Managing Food and Beverage Operations: Industry Analysis Report

This report provides a detailed analysis of the food and beverage (F&B) industry, exploring various business types such as hotels, fast food restaurants, event planning, theme parks, restaurants, contract catering services, and travel & tourism. It examines different rating systems used nationally and in...Read More

Managing Food and
Beverage Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types of businesses within food and beverages industry................................................1
P2. Different rating system used for food & beverages industry nationally and internationally5
P3. Current and future trends affecting food and beverages businesses................................5
TASK 2............................................................................................................................................6
P4 Demonstrate professional food and beverage management skills within a food and
beverage organisation.............................................................................................................6
P5. Legal requirement and regulatory standards that food and beverages service outlets must
comply with reference to maintenance and cleaning of equipments......................................7
TASK 3............................................................................................................................................7
P6 Compare and contrast different operational and marketing technology for a range of
different types of food and beverage businesses....................................................................7
TASK 4............................................................................................................................................9
P7. Factor which influence consumers' decision for selecting food and beverage outlets.....9
P8. Strategies used by food outlets to attract and build loyal customer base.........................9
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Food and beverages industry refers to the sector that includes those institutes, businesses
and companies which work toward providing services related to the processing and preparing of
food as well as beverages (Davis and et. al., 2018). It includes restaurants, cafeterias, hotels,
catering services etc. are few of them. This project is about management of food and beverages
operations performed by companies involve in food servicing sector. This assignment elaborates
about different types of business sector includes in food and beverages industry along with
current and future trends that are expected in industry. Further it describe about the food and
beverage management skills and regulatory standards that must be follow by food outlets. Apart
from this it describe about various operational & marketing technologies as well as strategies to
attract customers.
TASK 1
P1. Types of businesses within food and beverages industry
Food and beverages industry includes various types of businesses that are involved in
processing of raw materials, packaging and its distribution (Asaolu, Agorzie and Unam, 2012).
Following are the sectors involve in food & beverage industry:
SNO. Sector Description Advantages Disadvantage
s
Example
Employer
1 Hotel Hotel industry work
toward providing shelter,
refreshment and food to
travellers on commercial
basis which is
customarily furnished
within households. It
provide services like
food & beverages,
special featured room,
leisure & amenities,
Higher growth
and
promotional
opportunities
based on
experience and
quality of job
employee
perform.
Expectation of
customers are
high according
to the
goodwill of
hotel which
creates a
pressure over
managers and
other staffs for
providing high
Marriott
international is
founder by J.
Willard
Marriott, Alice
Marriott and is
provide
services in
more than 127
countries.
https://
1

business meeting centre
etc.
quality
services
www.marriott.
com/
default.mi
2 Fast Food Fast food restaurants are
specific type of
restaurants which serves
fast food cuisines with
minimal table services. It
is a kind of chain
restaurants or franchises
which provide
standardized ingredients
that partially prepare
food and supply them to
each restaurant by using
supply chain
management. It provide
services related to food
& beverages by offering
variety of snacks &
drinks.
It help in
developing
interpersonal
skill which
will be helpful
in getting a
good job in
future.
This sector
provide less
promotion
opportunities
with lower
income.
McDonald is
founder by
Richard and
Maurice
McDonald, in
California,
US. It operates
in around 100
countries.
https://
corporate.mcd
onalds.com/
corpmcd.html
3 Event
planning
This sector work toward
preparation and
development of large
scale events for their
customers. It provides
variety of services such
as catering, corporate
event management,
outdoor publicity,
Higher growth
opportunity
and expansion
of work in
different
categories of
event as well
as occasions.
Working in
this sector
includes
higher
working hour
with lots of
travel and
increasing
expectation of
Jack Morton
Worldwide
founded by
Jack Morton
which perform
its operations
worldwide.
http://
www.jackmort
2

fashion show
arrangement services,
exhibition management
etc.
customers may
create stress.
on.com/
4 Theme parks Theme park work
toward creating and
managing a large space
with attractive features
such as games, rides and
arrangement of various
events for entertainment
(Yeoman and et. al.,
2012). It provide
services like amusement,
entertainment,
competitions, games,
events, food etc.
This job
involve
interaction
with different
people around
the world
which
provides
numerous
networking
opportunities.
High pressure
occasionally
and working
for long hour
during
inclement
weather.
Walt Disney
World
founded by
Walt and Roy
Disney which
is
headquartered
in Florida,
U.S.
http://
www.disneyho
lidays.co.uk/
walt-disney-
world/
5 Restaurants This sector work toward
preparing and serving
food or drinks to
customers as per their
requirement. Restaurants
provide various type of
services such as
breakfast, lunch, dinner,
alcoholic beverages etc.
Provides an
opportunity to
earn extra
income during
holidays and
special
occasions.
Required to
work for extra
working hour
during special
occasions.
Texas
Roadhouse is
an American
chain
restaurant
which is
founded by
Wayne Kent
Taylor. It
operates
around 563
stores in 9
3

