Digital Technology in Food and Beverage: A Comprehensive Report

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Digital Technology and the Food and
Beverage Industry
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Executive Summary
The amalgamation of technology with the various food and beverage services has impacted the
success and growth of food and beverage industries. Multiple application of technology in this
field has provided a wider perspective in betterment of sales and service in the field. This report
has primarily focused to assess the various impact of digital technology on the food and beverage
industries. The report explores the various food and beverage outlet trends and services along
with the variation of technological operations that are used in improvement of food quality and
services. This report has also focused on the ideology and motivation of the customers that
instigate them to reach out to the food and beverage outlets.
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-INDEX-
Introduction....................................................................................................................................4
LO1 Explore the food and beverage industry including different styles of food and
beverage service outlets, rating systems and current industry trends......................................4
P1 Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry........................................................................4
P2 Explain different rating systems used for the food and beverage industry nationally and
internationally..............................................................................................................................5
P3 Discuss the current and future trends affecting food and beverage businesses......................5
M1 Analyze how current and future trends are affecting food and beverage businesses
products and services to meet business objectives......................................................................6
D1 critically analyze how different types of food and beverage businesses have adapted to
current and future trends to meet business objectives.................................................................7
LO2. Demonstrate professional food and beverage service standards in a real working
environment....................................................................................................................................7
P4 Demonstrate professional food and beverage management skills within a food and
beverage organization. 300..........................................................................................................7
P5 Explain the legal requirements and regulatory standards that food and beverage service
outlets must comply with, giving specific reference to the maintenance and cleaning of
equipment....................................................................................................................................8
M2 Discuss the importance and value of having to meet professional food and beverage legal
and regulatory standards on operational performance and the consequences on performance if
they are not adhered to.................................................................................................................9
D2 Analyze the implications of failing to meet the professional food and beverage legal and
regulatory requirements upon the overall operational performance..........................................10
LO3. Compare the ways that different food and beverage operations use technology to
improve operational efficiency...................................................................................................10
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P6. Compare and contrast different operational and marketing technology for a range of
different types of food and beverage businesses.......................................................................10
M3. Evaluate how digital technology enhances business performance for a range of different
types of food and beverage businesses to meet business objectives.........................................12
LO4. Analyze customer motivations and behavior, and how food service outlets use this
information to maximize business success.................................................................................13
P7 Investigate the factors that influence the consumers’ decision on which food and beverage
outlets they choose.....................................................................................................................13
M4 Evaluate the effectiveness of strategies used in a range of food and beverage outlets to
attract and build a loyal customer base......................................................................................14
D3. Critically evaluate the impact of digital technology on both the operations of food and
beverage businesses and the significant influence it has upon consumer buying behavior......14
Conclusion....................................................................................................................................15
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Introduction
The era of digitalization has served several industries with different benefits and operational
areas that have helped the industry to flourish. The application of digital expertise in the field of
food and beverage has provided a successful integration of taste and technology (Bayona-Saez et
al., 2017). This report has shed light on impact of technology on various food and beverage
outlets that has changed the service techniques and customer service methods. The different
implementations of technology in food and beverage industry have been discussed in the report
along with customer motivation effects on increasing their sales and marketing in the food and
beverage industry.
LO1 Explore the food and beverage industry including different styles of food and
beverage service outlets, rating systems and current industry trends.
P1 Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry
There are many types of businesses within the food and beverage industry. They are Restaurants,
Internal and external Catering service, Kitchens, Staff Canteen and Minibars.
Restaurants- For dinner, lunch, breakfast one room is used in every restaurant. Restaurant
managers run the restaurants and food and beverage industry.
Catering- The service of food and drink at a specific time and a specific place to a fixed price.
(Huang, et.al., 2017) Catering service serves in the social functions like dinners, weddings,
anniversaries, birthday parties.
Staff canteen- Most of the hotels have their own staff canteens which is organized by the food
and beverage department. ( Monteiro, et al., 2018) Sometimes hotel authority appoints the
catering service for the employees and customers.
