Report on Managing Food and Beverage Operations in the Industry

This report provides a comprehensive analysis of the food and beverage (F&B) industry, exploring various segments, current and future trends, and the impact of customer behavior. It delves into the different types of businesses within the F&B sector, including restaurants, catering services, and bars, and examines how these businesses operate, attract customers, and build loyalty. The report also evaluates the role of technology in improving operational efficiency and marketing strategies, comparing and contrasting different operational and marketing technologies. It highlights the importance of factors such as food safety, sugar reduction technologies, and quality standards. Furthermore, the report analyzes customer motivations, decision-making processes, and the influence of digital technology on consumer buying behavior, offering strategies to attract and retain customers in the competitive F&B market.

Managing food and beverages
operations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
ACTIVITY 1: DEMONSTRATING F&B INDUSTRY KNOWLEDGE......................................4
ACTIVITY 2: ANALYSING CUSTOMER MOTIVATIONS AND BEHAVIOUR....................6
ACTIVITY 3: EVALUATING WAYS TO USE TECHNOLOGY................................................8
Activity 4.......................................................................................................................................10
1.................................................................................................................................................10
2.................................................................................................................................................10
1. ...............................................................................................................................................10
2. ...............................................................................................................................................11
1. ways in which the equipment are been cleaned and is maintained in pre and the post service
...................................................................................................................................................11
2. Importance of cleaning and maintaining of an equipment....................................................11
1.................................................................................................................................................11
2.................................................................................................................................................11
3. ...............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global food and beverage industry is divided into various segments such as groceries,
packaged foods, health and natural products and many more (Davis and et.al., 2018). F&B
industry is influenced by customer demands which are further influenced by several other
factors. The report will give information about present and future trends that can affect food and
beverage industry. Further it will give information about rating systems of hotels and restaurants
and types of businesses that are covered in F&B industry. The research will also give ideas about
factor that influence consumer behaviour and trends and evaluation of strategies that can be used
for effectively retaining current and future employees. Digitalisation role and importance in
increasing operational efficiency of company.
ACTIVITY 1: DEMONSTRATING F&B INDUSTRY KNOWLEDGE
The modern F&B industry:
The F&B industry has undergone a huge expansion. This sector is evolving growing at a
pace. Food and beverages are the 2 items that go along with modern people. People are curious
to try new things which leads to innovative food items. This industry is growing on the constant
basis to meet the demand and needs of customers (Gibson and Parkman, 2018). Traditionally
people does not spend so much money in food and beverages industry, generally they go to
family restaurants and have lunch or dinner. It is essential for restaurants and hotels to come up
with new concepts. Now in modern F&B industry people are keen to try new things such as fine

dining, pubs, clubs, bistro etc. Food industry has also covered airports such as Heathrow airport
restaurants and lounges Ltd. where many cafes, lounges and restaurants are opened.
There are different types of business found in F&B industry are
 Restaurants: Generally restaurants referred to a place where tables and chairs are
provided to sit and waiters serve the food. It was a concept of casual dining with table
service. There is a rapid growth in the restaurant business in UK as there is an increasing
demand of food outlets and there is an intense competition in the market. As Food and
beverages industry started to grow, the trend of fast food was emerging. Restaurants has
changed their ambience and way of conducting the business (Mattos and et.al., 2015).
They have identified the needs of the customers and provide them with different
restaurant styles such as Ethnic restaurants which provides national cuisine. Fast food
restaurants mainly focus on fast service, it ranges from small-scale vendors to large scale
restaurants like McDonald's, family style are casual dinning where food id served on
dinner tables. There are various variations in the restaurants such as cafe, buffet, bistro,
coffee house, destination restaurant and pubs etc. there are some restaurants on wheels
such as food trucks.
 Catering: It is a service of providing food in the hotels, hospitals, pubs, aircraft, event
venue and remote areas etc. This business was found in 1820. Slowly and gradually
catering business started to be professionalize. By creating simple menus catering
business try to develop its business. This catering services has developed its market and
then introduce various types of catering services like mobile catering which provides
food on vehicles, shipboard catering provides food to big cargo ships, cruise liners and
ferries. Wedding catering was one of the most popular catering services where food is
provided in wedding functions and parties (Maier and Prusty, 2016).
There are also some rating systems nationally and internationally through which each business
are rates according to their ambience and many other factors. For rating the hotels and
restaurants in the F&B industry, tourism issued NAS (national accommodation standards). SRS
(start rating system) was also started to rate the hotels. These rating system classify hotels on the
basis of their ambience, quality standards etc.
 3 star rating system: Under this system business need to deliver wide range of comforts
which is above-average needs. Their designs, quality standards, services and

