Managing Food & Beverage Operations: A Comprehensive Report

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MANAGING FOOD & BEVERAGE OPERATIONS
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TABLE OF CONTENTS
Abstract............................................................................................................................................3
Activity 1: The Modern F&B Industry............................................................................................4
Types of Business........................................................................................................................4
Rating systems.............................................................................................................................5
Industry Trends............................................................................................................................6
Activity 2: An Analysis of Customer Motivations and Behaviour in Selecting F&B Outlets........8
How do consumers decide on which food and beverage outlets they chose?.............................8
What factors influence consumers’ decisions in choosing an F&B outlet?................................8
What strategies do different F&B outlets use to attract customers?............................................9
How do F&B outlets build a loyal customer base?.....................................................................9
What is your evaluation of the effectiveness of the strategies used by different F&B outlets to
attract and build a loyal customer base?....................................................................................10
What is your evaluation of the influence of digital technology on consumer buying behaviour?
...................................................................................................................................................11
Activity 3: A Comparative Study of Ways F&B Operations use Technology to Improve
Efficiency.......................................................................................................................................12
Activity 4: Food and Beverage Service Standards........................................................................15
Observation list from HAVEZ Restaurant:...............................................................................15
Questionnaire:............................................................................................................................16
Reference List:...............................................................................................................................21
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ABSTRACT
The hospitality industry is growing extensively because of the better availability of technologies
and this has been contributing highly to the national economy of several nations. It has been able
to shape the conditions of different countries and one of the major influential sectors has been the
food and beverage industry, which has been currently offering people with a variety of food and
job opportunities. This study will be focused on exploring the food and beverage industry in
details and will identify the different styles of food and beverages available. Different rating
systems are available for these organisations and these would be identified during the process.
The current industry trend will be acknowledged to understand the condition of the industry in
the current market of the United Kingdom. The study will then focus on the service standards in
the real working environment of the food and beverage industry and it will help to understand the
way in which operational efficiency can be improved by the use of advanced technology. Finally,
the study will be focusing on analysing customer motivations and behaviour within the industry
so that the same can be used to maximize business success.
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ACTIVITY 1: THE MODERN F&B INDUSTRY
Types of Business
The food and beverage industry are one of the largest businesses all around the world and it
provides a lot of GDP in several countries as well. However, the food and beverage industry can
be divided into different types and they operate according to their scope, size and aim of
business.
Quick service restaurants are becoming extremely popular in the modern world because of the
complex lifestyle of the people and these types of establishments are known as fast food
restaurants. Solely, this part of the industry provides to more than 300 million pounds to the
revenue of the world. This industry is known for its first services to the customers and the
production of food and beverages at low prices. Some of the well-known companies include the
KFC and Burger King, and they offer drive through services and optimised convenience for the
customers (Hu et al., 2019). If Heathrow Airport Restaurants and Lounges Ltd was a quick
service restaurant, it would have provided the customers with low priced products, speedy and
convenient services at all times. It could have provided with a dine-in service as well.
The Heathrow Airport Restaurants and Lounges Ltd is a full-service fine dining restaurant,
which offers customers with traditional dining experience with full-service, providing them with
the food that they want and allow them to be seated during their experience. The company offers
customers with premium services too. Heathrow Airport Restaurants and Lounges Ltd allows the
customers to enjoy family dining or casual dining, and some of the major competitors include the
Melting Pot, the Capital Grille, and Mainland China.
Another type of restaurant includes the Coffee shops and Gastro pubs where the customers
enjoy premium coffee or speciality-based beverages. The food served is almost like a quick
service restaurant; however, these restaurants are well-known for their special products that
attract customers (Prebensen et al., 2018). Coffee shops provide the customers with premium
coffee and snacks, non-alcoholic shops offer customers with product like cocktails and fruit
juice, and alcoholic pubs offer customers with alcoholic beverages. Heathrow Airport is not the
same, but if it were, it would have provided customers with premium beverages and could even
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have introduced franchisees to different parts of the world. It would have provided the customers
with free Wi-Fi and lounge areas. These types of restaurant can grow as 60% of the people in the
United Kingdom consumes coffee extensively, and according to the IBISWorld 7.5% of the
revenue is earned from alcoholic beverages (Salihoglu et al., 2018).
Another common type of restaurant is the frozen-dessert restaurant in which the establishment
serves the customers with products like sherbet, yoghurt, frozen yoghurt, gelato, candies, cookies
and ice cream. These companies are also having an increased demand in the market, however,
due to the health-conscious customer trend; the companies have introduced new products. The
Heathrow Airport Restaurants and Lounges Ltd can benefit being this type of organization, but
these are much more small-scaled firms. The company would have provided customers with
gelato or frozen yoghurt products (Wood, 2018).
The last type of restaurant includes the retail-food restaurant, which includes products like
processed food, cheese, healthy food, food arrangements, and many other products. They also
include convenience and grocery stores like Grofers, Marks and Spencer and others.
