Detailed Report: Managing Food and Beverage Operations Overview

This report provides a comprehensive overview of managing food and beverage operations. It begins by exploring different types of businesses within the industry, such as casual dining, fast food, and food trucks, and then delves into national and international rating systems like the Michelin Star and Hotel Star systems. The report examines current and future trends impacting the food and beverage sector, including the use of Artificial Intelligence. It highlights essential professional food and beverage management skills, such as leadership, organizational abilities, and communication. The report also covers legal requirements and regulatory standards, operational and marketing technologies, and factors influencing consumer choices and strategies for building customer loyalty. The conclusion summarizes the key findings and emphasizes the importance of adaptability and customer focus in the industry.

Managing Food and
Beverage Operations

Contents
INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................4
P1 Different types of businesses within the food and beverage industry...........................................4
P2 Different rating systems used for the food and beverage industry nationally and internationally.6
P3 Current and future trends affecting food and beverage businesses...............................................7
TASK 2.................................................................................................................................................7
P4 Demonstrate professional food and beverage management skills within a food and beverage
organization.......................................................................................................................................7
P5 Legal requirements and regulatory standards that food and beverage service outlets must comply
...........................................................................................................................................................8
TASK 3.................................................................................................................................................9
P6 Compare and contrast different operational and marketing technology for a range of different
type of food and beverage businesses................................................................................................9
TASK 4...............................................................................................................................................10
P7 Factors that influence the consumers decision on which food and beverage outlets they choose
.........................................................................................................................................................10
P8 Strategies used in a range of food and beverage outlets to attract and build a loyal customers
base..................................................................................................................................................12
CONCLUSION..................................................................................................................................13
REFERENCES..................................................................................................................................14

INTRODUCTION
Hospitality industry, is a broad field and most of the companies under this regulate
their business and try to provide effective services and facilities to its customers. Hospitality
industry, includes different types of services that are related to leisure and providing customer
satisfaction. Under this category, food and beverage service plays a crucial role and
contribute in profit share of hospitality industry (Losekoot and Theresa, 2018). This report
will include various kinds of businesses that comes under food and beverage industry. Along
with this different kind of rating system used by food and beverage industry nationally and
internationally is mentioned in this report. Moreover, current as well as future trends related
to the foods and beverage industry is incorporated in this report. Along with this, significance
of having skills of professional management is included in this report. Henceforth, it can be
said that this will provide an insight of all the elements that are required for operating a
business in the field of food and beverage industry.
TASK 1
P1 Different types of businesses within the food and beverage industry
Food and beverage industry are not confined with providing services related to food
and drinks only but it has more than this. Basically, it includes classical, fast food, casual
dining, café, etc., so, to have a proper understanding these points are explained below for
better understanding.
SECTOR DESCRIPTION ADVANTAGE DISADVANTAGE
Casual Dinner This is considered to
be a sit-down
restaurant and the
foods and services
that are provided are
moderate in process
and provided in
casual atmosphere.
Thus, it can be said
that they provide
with fine-dining
services and
 As its first
advantage,
whatever meals
are provided are
prepared using
best quality of
ingredients.
 People who go
for casual
dinners enjoy the
casual ambience
and relax with a
 Due to the busy
life, a change in
the preference of
customers can be
seen. Now,
people are
moving towards
fast food because
services so that
they can grab the
food and have it
in quick time.

therefore, family or
group of friends can
go and enjoy the
food and spent some
leisure time together.
lot of seating.
Fast Food In current times, one
of the most loved
type of business in
the food and
beverage industry.
The prime focus is
on providing speedy
service. Moreover,
fast-food was a
commercial strategy
so as to benefited to
people who are busy
commuter, travel a
lot and however,
doesn’t have time to
sit and enjoy the
meal.
 Customers can
order their food
not only from the
table but they
can also from a
front counter.
 It saves time and
includes a
variety of
choices even at
low price.
 Food and
beverages
provided in fast-
food can be
unhealthy and
there might be a
possibility that it
is of bad quality.
 Having too much
fast food can lead
to severe health
problems and can
cause deaths as
well.
Food Truck These are considered
to be a motorized
vehicle that are fully
equipped with
materials which are
used to cook foods,
prepare and then
selling. Food trucks,
can include ice-
cream trucks or it
can include foods
that are pre-
 The owner of the
food-truck can
create an include
their own menu.
 As it is moveable
so, owner of the
truck can open
its services
wherever they
want.
 Small space is the
biggest
disadvantage of
food trucks.
 There might be a
possibility that
the person
owning the food
truck is abide by
the local zoning
laws.

