Analysis of the Food and Beverage Industry Operations

This report provides a comprehensive analysis of the food and beverage (F&B) industry, exploring various aspects of its operations. It begins with an overview of the modern F&B landscape, discussing different types of businesses like restaurants, catering, and bars, along with national and international rating systems. The report then delves into current and future trends, such as health and wellness and the increasing demand for plant-based foods. A significant portion is dedicated to analyzing customer motivations and behavior in selecting F&B outlets, including factors influencing consumer decisions and strategies used by outlets to attract and retain customers. The report also evaluates the impact of digital technology on consumer behavior and explores different operational and marketing technologies used in the F&B business, using Heathrow Airport Restaurants as a case study. The report incorporates various academic sources to support its findings and conclusions.

MANAGING FOOD AND
BEVERAGE
OPERATION

Table of Contents
INTRODUCTION...........................................................................................................................1
Activity 1- Demonstrating F&B Industry knowledge.....................................................................1
Activity 2- Analysing Customer Motivations and Behaviour ........................................................3
Analysis of Customer Motivation and Behaviour in selecting F& B Outlets..............................3
Activity 3. Ways to use Technology................................................................................................5
Evaluating the use of digital technology for improving operational efficiency in F&B business.
......................................................................................................................................................7
Activity 4.........................................................................................................................................9
Food Service Skills:.....................................................................................................................9
Beverage Service Skills:..............................................................................................................9
Equipment Management Skills:.................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Derived from agriculture, industry of food and beverage are divided in two segments,
first one is production of goods and second one is distribution of goods. There are different
types of F&B outlets which offer different products. The study will help to get knowledge about
how F& B industry will be rated and what are factors on which current and future trends are
influenced in food and beverage industry. The report will give ideas about how customer's
behaviour is influenced by different factors and how they can build and retain new and loyal
customers. The study will also cover evaluation of digital technology in present times for
improving operational efficiency of company. The report also covers a study based on analysis
questionnaire (Kasavan, Mohamed and Halim, 2018).
Activity 1- Demonstrating F&B Industry knowledge
The Modern F& B industry
Over present times it is seen that companies are having an emerging trend of outings. An integral
part of every culture is food, which brings families together. In present times students are leaving
home for working outside the cities, as a result fines dines and takeaway business are growing art
a very high rate. As investments are growing in countries, dining chains are also attracting them.
Food and beverage industries are growing so fast in country along with it is also increasing
restaurant trends. On the verge it is growing, it is important for restaurants to come with new
concepts. Some of the dining concepts which are prevailing in market are like fast casual dining,
casual dining, premium casual dining, fine dining, gastro pub and bistro which is the most recent
concept trending in market.
Types of business that can be found in food and beverage industry
There are different types of businesses in food and beverage industry it is not limited to just food,
there are also others services and business that come under food and beverage industry. Some of
the businesses that come under food and beverage industry (Chibili, 2017).
Restaurants
A restaurant can be defined as a place where food is prepared and served to people. It
provides place for people to have their food at that place. People love to go to restaurants for
having their meal and enjoyment. Some restaurants also have a chain, where restaurant under
same name and products will be serving at different locations. Today restaurant culture is at a
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peak as every family goes out to have their meals. Today restaurants are the biggest source of
revenues in the field of Food and beverage industry. And even today they are growing aT very
fast phase. There are different types of restaurants which have developed over time bringing new
and creative concepts to attract people. Some of the concepts are quick service restaurants, full
service restaurants, fine dining restaurants, family restaurants, ethnic restaurant and many more
(Goh and Jie, 2019).
Catering and Banqueting
Seeing the speed at each the food and beverage industry is growing it is emerging many
new businesses for society. One of such business is catering. Catering refers to services provided
at off premises while banqueting refers to services provided within the premises. Catering and
banqueting deals with serving food and services to customers such as arranging for necessary
equipments related to serving food and beverages. Making arrangements of staff who will be
serving food to customers ate events. It has gained importance as management want to reduce
their work load and responsibilities by outsourcing this services (O'sullivan, 2016).
Bars and pubs
Bars and pubs are kind of restaurants whose main serving are drinks and beverages. Bars
and pubs are place where people go for having drinks specifically and for celebrations. They are
generally for people who want a place for enjoying their drinks. Today bars and pubs can be
found everywhere and at every location as they are generating revenues at a very significant rate
(Mohan and Sequeira, 2016).
Rating system used nationally and internationally in F & B industry.
There are three rating systems in food and beverage industry which are based on services
and amenities and comfort zones provide by them. The general rankings are 3 star, 5 star and 7
star. The basis on which 3 star and 5 star hotels are differentiated.
