Understanding Food and Beverage Operations for Healthy Bites Ltd

This report, prepared for Healthy Bites Ltd., a London-based restaurant promoting healthy eating, delves into the food and beverage industry. It begins by exploring various business types, including catering, quick-service, full-service restaurants, and bars/cafes, profiling examples within each. The report then explains national and international food rating systems like the Food Hygiene Rating System and Michelin Stars. It discusses current and future industry trends such as health and nutrition, food safety, sustainability, e-commerce, and innovation. The report also examines essential food and beverage management skills, including leadership, organization, and customer service. It further outlines legal requirements and regulatory standards, specifically focusing on equipment maintenance and cleaning. The analysis extends to marketing and operational technologies, comparing different approaches for various food and beverage businesses. Finally, it investigates factors influencing consumer decisions and analyzes strategies for attracting customers and building loyalty in the competitive food and beverage market.

Understanding how to
manage food and beverage
operations
1

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
P2 Explain different rating systems used for the food and beverage industry nationally and
internationally..............................................................................................................................4
P3 Discuss the current and future trends affecting food and beverage businesses......................6
TASK 2............................................................................................................................................7
P4 Demonstrate professional food and beverage management skills within a food and
beverage organisation..................................................................................................................7
P5 Explain the legal requirements and regulatory standards that a restaurant must comply with,
giving specific reference to the maintenance and cleaning of equipment...................................9
TASK 3..........................................................................................................................................10
P6 Compare and contrast different marketing and operational technologies for a range of
different types of food and beverage business...........................................................................10
TASK 4..........................................................................................................................................11
P7 Investigate the factors that influence the consumers decision on which food and beverage
outlets they choose.....................................................................................................................11
P8 Analyse strategies used in a range of food and beverage outlets used to attract customers
and build a loyal customer base.................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
Food and beverage industry includes business organisations that are involved in processing,
packaging and distributing of food products and materials. This report is being prepared for the
management of a local business owner in London, United Kingdom who have decided to open a
restaurant Healthy Bites Ltd. for promoting healthy eating habits. In the report, an attempt has
been made to determine the various types of businesses within the food industry and the different
food rating systems being used nationally and internationally. The report also aims to determine
the current and future trends in the industry and analyse the important skills for managerial
positions in the industry. At last, the report aims to evaluate the different factors which influence
the consumer decision-making process in the industry and analyse the strategies being
implemented to foster customer-loyalty and attract new customers in the industry.
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 beverage industry contributes to a significant amount of revenue generated from
the hospitality industry with different types of business organisations providing different food
and beverage services and products. Some of the most important types of businesses within the
food and beverage industry that needs to be considered by the management of Healthy Bites Ltd.
are as follows:
Catering businesses: Business organisations involved in catering services provide food
and beverage services at remote sites and locations such as an event venue, wedding hall, parks,
cruise ships etcetera. With the increase in number of corporate and family functions and events,
the demand for catering food services has increased exponentially with many firms entering into
the business sector (Scanlon, 2012). Primary advantage of catering business is the low influence
of seasons on the nature of demand within the industry and the huge potential of reaching out to
larger target audience at any event venue. However, catering businesses require a great deal of
organisational skills and attention to detail is essential which determines the success or failure of
an event or gathering.
Quick-service restaurants: These are fast food outlets which provide a quick service to the
customers in preparing, providing and consuming the food products with convenience as the
3