Kitchens- A place where food is stored and prepare is called as Kitchens. A kitchens purpose is
to produce fresh food for the highest number of people and employees and staffs. Hotel kitchens
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are many types of section. They are food preparation area, grill room, production of kitchen,
Banqueting kitchen and pastry kitchen.
Room service- This service is also included in food and beverage industry. Room service is
given by a hotel that allows a customer to order drink or food to be delivered in their rooms.
Room service have many factors. The factors are challenges, level of service menu vary etc.
P2 Explain different rating systems used for the food and beverage industry nationally and
internationally
There are three rating systems. They are-
One star- If someone present in the city, they should eat in the restaurant. This is good enough.
Two star- value a diversion
Three stars - Someone can make a trip just for eat there.
In international stage there are five star rating systems. They are
1 star- Comfortable and clean also. The employees are friendly and very much helpful.
2 star- Service and care for customer is good and quality of furnishing is also good. The food
quality is highly standard.
3 stars- Furnishing is better, Guest and service care is also better. The industry is more special
with a reception.
4 stars- The business has a very high standard of service and guest care, and better furnishing.
Establishment and the environment have a great look.
5 stars- Top of the all. The business is a provider of top quality and luxurious environment.
Guest care and service is flawless. The facilities are excellent and very comfortable.
P3 Discuss the current and future trends affecting food and beverage businesses
The current trends for food and beverage businesses are shown below
Food sourcing: Customers want to know that where the food come in a food and beverage
industry.
Snacking: Customers pursue more active lifestyle, that’s why they want from the management
to focus if many food manufacturers in the development of snack market. The attributes of top
rated snack bars, natural ingredients and minimalist labeling are included.
Customers who are adventures: The customer who is willing to explore bigger, bolder is called
as adventurous consumer. Nayak, and Waterson, 2017) Targeting on the adventurous customers
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the food and beverage industry should focus on the manufactures of their industry. It is also a
trend for food and beverage industry.
Change of customer’s requirements: Consumers food requirements are healthy snacking.
The future trends for food and beverage industry are shown below
Price rice of groceries: The trend will continue and the industry meets better customer
requirements. Customers will continue to access the products at different levels of preparation
from raw ingredients or groceries.
Food marketplace battle: To convince the customers and business model which are commercial
should be solve the customer’s requirements.
Customers will expect that retailers give the fresh and real time response to them every time food
requirements.
M1 Analyze how current and future trends are affecting food and beverage businesses
products and services to meet business objectives
Processing of the food- Trends in food industry included technological developments like food
production, raw supplies and new sources become accessible. Processing of the food is necessary
for the food and beverage industry.
Customers Trends- For awareness of health issues and consciousness of special diets they long
run to their personal food. Migration, globalization are changes the lifestyle trends. Customers’
trend is the new trend for this industry of food and beverage.
Packaging, Waste and Markets- Digitalization is good for new shopping behavior which
resulting new challenges for the food and beverage company. (Tidd, and Bessant, 2018) The
consciousness for misuse from wrapping stimulates interesting improvements from misuse
cooking to up cycling. Packaging has an important part in this trend.
Agricultural production- Trend for agricultural production are strongly affected the food and
beverage industry. It creates weather change, urbanization. The development of technologies
increased the demand for production of sea food.
Megatrends- The food system which were considered relevant in the food system. Megatrends
are seen as drivers as single items behind the new trends. This trend affects the food and
beverage industry.
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D1 critically analyze how different types of food and beverage businesses have adapted to
current and future trends to meet business objectives.
The different types of food and beverage businesses have adapted to current and future trends to
meet business objectives are given below-
Functional foods- Customers are concerned about what they are eat. Functional foods are making
the main role in a food industry. Seasonal foods are also attractive in this industry of food and
beverage.
Better for customer- The food and drinks which are better for the customers is the main attraction
in food and beverage industry. Healthy food, natural foods are the main things. Healthy and tasty
foods are attractive for customers.
