Detailed Report: Managing Food and Beverage Operations

This report offers a comprehensive overview of the food and beverage (F&B) industry, encompassing its diverse sectors, rating systems, current and future trends, and the importance of adhering to legal and regulatory requirements. It explores various segments within the industry, including lodging and accommodation, entertainment, and the core food and beverage sector, highlighting their contributions to the multi-million dollar industry. The report delves into different rating systems used internationally, providing insights into the standards and expectations associated with each rating. It further examines the impact of technological advancements, health and well-being trends, and the influx of international visitors on the F&B sector. The report also discusses essential professional management skills, including customer service, organizational abilities, and adherence to laws. It emphasizes the significance of food safety regulations, labeling policies, and the adoption of technologies like AGVs and online ordering systems. Finally, the report analyzes factors influencing customer decisions, such as affordability, physical environment, and the cultivation of customer loyalty, providing a well-rounded perspective on the dynamics of managing food and beverage operations.

Managing food and
beverage operations

Table of Contents
INTRODUCTION...........................................................................................................................1
P1............................................................................................................................................1
P2............................................................................................................................................2
P3............................................................................................................................................3
P4............................................................................................................................................4
P5............................................................................................................................................5
P6............................................................................................................................................5
P7............................................................................................................................................6
P8............................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Food and beverage industry include composition of production and distribution of
services and products. This industry is also termed as catering industry as they engage in the
process of offering numerous forms of amenities to consumers such as providing food and
beverages with premise that include consumer intended premises or restaurant hotels (Sudtachat,
Mayorga and Mclay, 2016). Food and beverage industry is leading and fastest growing
industrial sectors in today's world. Present report include the discussions on diverse range of
food and beverage business with rating system, current as well as future trend that affect this
industry and importance of fulfilling legal regulatory requirements.
P1
Food and beverage industry include different types of sector that helps this industry to
become multi-million dollar industry. There are some segment with food and beverage industry
which is mentioned below:
Lodging and accommodation
This sector is mainly involved in luxurious hotels and further include range form beds to
breakfast. Hotels offer accommodation to consumers as to integrate them comfort. These world
class facilities that are being provided by hotel aid travellers to have enchanting shelter by
booking lodges and rooms as to make their stay.
Entertainment industry
Entertainment segment offer large range of facilitates to customers as to ensure
profitability, success and customer attraction (Oyemomi and et. al., 2016). As in today's world
customers not only seeks for accommodation but also look towards other entertainment
facilitates such as Cruise, stores, nightclubs, gaming's bars, marinas and more.
1

Food and beverage
This sector is most essential segment within this industry as it have wider sector that
provide food as well as amenities to large base of customers. Further it has been analysed that
hotel and other sector offer food services via accommodation, retail stores, quick service
establishment, catering business and restaurants.
P2
Different types of rating system are covered food and beverage industries that can be
utilized by industries those who perform their services in food and beverage industry in national
as well as international level. There are some certain margin being defined below:
 one star: If a person present in that city then one star industry turns out to be good
place to eat
 two star: Two star is worth as substitute route
 three star: value structuring a trip just to eat there
It has been significantly determined that these ratings are manly applicable to restaurants
and hotels both.
Europe, United Kingdom
2

It has been determined that three organizations namely Automobile Association (AA)
Club (RAC) for rating, Royal Automobile and VisitBritain
Hotels
1 Star
Hotels those who have 1 star have practical as well as acceptable accommodations. In
addition with this they offer limited services and facilitates. Further they have friendly staff and
alcohol and beverage get served in separate bar.
2 Stars
2 star hotels offer personal services as well as extra facilities. In addition with this they
provide en-suite bathrooms along with comfortable bedrooms and food with higher standards.
3 starts
Hotels with 3 star offer good accommodation along with large public area. They have
formal reception and offer drink, lunch and snack with high quality.
4 starts
Hotel rated with 4 star offer extremely good and qualitative comfort environment to their
customers with having en-suite bathrooms with shower and WC. Their main focus in towards
food and drink segment. They have experienced staff with 24/7 room service.
5 starts
Hotels with 5 star rating offer luxurious accommodation facilities to their customers with
an exceptional quality. In addition with this they have magnificent spacious and facilities offered
by them are extensive. 5 start hotels have staff with professional skills and talent. In addition
with this they have atmosphere of sophisticated nature.
P3
There are diverse range of current as well as future trends that impacts on food as well as
beverage industry:
Tech explosion
Tech explosion aid best form of advantages to organisations with the help of which they
can satisfy customers in a tech savy manner. In addition with this it allows customers to perform
easy operations via mobile websites and apps. Thus, organisations those who perform their
3