primary element or factor such as McDonald’s, Pizza Hut, Burger King etcetera. Increase pace of
life in urban regions have increased the demand for fast food and as a result, quick-service
restaurants have witnessed immense growth. QSR can be established with limited investment
and can provide huge earning opportunities (DiPietro, Gregory and Jackson, 2013). However,
cost-effectiveness and attractive pricing strategy in QSRs may create a restriction of the
profitability and profit margins. Takeaway service is quite common in quick-service
establishments. Drive-through and kiosk locations are primary common among the quick service
establishments.
Full-service restaurants: These are themed restaurants with fine-dining services and offer
a wide range of options and food products on the menu and on-premise consumption of meals is
popular in full-service restaurants. Customers have high expectations from full-service
restaurants and and these establishments usually operate with customer satisfaction and
experience as the key performance indicators (Auchincloss and et. al., 2013). However, amount
of investment and operational expenditures is quite high in case of full-service restaurants.
Bars and pubs: Bars and pubs are establishments or business organisations under food and
beverage industry where alcoholic drinks along with limited food products are served and the
customers usually visit these places to enjoy the ambience and spend good time with peers.
Social interaction and engagement is more prominent at these places and customers usually
expect a high quality of service and some privacy.
Café and coffee houses: These are business establishments offering coffee and other
beverages with light food and snack options. These can be owned by small corporations to big
multinational companies. Franchise systems are popular in coffeehouses such as Starbucks Ltd.,
Costa Coffee etcetera. High standard of living and popularisation of coffee culture in United
Kingdom has increased the spectrum of customers for café and coffee houses.
P2 Explain different rating systems used for the food and beverage industry nationally and
internationally.
Food Hygiene Rating System:
Food Hygiene Rating System is operated by government of United Kingdom in England,
Wales and Northern Ireland under the Food Standards Agency. It is a system which is used to
determine the hygiene level of restaurants, fast food outlets, takeaway stores etcetera and rank
every food business establishment based on its hygiene quality (Council, 2013). A high rating
4

will help the management of Healthy Bites Ltd. to build trust among the potential customers. A
scale of 0-5 rating points is used which is being described as follows:
Level 0 rating: It determines immediate requirement of improvements in the health and
safety of the establishment and significant breaches of food hygiene are existent which could risk
the health of customers.
Level 1 rating: It determines the necessity of major improvements due to breaches of
hygiene and lack of effective staff training.
Level 2 rating: It implies that improvements to some extent are mandatory due to some
issues in the handling practices and other facilities which warrant an immediate change.
Level 3 rating: It implies that business establishment is overall satisfactory with respect
to health and safety standards with some room of improvement which can further increase the
safety and hygiene standards.
Level 4 rating: It implies that the business establishment is assessed as good on health,
safety and hygiene concerns with very minor or few areas of small improvements.
Level 5 rating: It implies that the business establishment is excellent with respect to food
and safety standards and the management of Healthy Bites Ltd. should aim to attain a level 5
rating for hygiene in their premises.
Michelin Stars:
Michelin Stars is a food rating system based on comprehensive elements such as quality
and hygiene which originated in 1900s by the Michelin tyre company to guide drivers on local
shops where they can eat and have meals. It is now regarded as the top international food rating
system and every food business establishment aims at a high rating based on Michelin Stars.
One-star Michelin rating determines and signifies a very good restaurant, two-star Michelin
rating signifies excellent cooking and food restaurant which is worth a detour and the three-star
Michelin rating signifies an exceptionally excellent restaurant which can be worth a special
journey (Mount, 2014). In United Kingdom, there are 5 restaurants with Michelin three-star
rating. The list of starred restaurants is updated every year to add new restaurants and make sure
that already listed establishments are still worthy of their previous ratings.
5

P3 Discuss the current and future trends affecting food and beverage businesses.
Some of the most important current and future trends influencing food and beverage
businesses that needs to be considered by the management of Healthy Bites Ltd. are being
discussed as follows:
Health and Nutrition:
Customers preferring health and wellness have been a driving factor for the food
industry. The trend has been making its impact for some time, now. Considering the behavioural
pattern of the consumers, it is easy to say that the trend will not only continue but accelerate at a
significant rate (Jiao and et. al., 2015). As more and more people are getting aware, corporations
have made a shift towards healthier food. Food with lesser sugar, more liking for plant-based
foods, etc. are just some of the examples of this trend.
Food Safety and Hygiene:
Amidst the recent spreading of a global virus, people have suddenly taken grip of the
condition of the food that they eat. To avoid any legal complications or a people outrage,
businesses have started in-house training, sourcing local ingredients and making sure the
consumer knows what they are eating.
Sustainability:
Sustainability is a major trend in the food and beverage industry. Just like every other
industry, the food and beverage industry has also stepped forward to minimize the harmful
impacts on the environment. Least possible use of plastic in packaging, use of better energy fuels
while cooking in restaurants and food-chains are being adopted to assure a better future for the
environment (Franceschelli, Santoro and Candelo, 2018). From the initial stage of growing and
cultivating until the last stage of cooking and finally serving the food, measures are being taken
for maximum efficiency in terms of saving water, trees and more.
E-commerce:
E-commerce has majorly replaced physical shopping in several spheres of businesses.
Even in instant services like that of food in which the consumers demand their food to reach
them within minutes, it is not far behind. With the coming of drone-deliveries, we can expect
food soon being delivered to the customers straight from the restaurants and cafes via drone.
People are ready to not just buy cooked food but also groceries and raw food from online apps
and websites.
6

