Associated British Foods Plc and Food and Beverage Management Report

This report delves into the significance of food and beverage management within the UK hospitality sector, emphasizing its impact on operational costs. It begins with an introduction to food and beverage management, highlighting its role in managing budgets, planning menus, and addressing customer needs. The report then focuses on Associated British Foods Plc, exploring the concept and role of food and beverage management within the organization, along with strategies to reduce operational costs. A comprehensive literature review is presented, examining various aspects of food and beverage management. The methodology section outlines the research approach, strategy, and instruments used. The findings, discussion, and conclusions provide a detailed analysis of the research questions, offering recommendations for food and beverage management strategies to optimize operational efficiency and reduce costs. The report aims to understand the impact of food and beverage management in reducing operational cost of an organization, providing valuable insights for the industry.

Business
Management
1

Chapter 1: Introduction....................................................................................................................3
Background to research topic.................................................................................................3
Background to research organisation.....................................................................................4
Research rationale..................................................................................................................4
Research questions.................................................................................................................5
Research aims and objectives.................................................................................................5
Chapter 2: Literature review............................................................................................................5
Introduction of literature review.............................................................................................5
Main body with heading and sub-headings............................................................................6
Conclusion of literature review............................................................................................15
Chapter 3: Methodology................................................................................................................15
Research philosophy.............................................................................................................16
Research approach................................................................................................................17
Research strategy..................................................................................................................17
Research methodology.........................................................................................................18
Research instruments/tools...................................................................................................19
Sampling...............................................................................................................................20
Ethical implications..............................................................................................................23
Chapter 4: Findings........................................................................................................................24
Analysis of collected facts....................................................................................................24
Chapter 5: Discussion....................................................................................................................26
Chapter 6: Conclusion, recommendations and implications for further research..........................39
References......................................................................................................................................40
2

Chapter 1: Introduction
Food and beverage management is basically termed as a segment of the hospitality industry
which emphasise on operations in resorts, restaurant, hotel and more. This is mainly inclusive of
conducting activities like managing budget, inventory, planning menus and other activities in
order to conduct operations in effective manner while reducing food wastage along with
satisfying customer needs and demands (Bresciani, 2017). Food and management department
within hospitality industry plays can important role as it largely contributes in the growth of
hospitality industry. This is one of the most important and essential aspect within this industry as
it emphasise on the basic needs of customers. Food and beverage management is basically
related with management of food and beverage operations within hospitality industry and
restaurant. With the help of conducting systematic and proper management of food and beverage
organizations in the respective industry can not only manage wastage but can also satisfy
customers needs and demands effectively. With the help of undertaking various strategies and
practices organizations within this industry cannot only generate higher sales as well as revenue
but can also undertake use of innovative ways to conduct proper food and management
operations. This is an essential unit within the hospitality industry which will help in reducing
food wastage and conducting sustainable operations that will help organization to develop
positive brand image in the industry.
The present research is conducted on the concept and role of food and beverage
management within UK organizations in which strategies of food and beverage management to
reduce operational cost is also included along with certain recommended practices. To fulfil
present research aim which is to identify the impact on food and beverage management in
reducing operational cost within organization proper literature review, data analysis, certain
recommended practices is being included in this research. The present research conducted on
Associated British Foods Plc which is operating as British multinational food processing in
retailing company headquartered in London, England, United Kingdom. This organization was
founded in the year 1935 and provides wide range of services and products to customers which
helps him to maintain the leading positioning within the hospitality industry.
3

Background to research topic
Food and beverage management within hospitality industry is inclusive of study of
management of activities such as managing food budget, conducting proper menu planning,
dealing with customers needs and demands etc. With the help of conducting proper and
systematic food and beverage management organization and hospitality industry can not only
reduce wastage but can also conduct their business operations in low operational cost which will
further allow them to assure higher growth and profitability in industry. The present research is
conducted on Associated British Foods Plc which is operating as British multinational food
processing and retailing company founded in the year 1935. The present research include
discussion on the concept and role of food and beverage management within UK organization
along with strategies to reduce operational cost and recommended practices.
This research will analyse the importance and role of food and beverage management
within organization along with strategies that will help organization in the respective industry to
reduce its operational cost. This will benefit other organizations in the same sector to conduct
their operations in cost effective manner and assure long term growth and profitability. To
accomplish the present research aim, literature review, proper data analysis is being included
with the help of recommendation that will benefit organization to conduct their proper food and
manage beverage management activities efficiently.
Background to research organisation
The present research is conducted on the aim to identify the impact of food and beverage
management in reducing operational cost of an organization. For this Associated British Foods
Plc is being selected which is operating as a British multinational food processing and retailing
organization headquartered in London, England, United Kingdom. This organization is dealing
in food processing and retail industry and was founded in the year 1935. Furthermore it has been
analysed that the organization offers main products in terms of food and ingredients and with
wide range of services and products this organization offer high quality services and facilities to
customers.
Research rationale
The selection of present research topic which is to identify the impact of food and beverage
management in reducing operational cost of an organization within UK hospitality organization
4

