Food and Beverage Operations Management Report - Semester 1, Unit 6

This report provides an in-depth analysis of food and beverage (F&B) operations, encompassing various aspects of the industry. It begins by exploring different types of F&B businesses, providing detailed profiles and examples for each sector, including hotels, golf clubs, theme parks, and restaurants, along with their respective advantages and disadvantages. The report then delves into the different rating systems used nationally and internationally, such as Michelin Stars and AA Rosettes, to evaluate quality parameters. Furthermore, it examines current and future trends affecting F&B businesses, analyzing how these trends influence product and service adaptations to meet business objectives. The report also covers professional food and beverage management skills, legal requirements, and regulatory standards, emphasizing the importance of compliance and the consequences of non-adherence. Operational and marketing technologies are compared and contrasted, along with an evaluation of how digital technology enhances business performance. Finally, the report analyzes factors influencing consumer decisions and strategies for attracting and building a loyal customer base, concluding with a critical evaluation of the impact of digital technology on both operations and consumer buying behavior.

MANAGING FOOD & BEVERAGE
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
P1. Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry........................................................................4
P2. Different rating systems used for the food and beverage industry nationally and
internationally..............................................................................................................................6
P3. Current and future trends affecting food and beverage businesses.......................................9
M1. Analyze how current and future trends are affecting food and beverage businesses
products and services to meet business objectives....................................................................11
D1. Critically analyze how different types of food and beverage businesses have adapted to
current and future trends to meet business objectives...............................................................11
P4. Demonstrate professional food and beverage management skills within a food and
beverage organization................................................................................................................11
P5. Legal requirements and regulatory standards that food and beverage service outlets must
comply with, giving specific reference to the maintenance and cleaning of equipment...........12
M2. Discuss the importance and value of having to meet professional food and beverage legal
and regulatory standards on operational performance and the consequences on performance if
they are not adhered to...............................................................................................................13
D2. Analyze the implications of failing to meet the professional food and beverage legal and
regulatory requirements upon the overall operational performance..........................................14
P6. Compare and contrast different operational and marketing technology for a range of
different types of food and beverage businesses........................................................................14
M3. Evaluate how digital technology enhances business performance for a range of different
types of food and beverage businesses to meet business objectives..........................................15
P7. Factors that influence the consumers’ decision on which food and beverage outlets they
choose........................................................................................................................................15
P8. Analyze strategies used in a range of food and beverage outlets to attract and build a loyal
customer base.............................................................................................................................17

M4. Evaluate the effectiveness of strategies used in a range of food and beverage outlets to
attract and build a loyal customer base......................................................................................17
D3. Critically evaluate the impact of digital technology both on the operations of food and
beverage businesses and the significant influence it has upon consumer buying behavior.......18
REFERENCES..............................................................................................................................19

INTRODUCTION
Foods and Beverages services are one of the largest sectors in terms of preparing,
producing and serving of food. There are many skills required to sustain in this industry by
understanding the commercial advantages and its effects. This report is going to put insights on
various types of businesses, rating systems, current trends of this sector, management skills, legal
regulations and requirements established here, use of operational and marketing through digital
technology.
MAIN BODY
P1. Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry
Sl.
No
.
Sector Description Advantage
s
Disadvanta
ges
Example Employer
1 Hotels It includes
Accommodati
on services
including
overnight
stay and other
facilities like
TV, AC, etc
Easy
layover or
stay with
security,
based on
the rating
that hotel
has
received.
Sometimes,
during peak
duration, it
gets
clustered
with high
prices, low
services
performance
and more.
The Witchery by the Castle;
352 Castlehill, Edinburgh
EH1 2NF, UK;
www.thewitchery.com;
Edinburgh.
2 Golf Clubs These have
Long grounds
with golf cart
for
recreational
purpose.
Prestige in
working
this field,
good
prospects
in career
developme
nt.
Over
exploitation
of low level
employees,
more stress
on customer
driven
services.
The Golf Cart Company
Limited; 187A Liverpool
Rd, Southport PR8 4NZ,
UK;
http://southportgolfcentre.co
.uk/; Liverpool.
3 Theme
Parks
It is based on
Adventurous
and
Enhancing
knowledge
about
Long hours
of word,
pressure on
THORPE PARK Resort,
Staines Rd, Chertsey KT16
4