Innovation and Differentiation:
The competition is on a surge in all major industries and the food and beverages industry is
nothing different. With almost unlimited options available to the customers, the businesses must
differentiate themselves from their competitors to make a name for themselves in the industry
(Bayona-Saez and et. al., 2017). Businesses keep differentiating their products with new
flavours, recipes that haven't been tried before and so on. The manner in which businesses
market and sell their products, interact with the customer base, etc. are all a part of heavy
planning and campaigning.
TASK 2
P4 Demonstrate professional food and beverage management skills within a food and beverage
organisation.
Some of the most crucial and vital managerial skills for food and beverage managers are
being demonstrated as follows:
Leadership Skills:
A food and beverage manager must be a strong leader figure who should lead by personal
example. He should be an enthusiast who can bring together the diverse staff of the enterprise to
perform a series of actions required to serve the customers in the best way possible through
coordination, cooperation and team work (DuBrin, 2015). The management of Healthy Bites Ltd.
should be able to motivate the staff through effective leadership for providing the best quality of
products and service to customers.
Organisational Skills:
Food and beverage manager should have great organizational skills and a good eye to
identify the needs of the company. They should have excellent understanding of the structure of
the organisation and the manpower required to operate. They should be able to save costs,
manage and hire right kind of employees in sufficient numbers, analyse the market and
competitors and create work schedules and shifts for the smooth functioning of the company.
They should pay attention to details. In the context of Healthy Bites Ltd., the management
requires to coordinate number of activities such as operating license, healthy and safety
compliance, arranging store supplies etcetera which requires a great deal of organisational skills.
Customer Service:
7

For a food and beverage manager, the customers must always be the focal point. Right
etiquette and conduct goes a long way in building good customer relations. The manager should
always strive to improve the quality of service from maintaining hygiene standards to catering to
the needs and complaints of the customers to resolve issues (Vega, 2016). Customer service
skills of the management of Healthy Bites Ltd. can influence the level of customer satisfaction
and experience.
Communication Skills:
Good communication skill is an imperative trait for a food and beverage managers as
they need to deal with customers on a daily basis. It is important to be patient and listen with
intent to all their queries and needs. The manager should have good command over language,
specially the local dialect to communicate well with the locals. Good communication is an
important factor for the managers of Healthy Bites Ltd. for problem-solving and efficient
customer service.
Forecasting Skills:
For the long and successful running of a food and beverage company, the managers
should be able to forecast and predict the future needs of the company like the sources of
procurement of materials, the changes adopted by other firms, latest trends in the industry
etcetera (Brown and et. al., 2014). They should be aware and prepared to deal with the uncertain
situations which may pose possible threat or losses and come up with strategies to retain the
consumer base.
Problem Solving Skills:
A food and beverage manager has multiple roles of being a decision maker to resolver of
conflicts. The job demands them to be active and alert to handle possible disputes that may arise
between employees. They should also be ready to deal with difficult customers and their
complaints regarding the product or service. For example, problem-solving skills of management
of Healthy Bites Ltd. can help in turning a potentially bad review from a dissatisfied customer to
a good review by offering complimentary food items or a discount.
8