3 Star
A hotel or restaurant is classified as 3 star on basis of accommodation and ranked as very
good. Hotel having 3 star ratings have many spacious areas. Facilities provided are of high
quality and it offers a increased variety in services. National examples :Hotel ibis Heathrow
Airport, Old Parsonage Hotel. International examples : Hotel Hampi international
4 Star
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In 4 star ratings hotels and restaurants provide refined and stylish accommodation to its
customers, it provides responsive services and amenities and facilities provide by hotels are
superior than 3 star hotels and restaurants. National example :Watersmeet Hotel and Resaturant.
International example :Hayat
5 Star
Luxury and comfort are the characteristics of a 5 star hotel or restaurant. It provides
world class facilities and amenities to its customers. The services provided by a 5 star hotel are
meticulous and always exceeds the expectations of customers (Strategies for attracting
customers, 2019). National example : The Great House Hotel and Restaurant. International
example : JWD and Mariott.
Current and future trends
The current and future trends which are helping the F&B industry to grow also at the
same time impacting the businesses.
Health and wellness
Health and wellness is a current and will also remain a future trend as people are
becoming conscious about their health and safety. Nowadays consumers are becoming more
aware about the benefits and drawbacks of food, which will affect the sale of fast food chains. As
per this trend companies will have to change their products. The companies for adopting the
change in trends will have to adopt standardised products and services in their business
(Taslim, ,2017).
Increasing demand for plant based food industry
At current times people are switching to organic food and green products and this trend
will be increasing at higher rates. Seeing the various physical and health related problems
doctors and health experts are encouraging people to accept green food. This will highly affect
the present and future business of the industry. Businesses will have to shift from various other
foods to ones which are more healthy and organic. For covering this trend companies will have
to adopt organic food and bring new concepts for green food for people (Van Bommel, 2018).
Activity 2- Analysing Customer Motivations and Behaviour
Analysis of Customer Motivation and Behaviour in selecting F& B Outlets
How do consumers decide about food and beverage outlet ?
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Decision about the outlets is taken based on taste and preferences of consumers. Every
consumer will choose an F & B outlet based on the serving it is providing. People who are
planning for family meals or gathering will choose a fine outlet which is providing excellent
food services to its customers. People who are planning for celebrations will go to bars and
beverage outlets. The major factor on which decision is made is the event for which they are
visiting an outlet (Zimmermann, Raisch and Cardinal, 2018).
Factors influencing consumer decision in choosing a F& B outlet ?
A decision of a consumer about the outlet is influenced by several factors. Covering two
of the aspects which are price and services provided by outlet. Prices are the primary factor for
influencing the decision of customer as society is divided into different customer base. Other
influencing factor is services which are provided by outlet. A consumer will never choose to visit
an outlet which has not served or treated him well.
What Strategies do different outlets use for attracting consumers ?
Pricing strategies mainly used by customers for attracting consumers. Outlets offer
products at low prices at initial stages for attracting customers. By using new attractive fixture
and furnitures in outlets by bringing new theme based concepts. They can also use promotion
strategies like giving complementary products or giving discounts to consumers.
How do F & B outlets build a loyal customer base ?
For building a loyal customer base outlets will have to treat every customer visiting their
outlet with respect and pleasantly, when customers are treated well they mostly visit to that outlet
only. Another way of retaining customers is by giving discounts to regular customers of outlet
this will also help to retain new customers by discounts. Outlets can also retain customer by
giving preference to old customers on social events and occasions (Jain, Ayalur and
Doddabalapur, 2017).
Evaluating effectiveness of strategies used by outlets for attracting and building loyal customer
base ?
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As stated above pricing strategy has always proved to be effective for companies
attracting new customers. Low prices attract new customers as they are always in search of
something new or some new themes and concept of outlet which is available at comparatively
low prices. It has always been seen that customers tend to visit at outlets who serves them beer
than others and discounts are the most effective way of attracting new and retaining old
customers from times(Weber and Saunders-Hogberg, 2018).
Evaluating the influence of digital technology on consumer behaviour ?
Digital technology has a big influence over consumer behaviour. In recent times food
industry has grown at a rapid because of digitalisation. One of the example is food delivery chain
that take online orders from customers and deliver food at their doorstep. Consumers are also
attracted by social media ads and prefer to visit at those place who have gathered publicity at
social platforms. Outlets, that have not adopted digital technology are lacking behind at present
trend of digital marketing as consumers are ordering more through online mediums.
Activity 3. Ways to use Technology
Different operational and marketing technology in the Food and Beverage business.