infrastructures need to match with the expectations of guest. For e.g. in national there is
Kensington Suite hotel and internationally Gordon Ramsay hotel.
 4 star rating system: Under this rating system business need to have a deluxe visitor
experience. Business need to have all facilities, they need to fulfil the quality standards
and service standards which reflected the different needs of customers. For e.g. in
national there is Castle hotel and internationally Hyatt (Ahmed and et.al., 2015).
 5 star rating system: Under this system business (hotels and restaurants) need to be
luxurious in all the operational areas. There will be wide range of facilities and business
will also have to provide high personalise services. Their quality standards need to be
excellent. For e.g. in national there is Montcalm royal London house and internationally
JW Marriott.
There are some current and future trends which need to be followed by business in order to
meets the business objectives. All these trends will help company in meeting its objectives.
These are as follows.
 Food and safety: It is an essential factor to be considered in F&B industry. Hygiene is
the most important element which need to be maintained in every business of F&B. All
the kitchen equipments, surface having direct contact with food need to be cleaned.
Sanitization need to be done thoroughly. It is a current trend which need to be maintained
in future also in order to meet the requirement of business (Hill and Hill, 2017). F&B
business is affected by these safety standards as business need to change their operations
and incur cost in implementing HACCP principles. Heathrow airport restaurants and
lounges Ltd. May use HACCP principles to maintain the quality standards and hygiene. It
is helpful in conducting hazardous analysis, critical control points and take corrective
actions.
 Sugar reduction technologies: It is one of the most important future trend where people
are becoming health conscious and are reducing their consumption of sugar. People are
now preferring nutritious food thus, it is important for Heathrow airport restaurants and
lounges Ltd. to invest in technologies that reduces the level of sugar in the food. Change
in consumer preference has affected the industry as business need to invest in
technologies which incurs huge amount of cost. It will be beneficial for company to meet

the consumer demand and satisfy their needs by providing healthy foods. This could be a
competitive advantage for the company (Notarnicola and et.al., 2017).
 Quality standards: Quality of food need to be maintained in every F&B business. This
is followed by the industry from past years and it will be continue to follow in the present
time as well as future years. F&B industry need to provide quality of food and services to
its customers and maintain the standards in order to sustain in the market for longer
period. If business is not able to maintain the standards than it will bear loss.
ACTIVITY 2: ANALYSING CUSTOMER MOTIVATIONS AND
BEHAVIOUR
How customers decide on which food and beverages outlet they choose?
The decision of outlet is based on the products and services being offered by the F&B
industry. Customers decide F&B on the basis of following factors.
 Daily routine and preferences: Generally customers will prefer those foods and beverages
which they use in their daily routine. Their trend is set by purchasing the same item
regularly. They do not like to experiment new things and waste their money and time thus
they make same purchase whenever needed (Mohammad, 2017).
 Purchasing power of buyer: It is one of the most important factor which decides the F&B
outlet. Purchasing capability of customers decide the food outlet to be chosen. If there is
low purchasing power than customers is not able to choose the preferred the outlet.
What factors influence consumers decision in choosing an F&B outlet?
There are various factors which influence the decision making of consumers such as
religion of customers influence them in deciding F&B outlet. If customers prefer vegan food
than they will choose pure vegan restaurant, if some people prefer non-vegetarian food than they
will go to non-veg restaurant. Customers who prefer vegetarian food may go to restaurants who
serve both veg and non-vegetarian food. If depends on the customers. Price of the products and
services, restaurants and hotels also influence in making decision (Davis and et.al., 2018).
What strategies do different F&B outlets used to attract customers?
There are different strategies used by F&B outlets to attract customers. Happy hours is a
strategy where a restaurant provides specific time in which discounts and offers are provided to
customers. Discounts and coupons are provided to customers in order to attract large base of