prepared. Other than
this, on-board
kitchens for
preparing food is the
common factor in
food trucks.
Therefore, the above mentioned are some of the types of business which are
incorporated by Food and Beverage industry (Sukortpromme, 2019). Thus, if an individual
wants to open a restaurant that they can consider all these points including the advantages as
well as disadvantages.
P2 Different rating systems used for the food and beverage industry nationally and
internationally
Rating system, is determined as a classification according to the performance. It can be said
that rating is a process with the help of which evaluation and assessment of something can be
done mostly based on quality, quantity or there can be a possibility of both. Therefore, in this
market environment where every company is in a race to become of the prominent choice of
customers rating helps them in having an evaluation of the services they are providing. If the
provided services are excellent and up to the mark then the company will get more stars and
if services are bad and poor then vice-versa. In terms of giving rates, companies that are
operating its business under food and beverage industry use “stars” in order to provide rates.
Moreover, while giving stars an individual from the panel observe various factors such as
whether the company has followed all the uniform standards like how the food is served and
what nutritional values it contains (Adeleke, Daniel and Ojeleke, 2020). However, to have a
proper understanding different kinds of rating system is being explained which is moreover
followed nationally and internationally.
Michelin Star: This is the rating system, which was introduced by the red Michelin
Guide in order to provide grade to the restaurants according to the quality they maintained.
This rating system was introduced in the year 1926, in its initial year it started with a single
star, then with a progression second and third star was also introduced in the year 1933. Thus,
it is said that according to a guide, “a very good restaurant” is given one star. Moreover, the
two star is given where the company delivers “excellent cooking that is worth than price”

Whereas, three stars, which is the most important feature of this star and it is being provided
to the company “who provides an exceptional cuisine”. While giving genuine points or
rating, panel who is providing with the rates should go through every element of the company
such as its ambience, food quality, services they are providing etc.,
Hotel Star: This is one of the most common method of rating system and mostly used by the
classified hotels situated in different parts of the world (Weber and Saunders-Hogberg, 2018).
Rating in this system, is positioned from lowest to highest. For example: the worst food and
services provided by the company is ranked lowest i.e. 1-star. Whereas, providing excellent
service along with maintaining all the standards of business provided with highest score
which is 5-stars. Moreover, 4-star rating is provided to the restaurants who provides services
that are above the common level which means providing with upscale quality availing which
customers can get extra comfort. 3-star ratings are given to those who whose services are
ordinary yet provide a quality of services. Lastly 2-star rating hotel in same context is equal
1-stars.
P3 Current and future trends affecting food and beverage businesses
In market place, Every other company that included the foodservice sectors ability to
return demographics in order to cater the requirements of customers or to fulfil them in order
to ensure their loyalty and accomplishing the business goal. In this regards the, management
of food and beverage company focus on providing services as per customers needs and also
implement all the current trends that present in the market place. With the assistance of this,
food and beverage company easily increase their profitability level. As there are some current
and future trends that directly affect the company and its activities as well:
Artificial Intelligence (AI): It is an important software of computer systems so that they
might obtain information, assess that, make a decision based of the assessment, and then
display the task offered on a decision-making basis (Marbun and Malau, 2020). It's seen as
recent technologies in the long term that support foodservice supply chain through business
intelligence, Logistics etc. Firms among all industries of food including such fresh produce
like milk products, dry food items use machine learning to build up efficiency, to provide
guarantee, to support better prediction processes and to provide knowledge of customer
trends. By realising these same businesses, like drinks and snacks, their company goals can
be met.

TASK 2
P4 Demonstrate professional food and beverage management skills within a food and
beverage organization
In order to become a successful in the food and beverage sector a person need to have
numbers of skills, abilities and experiences because through it they can conduct respective
industry work in effective manner (Adeleke, Daniel and Ojeleke, 2020). It is essential to have
specific or proper skills because through that a person perform their work properly as well as
in this industry business will only grow when there is effective as well as satisfactory
customers care services. Below some of the main food and beverage management skills
which is considered by food and beverage while hiring a person for their firm are mentioned:
-
 Leadership skill – It is considered as skill through which a person can lead as well as
manage their team in effective manner and it will also help them in attaining desire
goal and objective successfully. In respect food and beverage industry in which firm
is operating, by having this skill their manager able to lead team effective effectively
which aid in attaining desire goal of attracting customers and providing them quality
service. Through this skill manager of respective hotel able to ensure that every food
and beverage are prepare in proper way and it is safe for the audiences. Having
effective leadership skill also help in minimizing misshaping at the workplace or
kitchen while preparing food.
 Organizational skill – By having organizing skill a person able to manage each and
every work in effective manner. Moreover it will also help in taking decision in
effective manner for the attainment of company’s desire goal as well as target in
successfully manner (Lodolo, 2020). In context of food and beverage, by having this
skill in their manager they able to conduct work related to preparing food and
beverage in effective manner. In addition to this, it will also help them in organizing
resources according to demand and supply. Through this manager also able to manage
their team effective as well as it also helps making schedules of chef according to the
rush at the hotel and demand of food and beverage successfully.
 Communicating and Understanding skill – It is one of the effective and essential skills
which are required in every industry in which employees directly interact to
customers, clients or audiences. In respect of food and beverage industry it is essential
to have communication and understanding skill because that will help chefs in