P5 Explain the legal requirements and regulatory standards that a restaurant must comply with,
giving specific reference to the maintenance and cleaning of equipment.
As per the directions and guidelines issued by the Food Standards Agency, the management
of Healthy Bites Ltd. must comply with the following legal requirements and regulatory
standards:
Food and Safety Act 1990: This act provides the business managers of all food and
beverage establishments in England, Wales and Scotland with a framework for the major food
legislations and regulatory requirements. As per this act, business organisations should ensure
the safety and hygiene of food and must not add any element or substance which makes the
consumption of food risky for the consumers (Lawley, Curtis and Davis, 2012). Any misleading
or false information as a way of business branding and advertisement should not be furnished to
the customers. The management of Healthy Bites Ltd. should comply with all the provisions and
requirements under this act to avoid any legal complication and maintain a good image of the
company.
Hotel and Restaurant Premises: As per the guidelines issued by Food Standards
Agency, premises of the restaurant must be cleaned and maintained in a proper and good
condition. It includes protection against any kind of contamination and pest control which allows
hygienic food practices. Adequate facilities and arrangements for cleaning hands, ventilation,
draining and lighting etcetera must be maintained by the management of Healthy Bites Ltd.
Equipment: Proper maintenance and cleaning of utensils and equipment which are used
in the process of food preparation and serving is also an essential legal requirement. The
management of Healthy Bites Ltd. should ensure that the establishment has adequate facilities
disinfecting and storage of equipments (Self, 2017). In order to avoid any risk of contamination,
all the equipments and utensils must be stored properly in a safe and hygiene environment.
Food Waste: The process of storing food materials and disposing waste food products
should be in accordance with the guidelines under the act. Adequate arrangement to ensure that
the food wastage is eliminated from the establishment as quickly as possible must be made to
avoid any attraction of pests and infectants.
Health and Fire Safety: The management of Healthy Bites Ltd. is under a legal
compulsion to have a written policy of health and safety if the company has 5 or more than 5
employees. Proper precautions must be taken to ensure complete safety of the workers and
9

employees (Wallace, Sperber and Mortimore, 2018). A fire risk assessment needs to be
conducted to ensure fire safety at the premises and based on the outcomes of risk assessment,
essential precautions can be determined.
TASK 3
P6 Compare and contrast different marketing and operational technologies for a range of
different types of food and beverage business.
Catering Businesses:
In catering business organisations, technology has had a major impact in changing the
operations and marketing modules which are being discussed as follows:
Digital technology: Flexible staffing requirements are being met in the catering industry
with the help of software and digital technology which determines the best schedule with flexible
working deadlines and communicates the information to every employee of the company helping
to streamline and manage the operations (Wang and et. al., 2019).
Online promotions: Online targeted promotions using applications such as Instagram and
Facebook has become more popular in catering businesses to reach out to a wide ambit of
potential customers at very low costs.
Quick-service Restaurants:
Major technological changes in the operations and marketing of Quick-service restaurants
are being compared as follows:
Kiosks: Considering the nature of service under QSRs where quick service is essential,
self-service technology to customise personal orders and use of Kiosks has made its way into the
industry which has helped the organisations to streamline operations direct employee efforts at
more important tasks (Kim and Christodoulidou, 2013).
Personalisation of customer rewards: For marketing and promotions, QSR business
organisations are using customer data and information to build better rewards and loyalty
programs by gathering inputs from dimension such as most ordered food, average billing
amount, location preference etcetera. Hence, data science and analytics has crucial application in
marketing efforts of quick-service food establishments.
Full-service Restaurants:
10