Recreational
activity based
rides and
many small
outlets of fast
food are
available
there to
entertain
customers.
technical
aspects
related to
such rides.
health due to
continuous
tasks, poor
pay
8PN, United Kingdom;
https://www.thorpepark.c
om/; Surrey.
4 Prison
Catering
Services
Simple
cooking
methods used
with edible
quality food
at low costs
with
occasional
and seasonal
Criminals
understand
the value
of food,
family and
social
lives.
Ill effects on
health and
exploitation
by making
them work
in inhuman
conditions.
Sodexo; 1 Southampton
Row
London
WC1B 5HA;
https://uk.sodexo.com/home
/about-us/contact-us.html;
Dublin, Gwent, Camberley
etc.
5 Restaurant
s’
Ambience
based on
concepts,
good quality
food with
varieties in
cuisines,
relaxation
services.
Employme
nt
generation,
good
progress in
career
front,
learning
and
developme
nt
Exploitation
can occur,
long hours
of work
The Ledbury; 127 Ledbury
Rd, London W11 2AQ, UK;
[e-mail];
Ledbury
6 Contract
Catering
Applied in
hostels,
colleges,
offices etc.
with
reasonable
cost of
operations
and standard
quality of
food.
Instant
recognition
if quality
of food is
edible.
More
revenue
generation.
Restriction
while
establishing
in particular
location like
socioecono
mic factors.
The Clink Charity; Brixton
- 0208 678 9007
brixton@theclinkrestaurant.
com;
https://theclinkcharity.org;
Styal, Cardiff etc.
7 Cafes Small
businesses set
up at small
scale to give a
place for
Reasonable
pricing,
soothing
environme
nt, easy
Rate of
return might
sometimes
not as
effective as
The Table Café; 83
Southwark St, London SE1
0HX, UK;
https://www.thetablecafe.co
m/; London
5

having
coffee, tea or
snacks.
and
accessibilit
y towards
technologic
al progress
cost of
investment.
Promoting
such cafes
can be a
difficult
task.
8 Culture
and
Heritage
Food-
services
These are
established to
provide local
food via
stalls,
packaged
foods, drinks,
bottled water
so those
tourists who
come to visit
can have
something
authentic.
Emphasis
on
promoting
local
cuisines
with
authentic
flavors.
Establishing
a link with
tourists need
proper
execution of
planning
which might
be a long
process with
low degree
of career
advancemen
t.
Heritage Food Service;
www.hfse.com; Cambridge,
East of England, England.
9 Bars and
Pubs
These are
meant for
casual
outings along
with services
like open mic
nights,
dancing
theme based
events, good
food and a
wide variety
of beverages
including
alcohol.
It promotes
social
activities to
let people
from
different
backgroun
ds to
showcase
their
talents
through
such
events.
Along
with, they
encourage
local
harmony in
terms of
friendship
and good
networking
that leads
to bonding.
It is purely
based on
consumption
of alcohol
which
sometimes
become
tiresome for
owners to
handle such
clients and
also, few
indecent acts
might also
occur. This
affects the
crime rate of
the city.
The Porch House,
Digbeth Street, Cheltenham,
UK; info@porch-
house.co.uk
6

10 Food stalls These are
mobile in
nature which
can be
shifted/move
d from one
place to
another.
It is
convenient
that saves
time due to
its fast
services.
There are
many
options
available in
types of
cuisines
and
beverages.
Moreover,
it offers job
opportuniti
es,
especially
for
students as
flexible
work hours
are
required
here.
It serves
unhealthy
fast food
which leads
to many
diseases like
obesity,
heart related
diseases etc.
Further, the
workers get
low wages
along with
abuse at
workplace.
Anna Mae's Smokehouse,
The Shop NW 10 and Eat.St
King's Cross; anna-
maes.com
P2. Different rating systems used for the food and beverage industry nationally and
internationally
There are many rating systems used for showcasing the quality parameters of services
such as location, price, hotel size, staff, design etc. of this industry.
Michelin Stars: This is a grading system where the basis of quality checking is on three stars,
where the highest one signifies “exceptional cuisine and must have on the list”, two stars mean
excellent cooking and must be a visit and one star is very good restaurant. This lists those
restaurants in many countries and gets updated once a year. For e.g: The Araki, Alain Ducasse
at the Dorchester and many more.
7

AA Rosettes: This scheme is an award, which is purely based on meal served by the restaurants
in more than one visit. This provides an insight with a direction to enhance the tastings, make
food health and more (Tefera and Govender, 2015).
Number of Rosettes Description
1  This is given to those which stand out
in their local area.
 Around 50% of hotels/restaurants have
been given this.
2  This is given when higher standards are
achieved with better consistency.
 Around 40% have been conferred by
this.
3  Here, timing, flavor combinations in
order to innovative and seasoning are
the criteria to present this award.
 Around 10% of the restaurants/hotels
have 3 rosettes or above.
4  Here, at national level, the cooking gets
recognition. The included restaurants or
hotels which have a passionate
intensified ambition with outstanding
culinary skills.
 Very few restaurants have got this.
5  This one is an exclusive one, which is
yet to be achieved as hotels/restaurants
must have spectacular technical
knowledge with high standards.
Hotel Stars: This is the most common system to measure the high degree of services involved in
hospitality sector. In this, one to five is the numerical scale,
Hotel Star Description Criteria
8

