Managing Food and Beverage Operations: A Comprehensive Report

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1MANAGING FOOD AND BEVERAGE OPERATIONS
MANAGING FOOD AND BEVERAGE OPERATIONS
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Table of Contents
Introduction............................................................................................................................................3
ACTIVITY 1..........................................................................................................................................4
Types of businesses in Food and Development industry...................................................................4
Commercial Operators...................................................................................................................4
Non-Commercial Operators...........................................................................................................5
Different types of Rating Systems.....................................................................................................5
Current and Future Trends.................................................................................................................6
ACTIVITY 2..........................................................................................................................................8
Analyzing consumer motivation and behavior in selecting F&B outlets...........................................8
Consumer decision about choosing the right F&B outlet..............................................................8
Factors influencing consumers’ decision about choosing an F&B outlet......................................8
Strategies used by F&B outlets to attract consumers.....................................................................8
Building a loyal consumer base by F&B outlets............................................................................8
Effectiveness of strategies used by F&B outlets to build loyal consumer base.............................9
Influence of digital technology on consumer behavior..................................................................9
ACTIVITY 3........................................................................................................................................10
Operational strategies adapted by commercial food outlets.............................................................10
Operational strategies adapted by non-commercial food outlets.....................................................10
Operational strategies adapted by Catering and Banquet food outlets.............................................10
Digital Technology in Food and Beverage Industry........................................................................11
ACTIVITY 4........................................................................................................................................12
Food Service Skills:.........................................................................................................................12
Beverage Service Skills:...................................................................................................................12
Equipment Management Skills:.......................................................................................................13
Legal and Regulatory Requirements:...............................................................................................13
Conclusion............................................................................................................................................15
References............................................................................................................................................16
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Introduction
A healthy growth has been noticed in the industry of Food & Beverages in recent years. New
innovations are introduces to this business every year. New technologies are easing various
operations in this industry. Being a key ingredient of the hospitality department, food & beverage
industry plays a massive role when the reputation of any organization is concerned. In some parts of
the world, like in UK, Food & Beverage industry contributes the most to the economy of the country.
Engagement of different types of innovation has been seen over the recent years in which, the trend
of new product development of more than 85% is noticed.
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ACTIVITY 1
Types of businesses in Food and Development industry
Commercial Operators
Commercial operators are holds the more than 80% of the market share in the industry of food and
beverages. This segment can further be categorized into four parts that are Quick-Service restaurants,
Full-Service restaurants, Catering and Banqueting, liquor establishments.
Quick-Service Restaurants
In UK, Quick Service restaurants hold more than 20% of the market share. These types of restaurants
are based on fast delivery time of the food items. Quick Service Restaurants are categorized in four
more parts that are Drive- through, Stand-alone, Location in retails stores and Kiosk.
Full- Service Restaurants
Full service restaurants hold more than 40% of the market share in UK. These types of restaurants
are the most flexible types as it can adjust its offering according to the market requirement.
Customer’s expectation is more for Full service restaurants as compared to other types. Menus are
prepared according to the type or reputation of the restaurant. In Fine dining restaurants, as compared
to casual ones, more experienced chefs are seen. These types of restaurants emphasize more on
presentation of the food (Lowe et al., 2015). In case of better utilization of the food resources, casual
restaurants are ahead. These restaurants stay operative in all three-meal periods. Ethnic Restaurants
offers food based on customer’s cultural identity. These kind of restaurants are famous amongst
immigrants that moved into a new region and finding their specific types of food. The growth of this
sector relies on the acceptability of the customers as the foods prepared here are meant to reach the
comfort level of the customers.
Catering and Banqueting
Catering and Banqueting holds a relatively small amount of the market share. Catering companies
offers food items at diverse venues. While banquets hire catering companies to serve food on
premise, catering companies are found to offer services off premise. In an event that is catered,
customers prefer to eat at the same time while in any restaurant, foods are offered in small group or
to individuals (Schuetzendorf, 2019).
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Liquor Establishments
Like Catering, liquor restaurants are for a specific type of customers. Because of which it holds a
small percentage of the market share. This sector is made up of nightclubs, bars, pubs etc. These
types of restaurants are required to have a particular type of license that allows them to offer
alcoholic contents in their respective outlets (Wordstream.com, 2019).
Non-Commercial Operators
Non-commercial food outlets offer limited choice of food item. These sectors run the business in
alliance with another business (Wordstream.com, 2019). Food and beverage service provided in a
hospital or prison is an example of Non-commercial food service provider. This sector can further be
categorized into two parts that are Foodservice provided in accommodations like hotels, hostels etc.
and vending services offered at shopping malls, hotels etc.
Figure 1: The largest food and beverage companies in UK
(Source: Consultancy.uk, 2019)
Different types of Rating Systems
In UK, Department of Tourism (DOT) has implemented a start rating system. It holds a total of 1000
points that can be achieved by hotels and restaurants. In this rating system, the sector of food and
beverages hold 15% of the total value (Fnbreport.ph, 2019).
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No. of
stars
Points Services
1 251-400 Hotels with limited services and facilities
2 401-550 The comfort level is high. Offer more quality food.
3 551-700 Decent level of accommodation and food is offered. Decent quality of
facilities is provided.
4 701-850 Upscale in every areas. Super responsive services, Premium quality food is
provided.
5 851-1000 Luxurious services and facilities are provided. Celebrity chefs are present.
Table 1: Rating System
(Source: Learner)
Current and Future Trends
A huge amount of growth has been noticed in food and beverages industry. Adaptation of new
technologies to ease up various processes has increased the pace of the business, which is why food
and beverage industry contributes the most in UK’s economy. Many companies are implementing
new ideas or trends to meet their business objectives. Many restaurants have started to go cashless as
it saves a large amount of time that was earlier spent on cash handling. In addition, operational errors
can be avoided this way. Going cashless reduces the chance of being robbed (Schuetzendorf, 2019).
