Food and Beverage Industry Analysis: Heathrow Airport Case Study

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MANAGING FOOD AND BEVERAGE
OPERATIONS
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Contents
INTRODUCTION........................................................................................................................3
ACTIVITY 1- DEMONSTRATING F&B INDUSTRY KNOWLEDGE..................................................4
DIFFERENT TYPES OF BUSINESSES WITHIN F&B INDUSTRY..................................................4
DIFFERENT RATING SYSTEMS USED NATIONALLY AND INTERNATIONALLY WITHIN THE F&B
INDUSTRY............................................................................................................................. 5
CURRENT AND FUTURE TRENDS THAT AFFECT F&B BUSINESSES.........................................6
ACTIVITY 2- ANALYSING CUSTOMER MOTIVATIONS AND BEHAVIOUR....................................7
ACTIVITY 3- EVALUATING WAYS TO USE TECHNOLOGY...........................................................9
ACTIVITY 4- DEMONSTRATING PROFESSIONAL F&B SERVICE STANDARDS............................11
CONCLUSION.......................................................................................................................... 14
REFERENCES........................................................................................................................... 15
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INTRODUCTION
The businesses in the Food and beverage sector focuses on preparing, presenting and
serving food and beverages in an excellent manner to the consumers to increase their
satisfaction. The operations involved in the F&B business comprises of purchasing of raw
material, preparing and marinating the quality of product and services offered, inventory
management, etc. (Davis et al. 2018) The following assignment focuses on outlets, rating
systems and current trends of F&B industry and explains its service standards and also
analyses various motivations and behaviour of customer and how it helps in maximizing
success of the businesses.
Heathrow Airport Ltd. is an international airport operating in London, the United Kingdom
has 5 terminals. Over 80 airlines use this airport to reach their destinations covering a range
of 84 countries. Terminal 2 was established in June 2014 and has 52 shops and 17
restaurants and bars whereas terminal 5 comprises of 100 restaurants and shops (Budd and
Ison, 2018).
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ACTIVITY 1- DEMONSTRATING F&B INDUSTRY KNOWLEDGE
DIFFERENT TYPES OF BUSINESSES WITHIN F&B INDUSTRY
There are many types of businesses that operate within the F&B sector that includes:
Cafes and bars: The food and beverages sector comprises of cafes and bars that serve
different kinds of light snacks, alcoholic and non-alcoholic drinks, etc. to the customers as
per their demand. The place offers fast service to mocktails and cocktails to the customers.
Café Nero opened in 1997 is now present in all the terminals of Heathrow Airport offering
Italian coffee and warm atmosphere to its customers (Parsons et al. 2018).
Pubs and nightclubs: These types of places have a relaxed atmosphere. They provide a large
variety of alcoholic beverages, soft drinks, snacks, etc. being served with either self-service
or assisted service. London’s Pride by Fuller’s is a pub in Heathrow Airport providing an
amazing experience to the passengers. (Parsons et al. 2018).
Tea and coffee shops: There is a different variety of tea and coffee available for the
customers in such outlets along with some snacks and light meals. For example, Costa is a
coffee shop in almost all the terminals of Heathrow Airport. The shop offers tea, coffee, hot
chocolate, pasta salad, etc.
Restaurants: Various kinds of restaurants offer great service in the F&B sector such as fine
dining restaurants, casual dining restaurants, branded restaurants, pop-up restaurants, etc.
that offers multiple cuisines and provides the highest quality of food to the customers.
There are many restaurants located in different terminals of Heathrow airport such as The
Darwin, The gorgeous Kitchen, Oriel Grande Brasserie, Wondertree, etc. (Parsons et al.
2018).
Food courts: The food courts offer a multi-cuisine menu, quick service to the customers.
Food courts have an appealing atmosphere.
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DIFFERENT RATING SYSTEMS USED NATIONALLY AND INTERNATIONALLY
WITHIN THE F&B INDUSTRY
The rating system used in the United Kingdom and internationally makes it easy to evaluate
the quality of the services provided and understand which hotel, restaurant, café, or bar is
worth a visit or stay. The rating system can be explained as follows:
One star: The places are well maintained and provide a comfortable stay for the guests.