customers. In weekend there are special discounts for couple entries in pubs, cafe which attract
teenagers and youngsters.
How do F&B outlets build a loyal customer base?
There are various ways to build a loyal customer base such as if a customer is visiting the
restaurant or hotel regularly than company may provide a special discounts to regular customers
in order to give value to them. Restaurants may customize their food to satisfy customers. If
there is any function or event celebration than company need to keep in mind the regular
customers and invite them in events. This will create a loyal customer base and retain them for
longer period (Gibson and Parkman, 2018).
What is your evaluation of effectiveness of the strategies used by different food and
beverages outlets to attract and build a loyal costumer?
According to the above discussed strategies it has been evaluated that discounts, coupons
are very effective in attracting new customers. By providing discounts and special offers to
customers it is identifies that there is an increase in the footsteps of the customers in the
restaurant, profit of the company is increasing. By implementing penetration pricing strategies
restaurant is able to target medium class of customers.
What is your evaluation of the influence of digital technology on consumer buying
behaviour?
The emergence of digital technology has influenced the behaviour of customers very
badly. Customers are using digital technologies and increasing their expectations. They are
informed about the new products and services through online marketing. Business in F&B
industry has started marketing online through social media platforms. Customers buy a specific
product and services by viewing the likes and comments of other people on social media. Thus,
digital marketing influence the buying behaviour of customers (Mattos and et.al., 2015).
ACTIVITY 3: EVALUATING WAYS TO USE TECHNOLOGY
Comparison and contrasting different operational and marketing technology?
Basis Restaurants Catering services Bars and pubs
Operational
technology
Restaurants use online
reservation software like
online booking, analysis
Catering services use
various software to
operate their business.
These business used
point of sale system to
operate its business. It

of customer database to
identify the trend of
customers preferences. It
is very effective for the
restaurants in improving
their business operations
and grow its business
(Ahmed and et.al.,
2015).
Catering management
software is used to
operate the business.
Under this software
inventory is managed,
orders are tracked and
delivered, bills are
managed. It is a cost
effective process which
is beneficial for
business to work
effectively and
efficiently.
is beneficial for
business in
customization, pre-
authorization of debit
cards, easy in menu
management, and
benefits business by
providing sales report
and customer reports
(Notarnicola and et.al.,
2017).
Marketing
technology
Marketing technology
used in restaurants are
social media marketing
as it is easy and reduce
cost of marketing.
Catering services also
use social media
marketing but their
target market is
different from
restaurants and pubs .
Digital technology
used by pubs and bars
are mobile
technologies.
Nowadays all the
customers are
spending more time on
their mobile phones
thus it is easy for these
business to attract
customers through
social media (Ahmed
and et.al., 2015).
Evaluation of how digital technology is used to improve operational efficiency?
Restaurants Catering services Bars and pubs
Restaurants use social media Catering business use HACCP These F&B outlets use

as a digital marketing tool to
promotes its business, it is
very cost effective technique
because company attracts large
number of audience through
one platform. Restaurants also
uses some technologies which
is used to keep safety of F&B.
These technologies provide
company to maintain the
standards and improve the
performance of business hence
increase the productivity and
profitability. Thus, objectives
of business is achieved (Hill
and Hill, 2017).
software and sugar reduction
technologies which benefit
company in fulfilling the
demand of customers. Sales
and revenue of company is
increase hence objectives are
achieved. Maintaining hygiene
standards benefit company in
enhancing the performance of
its business and sustain in the
market for longer period.
webcam monitoring to control
its business as there is a rush
of customers. It helps company
in monitoring the business and
employees whether they are
performing well or not. It is
beneficial for business to
identify the loopholes in their
business and improve them.
Employees will work
efficiently as they are being
monitored regularly.
Employees will increase
productivity which will
generate profits and meeting
business goals (Maier and
Prusty, 2016).