developing or preparing food according to customers’ demand, requirement and
expectation (Purcidonio, Grillo and Alarcão, 2020). In addition to this by having
communication as well as understanding skill manager of the company able to
develop decision related to food and beverage requirement as well as feedbacks of
customers in successful manner.
These are some of the main skills which are required to have by a person who want to
conduct job in food and beverage that is operating in food and beverage industry. This is so
because these skills will help them in conduct operations properly and delivering quality food
and beverage products.
P5 Legal requirements and regulatory standards that food and beverage service outlets must
comply
Government shall promote some legal standards in the production of foods to
decrease the risks of food-borne illness. This really is standard practice for all the hospitality
sector to conform with all these guidelines as well as provide buyers with clean and healthful
food. By using appropriate legislation company can easily enhance their positive image at
market place. Due to this, large number of customers get easily attracted towards its
offerings. In this regard, there are some effective regulatory standards that implement by
company while producing food products, for storing and serving the food items to its
customers are as follows:
Food and safety act, 1990: Mostly in United Kingdom, the nutrition and agriculture
Legislation should be complied with by the restaurant industry, as it is imperative that meat
must be safe for consumption and just not harm in any way imaginable. This enables the
framework of food standards as whole and. As per this act, company does not allow to add
any kind of aspects into food and also focus on that the meal should not be damage people
health while consuming the same. In addition of this, company also sale food as per the
customers demand and nature in order to reduce any kind of waste and harm as well.
Licensing Act 2003: This is an act formed to advertise health and food security, to enforce
meal planning, to sell and then use meals, to make a well - informed choices about the food,
to encourage fair competition in addition to healthy and on related problems (Purcidonio,
Grillo and Alarcão, 2020). According to this act, the food and beverage sector that sells
alcohol must obtain a license to sell it. The purpose of the particular act is to prevent disorder
and crime, the protection of citizens, the prevention of public nuisance and so on. Food &

Beverage Industry should therefore comply with this Act in such a way that they can freely
sell alcohol and, in the event of any kind of illegal activity, they do not have to do so.
TASK 3
P6 Compare and contrast different operational and marketing technology for a range of
different type of food and beverage businesses
Technology play a significant role in every industry as it supports in grabbing
attention of customers. It may help in making entire activities more effective and smoother as
well. Implementing technologies is also help business organization in sustaining in market for
longer period of time and at the same time also attain competitive advantage as well (Uko,
2018). For instance, if hotel use different marketing and operational technology then they
easily promote its brand image and also invite customers towards its services as well. Along
with this, technologies in operational and marketing activities support in developing positive
performance by attaining all the set targets in an effective manner.
Operational technology: Operational technology can be considered to be software or
hardware that can still be changed by direct measurement and reporting of hardware objects,
techniques and business meetings. As cash less transactions are increasing due to the
advancement of technology. Different industries, such as foodservice, are investing in new
technologies so that they might handle their business activities. In this regard, there are some
operational technologies that can be used by company through which they easily support in
increasing their market share and profitability level.
 Payment technology: This offers features such as pay-at-the-counter and pay-at-the-
table. Both of these are somehow similar to the one transaction on the counter and the
other on counter. In addition of this, Floor service order and test this shows that users
would not have to wait much longer whilst purchasing. Numerous challenges impact
the hospitality industries in the context of efficiency, sustainability and health.
Furthermore, company also resolve the cost by implementing an effective method like
effective quality of products, secure distribution and many more. All these are
providing better services to its customers without any kind of issues and obstacles.
Marketing technology: Marketing technology refers to the effective software solution that
serves companies to incorporate marketing campaigns and also actions. It allows enterprises
to use innovation and to promote products and services by integrating activities. Thus, it is
important for business organization to effectively implement marketing activities so that they

