Food and Beverage Management: Issue Analysis & Solution Proposal

This report discusses recent issues in the food and beverage industry, focusing on Farmhouse Kings Cross in Australia. It addresses changing consumer trends towards healthier options and the slow product innovation cycle. The report highlights relevant laws and regulations, such as the Food Safety Act 1991 and the Food Standards Code, and proposes management-focused solutions like using natural ingredients, monitoring consumer feedback, and implementing green policies to address these challenges and ensure food safety. The goal is to improve business performance and achieve a competitive advantage.

Running head: FOOD AND BEVERAGE MANAGEMENT
Food and beverage management
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Table of Contents
Introduction................................................................................................................................3
Two recent issues related to the food and beverage industry.....................................................3
Key laws and regulations that address the issues.......................................................................5
One management focused solution to resolve the identified issues and eliminate safety risks. 5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
The report is prepared to discuss about the two recent issues that are faced within the
food and beverage industry and how these issues are needed to be dealt with for ensuring
successful business functioning and greater customer satisfaction. The commercial hospitality
enterprise chosen here is the Farmhouse Kings Cross in Australia, which is a popular hotel
and restaurant offering great quality food and beverage items with the management of a good
infrastructure and ambience consisting of communal wooden tables within a petite and rustic-
chic place. The topic will also include the two recent food and beverage industry issues and
how the various laws, rules and regulations have addressed the issues
(Farmhousekingscross.com.au 2019). These issues will be overcome with the implementation
of an effective management focused solution and at the same time, ensure eliminating the
safety risks associated with the food and beverage industry.
Two recent issues related to the food and beverage industry
There are multiple issues that are associated with the food and beverage industry and
have often left a huge negative impact on the business functioning as well. One of the recent
and major issues is that nowadays consumers are not much focused on the food items offered
at the hotels and restaurants that are fit for managing dietary habits in respect of reducing the
calorie and fat intake like they used to be before. At present, most of the consumers have
become health conscious and so they are more aligned with the purchases of food items that
can be suitable for their health and wellbeing (Davis et al. 2018). These food items are to be
free from any artificial ingredients and are on the cleaner and healthier side, which makes the
clients to purchase those consistently. Thus, the major issue here is the changing behaviours
of clients regarding the food and beverage items offered at Farmhouse Kings Cross in
Australia. The rise of natural and organic food items made available by few small natural and

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organic companies has further made it difficult for the commercial hospitality enterprise to
deliver the health food options and arouse interest among the clients conveniently (Wood
2018). For the beverage items, sugar consumption is a major issue, which has affected the
sales of the enterprise. The consumers have mostly been turning away from the beverage
items that contain high level of sugar, especially soda. The organisation’s staffs were also
found to add artificial sweeteners to the items such as condiments, pasta sauce, which also
has affected consumer behaviour negatively (Chen et al. 2015). Due to this, the company’s
sales declined with a number of popular food items ignored by many people and rather they
placing orders for good quality and healthy food items.
This recent issue has posed big challenge for the enterprise, which needs to be dealt
with carefully with the production of good quality and healthy food and beverage items that
are free from artificial components. This will retain interest among clients and influence their
buying behaviours too. Another current issue within the food and beverage industry is the
slow product innovation cycle at Farmhouse Kings Cross, Australia. To cope up with the
changing needs of consumers, bringing new products to the market is a daunting task that
require proper alignment with the emerging consumers’ trends timely (Wang et al. 2013).
The entire process for innovation including the research and development activities, testing of
products, marketing to retails consume a huge amount of time, which creates issues
furthermore to bring something new and unique that are both healthy and cost effective. The
issues arise because by the time, the new products are made available at the enterprise, the
trends might have reduced (Martinez 2013). Thus, a new food items might be difficult to
stand out within the immensely competitive food and beverage industry and thus the slower
innovation is another major issue. Another issue could be the pressure to go green and move
towards a greener environment though considering the fact that it depends on the supply