operations in F&B industry can take effective advantage of cloud based Digital restoration. This
will further allow them to satisfy customers in personalised manner.
Extra prominence on health and well-being
In today's world individuals are greatly focused towards their health being. It is essential
for organisations within food and beverage industries to offer qualitative fitness centres, spas and
pools. In addition with this, they can offer room exercises equipments, yoga spaces in addition
with this undertaking purification methods and vitamin infusion water as to offer immense level
of satisfaction to consumers.
Influx of international visitors
It has been determined that significant increase has been measured in international leisure
travel. For an instance International Airport of Dubai turns out as a one of the busiest airports.
Thus, it becomes important for organisations those who deal their services in F&B sector to
provide their business services in different types of language. In order to accomplish this, there is
a need to have knowledge of each and every culture in order to satisfy consumer in best effective
manner.
P4
Different types of professional F&B management skills are included in restaurant that is
essentially required to conduct organisation activities. Mentioned below certain skills are being
defined below:
Consumer serving skills
Companies engage within F&B sector are required to undertake consumer centric approach.
With the understanding behaviour of customers organisations can effectively serve their
customers in friendly manner. Further they are required to ensure that staff hold best effective
form crisis solving skills in order to serve angry and annoyed customers in best effect manner.
With the help of this they can able to ensure long term sustainability and customer loyalty.
Organisational skills
It is somehow mathematically inclined skill as within this managers hold the responsibility to
manage food and beverage cost that further include shipment, pricing, work schedules and
cleaning. Along with this food manager are required to fully understand accurate requirement for
their operations and maintain food quality as to satisfy customers with best.
4

Laws
There are numerous set of laws and legislations which are required for managers within
food and beverage industry to effectively understand. As these laws are related to customers,
employees safety thus it is essential to abide them in appropriate manner. In addition with this
they are required to ensure that each and every law in being followed by staff within
hotel,restaurant and other related industries within food and beverage sector.
P5
It has been evaluated that there are different types of rules and regulation within food and
beverage industries related to manufacturing, production and processes to distribution. It is
important of organisations within this industry to abide all these regulations in order to
effectively conduct their daily basis operations. Mentioned below there some compliance being
defined:
Food safety regulations
Food safety regulations are required to be applied by all organisations within food and
beverage industry as to handle their food segment in best effective manner. For this hotel and
restaurants are required to ensure that they have food with accurate tempering and labelling. In
addition with this in order to offer liquor hotel and restaurants are required to have proper liquid
licensing and regularly conduct inspection of food as to offer their services within legal
judiciary.
Food labelling policies
It is important for industries within food and beverage sector to label their food with
relative directives and measures. In addition with this they are also required to ensure that it is
essential for them to check the quality of their dairy products such as poultry, egg and meat.
Failure in this compliance may lead food business towards heavy penalty and punishment.
P6
It has been analysed that with the rapid advancements in technology customers
expectations are also increased. With the help of technology industries within food and beverage
can effectively able to track down the quality of food along with their timely restocking.
Technology also aid them to improve their process of production and manufacturing and
5

effectively manage warehousing zone. As with the help of this they can have automatic guided
vehicles that later help in ensuring picking accuracy wile declining in errors. In addition with this
it lead towards creation of better form of working environment with the help of which
productivity can be effectively increased. There are some techniques given below that can and
different types of business in food and beverage sector to effectively manage their operations.
Increase in a AGB Technology
It has been analysed that Automatic guided vehicles have been misunderstand by food
and beverage industry as they think it is not that trustworthy. Despite of this fact that technology
nowadays offer wide range of benefits. However in today's modern world industries with food
and beverage sector are tend towards technological advancements and they started taking use of
AGV technology as to increase efficiency of their operations. In this technology industries take
advantage of self driven cars as to manage their warehousing operation and reduce further errors.
Online ordering
Industries those who perform their operations within food and beverage sector take use of
online ordering facility as to gain advantage of quick serve. With the help of this they can able to
gain high rate of revenue as further gain more opportunities as to serve customers with best. As
customer can easily able to access to menu and further add extra item as per their wish. In
addition with this industries can able to analyse bad consumer experience and frame strategies as
to resolve their query and regain their trust towards organisation.
P7
There are diverse range of factors that affect decision of customers decision while
choosing cafes, restaurants and other units in food and beverage sector. Some of these factors
include loyalty, brand identification, quality, availability of food and physical environment.
Affordability:
This factor affect customer decision making as it is related to price range that are being
offered by cafe and restaurant. It has been analysed that in order make decision customers firstly
check affordability of food and review price as to determined whether to make a purchase or not.
Thus it is essential for industries within food and beverage sector to offer their products and
service as per according to price range in order to satisfy customers with best and increase their
loyalty along with profitability.
Physical environment:
6