is rational, as it include discussion on the role of food and beverage management within United
Kingdom organizations along with strategies to reduce operational costs. This will benefit
organisations like Associated British Foods Plc to implement strategies to reduce the operational
cost that will further benefit them to enhance their overall growth and profitability in the
industry. With the help of this research organization dealing in the same sector can also
implement strategies to assure maximum consumer satisfaction and higher profitability. In
addition to this present research is also rational as it will benefit investigator to enhance the
current level of skill and knowledge on the selected topic. This will also benefit researcher to
enhance critical thinking ability and will benefit in academic way to conduct research in future in
appropriate manner.
Research questions
 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 aims and objectives
Research aim
To identify the impact of food and beverage management in reducing operational cost of
an organisation: A Study on Associated British Foods Plc
 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
5

Chapter 2: Literature review
Introduction of literature review
This forms out to be a vital section of every research project which comprises of analysis
and survey of secondary form of data that is vital and essentially needed to set a framework and
base for an investigation (Chen, Perry and Lau, 2015). With respect to current investigation a
number of online articles and journals are analysed which are based on the topic of food and
beverage management in reducing operational cost of an organisation a discussion and
evaluation of which is provided as below:
Main body with heading and sub-headings
Concept and role of food and beverage management within UK organisations
As per the view point of Cousins, Graham and Hollier, (2019) Food and beverage management
is termed as a study of management which mainly associated with food servicing and food
logistic. In this there are wide range of activities and functions are including such as planning
menus, managing budget etc. There are various functions in food and beverage management
which needed to be conducted on efficient basis as to enhance overall satisfaction of customers.
Furthermore, it has been analysed that it is important for food and beverage sector to emphasise
on operational cost in order to not only reduce wastage but to utilise resources efficiently in order
to enhance overall productivity. Along with this it has been analysed that food and beverage
management is mainly termed as a segment of the hospitality industry which mainly emphasise
on operations in resort, restaurants, hotels, hospitals, catering companies and more. This is
mainly inclusive for business side of food such as managing budget, ordering inventory and
planning and costing menus.
In addition to the this has been analysed that food and beverage management is also
playing important role in United Kingdom organization as it is providing a systematic and
effective process to manage food and beverage. It has been analysed that in United Kingdom
organization food and beverage management is a crucial aspect as it not only helps in reducing
the overall operation cost but also allow organization to manage budget and assure higher
profitability. Furthermore it has been analysed that food and beverage management is playing
crucial role within United Kingdom organization as it helps in industries managers and leaders to
reduce the overall wastage and further enhance their CSR effectiveness towards the environment
6

(Kraak, 2021). With the help of reducing wastage organization can create a positive image in the
industry and can assure satisfaction as well as loyalty of customers. With the help of this
organization can also have support from governments and can further enhance their profitability
in effective manner. In addition to this it has been evaluated that with the help of having proper
food and beverage management practices strategies tools and techniques organizations in the
provinces of United Kingdom can reduce the overall wastage and can enhance the airport well in
industry with the help of this company can have ability to influence attention of customers in
effective manner and can also assure their satisfaction level and greater extent. United Kingdom
is facing intense competitive rivalry in which organization attacking hills of different types of
practices to influence mindset of customers, in this effective food and beverage management can
not only helps organization to conduct their operations by using operational cost but can also
create positive image among customers that will help them to attain more competitive edge
within industry.
It has been analysed that role of food and beverage management within UK organization
is very crucial an important as it stands with learning the food structure and future of catering
industry which is a broad aspect. In this it is essential to manage food according to the modern
trend and serve customers needs and demands while focusing on less wastage. This sector
significantly contributes in wider range of profits in the hospitality industry in the provinces of
United Kingdom. It has been analysed that with the increase in trend of business meetings, social
events, personal events the importance and role of food and beverage management is
significantly increasing within United Kingdom organizations. Food and beverage management
is playing crucial and vital role within United Kingdom organizations (Davis, Alcott and
Pantelidis, 2018). This sector mainly emphasise on conducting operations in effective manner in
order to enhance overall satisfaction level of customers. This industry mainly emphasise on
processing raw food material, conducting proper packaging of final product and distributing
them in effective manner. This industry is playing crucial role in contributing the higher growth
of organization, as it satisfy the basic need of consumers which significantly enhances their
overall level of satisfaction and loyalty towards company.
According to the view point of Dopson and Hayes, 2019 it has been analysed that food
and beverage management is also playing most efficient role within UK organization in terms of
helping companies to stand out from the crowd. With the help of having high quality food with
7