Key technological innovations and developments in the operations and marketing of Full-
service restaurants are being discussed as follows:
Wi-fi and handheld entertainment: Customers usually spend more time at full-service
restaurants as compared to any other business organisation kind in the industry which has
increased the popularity of technological aspects such as wi-fi and devices including tablets
which can be the source of entertainment for consumers while having their meal.
Loyalty programs: Restaurants are using single integrated apps to design loyalty
programs for customers and the information about these offers and discounts is being
communicated personally to the customers using information technology platforms such as e-
mail or messaging (Bowen and McCain, 2015).
TASK 4
P7 Investigate the factors that influence the consumers decision on which food and beverage
outlets they choose.
With the increasing number of food and beverage outlets, it is important for the
management of Healthy Bites Ltd. to consider the factors influencing customers decision which
are being investigated as follows:
Affordability: Cost of food is one of the major determinants of the consumer’s choice of
food and beverage outlets. A number of options ranging from a café down the street to a
premium and luxury restaurant are available for the consumer to choose from and price of the
food has a major influence on the customers decision. Consumer also considers and evaluated
the different types of discounts and offers available to determine the effective price.
Physical environment: While selecting a food and beverage outlet, physical environment
and its elements such as the ambience of the place in case of full-service restaurants, decorations,
technology integration, staff appearance etcetera also has a major influence on the choice and
decision of the customers (Han and Hyun, 2017).
Safety and hygiene: Hygiene rating and safety standards adopted by an establishment also
influence the decision of customers which is imperative as the safety and food hygiene has a
direct implication of the health of consumers which increases the potential risk.
Brand identification: For many customers, brand identification has a major role while
selecting the café and coffee houses since they like to associate themselves with the brand and its
11

values (Rubio, Villasenor and Oubina, 2014). For example, Starbucks Ltd. has high brand value
and brand identification plays a crucial role in decision-making of its customers.
Quality of service and food: Quality of service being provided at an outlet determines the
decision of customers and word of mouth also plays an important role while evaluating the
quality of food and service which a particular outlet has to offer (Han and Ryu, 2012). Service
quality determines the ability of an outlet to satisfy their customer expectations by offering a
differentiated and high quality of service.
P8 Analyse strategies used in a range of food and beverage outlets used to attract customers and
build a loyal customer base.
In the competitive business environment, every organisation endeavours to attract customers
and build loyal customer base using different strategies. Different strategies used by food and
beverage business organisations that should be considered by the management of Healthy Bites
Ltd. are being analysed as follows:
Events: Events such as live music or comedy shows is an effective strategy being
implemented by café, coffee houses and full-service restaurants to increase and attract more
customers to eat at their establishments and enjoy the live events. It adds to the experience of
customers and also acts as a promotional strategy.
Blogs and articles: Getting coverage on various social media blogs and articles with
respect to opening of new establishments or launching special offer helps a food business
organisation to reach out to potential customers and increase the sales of the company (Schneider
and et. al., 2013). It also helps in increasing size of customer base to extend market
supportiveness and competitiveness.
Connecting with customers on social media: Interacting and engaging with both existing
and potential customers on social media platforms such as Instagram or Facebook is a very
effective strategy for inducing customer loyalty as well as attracting more customers (Gaber and
Wright, 2014). It helps an establishment to get feedbacks and improve the quality of service and
derive high level of customer satisfaction.
Distinctive loyalty programs: Creation of a personalised and distinctive loyalty program
based on the previous orders of customers and average billing amount is an effective strategy
being used by quick-service establishments to foster customer loyalty and increase the likelihood
of repetitive sales and high rate of customer retention.
12

High-quality of customer service: Focus on providing a high quality of service to the
customers has increased exponentially with every food establishment laying emphasis of
customer satisfaction and experience. A high quality of service compensates for average quality
of food and increase the chances of positive publicity and good image of the company by the
customers.
Hence, it can be analysed that different type of strategies are being used by distinct range
of businesses in food and beverage industry to attract customers and foster customer loyalty.
CONCLUSION
It can be summarised that food and beverage industry includes different business
organisations such as catering business or quick-service establishments. It can also be observed
that different food rating systems and food regulatory standards govern the operations under food
and beverage industry. Current and future trends in the industry include sustainability, healthy
consumption, e-commerce etcetera. It has also been observed that various leadership and and
management skills are essential in the food and beverage industry. Different operational and
marketing technologies such as online promotions or kiosks are being implemented in the
industry. At last, it can be observed that various factors such as affordability and physical
environment influence the decision of consumers under food and beverage industry and different
strategies are being used to attract more customers and foster customer loyalty.
13