countries
including US.
https://
www.texasroa
dhouse.com/
6 Contract
catering
services
Companies under this
sector take contract from
businesses or other
people to provide food
services either on regular
basis or for special
occasion (Wood, 2018).
It provide services like
coking and supplying
food for parties, events,
businesses and for other
purpose by taking
contracts.
Development
opportunities
as employees
bring
inspirations
and ideas for
tailoring
product
accordingly.
Dissatisfaction
among
customers may
affect the
image as well
as goodwill of
company.
Elior Group
S.A. is a
French
multinational
commercial
food and
catering
service
company
founded by
Francis
Markus and
Robert Zolade.
It operates its
business in
UK.
https://
www.eliorgro
up.com/
7 Travel &
Tourism
This sector work toward
providing an option to
people for travelling to
any part of world for
business, leisure or
Incentives are
relatively
higher which
depends upon
the customer
Culture
difference may
affect services
provided
which may
Thomas Cook
Group is a
travel
company
which was
4

recreation purpose
(Wang and et. al., 2013).
It provide services like
travelling, tourist guide
services, holiday
accommodation and
many more.
satisfaction
level.
have negative
impact over
job.
founded by
Thomas Cook
and is located
in UK,
Germany,
Scandinavia
and Belgium.
https://
www.thomasc
ookgroup.com
/
P2. Different rating system used for food & beverages industry nationally and internationally
There are number of grading system that are used through out the world within food &
beverages industry for rating the services as well as quality provided by different hotels. There
are generally four types of rating system which are as explained below:
Scores on the doors:- It refers to the grading system which is generally used to rate the
restaurants, bars, cafes, clubs or hotel on the basis of quality of food sever by them. The scores
on door system allow public to view scorecards which rate a food business compliance with
hygiene requirement and food safety. This rating system covers handling of food, its storage,
preparation, cleanliness facilities and food safety management.
AA Rosettes:- It refers to a grading system which is generally done over the quality of
food severed within the restaurants and hotels. AA Rosettes award is given after assessing the
taste and its successful delivering of dishes that are promised in menu. This award are given on
the basis of meal visited by one or more hotel inspectors who are experienced in assessing
quality.
Michelin stars:- It refers to the grading system that are associated with the chefs and is
generally given by hotel or restaurants inspection. Unlike other standard rating system, the
Michelin Guide includes only three stars ranking. This is generally done for hotel but some
restaurants may also includes those which are highlighted in “Bib Gourmand” category.
5

Hotel Stars:- It refers to a grading system which aims toward rating or providing marks
to the hotel on the basis of quality and amount of amenities which it deliver to its customers.
These grading system are divided in different star categories which generally comes between one
to five star.
P3. Current and future trends affecting food and beverages businesses
Covered in PPT
TASK 2
P4 Demonstrate professional food and beverage management skills within a food and beverage
organisation
Food and Beverage management refers to the proper administration of food and beverage
items within organisation. It is the responsibility of department manager to anticipate, plan and
control ordering of items related to food and beverages for hospitality firm (Brandenburg and et.
al., 2014). The main responsibilities of food and beverage manger including purchasing F&B
stock, planning and carrying out budget, design and update menu, calculate its costing,
managing, training and evaluating F&B staff, ensure high quality customer service etc. In order
to effectively perform Various professional skills are require by manger of Marriott Hotel in
order to perform their duties well within organisation. Some of professional skills are defined
below:
Customer service skill: It is very necessary for a professional food and beverage manager
to always put the customer service first. This is important for them to understand that being
courteous and friendly with guests helps manager to win their hearts and keep them happy. It is
required by manager of Marriott Hotel to have excellent skills of serving customers in more
better manner and provide them satisfactory services, so that they want to visit the hotel again.
Leadership skills: For managing diverse staff, an excellent leadership skills are required
to have in a professional food and beverage manager. This skill enable administrator to rally their
staff at the time of heavy shifts and managing conflicts among them in effective way so that they
can done their job swiftly (Chen and et. al., 2015). In Marriott hotel, good leadership skill help
food and beverage manager in easily and accurately communicating cooking methods and
standards relate to kitchen health and safety to staff so that work can be done effectively.
6