Snacking- More customers requirement is many type of snacks. It is the key attraction for the
customers in food and beverage industry. (Popkin and Reardon, 2018) The new trend is sea
food. Most persons follow trends. These trends will give important impacts in the industry of
food and beverage.
LO2. Demonstrate professional food and beverage service standards in a real working
environment.
P4 Demonstrate professional food and beverage management skills within a food and
beverage organization. 300
Different nations in the globalization era have different economies, i.e. some focus on
production-oriented economies, whereas the others focus on service-oriented economies de
(Mattos et al., 2016). This plays a major role in determining the managerial skills required for
food and beverage organizations in a significant manner. With respect to this, the contribution of
management in terms of leveraging the operations of Kafeteria in Old Street is of utmost
significance. In brief, the primary role of a food and beverage manager is to ensure significantly
that the customers are being facilitated with premium-quality products without the violation of
industrial protocols. The role of management is food and beverage further exceeds towards the
design of attractive product menus that can allure a diverse range of potential customers for
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higher organizational productivity. In this regard, the primary skills are that are required in order
to excel as a successful manager in the Kafeteria at Old Street are as follows-
 Knowledge and obedience of the safety principles- It is an important skill for the food
and beverage managers to ensure the application of food safety guidelines during the
commencement of business operations (Lugosi and Jameson, 2017). This skill can be
highly beneficial for the managers to maintain the customer satisfaction concerns of
Kafeteria in a precise manner. This further enables the managers to educate their
subordinates regarding the food safety standards, which further enables them to
emphasize on customer care that benefits the brand reputation of Kafeteria co.
 Staff management skills- It is one of the most significant skills that is required to have
in order to develop as a successful manager. In this, the food and beverage managers of
Kafeteria are also responsible for the recruiting, training and development of efficient job
candidates (Shaheen et al., 2018). In this regard, the managers are significantly required
to develop effective interpersonal competences in order to excel at workforces
management precisely.
 Customer care proficiencies- The manager of Kafeteria is significantly required to
focus on addressing the customer complaints and queries. With this regard, the customer
service responsibilities are efficiently handled by the managers through effective
communication skills and interpersonal skills. Furthermore, the managers of Kafeteria
also ensure that the compliances of the customers are urgently attended and addressed, in
order to prevent customer dissatisfaction.
P5 Explain the legal requirements and regulatory standards that food and beverage service
outlets must comply with, giving specific reference to the maintenance and cleaning of
equipment
It is of utmost importance for food and beverage organizations to focus on complying with the
legal requirements as well as the regulations in terms with food and beverage services. With
respect to this, the legal regulations of food and beverage services comprise of a brief set of
guidelines that compel organizations to engage in ethically and legally correct business (Ashraf
et al., 2017). In brief, the legal requirements as well as regulatory standards of food and beverage
industry encompass around the 1990 Food Safety Act that are as follows-
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 The food and beverage organizations are fundamentally required to focus on the health
standards of food items prior to delivering it to the customers. In brief, the organizations
are required to ensure that the food items are prepared in such a manner that doesn’t turn
it into a potential threat to the customer’s health (Bumbudsanpharoke and Ko, 2015).
 The businesses are required to ensure that the food items being delivered to the customers
are not being compromised, in terms of quality. This implies that the businesses are
required to maintain the quality and service standards of their products as per the
requirements of their customers in a significant manner.
 The food and beverage organizations are required to ensure that the food items that are
being advertised in order to attract customers are not exaggerated (Burt et al., 2016). The
labels and advertisements must not mislead the customers towards expectations that the
organization does not intend to fulfill.
 As per the hygienic design standards, it is of utmost importance for businesses to focus
on maintaining the hygiene principles in order to comply by the Food Safety Act. In this
regard, the businesses are significantly required to focus on the necessity of cleaning their
cooking and serving equipments in order to ensure the hygienic safety of their customers
in a significant manner.
