The Impact of Food and Beverage Management on Operational Cost

This research proposal investigates the impact of food and beverage management on reducing operational costs within UK organizations, focusing on Associated British Foods Plc as a case study. It examines the concept and role of food and beverage management in the hospitality industry, highlighting its contribution to profit-making through effective operations, waste reduction, and sustainability practices. The proposal identifies strategies employed by Associated British Foods Plc to minimize operational costs, such as monitoring food wastage, enhancing staff productivity, optimizing menu presentation, and managing stock efficiently. It also considers the positive and negative impacts of these strategies, including increased productivity and potential delays in decision-making. The research aims to understand the role of food and beverage management in the UK, determine cost-reduction strategies, and examine recommendations for improving operational cost management within the food industry.

Research Proposal1
(The impact of food and beverage
management in reducing the
operational cost of an organisation:
A case study of Associated British
Foods Plc.)

Table of Contents
An introduction to the research context...........................................................................................1
The areas of academic endeavour....................................................................................................1
A research question(s)......................................................................................................................3
Research aim and objectives............................................................................................................3
References........................................................................................................................................4

An introduction to the research context
Food and beverage management can be defined as the study of management which
relates with the food logistics and food servicing. For example, managing budgets and planning
menus along with the ordering and inventory. It also functions the human resources such as
hiring expertise for all the departments in the company. Department are front office, back office,
finance, technology, customer service, marketing sales, operations, kitchen, supply chain
management and many more (Chowdhury, et.al, 2020). It is important for the food and beverage
sector to focus on the operational cost because it is majorly caused by the food wastages and
other cooked materials. Therefore, the following discussion is based on the concept and role of
food and beverage management within UK organisations. The below report provides the insight
of strategies of food and beverage management to reduce the operational cost. Moreover, it also
views the impact of food and beverage management strategies on operational cost. The entire
study is conducted on Associated British Foods Plc. It is one of the leading international food
processing company headquartered in UK and established in 1935. It deals with the products and
services like diversified international food and ingredients. It is considered as the second largest
in the world in producing the sugar and baker yeast. Other ingredients includes emulsifiers,
enzymes and lactose.
The areas of academic endeavour
Concept and role of food and beverage management within UK organisations
According to Okumus, Taheri, Giritlioglu and Gannon, (2020), Food and beverage
management is associated with the management within the hospitality industry and restaurants. It
is basically the segment of the hospitality sector which majorly focuses on the operations in the
hotels and restaurants along with the resorts and catering companies. Moreover, it also includes
hospitals and many more. This is the industry where all the companies are involved in the
activities like processing raw food materials. It is also involved in the packaging of final product
and also distributing them. This generally includes the fresh and prepared foods which is further
is divided into alcoholic and non alcoholic beverages.
According to Mangla, Sharma, Patil and Xu, (2019), Food and beverage sector
contributes in in the large profits making in the hospitality industry. This is because now a days
there is an increase of the business meetings and personal or social events and catering as well.
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All such requirements raises the needs of the food and beverage services on a large basis.
Moreover, it results in the improvements of sales and revenue generations in the food companies.
It finally leads to the growth of economy in terms of gross domestic product and rate of
employment. Such contribution can only be effective if there is a low operational cost with low
food wastages with proper maintenance of sustainability.
Strategies of food and beverage management to reduce the operational cost in Associated
British Foods Plc
According to Raimo, de Nuccio, Giakoumelou and Vitolla, (2020), there are several
strategies of food and beverage management in order to reduce the operational cost in Associated
British Foods Plc. Such as company focuses on the food wastage. They make a watch on food
materials and gets lean towards it. This is done so that maximum utilization of food raw
materials must be performed with minimum wastage. It reduces the cost of the operations as
well. Company also targets on the staff productivity which results in the lowering of the cost.
Moreover, company also focuses on the presentation of the menu and stock management along
with the reduction of utility cost and budgeting as well.
According to Dopson and Hayes, (2019), Company applies the strategies of calculating
the food cost so that the gaps could be identified and measures could be taken appropriately
against extra expenses. Company is always being consistent while calculating the inventory and
has maintained the proper relationship with the suppliers. Company targets to manage the food
order to reduce the food wastages and also targets the utilization of daily specials as well.
Recommendations on strategies of food and beverage management strategies on operational
cost of Associated British Foods Plc
According to Nirino, Miglietta and Salvi, (2019), there is a positive impact of food and
beverage management strategies on operational cost of Associated Foods Plc. Such as the
strategies adopted by the company has benefited the firm in various ways. For example,
organization is benefited with the increment of the productivity levels and large profit margin
due to the reduction in cost with same selling price as before. Moreover, it has also reduced the
food wastages and has also maintained the corporate social responsibility with environmental
sustainability.
According to Sovacool, Bazilian, Griffiths and Rooney, (2021), there is also the negative
impact of food and beverage management strategies on operational cost of Associated Foods Plc.
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Such as company is suffering from the delays in decision making due to time consuming
activities of planning in cutting the cost. This requires to maintain the just in time operation
management strategy which further can consume the cost, time and energy of the firm.
A research question(s)
What is the concept and role of food and beverage management within UK organisations?
What are the strategies of food and beverage management to reduce the operational cost in
Associated British Foods Plc?
What are the recommendations on strategies of food and beverage management strategies on
operational cost of Associated British Foods Plc?
Research aim and objectives
Aim
To identify the impact of food and beverage management in reducing operational cost of
an organisation: A Study on Associated British Foods Plc
Objectives
 To understand the concept and role of food and beverage management within UK
organisations
 To determine the strategies of food and beverage management to reduce the operational
cost in Associated British Foods Plc
 To examine the recommendations on strategies of food and beverage management
strategies on operational cost of Associated British Foods Plc
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References
Books and Journals
Chowdhury, M., et.al, 2020. A case study on strategies to deal with the impacts of COVID-19
pandemic in the food and beverage industry. Operations Management Research, pp.1-13.
Dopson, L.R. and Hayes, D.K., 2019. Food and beverage cost control. John Wiley & Sons.
Mangla, S.K., Sharma, Y.K., Patil, P.P. and Xu, J., 2019. Logistics and distribution challenges to
managing operations for corporate sustainability: study on leading Indian diary
organizations. Journal of Cleaner Production, 238, p.117620.
Nirino, N., Miglietta, N. and Salvi, A., 2019. The impact of corporate social responsibility on
firms’ financial performance, evidence from the food and beverage industry. British Food
Journal.
Okumus, B., Taheri, B., Giritlioglu, I. and Gannon, M.J., 2020. Tackling food waste in all-
inclusive resort hotels. International Journal of Hospitality Management, 88, p.102543.
Raimo, N., de Nuccio, E., Giakoumelou, A. and Vitolla, F., 2020. Non-financial information and
cost of equity capital: An empirical analysis in the food and beverage industry. British
Food Journal.
Sovacool, B.K., Bazilian, M., Griffiths, S. and Rooney, D., 2021. Decarbonizing the food and
beverages industry: A critical and systematic review of developments, sociotechnical
systems and policy options. Renewable and Sustainable Energy Reviews, 143, p.110856.
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