innovative and unique menus and food offerings organizations can enhance their revenue
profitability as well as retain most of the customers. It is important to emphasise on food and
beverage management, as it not only help organisations to handle inventories in efficient manner
but also allow them to satisfy wide range of customers and further benefit organization to
enhance overall competitiveness in industry. Thus according to the above mentioned analysis it
has been stated that food and beverage management is mainly defined as a segment of hospitality
industry which usually emphasise on operations in resorts, restaurants, hotels, catering
companies and more. This is basically an activity associated to ordering and managing inventory,
budget planning, managing menus etc. Food and beverage management plays important and
crucial role within UK organization as it not only allow companies to enhance the effectiveness
of managing inventory but also allow them to reduce food wastage which helps in enhancing
their overall brand image in the industry. Along with the help of conducting proper food and
beverage management organization can satisfy customers needs and demands effectively and can
maximise overall growth and profitability within the industry. It is important for organisations in
the provinces of United Kingdom to focus and understand the effectiveness and importance of
food in fabric management and conduct this role efficiently.
Strategies of food and beverage management to reduce the operational cost in Associated
British Foods Plc
As per the view point of Nam, Kim and Carnie, (2018) It is essential for organization to
emphasis on managing their operational cost in order to not only manage the profitability ratio
but also to satisfy customers needs and demands effectively. With the help of taking advantage
of strategies of food and beverage management organizations can manage their operational cost
efficiently. There are various forms of strategy with the help of which Associated British Foods
Plc can manage their operational cost while managing food along with satisfaction of consumers.
Mentioned below there are some certain strategies of food and beverage management that what
helps selected organization to reduce the operational cost and managing their profitability and
consumer satisfaction.
Calculate food costs:
Proper and systematic collection of food cost will help in reducing the time consuming
task and also help organization to stay on budget it is important for Associated British Foods Plc
to calculate their food cost and other finances to save money time and food in the long run. With
8

the help of taking use of systematic consideration of calculating a food cost percentage in their
inventory food cost percentage and the cost of goods sold will help organization to stay on
budget. Along with this organization by taking advantage of consistency when calculating
inventory with regular tracking will also help to manage their operational cost (Ireland, Bunn and
Boyland, 2021). This will allow them to have an idea about the rate of food is being used or
wasted that will further benefit them to implement strategies.
In addition to this it has been analysed that with the help of having proper calculation of
food cost British food plc can manage their overall budget as well as can reduce the wastage with
the help of calculating food cost percentage organization can have a proper budget that will help
them to conduct their roles and responsibilities in lower operational cost, which will further help
them to assure higher level of profitability in industry. With the help of this they can assure long
term sustainability in industry along with higher competitive edge.
Track inventory:
Operational expenses are mainly administrative and maintenance cost of conducting day
to day activities. In context with Associated British Foods Plc it is important for them to reduce
operational costs with the help of controlling and tracking their inventory. In this with the help of
taking advantage of inventory management organization can reduce operating expenses as well
as cost in number of ways. Furthermore it has been analysed that inventory software will help
them to track supplies and will further aware them about the expiry date of food which will help
them to consume the products in appropriate time. With the help of monitoring inventory level
organization can order the right amount of supplies every time which will help them to prevent
spoilage and wastage that will further help in reducing operational cost. Furthermore it has been
analysed that with the help of taking advantage of this direct method to reduce food cost
organization can have a data driven approach (Onyema, 2014). This which will help them to
reduce food wastage this will also allow them to have a positive impact on consumer mindset
and will further benefit them to conduct food management in effective manner.
This is also one of the most important strategy that will help organization to track
inventory on regular basis and can further manage the cost in appropriate manner. With the help
of tracking inventory organization can ask for the raw materials only when there is a requirement
(Macassa, Rambaree and Chowdhury, 2022). This strategy not only helps in reducing the
9