M2 Discuss the importance and value of having to meet professional food and beverage
legal and regulatory standards on operational performance and the consequences on
performance if they are not adhered to
The implementation of food and beverage safety guidelines and legal requirements in order to
manage the operational activities is of utmost importance. This is because the organizations are
required to abide by the legal compliances determined by their host countries in order to operate
legally in their market sphere. Every nation has their own regulations regarding safety of food
and quality control that altogether emphasizes on preventing the food from having an adverse
impact on the consumer’s health (Mauricio-Iglesias, 2016). With respect to this, the importance
of meeting the professional food and beverage legal guidelines is as such that it provides the
organizations with a higher brand reputation in the market sphere. As the organization abides by
the regulations and engages in the production of food items that satisfies the best interests of
their customer base, the organization gains a higher brand value as well as competitive advantage
in the market sphere (Chen et al., 2018).
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D2 Analyze the implications of failing to meet the professional food and beverage legal and
regulatory requirements upon the overall operational performance.
The violation of food and beverage regulations can be full of adverse consequences for the
businesses, which primarily comprise of private lawsuit by the affected civilians. Furthermore, it
can lead towards loss of business license and employment that has a direct impact on the overall
operational performance of businesses (Chen et al., 2018). On a minor level, organizations are
either sued or fined for failing to meet the food safety legal requirements.
LO3. Compare the ways that different food and beverage operations use technology to
improve operational efficiency
P6. Compare and contrast different operational and marketing technology for a range of
different types of food and beverage businesses.
In this section, the operational as well as marketing technology used by three food and beverage
outlets including KFC, McDonald’s and Subway will be discussed in a detailed way.
Company Profile
KFC
KFC, which is known as Kentucky Fried Chicken is a fast food restaurant based in America and
has its headquarter in Louisville, Kentucky specializing in Fried chicken. Its chain has occupied
second largest chain in the world. The fast food chain is situated in 22,621 locations in 136
countries all across the world. The company, which was opened in the year of 1952 offer food
products including fried chicken, wraps, chicken sandwiches, French fries, salads, breakfast as
well as Krushems. The company is known to earn revenue of US$23 Billion (online.kfc.co.in.
2018).
McDonald’s
McDonald’s is known as a fast food company, which is based in America and was founded in
1940. In the initial phase, the company operated as a hamburger stand, which turned into a
franchise. The company has its headquarter in Chicago, IIIinois, U.S and has 37,855 restaurants
globally. The company is known for its products including chicken, hamburgers, French fries,
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milkshakes, soft drinks, desserts, salads, coffee, breakfast as well as wraps. The company is
known to earn revenue of US$21.025 Billion (mcdonalds.com. 2018).
Subway
Subway is known as privately held franchise of restaurant, which is based in America and is
known for its submarine sandwiches as well as salads. It is known to be a fastest growing
franchise all throughout the world. The company operates in 42,000 stores and is situated in 113
countries. The company is known to sell products including submarine sandwiches, salads as
well as pizzas (subway.com. 2018).
Operational and Technological Management of KFC
Several tools as well as techniques are utilized by KFC for the determination of the appropriate
selection of the location including cost-profit volume analysis, factor rating method,
transportation as well as simulation models. The proximity of the customers is ensured in order
to make them easily approachable, which is why so many outlets have been opened in each city.
This is an effective step for enabling customers learn about their presence. Besides, they select
locations available at low cost. Moreover, since KFC is lastly franchised the maintenance efforts
are also reduced (Annarelli and Nonino, 2016).
A number of technological strategies are incorporated by KFC for the aim of increasing
employee experience. The company is seen to be incorporating technology including voice-
activated training test like Amazon Echo show for enabling employees in asking questions.
Moreover, social media networks are also utilized by the company in order to stay connected
with the customers.
Operational and Technological Management of McDonald’s
McDonald’s is seen to be incorporating effective operational strategies for designing goods as
well as services in accordance with the expectations of the customers and deliver products at
affordable prices. Besides, they also take resort to quality management. McDonald’s aims to
open restaurants at locations in order to get maximum reach in the market.
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