Food and Beverage Operations: Business Types and Strategies

This report comprehensively explores the food and beverage industry, covering various aspects of its operations and management. It begins by examining different types of businesses within the sector, such as fast food, hospital catering, restaurants, golf clubs, coffee shops, soup kitchens, buffets, juice & smoothie stalls, wine bars, and bars & pubs, providing descriptions, advantages, disadvantages, and examples for each. The report then delves into rating systems used in the industry, highlighting their importance in assessing service quality. It further discusses professional management skills, legal requirements, and regulatory standards essential for food and beverage outlets. Additionally, it compares and contrasts different operational and marketing technologies used by various businesses. The report also analyzes factors influencing consumer decisions and explores strategies to attract and build a loyal customer base. Overall, the report provides a detailed analysis of the food and beverage industry, offering insights into its operations, management, and customer engagement.

MANAGING FOOD
AND BEVERAGE
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explore different types of businesses within the food and beverage
industry, profiling a chosen business within each area of the industry .................................3
TASK 2............................................................................................................................................6
P2. Rating systems for food & beverage sector:....................................................................6
TASK 3............................................................................................................................................7
P3 Covered in PPT.................................................................................................................7
TASK 4............................................................................................................................................7
P4. Professional management skills within a food and beverage organisation:.....................7
P5. The legal requirements and regulatory standards for food and beverage sector:.............8
TASK 5............................................................................................................................................9
P6. Compare and contrast different operational and marketing technology for a range different
types of food and beverage businesses...................................................................................9
TASK 6..........................................................................................................................................11
P7. Factors influencing consumers' decisions on their choice of food and beverage outlets:11
P8. Strategies used in food and beverage outlets to attract and build a loyal customer base:11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is crucial business practice which helps the organisation to
develop and create highest efficiency. It is mainly concerned with converting raw material into
goods and services with the help of employees to gain maximum profit. Food and Beverages
operation consist of various activities which includes buying good quality of raw materials,
generating quality food and beverages and maintaining the service quality to customers.
Managing different events related to catering and maintaining the inventory of materials is
undertaken by food and beverages operation management (Bovay and Alston, 2018). In order to
give excellent quality standard food and beverages to customers it is important to follow legal
requirement and regulatory standards regarding food and beverages services. This assignment is
mainly emphasis about various sectors and styles of food and beverages service, emerging new
food and beverages industry trends and different rating systems. This assignment also covers
about the legal requirements and regulatory standards that is required and essential for food and
beverages outlets. It includes all those factors that directly influence costumers decision and
strategies to build a strong relationship with customers.
TASK 1
P1 Explore different types of businesses within the food and beverage
industry, profiling a chosen business within each area of the industry
Food and beverages sectors are managing various operations that involves with buying of
quality raw materials, producing quality food, handling various machinery and acquirements used
for preparation of food and beverages and managing inventory of raw materials. Here are some food
and beverages sectors that are discussed in detail with brief description, advantages, disadvantages
and employer examples:
S No. Sectors Description Advantages Disadvantage Example
employer
1 Fast Food
services
Fast Food sectors are
upcoming growing food
and beverages sector all
Fast Food
sectors main
advantages
Fast Food
sectors main
disadvantage
Subway
owned by
DeLuca

over the world. Some of
the famous fast food
service outlets are
McDonald's, Subway and
Burger King. The main
characterises of this sector
is that is has broad
customer engagement and
requires high investments
costs and workers costs.
involves that it
has wide
market share
and growth
rate in the
market. Both
growth rate
and market
share is high.
is that those
people who
are health
conscious
avoids to
consume it as
they prefer to
have healthy
food. With
changing
demand of
customers they
have to come
up with new
innovate
product with
good flavour
and taste.
family. It is
founded by
Fred DeLuca
and Peter
Buck. Website
Link:
https://www.s
ubway.com/en
-IN
2 Hospital
Catering
Services
Hospital Catering Services
are responsible for
developing healthy recipes
and menus that is
undertaken under the
guidance of nutritionist
and dietetic advises,
medical treatment
conditions and age of
patient. Hospital catering
services serves quality
patient care and they
provide essential nutritions
Hospital
catering
services serves
are specific
and competent
at developing
recipes, menu
charts for
patients drinks
and food they
consume.
They are
focused in
Hospital
catering
services main
disadvantage
is that it faces
high staff
vacancy rates
along with
high staff
vacancy rates.
There is
limited future
scope as there
OCS group
setup by
Frederick
Goodliffe.
Website
link:https://ww
w.ocs.com/uk/
services/cateri
ng/hospital-
and-
healthcare-
catering/