wastage but also helps organization to conduct their roles and responsibilities in budget this helps
in making proper management of food in beverage and also allow organization to assures long
term growth profitability.
Menu planning:
Along with this, it has been evaluated that with the help of taking use of menu planning
organisation can assure long term growth. It has been evaluated that menu planning assists with
controlling food costs by assisting organisation with boosting the benefit of association menu
things. By gathering deals blend surveying from coordinated POS and joining it with recipe
costing in eatery the board stage association can in a flash look at menu thing fame versus
benefit. By seeing what things are undervalued or overrated association can come to food cost
conclusions about reconsidering recipes or fixings (Adams, Donovan and Topple, 2022). For
example, on the off chance that association are selling a huge amount of a low edge thing, which
increments food cost rate, organisation can make acclimations to either raise the menu cost or
change segment sizes. Menu designing additionally empowers you to jump all over menu
chances, such as advancing a menu thing that is high edge however low deals. Understanding the
equilibrium of menu thing fame and benefits empowers information driven choices that bring
down the expense of food. In eateries and other food activities, menu arranging is of most
extreme significance. Arranging the menu ahead of time can guarantee food menu things are
ready on time (Hirth, Boons and Doherty, 2021). It empowers the gourmet experts to sort out
their kitchen staff to be best while cooking the staple café dishes close by specials and new
things. Having a menu plan will likewise diminish food squander which sets aside cash for the
café. The It likewise helps in lessening wastage of food things and cooking fuel assets, and
consequently sets aside cash. Menu planning will further develop buying and stockpiling
effectiveness. Furthermore, with numerous food menus, arranging the menu ahead of time assists
embrace with each theming in a more straightforward manner. A critical menu is a significant
piece of the eatery showcasing bundle. Food is the main thing a café ought to be known for. At
the point when the menu is being planned, it ought to communicate the character of the
restaurant. Menu planning will integrate various parts of café achievement. A decent menu is a
wellspring of benefit, lays out functional spending plans, and is what clients will come to know
the café for. It could not be underlined enough the way in which significant the menu is to an
10

eatery or food administration foundation (Sudari, Khatibi and Tham, 2019). Thus according to
the above analysis it has been analyse that menu planning plays important role which will help in
reducing operational cost. With the help of conducting proper menu planning organization can
reduce food wastage and can conduct food preparation in more efficient and effective manner. In
this with the help of taking advantage of technology organization can conduct menu updates on
frequent basis with the help of testing menu options and can track their metrics that will help
them to assure low operational cost.
Strong communication:
Communication plays important role in managing food and beverage management
operations. In context with Associated British Foods Plc it is important for food manager to have
a strong communication network with food suppliers which will help them to lower their food
cost. With the help of having good relationship with suppliers organization can not only ask them
for a discount but can also plan to buy bulk when there is an urgent need (Hirth, Boons and
Doherty, 2021). With the help of taking advantage of strong communication network
organization can assure offering fresh food which helps in reducing the amount of the wastage
and automatically help in saving the overall money. In addition to this hotel also needs to
emphasise on having strong communication ties within organization which will help them to
track proper stock management which plays important factor in cost control. With the help of
communication organization can undertake all the activities in time effective manner which will
help in enhancing operations effectiveness.
Waste management:
In today’s time period it is important for organisations operating in food and beverage
department to focus on minimising food wastage. It is one of the most important element of CSR
activities which will not only help on having a positive image in industry but also help them to
develop strong ties with government and further helps in enhancing satisfaction of customers
(Saryatmo and Sukhotu, 2021). It is important for Associated British Foods Plc to reduce
operating costs with the help of minimising food wastage, in which with the help of taking use of
scraps in innovative way they can take use of appropriate method organization can reduce overall
food wastage. With the help of taking advantage of artificial intelligence, cloud computing and
other software and techniques with the help of transparency and accuracy organization can
reduce the food wastage in effective manner.
11

In this competitive business environment CSR plays important role for organization. In this
waste management is also among one of the most important and efficient form of practices and
actor strategy (Beacom, Bogue and Repar, 2021). This will not only helps in reducing food
wastage but also helps organization to maximise satisfaction level of customers with the help of
taking advantage of innovative technologies and strategies company can reduce waste and can
further assure long term growth and competition in industry.
According to the above mentioned analysis it has been analysed that, in order to stay
competitive in the business environment it is important for Associated British Foods Plc to
undertake strategies of food and beverage management in order to reduce overall operational
cost (Mehran, Escallada and Olya, 2021). In this with the help of calculating food cost with
consistency, having strong communication ties with suppliers and taking use of digital
technology such as artificial intelligence organization can reduce operational cost, Along with
this with the help of emphasise on managing food wastage, undertaking use of innovative ways
to utilise scrap organization can develop positive image in the market segment which will help
them to enhance their profitability.
Recommendations on strategies of food and beverage management strategies on operational
cost of Associated British Foods Plc
Reduce employee turnover:
As per the view point of Wilson, Buckley and Bogomolova, (2016) Employees plays
important role for any organization which acts as a crucial element in controlling and manage
operational cost. If organization have low employee turnover then it will benefit them to conduct
their business roles and responsibilities with dedicated experience and talented workforce which
will help them to avoid unnecessary expenses on recruiting new candidates and providing them
training etc. In context with Associated British plc, it is important for company to emphasise on
reducing employee turnover (Jaud and Lunardo, 2022). This will help them to manage their
spending on rehiring training of a new employee etc. With the help of reducing employee
turnover the respective company can provide high satisfaction to customers, as these employees
are experienced and talented which will help organization reduce their operating cost efficiently.
This is one of the most important aspects that will benefit organization to manage the food and
beverage management activities efficiently.
Automate manual process:
12