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chain manager to implement the relevant green policies and undertake greener initiatives
(Bosona and Gebresenbet 2013).
Key laws and regulations that address the issues
The Australian Food and Drug Administration and the state regulatory bodies or
authorities are responsible for implementing various laws, policies, rules and regulations for
addressing the issues related to the food and beverage management. The Food Safety Act
1991 is an effective law that revolves around the food safety while the various sets of rules
and regulations are covered under the Food Standards Code to eliminate any safety risks
associated with the management of food and beverage items presented at the hospitality
enterprise named Farmhouse Kings Cross in Australia (Bumbudsanpharoke and Ko 2015).
The Food Standards Code and Food Control Act 1992 are other laws and regulations that
manage proper setting up of safety rules required to manage safe and healthy food items’
distribution at the organisation. The Food and Drug Administration or FDA, United States
Department of Agriculture or USDA, Federal Trade Commission or FTC are responsible for
managing regulatory frameworks and keep the food items safe and healthy and keep the
clients satisfied as a whole, furthermore create a positive impact on the food and beverage
industry (Teixeira and Sampaio 2013). The International Organization for Standardization
enables maintenance of proper quality components used for the food production at the hotel
while the Food Safety Modernisation Act should ensure that the product related components
are safe and healthy for consumption, which must not create any negative health effects on
individuals.

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One management focused solution to resolve the identified issues and eliminate safety
risks
The organisation must combine the capabilities to demonstrate the commitment to
food safety with the skills acquired for managing food safety procedures. This would help in
managing both inbound and outbound activities associated with the beginning to the end until
the finished goods are delivered to the clients. The safety procedures must cover all the
business areas and ensure that a proper receipts are maintained regarding the outbound
shipping of raw materials as well as finished goods and services (Dabbene, Gay and Tortia
2014). Setting quantitative levels of hazard is allowed for managing verification by a
contaminant to determine the degree of severity. The enterprise needs to focus more on
natural and organic ingredients used for the production of food to create positive mind sets
among clients regarding healthy eating behaviours. The company should always monitor the
feedbacks and reviews of clients to ensure that necessary changes are made for delivering the
food items that they need and keep up with the changing consumers’ trends, which should
reduce the risks of slow product innovation cycle and changing consumers’ tastes
(Farmhousekingscross.com.au 2019). One of the most effective management focused solution
could be to go green and become socially responsible, which could be possible with the
implementation of green policies and initiatives by the Government to reduce the operational
costs and at the same time, facilitate the production of food items that represent health and
wellness of people.
Conclusion
The topic illustrated about the issues of changing consumer trends, which had been
focused more on healthy food and beverage items’ consumption and also the slow product
innovation cycle. This hindered the company sales and deteriorated the business

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performance. The issues were addressed with the help of various food and safety laws to keep
consistent check on quality while the go green approaches and monitoring of clients;
feedbacks should assist Farmhouse Kings Cross, Australia to make necessary improvements,
furthermore achieve growth and competitive advantage in business.
References
Bosona, T. and Gebresenbet, G., 2013. Food traceability as an integral part of logistics
management in food and agricultural supply chain. Food control, 33(1), pp.32-48.
Bumbudsanpharoke, N. and Ko, S., 2015. Nano‐food packaging: an overview of market,
migration research, and safety regulations. Journal of food science, 80(5), pp.R910-R923.
Chen, E., Flint, S., Perry, P., Perry, M. and Lau, R., 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.
Dabbene, F., Gay, P. and Tortia, C., 2014. Traceability issues in food supply chain
management: A review. Biosystems engineering, 120, pp.65-80.
Davis, B., Lockwood, A., Alcott, P. and Pantelidis, I.S., 2018. Food and beverage
management. Routledge.
Farmhousekingscross.com.au. (2019). Farmhouse Kings Cross | A dinner party at the
Farmhouse. [online] Available at: https://farmhousekingscross.com.au/ [Accessed 1 Jan.
2019].
Martinez, M.G. ed., 2013. Open innovation in the food and beverage industry. Elsevier.
Teixeira, S. and Sampaio, P., 2013. Food safety management system implementation and
certification: survey results. Total Quality Management & Business Excellence, 24(3-4),
pp.275-293.

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Wang, Y.F., Chen, S.P., Lee, Y.C. and Tsai, C.T.S., 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.