Food and beverage industry nowadays has been constantly evolving from the perspective
of customers as well as market demand with the aim of making them satisfied. Frequent
evolution taking place in F&B industry has affected the management and operational functions
of many business firms. Heathrow Airport Restaurants for keeping pace with operational
technological changes has adopted following mechanisms:
1. Bluetooth temperature sensors – With the help of temperature sensor system, Heathrow
can keep a check on the quality and safety measures of food and beverage products. It
helps in setting as well as managing of proper and required temperature for different
types of products as per their perishing nature and feature (Ivasciuc and Epuran, 2015). It
also assist in maintaining best quality food and protects it from degrading.
2. Digital inventory tracking – By making use of proper inventory management system,
every business firm engaged either in food, beverage or any kind of edible products can
keep a pace on the level of quantity currently present with the company. It helps in
maintaining proper flow of business activities smoothly without making it suffering from
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any type of business loss in form of customer or financial loss. With digital tracking of
inventory or stock level, Heathrow can overcome from its stock out situation as well.
3. Management system – Helps in conducting all the operational, management function in
much better and effective manner. By collecting all the crucial as well as relevant
business related information, it can assist Heathrow in formulating best business plans,
strategies in line with the customer demand and long term operational trends prevailing in
the marketplace (Alberca and Parte, 2018). By managing business activities properly,
Heathrow can carry on its business operations in cost effective manner thereby reducing
business expenses and increasing its business profit margin.
Number of marketing technological trends are being followed by such business firm viz.
1. Placing order via mobile – Many business firms have started conducting their business
operations with the help of mobile application. Mobile ordering has become one of the
most effective means of making business more productive and effective. It is one of the
segment with the help of which many F&B business such as Pizza Hut, Domino's are
capturing large market share and customer base as well.
2. Internet marketing – Undertaking promotional business activities with help of internet
marketing helps business in getting large global exposure. It enables customers with the
features of having a look at the menu before arriving to restaurant, online table booking
etc. Zomato, Uber eats application are some of the marketing technologies with the help
of which Heathrow and many other F&B industries are making use of for gaining
competitive advantages.
3. Press advertising and Broadcasting – With the help of newspapers, magazines, articles
and pamphlets one can takes benefits from the marketing opportunities as currently
prevailing in the competitive marketplace (Davis and et.al., 2018). Nestle by making use
of television advertisements, radio announcements, cinema advertising undertakes its
promotional activities for its products.
4. Touchscreen Food vendors – This marketing technology provides benefit to Heathrow
by reducing the requirement of employing staff and employees in the business which in
turn saves huge amount of cost as incurred in form of salary. It allows many business
firms in setting up self services counters, grab and go establishments facilities such as
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Coca- Cola's Freestyle soda fountain etc. can help firm in increasing their profitability as
well as productivity level.
Evaluating the use of digital technology for improving operational efficiency in F&B business.
With the help of digital technology it has helps many business firms in meeting evolving
demands of its customer in more economic manner. Implementation of digital solutions helps
Heathrow by allowing customers to individualize products and services as per their needs and
requirements. Following are the use of digital technologies which assists in improving
operational efficiency:
1. Webcam – Enabled Monitoring – By making use of best and high quality cameras in
business areas, it helps Heathrow in monitoring all the operational as well as production
activities taking place therein (Pagani and Pardo, 2017). Pairing high quality cameras
with advanced algorithms enables companies engaged in food and beverage business in
recording the activities of its employees in area of preparation of food, testing lab so as to
assess any non compliance made in respect of health regulations as well as safety norms.
It thus in turn helps in making improvement in business operations, quality and services
thereby ensuring proper compliance has been made of set defined business, quality as
well as safety norms.
2. Mobile applications – By making use of different types of mobile applications,
customers nowadays are able to fulfil their needs from every part of world. Many
business firms engaged in F&B business have come up with their personalize mobile
application so as to facilitate customers assisting them in placing order from any place
without need of moving out. Also, it has helps such businesses in capturing large market
share, achieve high growth in sales and profitability aspects. By providing services with
the help of mobile applications such as Zomato, Facebook ordering etc. customers can
have a look at the menu online and book table as well.
3. Adoption of digital framework – With the help of adoption of best digital frameworks
and systems, it helps many food and beverage industries in maximizing their profit levels
thereby improving business performance and productivity. It also assist in providing high
quality along with excellence in rendering of customers services keeping in mind their
needs and demands. By implementation of digital standards, one can minimize wastage
arising from mismanagement of business operations (Sundmaeker and et.al., 2016). Also,
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it supports in reducing resource spoilage by making effective allocation of resources as
per needs of different food and beverage production departments. Another benefits come
in form of improving business performance and safety level in terms of packaging,
manufacturing, ordering and production processes of Heathrow.
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Activity 4
Professional Food & Beverage Service
Standards: Checklist and
Questionnaire Form
Food Service Skills:
1) What are 5 skills that an effective Restaurant Supervisor or Restaurant
Manager must have in order to run an efficient business?