REFERENCES
Books and Journals
Auchincloss, A.H., Mallya, G.G., Leonberg, B.L., Ricchezza, A., Glanz, K. and Schwarz, D.F.,
2013. Customer responses to mandatory menu labeling at full-service
restaurants. American journal of preventive medicine. 45(6). pp.710-719.
Bayona-Saez, C., Cruz-Cázares, C., García-Marco, T. and García, M.S., 2017. Open innovation
in the food and beverage industry. Management Decision.
Bowen, J.T. and McCain, S.L.C., 2015. Transitioning loyalty programs. International Journal of
Contemporary Hospitality Management.
Brown, L.G., Le, B., Wong, M.R., Reimann, D., Nicholas, D., Faw, B., Davis, E. and Selman,
C.A., 2014. Restaurant manager and worker food safety certification and
knowledge. Foodborne pathogens and disease. 11(11). pp.835-843.
Council, S.B., 2013. Food Hygiene Rating.
DiPietro, R.B., Gregory, S. and Jackson, A., 2013. Going green in quick-service restaurants:
Customer perceptions and intentions. International Journal of Hospitality & Tourism
Administration. 14(2). pp.139-156.
DuBrin, A.J., 2015. Leadership: Research findings, practice, and skills. Nelson Education.
Franceschelli, M.V., Santoro, G. and Candelo, E., 2018. Business model innovation for
sustainability: a food start-up case study. British Food Journal.
Gaber, H.R. and Wright, L.T., 2014. Fast-food advertising in social media. A case study on
Facebook in Egypt. Journal of Business and Retail Management Research. 9(1). pp.52-
63.
Han, H. and Hyun, S.S., 2017. Impact of hotel-restaurant image and quality of physical-
environment, service, and food on satisfaction and intention. International Journal of
Hospitality Management. 63. pp.82-92.
Han, H. and Ryu, K., 2012. Key factors driving customers’ word-of-mouth intentions in full-
service restaurants: The moderating role of switching costs. Cornell Hospitality
Quarterly. 53(2). pp.96-109.
Jiao, J., Moudon, A.V., Kim, S.Y., Hurvitz, P.M. and Drewnowski, A., 2015. Health
implications of adults’ eating at and living near fast food or quick service
restaurants. Nutrition & diabetes. 5(7). pp.e171-e171.
Kim, J.S. and Christodoulidou, N., 2013. Factors influencing customer acceptance of kiosks at
quick service restaurants. Journal of Hospitality and Tourism Technology.
Lawley, R., Curtis, L. and Davis, J., 2012. The food safety hazard guidebook. Royal Society of
Chemistry.
Mount, I., 2014. The curse of the Michelin-star restaurant rating.
Rubio, N., Villasenor, N. and Oubina, J., 2014. Value and store brand identification in food
products. British Food Journal.
Scanlon, N.L., 2012. Catering Management. Wiley Global Education.
Schneider, E.P., McGovern, E.E., Lynch, C.L. and Brown, L.S., 2013. Do food blogs serve as a
source of nutritionally balanced recipes? An analysis of 6 popular food blogs. Journal of
nutrition education and behavior. 45(6). pp.696-700.
Self, D.J., 2017. Risk Managing Food Safety: Comparing the Enforcement of Food Safety
Regulation in the UK and Germany (Doctoral dissertation, King's College London).
14

Vega, D., 2016. Present and future restaurant management competencies: an industry
perspective (Doctoral dissertation, Kansas State University).
Wallace, C.A., Sperber, W.H. and Mortimore, S.E., 2018. Food safety for the 21st century:
Managing HACCP and food safety throughout the global supply chain. John Wiley &
Sons.
Wang, Y.S., Tseng, T.H., Wang, W.T., Shih, Y.W. and Chan, P.Y., 2019. Developing and
validating a mobile catering app success model. International Journal of Hospitality
Management. 77. pp.19-30.
15