Management skills: The manger of food and beverage department not only deals with
beverages and food, but they also requires to deal with pricing, estimating costs, purchasing F&B
stock, creating work schedules, managing staff, design and update menus and more (Chen,
2012). So, it is very essential for food and beverage manager of Marriott Hotel to have good
management skills as it helps them in managing costs related to labour, food, beverages and
making proper cleaning and working schedules.
P5. Legal requirement and regulatory standards that food and beverages service outlets must
comply with reference to maintenance and cleaning of equipments
For companies deal in food and beverages sector, hygiene is one of the major
consideration that they must involve in their regular practices. As avoidance of which may affect
the health of customers who consumes food from that outlet which in turn affect the image of
company at marketplace. Following are certain factors that must be consider by food & beverage
service outlets related to maintenance and cleaning of equipment as per guided by industrial
standards:-
Cleaning:- Tools as well as equipments used for cooking, storing and serving food must
be cleaned or maintained regularly according to the industry standards. According to guidelines
fixed by industry is that gross debris must be removed from these tools, it must be rinsed with
water for removal of additional debris after which itr must be wasted in water consists of
detergents that is approved by industry's standard. Contamination should be removed till the tool
or equipment seems visible clean.
Sterilizing/ Disinfecting:- According to food & beverage industry standard, it requires
food outlets to sanitize their equipment and tool using a chemical sanitizer in order to remove the
germs from these equipments that can affect the quality of food (Graham and Potter, 2015).
After application of chemical, water rinse is essential to ensure that chemical doesn't resides in
those equipments or become a part of future food processing.
Tools life span:- Tools and equipments used for food processing must be inspected
regular for checking damage and replacement when there is excess in staining, excessive
abrasions, damaged bristles, gouges or tools are at point that can harm the customers when used.
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TASK 3
P6 Compare and contrast different operational and marketing technology for a range of different
types of food and beverage businesses
Today, food and beverage industry is evolving at rapid pace in regard to technology,
customer demand and warehousing. Because of rapid evolution, it becomes difficult for F&B
sector to keep up with changes (Grekova and et. al., 2014). Use of technology assists manager in
increasing speed of sorting of goods, re-stoke items efficiently and improve quality control.
Different types of F&B businesses include restaurant, coffee shop, banquet services, bar, food
catering services etc. All these businesses use technology in different way. The chosen business
for comparing use of technology is coffee shops and restaurant.
Technology name Restaurants Coffee shops
Automated
purchasing tool
(operational
technology)
In restaurants, the biggest mistake
that may occur is not having adequate
amount of food to serve. Use of
automated purchasing tool in
operations helps restaurant in
eliminating this mistake. This tool is
directly linked with inventory system
that alerts manager when the product
level is low so that they can stay on
top of stock (Ha and et. al., 2014).
Whenever inventory level reaches a
certain threshold, this tool place
orders automatically. This will
provide benefit of stock tracking and
maintaining proper records of
ordering from suppliers to restaurant.
As the prices of coffee are changing
very frequently, so it is necessary
for coffee shops to see their prices
at regular basis and make
purchases accordingly. Use of
automated pricing system in
business operations of coffee shop
helps manager to see pricing of
coffee from multiple approved
vendors and helps them in
providing convenience in
purchasing coffee at best prices.
Customer
Relationship
management
In restaurant, implementation of
customer relationship management
system helps food and beverage
Execution of customer relationship
management system helps manager
of coffee shop in interacting with
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system (Marketing
technology)
manager in identifying needs of
guests and providing them services
accordingly. This will help restaurant
in satisfying customers by
maintaining good relations with them.
This will helps restaurant in
increasing its sales.
their existing and potential
customers. This system uses data
analysis related to history of
customers with company which
helps it to improve their relationship
with customers. This will assist in
retaining customers for longer term
which ultimately improve its
profitability.
TASK 4
P7. Factor which influence consumers' decision for selecting food and beverage outlets
It is very essential for food & beverage outlet to determine the factors that affect the
choice of customers regarding the selection of a restaurant (Kotas, 2014). It help in identifying
the area where a food outlet requires to pay attention in order to alter the hospitality services
according to the requirement of customers. This support in attracting the large number of
customers into their outlet which also greater growth opportunity along with increase in revenue.
Following are the factors which affect the choice of an individual to visit an particular food
outlet:
Food quality:- This is consider to be very essential factors, as customers agrees to pay
any cost if food is of high quality. It includes ingredients used to process and cook food,
uniqueness in taste of food etc. these all are the factors that influence customer to select a food
outlet over others.
Value of money:- It is also an important factor that affect the choice of customer, as they
prefers to go for a restaurant which provide services as well as food according to the money
charged by customers. A food outlet must provide augment services which refers to a bundle of
activities that are performed which to provide services that are beyond the expectation of
customers (Lao and et. al., 2012).
Environment of outlet:- Atmosphere, ambience, physical evidence, behaviour of staff
and services offers by a food outlet also affect the choice of customer related selection of a
9