Rating systems
Some of the common rating systems include the following:
In UK:
1 Michelin Star: Good Restaurant of a particular category.
2 Michelin Star: Excellent products and services, worth a detour.
3 Michelin Star: Exceptional Cuisine.
Global Ratings:
1 Michelin Star: This kind of restaurants are comfortable and clean and can provide the
customers with friendly and helpful environment
2 Michelin Star: This kind of restaurants care about service for the customers and provide them
with good and quality foods and services. The experience is of a better standard and furnishing is
good as well.
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3 Michelin Star: In this type of restaurants, furnishing is tremendously healthier and the
customers are provided with premium style service care and guest experience. This type of
industry is a little more special with the reception.
4 Michelin Star: These types of companies provide the customers with exceptionally soaring
standard of care service and care, which includes high quality furnishing, customer experience,
and establishment environment.
5 Michelin Star: This type of restaurants is enormously first-class and they provide the
customer with the best services possible. They also provide these people with luxurious
environment and elevated quality food products with a complimentary and flawless service or
guest care. These places are extremely comfortable and provide customers with a very good
customer experience (Weber and Saunders-Hogberg, 2018).
Industry Trends
Several factors are affecting the industry trends both negatively and positively and these are as
follows:
The first factor is food sourcing and the customers are looking for the quality of the products
and services and the way in which they are made. They are trying to find out how and from
where the food has come.
The next factor is the habit of snacking among the customers and this has been one of the major
parts of the active lifestyle, and therefore there are an increasing number of food manufacturers
in the market (Kristina and Wijaya, 2017). These people are looking for products that can satisfy
the need, introducing organic ingredients and proper labelling.
Many customers are looking for exploration in their food. They try to find out better, bold, and
bigger products that can not only satisfy their needs, but also provide them with different features
that others will not produce.
The rise in the price of the groceries is also an important factor and customers are trying to
access these products from different levels of manufacturing of the groceries and ingredients.
They are preferring high quality products at low prices.
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The rise in marketplace rivalry is becoming so intense that several companies are being shut
down and the customers have to be retained and attracted while meeting their requirements
explicitly.
Customers are increasingly becoming aware of the quality of the product and services offered
by the companies and they are trending to be health conscious. Customers are going through
special diets and therefore, they are not consuming all types of food (Almeida-Santana and
Moreno-Gil, 2017). This has been a result of migration and increased globalisation in the
lifestyle tendency.
The customers do not like the increasing use of technological development in the food industry
recently, and they are trying to consumer products that are handmade and organic in nature.
Customers are becoming aware of the quality of the products. However, the customer
behaviour changes according to the changes in the packaging and marketing processes, which
becomes and new challenge for the food and beverage companies (Bresciani, 2017). Even digital
promotional techniques are affecting shopping behaviour extensively.
Another major trend has been the concept of mega-trend among the consumers and it has been
seen that several drivers affect several items among these consumers. Many companies are able
to increase their sales because of the same.
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ACTIVITY 2: AN ANALYSIS OF CUSTOMER MOTIVATIONS AND BEHAVIOUR IN SELECTING
F&B OUTLETS
How do consumers decide on which food and beverage outlets they chose?
Customers nowadays have become very much aware of the products and services offered by the
companies and therefore, they have learnt more about the ingredients used in the same.
Customers are continuously becoming health conscious and therefore, they are even changing
their diet or their choice of food slowly. Factors like low sugar and gluten free products are
generally preferred by the customers and this type of minor factors can make them decide what
to eat or drink in a certain outlet. Fatty foods are being eradicated slowly and are being replaced
by products that have good number of healthy bacteria or is free from genetically modified
ingredients (Kansakar et al., 2017). However, certain segments of customers are totally
preferring outlets with comfort food or food that tastes better, and does not care about the
ingredients used or the features of it. In addition, it has been extremely important for every
company in the modern-day world to provide the customers with the finest quality products at
affordable prices. Sometimes customers are attracted because of the services provided by the
companies as well as the internal and external furnishing of the establishment. Customers like to
have products that are made out of local ingredients and therefore, they choose outlets that
provide the same but always with a twist (Marchesani et al., 2017).
What factors influence consumers’ decisions in choosing an F&B outlet?
Several factors decide the choice of a customer for a certain restaurant outlet and some of these
factors are described below. One of the major reasons for choosing an outlet is the discounted
price or the promotion of the organisation, which attract the customers more than other
companies (Ali et al., 2016). Customers also go to a certain outlet because of the quality of
services and products provided by them at a certain price. This is because customers get a better
value from the chosen one than other companies. Recommendation or the word of mouth is also
an important factor that drives the behaviour of the customers towards a certain outlet (Santoro et
al., 2017). Sometimes the customers want to try a new menu or try a very different cuisine, and
this can drive the behaviour as well. One of the major factors becomes the corporate social
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responsibility of the restaurant outlets as these become a promotional technique through which
the customer understand that the restaurant is socially responsible and is beneficial to the
community. This factor also drives the behaviour among the customers to try the new restaurant
outlets. Sometimes, good advertisements also attract customers and factors like positive reviews
on the website and on Google help the customers to choose a particular restaurant outlet.