Another trend that is running currently and has the potential of massive growth in future is of making
casual and tasty foods that takes less time to make. In addition, the aim of this trend is to go short on
delivery time. This trend is hugely appreciated, as the daily schedule of people is getting more hectic.
The biggest future trend is the adaptation of Indian street food. Many restaurants in UK have started
to hire chefs from the country India or chefs that expertise in Indian food. Because of the super spicy
nature, Indian Street is getting its popularity in a very fast manner, which is making it among many
cultures around the world. Another major factor of Indian street food getting famous is the large
number of people immigrating to other countries. Many ethnic restaurants are made up in order to
serve this particular immigrant people (Schuetzendorf, 2019).
Many people that are turning vegetarian are adding a new trend of relying on plant based foods.
Because of this trend, restaurants in UK and around the world are focusing more on plant based food
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item. The growth of this trend is stating a fact that people around the world have started to focus on
their fitness and overall well-being (Schuetzendorf, 2019).
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ACTIVITY 2
Analyzing consumer motivation and behavior in selecting F&B outlets
Consumer decision about choosing the right F&B outlet
The consumers decide about the correct outlet by emphasising upon the brand name and image of the
outlet. They also focus upon the quality and taste of the products such outlets are offering. The
benefits received by them on visiting such stores like discounts, free gifts, first come first serve
facility is also taken by them into mind when they choose any F&B outlet (Jaeger et al., 2019).
Packaging and pricing of the products offered by such outlets too play an important role in making
the consumers decide. In case of many consumers, the favourable location and ambience of such
outlets are influential in consumer decision-making process.
Factors influencing consumers’ decision about choosing an F&B outlet
The food quality maintenance is essential for any F&B industry because the overall dining
experience influences the decision making process of the consumers. The quality of service provided
by the outlets, like behaviour of staffs and punctuality in food delivery influences the consumers
prefer to opt for them (Diana-Rose et al., 2016). The physical environment plays a crucial role in
making a consumer choose about the correct outlet as the ambience, theme, and seating arrangement
attracts them to choose the outlet. Customer satisfaction plays a crucial role as if any consumer is
satisfied with the service of one particular outlet, they may recommend them to their friends and
folks.
Strategies used by F&B outlets to attract consumers
The F&B outlets use various varieties of strategies by means of which they can attract new
consumers. They may plan to offer discounts and coupons to the new consumers and can even hung
up boards and distribute leaflets stating to offer discounts to the new consumers. They can frame
happy hours to bring in more consumers even during the lean time of the day where they can offer
drinks and appetizers at minimal costing which will attract more consumers.
Building a loyal consumer base by F&B outlets
The F&B outlets can build up a strong loyal consumer base by delivering exceptional and high
quality services to the consumers. They should get themselves involved within the community and
design an extensive and distinctive program for loyalty so that the consumers are attracted and they
remain loyal to the outlets.
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Effectiveness of strategies used by F&B outlets to build loyal consumer base
The consumer loyalty program adopted by the F&B outlets will help to increase the profit earned and
the revenue of the outlets, as such, loyal consumers are already satisfied with the services of the
outlets and therefore they are influencing other friends and folks to visit such outlets, which in turn
are increasing the sales of the outlets.
Influence of digital technology on consumer behaviour
Digital technology is influencing the consumers to be connected with the F&B outlets every time.
The popping up of ads and notifications of such outlets every time they open any browser is making
them aware of the presence of the existing as well as new outlets (Lowe et al., 2015). Digital
technology is promoting food delivery options from such outlets and the consumers can even get
food from their favourite F&B outlet by using the food delivery app services.
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ACTIVITY 3
Operational strategies adapted by commercial food outlets
Many commercial food outlets are making alliance with food delivery apps. Because of which a
significant amount of growth has been seen in the food selling industry. Apart from that, restaurants
have started to use the platform of social media to promote their food. Many restaurants are making
Google plus accounts, as it is the most used search engine. Some restaurants are offering foods
related to particular cultures. These are called ethnic restaurants. The policy of delivering food based
on cultural likeness is one of most adapted marketing plans for restaurants (Wordstream.com, 2019).
Operational strategies adapted by non-commercial food outlets
As the non-commercial food-outlets are dependent to some other businesses like Hospitals, Hostels,
Hotels, the popularity of these businesses reflects on the growth of the food outlets. However, by
providing quality food services, the department of Food and beverages can create a good profile and
brand value for the main business (Dayal, 2019).
Operational strategies adapted by Catering and Banquet food outlets
The general promoting policy for catering and Banquet is by doing commercial ads. By identifying
the customers, catering services can create their operational strategies according to that. People often
fall for brand values when it comes to food related services. So creating a good name for the business
can be affective (Wordstream.com, 2019).
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Figure 2: Downloads of top 5 food delivery apps
(Source: App Annie Content, 2019)
Digital Technology in Food and Beverage Industry
Promoting without any significant investment is the biggest advantage of digital marketing.
However, investments can be made to promote business over social media and other digital
platforms. Google AdSense is one the largest digital promoting agencies. Many restaurants are
promoting their food item by making videos and posting them on platforms like YouTube
(Smallbusiness.chron.com, 2019).
Another use of technology can be observed in terms of payment processes. Many restaurants have
implemented various cash less payment processes. Apart from that, storage systems are being
improved due to new technologies. In case of equipments used in the food industry, automation is
being introduced to make the servicing process quicker (Dayal, 2019).
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