Food and Beverage Industry: Production, Financials, and Strategies

This report provides an overview of the food and beverage industry, focusing on coffee production systems, including espresso, latte, and cappuccino. It explores factors affecting recipes and menus, emphasizing customer satisfaction and government regulations. The report discusses the costing and staffing implications for coffee shops, highlighting efficiency and operational excellence. It explains the use of financial statements for business management and profitability analysis. The purchasing process, including supplier identification and negotiation, is also covered. Furthermore, the report examines various pricing strategies such as value-based and premium pricing. Finally, the report concludes that the food and beverage section is service-oriented and that business type determines cost and staffing implications. Financial statements are crucial for identifying sales and income.

FOOD AND
BEVERAGES

INTRODUCTION
Food and Beverages is a fastest growing industry
subject to changing customer preferences. It is
marked by the existence of number of
multinational and local suppliers. It is an
important service oriented department in hotels.

Characteristic of food and beverage
production system
.
The major food and beverage production style for coffee are as
follows:
 It is a major parts of everyday life of a person.
 Encourages entrepreneurship
 Employment opportunities for people
 Innovative and consumer led initiative.

Con..
The various coffee production styles are:
 Espresso
 Latte
 Cafe Mocha
 Americano
 Cappuccino

Con
The Italian style of coffee production is one of the most favoured
technique. Espresso based production style is most preferred
by the people of the United Kingdom. The away from home
techniques of production are to be most preferred in this
approach.

Factors affecting recipes and menus for different
systems
The various factors which affect recipe and menu for different
system are:
 Customer satisfaction
 Pricing strategy adopted by the company
 Government regulation of health and safety
 Management Decisions
 Major trends in the market

Cost and staffing implication for different
process
The various costing and staffing implications for coffee shop are
as follows:
 Efficiency focused
 Learning oriented
 Operational excellence (Low cost production)
 Product leadership
 Customer intimacy

Use of financial statements in food and beverage
The several uses of financial statements in food and beverage are as
follows:
 It helps in ideal management of business.
 It helps in identifying variety of information such as profits and costs
incurred on a task.
 Ascertain financial performance of the venture
 Finding out the profitability in business

Purchasing process for coffee shop
The purchasing process for coffee shop is as follows:
 Identification of different sources of supply.
 Contact and evaluation of different sources of supply.
 Negotiate and purchase from the best sources.

Use of cost and pricing process in coffee
shop
A entrepreneur can adopt variety of pricing strategies which are as
follows:
 Value based Pricing
 Premium Pricing

CONCLUSION
As per the above mentioned report, it has been concluded that
food and beverage section is a service oriented department of the
industry. Type of business determines the cost & staffing
implications of the firm. Financial statements are used to identify
the sales and incomes of the company.

REFERENCES
• Davis, B. and et al., 2013. Food and beverage management.
Routledge.
• Maré, L., 2017. Food and beverage. Laboratory Marketing
Spectrum. 36(3), pp.21-25.
• Zhen, C. and et al., 2013. Predicting the effects of sugar-
sweetened beverage taxes on food and beverage demand in
a large demand system. American journal of agricultural
economics. 96(1), pp.1-25.

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