Two stars: The place is clean offering good hospitality services, physical facilities,
maintenance, etc. to the customers (Poldrugovac et al. 2016).
Three stars: All the bedrooms of the hotels have attached bathrooms, telephone, offers
room service for tea, coffee, snacks, etc. The hotels maintain the quality of service provided
to its customers. The few examples of three stars hotel include Hilton Hotel in Heathrow
airport, Sofitel Hotel in the Heathrow Airport, London, etc.
Four stars: The hotels provide high-quality service and offer food and beverages to the
customers. All bedrooms comprise of Wi-Fi connection, attached bathrooms, etc. for
example Hard rock hotel, London, Sloane square Hotel, etc. (Poldrugovac et al. 2016).
Five stars: The hotels rated with 5 stars provide exceptional services to its customers. These
hotels offer additional services like bars, leisure, valet parking, spa, business centre, etc. to
provide a great experience to the guests. For example Marriott International, Hyatt hotels,
etc.
Therefore, the most common rating systems for restaurants, hotels, etc. in the F&B sector
depends on the quality of services provided by the place. These ratings are in the form of
stars rated from 1 to 5; numbers or any other symbol. The food hygiene rating scheme is
used to rate the businesses from 5 to 0 stating the food quality from being highest to lowest
that simplifies the choices of customers (Poldrugovac et al. 2016).
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CURRENT AND FUTURE TRENDS THAT AFFECT F&B BUSINESSES
The current trends prevailing in the businesses within the F&B sector that affects the
business operations are the choices and preferences of the consumers, social trends in the
market, styles of services provided by these outlets, environmental safety and sustainability
issues, styles of the outlets, etc. nowadays consumers are diet conscious, they prefer to stay
healthy and they like to buy food that promotes their health and is advantageous for their
physical appearance (Nam et al. 2018). The customers are more interested in knowing
where and how the food is made and it has become important for the businesses to make
their activities transparent. The food safety issues must be considered by every business as
consumer awareness has increased and they wish to have every detail about the product
they are consuming. Innovation and differentiation in the quality and features of the
product and services offered must be considered by the business to beat the tough
competition in the F&B industry (Nam et al. 2018).
Whereas the future trends that are emerging and would affect the business within the F&B
sector are the transformations in the digital technology, the application of artificial
intelligence, increased use of internet, the business are affected as they have to work hard
to increase their online presence to attract large populations by providing facilities like
access to all the information at any time from anywhere, online payment options, ordering
food online, online promotions, advertising, gaining customer feedback, etc. (Nam et al.
2018). Therefore, the businesses have to change their operations to cope up with the
changes in the environment. For example Nestle, Tesco, etc. have made changes according
to the current and future trends in the industry and thus increased their presence online so
that the customers can order products and food items and make payments online.
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ACTIVITY 2- ANALYSING CUSTOMER MOTIVATIONS AND BEHAVIOUR
CONSUMER DECISION ON WHICH F&B OUTLET TO CHOOSE:
The customers primarily identify their needs; gather information about the product,
compare the needed product and its features and prices with the substitutes of the product,
after evaluating all the alternatives, the consumer makes the final decision about which
product or service to purchase (Panwar et al. 2019). The last step of the process includes
evaluation of the purchase decision after purchasing to assess the satisfaction of the
customer. While choosing an outlet in the F&B sector, he customers need to identify their
requirements, compare different outlets based on their pros and cons, then choose the best
one to fulfil those requirements and gain satisfaction from the services offered in the
selected outlet (Panwar et al. 2019).
FACTORS INFLUENCING CONSUMER’S CHOICE OF F&B OUTLET:
Various factors influence the choice of consumers while selecting an outlet in the F&B
industry. These factors include quality of food and service, the convenience of the location
of the outlet, ambience, prices of the items, brand image, customer service, etc. The factors
like accessibility, convenience and affordability act as motivators for the consumers in
choosing a particular outlet (Wood, 2018). Also, other factors like the taste of the food,
nutrition value and variety of choices of food items available to the consumer at F&B outlet
helps in influencing their behaviour. Thus, the restaurants, hotels, cafes, etc. must take care
of the choice of the consumers while making decisions in the business to increase their
customers by providing best services (Wood, 2018).