can spread awareness in market and at the same time also provide quality services to its
customers. This type of technology includes various aspects that can be beneficial for food
and beverage company to improve their positive brand image (Kilibarda, Djokovic and Suzic,
2019). It includes social media, digital networks and so many more so that foodservice
industries may advertise their goods or services, gain feedback from customers and support
the management of customer databases, advertise online ads. From this social media is
considered as an effective marketing technology that provide a wider platform wherein
company easily each large number of customers sat a time. With the assistance of this, food
and beverage company can invite more and more customers by communicating with them. It
also beneficial in establishing famous brand at market place.
TASK 4
P7 Factors that influence the consumers decision on which food and beverage outlets they
choose
Food and beverage are famous and leading company operate their business with the
aim of generating larger profitability level. It is growing industry in which manager and
leader analyse all the trends in order to attain competitive success. After the coming of the
globalisation, companies can now run their business in an effective manner as it has provided
firms with many leverages. Company can now promote the services and facilities they are
providing through different offline as well as inline platforms. For example: with the help of
advertisements companies can now make their customers aware about the products they have
launched or is open for consumers. Thus, by paying a certain amount of money they can
purchase the good and use it according to their needs and wants. The industry that has
expanded in this period of globalisation is related to foods and beverages. People are now
aware about different types of cuisines and popular foods and they have also made changes
according to regions and tastes (Kasavan, Mohamed and Halim, 2018). Therefore, it can be
said that with the change in course of time, the sector of food and beverages is feeling some
amount of pressures and this can be seen in the work of managers. For example: Marriott
hotel, in order to remain in the market for a longer period of time is facing pressure in
accomplishing the requirements of customers. Moreover, they need to consider the
preferences of customers and what influence them for selecting a particular outlet. In order to
understand this some of the points are mentioned below:
McDonalds Burger King
Innovation  McDonald is itself the  While making their

biggest innovation in the
food industry as it was
discovered with the
purpose of fulfilling the
hunger of people who
travel a lot or provides
with the facility to an
individual who doesn’t
have time to sit and eat
the food.
 Moreover, they have
made innovations in their
variety of food items like
burgers with different
flavours.
burgers or stuffing they
have made innovations
with the ingredients such
as suing their own secret
ingredients and making
themselves from others.
Media  This is the best source
for attracting a large
number of customers and
for the same McDonalds
has used every platform
whether social media
sites, advertisements,
print media etc., All the
platforms are providing
this company in grabbing
the attention of
maximum number of
customers.
 Unlike other companies,
burger king is also using
different sites and
resources for pulling the
attention of its maximum
customers. Websites and
application of the
company is playing
crucial role in providing
benefits to the company.
P8 Strategies used in a range of food and beverage outlets to attract and build a loyal
customers base
To sustain in market place for longer period of time, it is important for food and
beverage company to implement appropriate strategies in which they can easily invite large

number of customers over its offerings. This is also beneficial in capturing customers
attention in-front of its services that support in improving overall performance of the
company at competitive market place. As customers satisfaction is one of the important
activities for company because it helps them in attaining competitive advantage at global
level. This is the reason firm always focus on satisfying their needs and wants. For attaining
the same, company needs to identify the customers who likes food that may support in
increasing the possibilities of increasing overall sales and profitability. In addition of this,
food and beverage company also adopt some effective and appropriate strategies that assist in
retaining loyal and satisfying customers within the company. All the strategies can be
understood by following points:
 Loyalty cards campaign: This type of strategy plays a significant role in inviting more
and more consumers over the company and its services as well. Mainly, it is not only
traditional coupons but also refers to the option of ideal discount that provide by firm
to its customers. One of the main advantages of this strategy is that it allows
customers to accumulate stamps when they visit and reach restaurant and get free
meal and other offer as well (Han and et. Al., 2019). It may also beneficial in making
customers happy and satisfied with the company and its services. With the help of
this, clients get attracted and influence in-front of particular restaurant. This will
directly contribute in retaining as well as attracting more consumers within the
business for longer period of time.
 Coupon marketing campaign: It is also an effective strategy that directly contributes
in building positive and strong relation with customers. By using this, food and
beverage company easily build customers loyalty towards the services that they
offered in market. This type of coupon includes percentage-based discounts and
another offers that mostly used by big organization in order to increase their overall
sales and profitability as well. Along with this, it is also beneficial in inviting or
attract large number of customers over its services through which firm can easily
capture larger market share from its competitors from its rivals.
Therefore, these types of strategies are effective and also used by various café and
restaurants with the aim of improving their customers base and at the same time also
beneficial in larger profitability level at competitive market place.