What strategies do different F&B outlets use to attract customers?
Many F&B outlets uses different strategies to attract customers and one of the major strategies
used by them is to offer them with special bonuses or allow them with special offers like price
reduction. Sometimes the companies also offer the customers with free Wi-Fi services so that
they can attract them easily and streamline its operations (Bilgihan, 2016). Most of the time, the
food, and beverage companies provide email-marketing incentives and they allow discount for
forwarding emails to other people. Some of the companies take a great step in capitalising their
hours so that they can maximize the profit and provide the customers with special discounts and
benefits in the busiest times of the day. Some top companies have started to reach out to the local
foodies and uses social media platforms to post the reviews, which helps in increasing word-of-
mouth and promotion for the company (Dinu, 2016).
Many times, these F&B companies start a group and personalize the services for the customers.
Many times, they spend a lot of money in upgrading the local areas for helping the community
groups, and this kind of engagement increases brand image among the public and evidently,
increases the sales. Some of the companies are using online ordering app for their stores so that
customers can easily buy products and services from the cell phones or computers. Occasionally,
these companies offer a special discount during the same process (Hsieh et al., 2016). Major
F&B companies host events that attract local public and try to create memories during the time
of eatery. Giving away gifts is also a good strategy while using media outlets is done for
promotion.
How do F&B outlets build a loyal customer base?
The company uses a set of strategies to increase loyalty of the customers towards the company
and these are as follows:
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ï‚· The company uses different ways to communicate with the customers and maintain
frequent communication with them and pass important information periodically
ï‚· The company gives different perquisites to the loyal customers and provide them with
facilities like immediate seating, special needs, or providing faster services.
ï‚· Many companies use different payment plans if the customers run into cash issues or
allow the customers to invest in a recurring manner so that they can use a service later on.
ï‚· To maintain a loyal customer base, the companies always provides a good customer
service and create a relationship with them (Renton et al., 2016).
ï‚· Many companies provide the customers with the head start like a free coffee or a free
drink without making them wait for their food.
ï‚· The companies train their employees in such a way that their behaviour is first-class
towards the customers and such that it can increase their desire to come to the restaurant.
What is your evaluation of the effectiveness of the strategies used by different F&B outlets
to attract and build a loyal customer base?
The strategies used by the different F&B companies like Tyson Foods are extremely beneficial
as they allow them to attract many customers at once. Offering discounts and bonuses allows the
customers to be happy with their experience and they will come back for the same. The
processes of email marketing incentives have been a newly devised strategy by the companies
like Clos Maggiore, and it can increase promotion of the company, however, wrongly promoted
emails can affect negatively to the company (Chen et al., 2015). Special discounts like Happy
Hours or benefits in the busiest time can attract many customers in that period, but main reduce
the number of customers in the other timings.
Reaching out to the foodies, introducing CSR for providing customers with gifts is a good
promotional technique of Chez Bruce and helps to attract customers a lot. Complete
communication is always necessary to maintain a relationship, and without periodical
approaches, it will be hard for Heathrow Airport Restaurants and Lounges Ltd to retain the
customers (Kandampully et al., 2015). Different prerequisites can allow the company to increase
the attractiveness of the customers, and good customer service or a fine customer experience can
always attract them towards a particular company.
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What is your evaluation of the influence of digital technology on consumer buying
behaviour?
Facilities like Wi-Fi system has become extremely important as the internet has to be used
everywhere because of work or entertainment. Introduction of modern technologies like online
ordering application can easily allow the customers to enjoy the services from their place, which
will help to increase flexibility of the income. Drawing in a scope of computerized advancements
in various zones of business has helped the association to meet its business goals and including
shrewd advances are making educated clients progressively fulfilled, helping to meet the targets.
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ACTIVITY 3: A COMPARATIVE STUDY OF WAYS F&B OPERATIONS USE TECHNOLOGY TO
IMPROVE EFFICIENCY
Technologies What is it? Heathrow Airport
Restaurants and Lounges
Ltd
Melting Pot Restaurant
EPOS For increasing
business
efficiency
Company uses the system of
EPOS so that it can improve
the marketing and sales by
associating the reward system
and the loyalty program with
the same
This company uses EPOS
system so that they can
enhance the business
practices and improve
sales efficiency
Digital
Technology
Collection of
WIFI, Cloud
system, CRM,
Cell Phone
Technology,
Smart room and
digital roster
The company has been able to
introduce several technologies
like CRM, Wi-Fi, cloud
system, and social media
marketing, which is allowed to
increase its operations and
make the operations faster
(Sashi, 2014)
This company has been
using customer data
tracking, mobile
technologies, online
building, inventory
tracking system, E-
Commerce and staff
scheduling system, which
has helped it to make its
operations efficient
Card Reader Debit/Credit or
UPI reader
The company is accepting all
types of credit and debit cards
and is also providing the
customers with the benefit of
The company only
accepts credit and debit
card. The system is
outdated and only
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