meals to patients
according to their need,
preferences and dietary
requirements.
preparing high
calorie diet,
protein diet,
diabetic diet
for well- being
of patient
heath and care.
is no career
development
planning takes
place in this
food and
beverages
sectors.
3 Restaurant Restaurant is
establishment that deals
with the preparation and
delivering of quality food
and drinks to their
customers in return of
money. The money may be
either paid after
consumption of services or
before receiving the
services. Restaurant
designs varies from theme
to theme and it has various
service models.
Restaurants
main
advantage is
that the
customer
hunger and
food
starvation
drives them
towards the
restaurant to
have variety of
food and
drinks. In
order to run
restaurant in
effective way
they need to
emphasis well
on food
quality and
taste in local
areas.
Restaurant
main
disadvantage
is that require
effective
employees and
competent
skilled chefs
to run the
organisation
well.
Restaurant has
to face high
staff turnover
rate. It
difficult to
retain
competent
staff members
at low rate.
Patrick
Cescau(chairm
an) and Keith
Barr (CEO).
Website
link:https://ww
w.ihgplc.com/

4 Golf Clubs It is mainly considered as
an organisation in which
different team members
comes together to play
golf.
It gives
advance
promotional
opportunities.
There is very
limited scope
of career
development
and
advancement
in this sector.
Muirfield
(www.muirfiel
d.org.uk)
5 Coffee
Culture
and Coffee
shops
Coffee shops provides
variety of hot and cold
drinks for customer's
refreshment.
Coffee shops
provides good
opportunities
to the
employees as
this business is
running well
in various
countries.
The main
disadvantage
with the coffee
shops is that
this sector has
very limited
menu due to
which this
area shrinks.
Prufrock
coffee shop
address is 23-
25 Leather Ln,
London EC1N
7TE, UK
6 Soup
Kitchens
Soup kitchen is one of the
best business in food and
beverage sectors in winters
. Along with this it has
wider scope in the
upcoming future.
Soup Kitchen
has wider
scope as more
items can be
introduced in
the menu.
Soup Kitchen
are confined
and run best
during the
winters
seasons
Ealing Soup
Kitchen
address The
Crypt, St
John's Church,
Mattock Ln,
London W13
9LA, United
Kingdom.
7 Buffets Buffets serves variety of
food items at out places
and mainly self services
served.
Buffets has
wide
opportunities
and there is
high scope of
The main
disadvantage
of the buffets
is that
customers
TOPS Buffet
address is 106
Portland St,
Manchester
M1 4RJ, UK

expansion the
businesses
well in
catering
sectors.
takes lots of
food and fails
to consume all
due to which
food wastage
increases.
8 Juice &
Smoothie
stalls
Juice and smoothies stalls
are mainly established and
set up at shopping mall
centres.
The main
advantage of
juice and
smoothies
stalls is that it
has great
opportunities
to add unique
drinks items in
winter season.
The main
disadvantage
of juice and
smoothie is
that the sales
fall down
during the
winter season.
Fuel Juice
Bars address is
Moor St,
Birmingham
B5 4BL, UK
9 Wine Bars Wine bars provides
various types alcoholic and
non- alcoholic wines with
starters
In the
upcoming
times there
will be
increase in the
opportunities
due to which
eatable item
will also be
introduced in
the menu.
It is drinks
served at the
wine bars are
very expensive
in compare to
wine shop.
Gordon's Wine
Bar. Website
is
www.gordons
winebar.com
10 Bars and
Pubs
Bar and pubs are famous
place with music and
people prefer to visit their
It also has the
opportunities
to serve drinks
The drinks
served at the
bars and pubs
Belushi's
Hammersmith
is the bar and

at the weekends to have
drinks for refreshment
along with
starters
are very
expensive.
pub of UK. Its
address is 28
hammersmith
Broadway,
Hammersmith,
London W6
7AB, UK.
TASK 2
P2. Rating systems for food & beverage sector:
Food and beverage sector is expanding all over the world and is responsible for
generating high level of revenue for various countries. The focus of this sector is to give
outstanding services to its customers globally. Depending on the quality of services they provide,
each hotel and restaurant is critically rated. The grading and rating system for food & beverage
sector is mentioned below:
AA Rosettes: The cooking standards of restaurants and hotels in UK are determined by
AA Rosettes. AA inspectors manage this procedure across the country. More visits of such
inspectors determine more efficiency in a hotel or a restaurant. The 5 stages of these rewards are
described below: 5 Rosettes: The businesses which received 5 Rosettes, are globally recognized for their
cooking standards. The skills and expertise found in these firms are outstanding. 4 Rosettes: This rating is received to top hotels and restaurants which are nationally
acknowledged. An appreciation for culinary standards and exceptional consistency are
found in these businesses. 3 Rosettes: Service organisations who deserve acknowledgement within the country are
rewarded 3 Rosettes. They have high cooking standards and use various blends of
flavours to make their dishes taste better. 2 Rosettes: Firms that are above average and maintain a higher standard locally receive
this rating. Quality of ingredients used in the dishes are given proper attention and focus
on maintaining the consistency.

