knoerzer and Fryer, eds., 2015). This is because of the reason that this is

the latest marketing technology that includes doing marketing with help of social media
platforms. This is beneficial because of the reason that these are cost effective and also covers
the large number of consumers at a single time.
Use of CRM- this is also a marketing technology under which the company uses different
software for managing good relation with the consumers. The use of CRM that is customer
relationship management helps the company in retaining the consumers by generating more
value for the existing consumers.
Evaluating how these marketing technologies increases performance of business
These marketing technologies help the company in improving its business performance
because of the reason that the implementation of these technologies helps the business in
simplifying there work. This is because of the reason that these technologies help the company in
easily advertising in the market at a large level and at a very minimum cost. With help of social
media marketing the company can cover more consumers and in very short period of time the
information which the company wants to be shared with the consumers is passed on. This is
because of the reason that the people are very much connected with the internet and social media
websites.
Impact of these technologies on consumer buying behaviour
The impact of these technology is positive in the consumers buying behaviour. This is
because of the reason that if the company uses these technology then it will be more connected
with the consumers. And this will have a positive impact that the consumers because they will
have a feeling that the company will work in favour of the consumers and their interest. The
consumers feel that the companies are very good in research and development as they adopt to
the latest trends and technologies going on within the market (Jones, Comfort and Hillier, 2016).
This builds a positive image of the company in fromt of the consumers. This directs the
consumer buying behaviour in favour of the outlets under food and beverages industry.
LO 4
Factors influencing consumers decision for selecting food and beverage outlet
There are many different factors which impacts the consumer in deciding that which food and
beverage to select for going to the place. This is because of the reason that the consumer will go
only to the place if the are attracted towards that place (Kennedy, ed., 2016). There are many

different types of factors which influences the selection of outlet of food and beverage by the
consumer. Some of the factors are discussed in the connected points-
Quality- this is the most important factor which impacts the decision of consumer that in
which outlet they must go. This is because of the reason that if the quality of the food and
services will not be good then the consumers will not prefer the place as the quality is not good
and the consumers will go to some other place where the quality is more good.
Ambiance- this factor also affects the decision of the consumer because if the
environment of the place will not be soothing then the consumers will not select the place as the
surrounding of the place is not good.
Relation of employees- this is also a factor which the consumers consider in order to
decide the place to go for the outlet of food and beverages. This is also a major factor because of
the reason that if the employees and the serving staff of the outlet is not good and supportive then
the consumer will not like to go to those places.
Strategies used by different food and beverages outlet for building a loyal customer base
There are many different types of strategies which the food and beverage industry can use in
order to attract more new consumers and to build a loyal and long- lasting relation with the
consumers. These different strategies are discussed in the connected points below-
Use of online system- the industry for attracting more of the consumers must use the
online system of ordering the food from mobile phones by the consumers and getting the
delivery. This will attract more of the consumers, as they do not have to go anywhere for the
food. Just they have to order the food online and the food will come to their place (Ogunyemi,
Ayios and Spiegler, 2016).
Provide special offers- the different companies must also provide for different types of
offers for the consumers. Like the first 10 consumers will get a 5% off, free drink on more
orders, and many other related offers to the consumers so that they do not switch over to the
competitors.
Use of self-service kiosk- this is another strategy which can be used by the different
outlets of food and beverages industry. The kiosk is electronically operated ordering system
which integrates directly with the point of sale. This system reduces the waiting time of the
consumers. And because of this reason more of the consumers are loyal with the outlets.

CONCLUSION
With the analysis of the report it was concluded that the management of food and
beverage is very necessary and crucial for the success of the company. This is the major sector
within the hospitality industry as no one can live without food. The present report started by
outlining the different business within food and beverages sector such as catering and banqueting
and others. Next it discussed about the rating present at the international and national level.
Further the report highlighted trends like organic eating, minimum wastage of food and other.
Furthermore, the management skills were highlighted like time management, proper
communication and many other needed to run business in the industry.
However, the industry also had to abide by different laws and regulation like alcohol
licensing, food standard act, pest control and many others. Next it outlined use of different
operational technologies like lean manufacturing, use of robots and other and its impact in
business performance. Further it demonstrated the different marketing technologies like social
media marketing, CRM and others. Next it discussed about factors like quality of food, ambiance
of hotel and other as factors affecting consumer decision. At last strategies like online system,
self help kiosks, special discount offers and other were used in order to build loyal relation with
the consumers.

REFERENCES
Books and Journals
Bakalis, S., Knoerzer, K. and Fryer, P.J. eds., 2015. Modeling food processing operations.
Elsevier.
Del Chiappa, G., Martin, J.C. and Roman, C., 2016. Service quality of airports' food and
beverage retailers. A fuzzy approach. Journal of air transport management. 53. pp.105-
113.
Dopson, L.R. and Hayes, D.K., 2015. Food and beverage cost control. John Wiley & Sons.
El Demerdash, J.M., 2017. Waste management in food and beverage operations: The case of
Alexandria. International Journal of Heritage, Tourism, and Hospitality. 10(2/2).
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.
Jones, P., Comfort, D. and Hillier, D., 2016. Water stewardship and North America's food and
beverage companies: a case study in corporate sustainability. International Journal of
Corporate Strategy and Social Responsibility. 1(1). pp.26-43.
Kasavan, S., Mohamed, A.F. and Halim, S.A., 2018. Knowledge and Attitudes of Hoteliers in
Langkawi UNESCO Global Geopark towards Sustainable Food Waste Management
(SFWM). Pertanika Journal of Social Sciences & Humanities. 26(3).
Kennedy, S. ed., 2016. Food Protection and Security: Preventing and Mitigating Contamination
During Food Processing and Production. Elsevier.
Magnusson, R. and Reeve, B., 2015. Food reformulation, responsive regulation, and “Regulatory
Scaffolding”: Strengthening performance of salt reduction programs in Australia and
the United Kingdom. Nutrients. 7(7). pp.5281-5308.
Maier, T.A. and Prusty, S., 2016. Managing customer retention in private clubs using churn
analysis: Some empirical findings. Journal of Hospitality Marketing & Management.
25(7). pp.797-819.
Ogunyemi, T., Ayios, A. and Spiegler, V.L.M., 2016. Socially responsible purchasing practices
and supply chain performance in the food and beverage industry.
Soon, J.M., Chandia, M. and Regenstein, J.M., 2017. Halal integrity in the food supply chain.
British Food Journal. 119(1). pp.39-51.
Wood, R.C., 2018. Strategic questions in food and beverage management. Routledge.