One star
 Hygienic and spotless
condition in the
ambience area.
 Simple furniture with
fittings is offered.
 Daily room cleaning
 Table and chair
 All rooms have
shower, or bath tub,
TV with remote
control
 Reception service
 Publicly available
telephone for guests
 Extended breakfast
 Beverage offer in the
hotel
Two Star (Standard)
 Serviceable and
functional fittings with
comfort are provided.
In addition to the facilities
mentioned in one star hotels,
these also provide the
following:
 Offer of sanitary
products (e.g.
toothbrush, toothpaste,
shaving kit)
 Credit Cards
 Breakfast buffet
 Reading light next to
the bed
 Other toiletries include
Bath essence or
shower gel, Bath
towels, Linen shelves
Three Star(Comfort)
 Hotel with guest house
format, free breakfast
that also includes up
market service
provision (reception,
drinks, snacks etc) and
standardized fittings
(bath/shower, meals,
drinks etc).
In addition to the facilities
mentioned in two star hotels,
these also provide the
following:
 Internet access in the
room or in the public
area.
 Reception with phone
accessibility of 24
hours from inside and
outside.
 Hiring of Bilingual
employees (e.g.
Hebrew/English)
 Beverages can be
offered, telephone in
9

the room with
amenities like Hair-
dryer, cleansing tissue,
ironing,
shelves/cupboards,
laundry etc.
 Additional pillow,
bedding, blanket on
demand.
Four Star(First class)
 Here, there will be an
assurance of high
quality fittings that
includes spacious areas
and many facilities.
E.g. swimming pools,
spa-centers, parlor,
sports area, conference
rooms and many more
with high service level.
In addition to above three stars
facilities, the following are
involved:
 Availability of “À la
carte” based restaurant
 24 hours Reception
open hours.
 Lobby with seats and
beverage service
 Extensive buffet
system via room
service at all times.
 Mini-bar, Upholstered
chair/couch with side
table, Cosmetic
products, tray of a
large scale in the
bathroom
 Internet access and
internet terminal
Five Star(Luxury)
 This consists of
ubiquitous structural
design, setting of
furnishings, elite
luxurious fittings with
integrated design; and
sumptuous level of
accommodations and
services.
 In addition to the four
star hotels,
 These include
multilingual staff.
 Valet parking and
Doorman-service.
 Spacious reception hall
with several seats and
beverage service.
 Personalized greeting
with fresh flowers for
each guest, 24 hours
room service and many
more facilities.
10

P3. Current and future trends affecting food and beverage businesses
Current trends include Mergers and acquisitions regarding fusion cooking, changing
consumer’s behavior due to lifestyles, transformations due to digitalization and touch screen
technology; and food safety and sustainability with corporate responsibility. Recently,
acquisitions are done at lower costs to avoid spending time, energy and resources for R&D
internally to innovate newer products with better techniques, methods and quality (Brotherton,
2014). As there is a radical change in consumer’s preferences due to cultural disparities in
lifestyles has witnessed 360 degrees behavioral shift for food safety and overall sustainability.
This will provide a platform for companies to inculcate this sense of responsibility to promote
health awareness by supporting campaigns for leveraging green systems for cost effective tax
credits such as food donation deductions etc.
Future trends hold emergence of organic and healthy food products, snacks etc; fuss-free
flexibility and convenience and no priority to pricing. Due to globalization, use of social media
platforms and technological advancements, there will be a rise in the flexibility of current system
of eating out. Everything can become virtual by harnessing Internet of Things and big analytics.
Since customers are getting aware about the benefits of following nutrition, diet for increasing
strength that regulates sleep patterns by promoting “wellness” in the mainstream order. Along
with this, pricing will also take a backseat because of booming economic growth, high standard
of living towards plant based diet.
Figure 1. Survey on eating pattern of population in UK
11

(Source: Griffith, T., 2018)
M1. Analyze how current and future trends are affecting food and beverage businesses products
and services to meet business objectives
Trends can keep any enterprise of any sector on toes to analyze and understand the
ongoing competition in the labor market. It also helps in building fusion cooking at multi-
dimensional image with growth opportunities on global level by keeping up with the ever
changing lifestyles, preferences and tastes of customers, which has boosted the overall economy
in terms of GDP (Tanford, Shoemaker and Dinca, 2016.). The phenomenal interest in touch
screen technology has led the consumer driven convenience that has been combined. The effects
of such trends are progressive and streamlined the manufacturing processes by bringing
improvements in the cold chain facilities for enhanced shelf life.
D1. Critically analyze how different types of food and beverage businesses have adapted to
current and future trends to meet business objectives
These trends have made lives convenient, customer friendly with easy accessibility
towards the choices prevailed in the market. Fusion cooking adopted by Radissons by adding
environmental friendly packaging without compromising the quality and safety has brought
revolutionized change. However, on the other hand, people are becoming guilty pleasure, and are
adopting the home delivery offer and more available such choices frequently that affect their
health adversely. Thus, Wimpy got rebranded after acquisition to match with the lifestyles of UK
people. Also, there has been acceleration at J.B.Cole for driving profitability based business due
to touch screen technology, which led to sometimes frauds and scams on basis of cultural
ethnicity by compromising on quality.
P4. Demonstrate professional food and beverage management skills within a food and beverage
organization
The following managerial skills are needed within any F&B organization:
Problem-Solving Skills: This involves quick solving ability and conflict resolution power
between employees. Examples are insufficient stock in inventory, ill behaved customers and
wrong orders etc.
12