 1 Rosette: In UK, this rating has been given to almost half of the country's service
organisations. They have skilled employees and serve quality food with care.
Scores On The Doors: These ratings determine the food hygiene standards of service
organisations. These ratings are displayed on internet after thorough safety inspections.
Authorities like National Food Hygiene Rating Scheme of England conduct these inspections
across the country.
Michelin Stars: In UK, this grading system is used to determine the quality of dining of
that particular hotel or restaurant. One star is given to firms that provide decent service to its
customers. Two stars are awarded to businesses with good food quality and a well served
cuisine. Lastly, businesses which receive three stars provide exceptionally good service to its
customers and maintain highest standards in their quality of food.
Hotel Stars: The base for these ratings is set by the service hotels provide to their
patrons, their comfort level, and employee professionalism. The levels of these stars are
described below: One Star: Small and Medium-sized hotels which provide basic amenities receive this
rating. Two Stars: Hotels bigger in structure than the small and medium-sized receive this
rating. The services of these hotels are given at affordable prices and they are generally
located near tourist attractions. Three Stars: Their facilities are much better than the average hotels. More than basic
amenities are provided in these hotels, like TV, refrigerators, Wi-Fi, etc. Four Stars: These are formal and large hotels with luxurious entrance and front desks.
These have well furnished infrastructure and provide grand and expensive services like
gyms, restaurants, etc.
 Five Stars: Highest level of accommodations are provided by these hotels and they incline
towards personal services. They provide luxurious facilities like in-suite libraries, DVD
players, heated swimming pools, jacuzzi, etc.

TASK 3
P3 Covered in PPT
TASK 4
P4. Professional management skills within a food and beverage organisation:
Managing a food and beverage business is a highly complex activity. This is because
success of such organisations depend upon effective management skills of the managers. There is
extreme pressure on these managers as they are required to work in shifts according to their job
requirements. In case of any event or celebrations, these managers are required to work overtime.
The management skills required within food & beverage sector are as follows: Adaptability: It is very important for managers of service industries to be adaptable. Daily
working conditions of the service outlets are different. The managers have to apply different
approaches daily to deal with customers as well as with internal management of the firm.
Being rigid would simple hinder their performances and would exert more pressure on them
which would cause frustrations and would definitely be bad for business. Effective Communication: This is the key skill every food and beverage manager must
have. They are required to communicate with different customers, vendors as well as their
team members. Effective communication would help the outlet build a strong customer base
as customers will be satisfied if they feel welcomed. This would also help in building better
employee relationships and employees will develop more commitment for the firm (Davis
et.al .,2018). Problem Solving: There are many problems that rise in Food & Beverage sector on daily
basis. Sometimes vendors are not available, or the chef is off duty, or maybe there is a
conflict in the team. Effective problem solving skills would enable the managers to
effectively solve these problems. Spontaneous solutions are often required in this industry
and it depends on the managers how effectively they can cope up with the problems.
 Leadership Skills: Managers should be supportive and motivating leaders because it is not
easy to consistently work at a set pace in this industry. Also, the pressure on the employees
is quite high. Managers must provide training to employees periodically and should
motivate them on-the-job. This would help the employees enhance their skills and work
efficiently (Bharwani and Talib, 2017).

P5. The legal requirements and regulatory standards for food and beverage sector:
It is essential for businesses of food & beverage sector to follow the rules and regulations
set up by government, in order to enhance their service quality by ensuring customers that their
safety and health is the firm's priority. The reason behind focusing on these requirements is that
under no circumstances can any service industry risk the safety of the customers it is serving. The
legal requirements and regulatory standards that food & beverage service outlets must comply with
are: Safety: The most important legal requirement for any service industry is to prioritise the
safety of its customers. The businesses must focus on providing safe food and beverages
that are fit for human consumptions. The food provided must not damage the health of
company's customers. If by mistake, unsafe food reaches the customer, it is the
responsibility of the manager of the outlet to inform the customer immediately and take
corrective actions required to maintain the safety levels. In addition to this, the fruits and
vegetables that company buys for customers must be bought from renowned caterers or
vendors. They should also be fresh to avoid any health hazards. Cleanliness: The service industry organisations must give a detail attention towards
maintaining and cleaning of their equipments. Along with this, they should maintain
hygiene of the outlet as well as the staff. To achieve this, they must clean the equipments
thoroughly before using them and after their purpose is fulfilled. The staff must wear
gloves while cooking and regularly focus on cleaning their hands. Unwell employees must
wear a disposable masks to maintain the cleanliness of the environment (Bovay and
Alston, 2018).
 Food Storage: The managers of outlets should adopt proper storage techniques for
different food items. This is because temperatures play a vital role in sustainability of the
food products. If they get obsolete by mistake, chances are that they might risk the safety to
the customers consuming it. Also, it would add to the cost of the company.
TASK 5
P6. Compare and contrast different operational and marketing technology for a range different
types of food and beverage businesses.
Food and beverage business Operational technology Marketing Technology