restaurant over the others. An outlet must be clean, well arranged, specious and have a various
equipments as well as peaceful which help in attracting customer to visit a restaurant.
Location:- External view as well as location on which a food outlet is exists affects the
choice of customers as they want a place which attract and appeal them to spend time. Location
should be such that is easy to approach, must be clean and attractive (Tso and et. al., 2012).
These above explained factors plays an essential role in influencing the choice of
customer related to selection of an food outlet.
P8. Strategies used by food outlets to attract and build loyal customer base
Restaurant and food outlets are one of the fastest growing sector that attract large number
of people to setup their outlet with different themes. This has created huge competition in market
which leads food outlets to formulate strategies in order to remain competitive in market place.
As failure in satisfying customer may lead to shrinking of market share and decrease in the profit
(ATTRACT MORE CUSTOMERS TO YOUR RESTAURANT, 2018). So in order to attract
customers to food outlets, market players uses following tactics that support in building customer
loyalty:
Use loyalty & reward:- Restaurants sometime provide some coupons or discount offers to
attract customers for visiting their outlet. This can be done while serving customer food they are
provided with some sort of discount coupons that can be used by customer over their next visit.
This help in influencing the customers to revisit the stores in order to avail this benefits.
Theme interior occasionally:- Some restaurants uses theme decoration in their outlet on
some special occasionally and also provide discount over their meal or some additional items
free (Valta and et. al., 2015). This help in attracting customers and making them satisfy with
their services that support in gaining loyal customers.
Organizing of some events such as game, family nights etc.:- It is one of the most
widely used strategies in which food outlets organise some king of contest, game nights or
family night. In which they offer extra benefit or some theme dinner to customers in order to
make them happy and satisfied with their services.
Keeping employees satisfy with their job:- Employees such as manager and waiters are
the key persons which interact with customers. So it is very essential for the employer of food
outlet to keep their employees happy so that they can exert better services to customers. Most of
the restaurants provided financial benefit over the quality of services provide by employees. This
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help in keeping them happy and motivated toward providing better services to customers and
making them satisfied.
CONCLUSION
From the above report it can be concluded that Food & Beverage is consider as one of the
fastest growing sector which involve various opportunities related to the career advancement and
growth for an individual. This industry also involve various other sectors which are hotel,
restaurants, theme park, travel & tourism, event planing and many more. But apart from this
there are certain factors as well as legal standards fixed by food & beverages industry related
maintenance and cleaning of equipments. These legal requirements must be comply by each food
outlets in order to perform their operations legally and achieve customer loyalty in marketplace
which is a key to success in market.
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REFERENCES
Books and Journals
Davis, B. and et. al., 2018. Food and beverage management. Routledge.
Asaolu, T. O., Agorzie, C. J. and Unam, J. M., 2012. materials management: an effective tool for
optimizing profitability in the Nigerian food and beverage manufacturing industry.
Journal of Emerging Trends in Economics and Management Sciences. 3(1). p.25.
Brandenburg, M. and et. al., 2014. Quantitative models for sustainable supply chain
management: Developments and directions. European Journal of Operational
Research. 233(2). pp.299-312.
Chen, E. and et. al., 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.
Chen, L. F., 2012. A novel approach to regression analysis for the classification of quality
attributes in the Kano model: an empirical test in the food and beverage industry.
Omega. 40(5). pp.651-659.
Graham, S. and Potter, A., 2015. Environmental operations management and its links with
proactivity and performance: A study of the UK food industry. International Journal of
Production Economics. 170. pp.146-159.
Grekova, K. and et. al., 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.
Ha, O. K. and et. al., 2014. Relation model describing the effects of introducing RFID in the
supply chain: evidence from the food and beverage industry in South Korea. Personal
and Ubiquitous Computing. 18(3). pp.553-561.
Kotas, R., 2014. Management accounting for hotels and restaurants. Routledge.
Lao, S. I. and et. al., 2012. A real-time food safety management system for receiving operations
in distribution centers. Expert Systems with Applications. 39(3). pp.2532-2548.
Tso, G. T. and et. al., Fluid Management Operations LLC, 2012. Modular flavor dispenser for
use with food or beverage machines. U.S. Patent 8,161,865.
Valta, K. and et. al., 2015. Overview of water usage and wastewater management in the food and
beverage industry. Desalination and Water Treatment. 53(12). pp.3335-3347.
Wang, Y.F. And et. al., 2013. Developing green management standards for restaurants: An
application of green supply chain management. International Journal of Hospitality
Management. 34. pp.263-273.
Wood, R. C., 2018. Strategic questions in food and beverage management. Routledge.
Yeoman, I. end et. al., 2012. Festival and events management. Routledge.
Online
ATTRACT MORE CUSTOMERS TO YOUR RESTAURANT. 2018. [Online] Available
through<https://restaurantden.com/attract-customers-to-your-restaurant/>./
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