1) Time management
2) Communication
3) Consistency
4) Business Awareness
5) Problem solving
2) What are 5 important skills for maintaining standards and projecting a
professional image in the F&B industry?
1) Attire and Clothing
2) Body Language
3) Attitude
4) Behaviour
5) Etiquettes
Beverage Service Skills:
1) What are 3 different types of beverage service encounters?
a) Phone encounter
b) Face to face encounter
c) Remote encounters
2) What are 3 pre-service and 3 post-service duties?

a) Plate service d) Discount to premium customers
b) Cart service e) Pick- up and drop
c) Plater service f) Laundry services
Equipment Management Skills:
1) How should equipment be cleaned and maintained pre- and post- service?
It is very necessary to clean and maintain the equipments before and after the service
because of the reason the if the equipments will not be in good condition then it will not be
useful. So for maintaining the equipments it is very necessary to test the lubricants of washing
the equipments that whether they are effective or not. Another thing wich can be done is that a
register can be maintained that pre- service what was the condition of the equipment and post
service what was the condition.
2) Why is it important that equipment should be cleaned and maintained?
It is of utmost importance that the equipments must be cleaned and maintained because if
the equipments will not be in good condition then there might be possibility that the equipment
snot work in proper condition. It is so because of the reason that if the equipments will not be
maintained then it might ge broken or get rusted.
CONCLUSION
Carrying out above study it can be concluded that for managing food and beverage
industry they are several factors that are considered by any company. Considering modern trends
it is important for companies to change and enhance and take necessary steps to survivor in
market. They have to adopt new trends and technologies for growing. Businesses are rated on
basis of comfort zone, amenities and facilities provided by hotels and restaurants. Companies are
also influenced by consumer behaviour, it is important for companies to consider tastes and
preferences of consumers. Digital technology is playing an important role in recent times for
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helping food and beverage industry to grow at a raped rate. It has become a necessity for industry
to use digital technology in their business.
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REFERENCES
Books and Journals
Chibili, M., 2017. Modern Hotel Operations Management. Routledge.
Goh, E. and Jie, F., 2019. To waste or not to waste: Exploring motivational factors of Generation
Z hospitality employees towards food wastage in the hospitality industry. International
Journal of Hospitality Management. 80. pp.126-135.
Jain, V., Ayalur, V. and Doddabalapur, V., 6d Bytes Inc, 2017. Automated preparation and
dispensation of food and beverage products. U.S. Patent Application 15/422,260.
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).
Mohan, B.C. and Sequeira, A.H., 2016. The impact of customer-based brand equity on the
operational performance of FMCG companies in India. IIMB Management Review. 28(1).
pp.13-19.
O'sullivan, M., 2016. A handbook for sensory and consumer-driven new product development:
Innovative technologies for the food and beverage industry. Woodhead Publishing.
Taslim, M., 2017. To Determinants Of A Firm's Profitability In Food And Beverage Industry:
An Empirical Analysis On Oriental Food Industry Holding Berhad.
van Bommel, K., 2018. Managing tensions in sustainable business models: Exploring
instrumental and integrative strategies. Journal of cleaner production. 196. pp.829-841.
Weber, O. and Saunders-Hogberg, G., 2018. Water management and corporate social
performance in the food and beverage industry. Journal of cleaner production. 195.
pp.963-977.
Zimmermann, A., Raisch, S. and Cardinal, L.B., 2018. Managing persistent tensions on the
frontline: A configurational perspective on ambidexterity. Journal of Management
Studies. 55(5). pp.739-769.
Alberca, P. and Parte, L., 2018. Operational efficiency evaluation of restaurant
firms. International Journal of Contemporary Hospitality Management. 30(3). pp.1959-
1977.
Davis, B. and et.al., 2018. Food and beverage management. Routledge.
Ivasciuc, I. S. and Epuran, G., 2015. A Marketing approach on how continuous processes
improvement can contribute to hotel business Organic Growth. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V. 8(2). p.185.
Pagani, M. and Pardo, C., 2017. The impact of digital technology on relationships in a business
network. Industrial Marketing Management. 67. pp.185-192.
Sundmaeker, H. and et.al., 2016. Internet of food and farm 2020. Digitising the Industry-Internet
of Things connecting physical, digital and virtual worlds. Ed: Vermesan, O., & Friess, P.
pp.129-151.
Online
Strategies for attracting customers. 2019.[Online]. Available through :
<https://www.vendhq.com/blog/retail-marketing-strategies-help-get-new-customers/>.
Food and beverage marketing. 2019. [Online]. Available through:
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<https://nscpolteksby.ac.id/ebook/files/Ebook/Hospitality/Food%20and%20Beverage
%20Management%20(2008)/Chapter%2010%20-%20Food%20and%20Beverage
%20Marketing.pdf>.
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