sectors
Hospital Catering Services Various interlinked operational
activities at Hospital Catering
services are managed through
online portals. This portals are
helpful in operating various
function of operational
activities. Through this online
portal it is easy to accept order
and deliver meals to patient on
time. They use special
management software to
manage operation activities
well and delivers best food
services to patient according to
required diet which includes
protein diet, diabetic diet.
Hospital catering services are
specific to serve food and
drinks to patients for their
well-being. In order to provide
their services to patients they
use online portal to offer
different diet plan and market
their dietary food items to
patient.
Fast Food sectors In order to manage operation
activities fast food sectors uses
automated machinery to
prepare food and drinks. To
manage their operation they
uses automatic billing system
and online payments.
In order to market their
services to consumers they use
advertisement through social
websites, posters. To improve
their market share they provide
special offers and discounts to
their customers along with
home delivery services.
Sometimes they use pamphlets
for advertisement purposes.
Restaurant In order to practise effective
operation management
restaurants uses automation
Digital loyalty programs are
adopted by restaurants to
develop their market strategies.

technology. Restaurant
automation allows to enhance
operational activities.
Restaurant automation helps in
improving customer relation
management . Restaurant
automation mainly includes
automatic billing, online
ordering, inventory
management, accounting,
reporting and feedback
management.
Restaurants are enhancing
their customer loyalty by
offering interesting
personalised offers and
rewards. By implementation of
this marketing technology they
are able serve excellent
experiences to their regular
customers.
TASK 6
P7. Factors influencing consumers' decisions on their choice of food and beverage outlets:
It is very familiar that that every customers has different opinion and taste. There are
many factors that influence the decision of choosing a particular type of food and beverage
outlet. Some of the them are discussed below:
Fast-food outlets: There are various factors that directly and indirectly influence the
consumers to choose fast- food outlets. Customers dislikes to wait long time for food services, so
they prefer to have quick delivery services rather than slow delivery services. This is one of the
factor that effects consumer decision. Moreover, fast-food outlets provides vast seating
arrangements and other attractive items to offer that directly influence the customers to visit the
outlets frequently (Chand and Slath, 2018).
Hotels: Hotels are usually choose by the customers when they wish to spend some
quality time with their family members. Moreover, income is major factor that influence
customers to choose hotels. For celebrities they can afford easily for high branded drinks link
whisky, wine etc. while common economic customers will not be able to afford this expensive
drinks. Hotel sectors has high influence on customers as they deal with wide variety of customers
regarding comfort services and ambience.

Nightclubs and Pubs: Today's young generation generally prefer to have this kind of
outlets for parties and celebrations. Colourful lights, loud energetic music attracts youth, this is
one of the factor that influence the young customers towards nightclub outlets.
Food Courts: Food courts outlets are choose by those customers who are food lovers and
likes to taste different variety of food. Another factor that influences customer towards food
courts is that location nearby shopping malls as it saves customers convenience money.
P8. Strategies used in food and beverage outlets to attract and build a loyal customer base:
Food and beverages sectors are growing very fast due to this there is high competition in
the market. Food and beverages outlets are developing and implementing different effective
strategies to attract customers towards their outlets and build strong customer relationship with
them. Some of the strategies implemented by food and beverage outlets to attract and build a
loyal customers are discussed below:
Tabletop Facilities: In order to build strong loyal customer relationship, many food and
beverage outlets uses iPads that allows the customers to self-check in and self-check out . This
ensures customers about their safety, saves customer's time and efforts.
Digital Menu: Providing digital menus by food and beverages outlets helps to attract
various customers. Through digital menus customers are able to place orders easily through their
own personal smartphones. This strategy used by food and beverage outlets attracts many
customers (Dadwal and Malik, 2018).
Ordering through social media: Food and beverages outlets have their own online
portals that allows the customers to place their orders easily. Through this online portals
consumers feels convenient to place orders. Most of today's generation are in touch with of social
media, thus this strategy is highly convenient for customers.
CONCLUSION
It is found that the hospitality sectors have great scope and growth for young pupils to
establish and set up their careers in food and beverages outlets according to their own choices
and preferences. Food and beverages sectors are widely distributed in different fields and great
opportunities in the upcoming years. Due to ongoing advancement, advance technology uses and
digital services there is strong competition among various food and beverages sectors. To
overcome this competition, it is crucial to adopt competent management skills and follow up

legal mandatory requirements and regulatory standards. Food and Beverages sectors should use
advance effective market strategies to improve their operation management and increase their
customer loyalty.
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