Activity 4
Food service skills:
1.
Proactive planning- Maintaining an adequate inventory for ensuring that the staff has
appropriate tools which required for the serving the guests.
Time management- It is the most important skill that a manager must posses as in order
to achieve the business goals and in attaining the satisfaction of the customers a restaurant
manager must have an effective time management skills.
Communication- Two-way communication should be adopted by being clear, consistent
and open while communicating with the guest and the staff. Manager must take appropriate
measures like receiving feedback, active listening. This skill helps him in reaching to the
expectation of the customers and the staff.
Problem solving- A restaurant managers is said as good when he is responsive, creative,
calm and flexible in ensuring the smooth functioning of the operations without any problems and
in case the problem must have the skills to take corrective measures in resolving the problems.
Customer service- Providing excellent services and food to the customers with health
relationship results in achieving growing success within the food and the beverage industry.
2.
1. High level of the customer service
2. Formal training
3. Multitasking
4. Cultural awareness
5. Team work
Beverage service skills:
1.
a. Remote encounters
b. Phone encounters
c. Face to face encounters

2.
a. Setting up the tables
b. Being a menu expert
c. Greeting customers
d. Processing payment
e. Reviews and feedback
f. Updating them regarding the schemes
Equipment management skills:
1. ways in which the equipment are been cleaned and is maintained in pre and the post service
Removing the detachable parts and washing, sanitizing and rinse manually by using the
warehousing machine. Wash and rinsing off all the food contact area which could not be
removed manually and then wiping or spraying it with the properly prepared sanitizing solution.
Cleaning must be made by using the hot water and the detergent and lastly Air drying.
2. Importance of cleaning and maintaining of an equipment
It is crucial for the staff to clean and sanitize those surfaces that are counted as food
contact for the purpose of removing the bacteria or to kill the present bacteria in order to prevent
the guest from causing any disease or any other severe problem.
Legal and the regulatory framework:
1.
Protective legislation Act has to be followed in order to prevent the customers from
causing any health problem due to the cleansing and the maintenance problem.
All the regulations that are been provisioned by the local government in consideration with the
training requirements and the system of ratings.
2.
The other regulatory framework includes food and safety Act 1990, Health and safety Act
etc. has to be followed by the outlets or the restaurants under the food and the beverage industry.
3.
In case the industry does not meet the regulations and the laws as provisioned in UK law
and as given by the government directly affects the brand image of the company (Food and
beverage industry regulations and compliance, 2018). Furthermore, government could take legal
action like cancel the licence and the imposes penalty on the organization.

CONCLUSION
By summing up the above report food and the beverage industry in today's world is
moving towards expansion and creating innovation in relation to the food items. It is important
for the outlets that are functioning under the food and the beverage industry to work in
compliance with all the rules and the regulations.

REFERENCES
Books and Journals
Ahmed, M. and et.al., 2015. Food production and service in UK hospitals. International journal
of health care quality assurance. 28(1). pp.40-54.
Davis, B. and et.al., 2018. Food and beverage management. Routledge.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.
Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
Education.
Maier, T. A. and Prusty, S., 2016. Managing customer retention in private clubs using churn
analysis: Some empirical findings. Journal of Hospitality Marketing & Management.
25(7). pp.797-819.
Mattos Jr, and et.al., 2015. Method for managing orders and dispensing beverages. U.S. Patent
9,067,775.
Mohammad, A. A., 2017. Approaching the Adoption of Lean Thinking Principles in Food
Operations in Hotels in Egypt. Tourism Review International. 21(4). pp.365-378.
Notarnicola, B. and et.al., 2017. Environmental impacts of food consumption in Europe. Journal
of Cleaner Production. 140. pp.753-765.
Online
Food and beverage industry regulations and compliance. 2018. [online]. Available
through<https://www.business.qld.gov.au/industries/hospitality-tourism-sport/food/food-
beverage/regulations>
Food and beverages. 2018. [online]. Available through<
https://www.academia.edu/30094470/Food_and_Beverage_Operations_Management_Unit_5>