In this consumer are physically present during delivery and service process. Physical
environment include physical form of surroundings that attract attention of consumers and
encourage them to make their stay. Thus, organisations within F&B sector are required to have
best effective form of physical features, lightening facilities, dining equipments etc as to satisfy
customers with best and gain more competitive advantage.
P8
Customer loyalty is termed as an those group of individuals who engage in the process of
repeatedly buying products and services of same unit. It has been analysed that these regular
consumer groups are the main source of company revenue as with the help of this organisation
can not only able to increase their brand image in marketplace but can also increase their
competitive image in market (Davis, Alcott and Pantelidis, 2018). Thus, in order to attract large
base of customer base organisation are required to offer wide range of benefits to customer group
as to increase their loyalty in best effective manner. Loyal consumers are those who choose to be
regular towards a particular product and from particular company. This shows their loyalty.
Thus, organisations are need to ensure that they maintain their loyalty on continuous manner and
encourage them to stick with company and product. In relation with food and beverage industry
it has been analysed that this is one of the quite different industry from others as in this sector
there is highly competitive zone . For this it is essential for each and every unit engage in this is
food and beverage industry to attract customers by offering them enchanting products and
services in qualitative manner. As this will further aid them to ensure long term sustainability as
well as profitability.
In addition with this they are also required to effectively understand the need of customers and
then offer them products and services as per according to their needs and demands in best
effective manner. With the help of this industries can effectively able to attract large base of
customers and further attract them towards particular brand and product. There are wide range
of measures that can be undertaken by these industries in order to serve customers with best. In
this they are also require to gain feedback and regular review from customers as to serve them
with attractive services as per according to their demand. Further it is also essential for them to
analyse market conditions as to determine the particular form of technology and trend which is
currently prevailing in marketplace. In addition with this, industries within food are beverage
7

sector are also required to effectively handle consumers complaints and stay with in touch with
regular manner in order to effectively increase the level of their loyalty. Thus, organisations are
required to make customers their first priority and maintain strong consumer relationship
management.
Loyalty program
It is one of the simplest and easy way with the help of which food and beverage industrial
organisations can effectively able to satisfy their customers in proper and effective manner and
further encourage their growth. It is essential for organisations within this sector to take
advantage of customer loyalty program as to offer free beverage and food to their regular and
loyal customers. In addition with this, organisations are also required to take advantage of
strategies as to effectively encourage their profitability.
This factor is naturally good for organisations within this sector as with the help of this
they can not only able to attract large base of customers but also can increase their productivity
and profitability in best effective manner. Companies can also offer discounts to consumers as to
effectively encourage them to make purchase. In addition with this they can also offer loyalty
cards to customers along with attractive discounts coupons in order to remarkably gain large base
of profitability. Consumers acts as an most important element for each and every organisation.
Food and beverage sector is one of the leading and growing sector and fascinates customers with
their attractive products and services. Thus, it becomes the core responsibility of industries
within this sector to take care of the needs and demands of customers and further provide them
benefits with loyalty programmes.
Encouraging customer feedbacks
Food and beverage industries receive high base of customers on daily basis. Thus it becomes
essential for them effectively take regular feedbacks from their customers base in order to
effectively improve their work efficiency of their products and services. In addition with this, it
has been determined that there are numerous form of business units within this sector those who
offer attractive customer services in order to gain large base of competitive base. In addition
with this, it has been determined that with the technology companies can acquire regular
feedbacks and with the help of this they can solve their query in best effective manner as to
further increase efficiency of their products and services in best effective manner (Sandaruwani
8

and Gnanapala, 2016). This will further aid them to satisfy customers while ensuring long term
sustainability at marketplace. In addition with this, online technology aid organisation in F&B
segment to identify the real cause that restrain customer to purchase. With the help of this they
can serve customers in best effective manner while resolving their real issues.
CONCLUSION
According to the report, this is concluded that digital technology is most essential element
that aid organisation in food and beverage segment to conduct their operations. As with the help
of technology organisation can effectively able to serve their customers by offering them
qualitative services. Technology also aid organisation to identify behaviour of customers and
serve them according to their demand as to increase their loyalty and profitability of
organisation.
REFERENCES
Books and Journals
Sudtachat, K., Mayorga, M.E. and Mclay, L.A., 2016. A nested-compliance table policy for
emergency medical service systems under relocation. Omega. 58. pp.154-168.
Ackerman, T.R. and Pizzuto, J.E., 2016, December. Sediment storage time in a simulated
meandering river's floodplain, comparisons of point bar and overbank deposits. In AGU
Fall Meeting Abstracts.
9

Braun Santos, D. and et. al., 2016. Predictors of credit card use and perceived financial well‐
being in female college students: a B razil‐U nited S tates comparative
study. International journal of consumer studies. 40(2). pp.133-142.
Micari, A., and et. al., 2017. 2-Year results of paclitaxel-coated balloons for long
femoropopliteal artery disease: evidence from the SFA-Long study. JACC:
Cardiovascular Interventions. 10(7). pp.728-734.
Davis, B.,and et. al., 2018. Food and beverage management. Routledge.
Susskind, A.M., Kacmar, K.M. and Borchgrevink, C.P., 2018. Guest–server exchange model and
performance: The connection between service climate and unit-level sales in multiunit
restaurants. Journal of Hospitality & Tourism Research. 42(1). pp.122-141.
Oyemomi, O., and et. al., 2016. How knowledge sharing and business process contribute to
organizational performance: Using the fsQCA approach. Journal of Business
Research. 69(11). pp.5222-5227.
Diaz, D.G.P. and Las Johansen, B.C., 2018. Application of J48 Algorithm in Predicting
Academic Performance of Hotel and Restaurant Management Student in a Philippine
Higher Education Institution. Journal of Computing and Innovation. 2(2). pp.83-92.
Gordon, R.T. and Brezinski, M.H., 2016. The complete restaurant management guide.
Routledge.
Davis, B., Lockwood, A., Alcott, P. and Pantelidis, I.S., 2018. Food and beverage management.
Routledge.
Weber, C., 2019. Operational Efficiency in the Food and Beverage Industry Through Sustainable
Water Consumption.
Salim, H.K., Padfield, R., Yuzir, A., Mohamad, S.E., Kaida, N., Papargyropoulou, E. and
Nakamura, S., 2018. Evaluating the organizational intention to implement an
Environmental Management System: evidence from the Indonesian food and beverage
industry. Business Strategy and the Environment. 27(8). pp.1385-1398.
Valta, K., Kosanovic, T., Malamis, D., Moustakas, K. and Loizidou, M., 2015. Overview of
water usage and wastewater management in the food and beverage
industry. Desalination and Water Treatment. 53(12). pp.3335-3347.
Salim, H.K., Padfield, R., Lee, C.T., Syayuti, K., Papargyropoulou, E. and Tham, M.H., 2018.
An investigation of the drivers, barriers, and incentives for environmental management
systems in the Malaysian food and beverage industry. Clean Technologies and
Environmental Policy. 20(3). pp.529-538.
Martin-Rios, C., Demen-Meier, C., Gössling, S. and Cornuz, C., 2018. Food waste management
innovations in the foodservice industry. Waste management. 79. pp.196-206.
Sandaruwani, J.R.C. and Gnanapala, W.A.C., 2016. Food wastage and its impacts on sustainable
business operations: a study on Sri Lankan tourist hotels. Procedia food science. 6.
pp.133-135.
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.
Radzi, R.M., Saidon, I.M. and Ghani, N.A., 2016. Risk management in food supply chains by
Japanese food companies in Malaysia. International Journal of Business Management
& Economic Research. 7(6). pp.778-787.
10

Del Chiappa, G., Martin, J.C. and Roman, C., 2016. Service quality of airports' food and
beverage retailers. A fuzzy approach. Journal of air transport management. 53. pp.105-
113.
Ojo, O.O., Shah, S., Coutroubis, A., Jiménez, M.T. and Ocana, Y.M., 2019, April. Potential
Impact of Industry 4.0 in Sustainable Food Supply Chain Environment. In 2018 IEEE
International Conference on Technology Management, Operations and Decisions
(ICTMOD) (pp. 172-177). IEEE.
Jones, P., Hillier, D. and Comfort, D., 2015. Water stewardship and corporate sustainability: a
case study of reputation management in the food and drinks industry. Journal of Public
Affairs. 15(1). pp.116-126.
Gianni, M., Gotzamani, K. and Vouzas, F., 2017. Food integrated management systems: dairy
industry insights. International Journal of Quality & Reliability Management. 34(2).
pp.194-215.
Dinu, M.D., 2016. Supply chain performance within agri food sector. Economics of
Agriculture. 63(3). pp.919-928.
Grekova, K., Calantone, R.J., Bremmers, H.J., Trienekens, J.H. and Omta, S.W.F., 2016. How
environmental collaboration with suppliers and customers influences firm performance:
evidence from Dutch food and beverage processors. Journal of cleaner production. 112.
pp.1861-1871.
Conwi, E.P., Cortez, A.G. and Ramos, N., 2016. EFFECTS OF THE DUALIZED TRAINING
PROGRAM ON THE OCCUPATIONAL INTEREST OF THE STUDENTS
ENROLLED IN BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT
MANAGEMENT. Indian Journal of Commerce and Management Studies. 7(1). p.31.
Jackson, L.A. and Singh, D., 2015. Environmental rankings and financial performance: An
analysis of firms in the US food and beverage supply chain. Tourism Management
Perspectives. 14. pp.25-33.
11

12

13