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IDENTIFICATION AND EVALUATION OF STRATEGIES USED BY F&B OUTLETS TO ATTRACT
CONSUMERS AND BUILD A LOYAL CONSUMER BASE:
There are various types of strategies used by businesses in the F&B industry to attract
customers as there is high competition in the market, therefore, every business has to think
of better ways and innovated services to increase their customer base (Ramanathan et al.
2017). These strategies are market research, branding, unique selling points, effective
recruitment, selection and training of staff, free Wi-Fi, excess promotion, gift cards, and
hosting major events, increasing online presence on social media, sending birthday
messages to the customers via e-mail, hosting parties on holidays, live music, mobile
application, etc., simple and easy to use website for providing all the information about the
outlet, providing an easily accessible application for online orders and deliveries, e-mail
marketing, gaining feedback from customers, special and occasional offers and discounts,
etc. (Ramanathan et al. 2017).
These strategies are used by almost all the restaurants, bars, cafes, hotels, clubs, etc. to
increase their attractiveness and gain competitive advantage. These strategies are beneficial
as they help in increasing consumer awareness and enhancing the base of the customers.
On the other hands, these strategies are very common and used by all the businesses,
therefore, to beat the competition, the F&B outlets must try to identify new and innovative
ways to attract the customers. Therefore, the businesses must conduct effective market
research and make effective plans and formulate strategies in the business that helps in
attaining the desired objectives of the business efficiently (Ramanathan et al. 2017).
INFLUENCE OF DIGITAL TECHNOLOGY ON CONSUMER BUYING BEHAVIOUR:
The increased use of digital technology in today’s world has helped to improve the buying
experience of the customers. The expectations of the customers have increased. With the
access to the internet, the customers have become more aware and they gain all the
information about a product, compare its quality, services, features and price with other
substitute products before purchasing the best one (Stephen, 2016). Digital technology has
changed the habits and behaviour of the consumers and the customers are provided with
personalised services and the industry has now become customer-centric and focuses on
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increasing the satisfaction and loyalty of the customers at every point to raise goodwill and
profits.
ACTIVITY 3- EVALUATING WAYS TO USE TECHNOLOGY
OPERATIONAL TECHNOLOGY IN DIFFERENT TYPES OF F&B BUSINESSES
POINT OF SALE SYSTEMS: The GOFRUGAL ERP software is used by restaurants in the UK, US,
Australia, India and more than 60 countries to manage different activities like restaurant
billing, taking of orders, inventory handling, managing deliveries, split checks, managing
tables and tips, processing of gift cards, credit cards, etc. on the other hand, the eZee Burrp!
The system is also used in bars, restaurants, cafes and lounges to manage inventory and
delivery, provide receipts to the customers electronically and engage in effective
communications with the customers, loyalty programs, separate checks, etc. However,
Loyverse is a system used in bars, café, coffee shops, etc. to manage inventory, conduct
loyalty programs, reporting, provide mobile access, etc. (Tardivo et al. 2017).
TOUCH SCREEN TECHNOLOGY: Restaurants use touch screen technology for taking orders of
the customers as it is beneficial to the customers; they do not have to wait for the waiter to
take the orders and thus, ordering becomes easy and quick, bills are also paid credit or debit
cards, with touch screen technology, the operations and management of the business
activities is becoming easy and reduces mistakes (Cavusoglu, 2015). Cafes also use touch
screen technology in today’s world and offer services like e-menus, self-ordering that
reduces labour cost, online seat booking, effective management of queue, etc. Interactive
touch screen software is used in night clubs, bars and parties that provide special effects on
walls and floors that are responsive to touch (Cavusoglu, 2015).
MARKETING TECHNOLOGY IN DIFFERENT TYPES OF F&B BUSINESSES
Restaurants, cafes, bars, etc. use different strategies for promotion and advertising to
increase the awareness of the customers and enhance the brand image of the business.
These outlets promote their food and services online through social media platforms,
business website, publicity, online displays and promotions, etc. to increase customer base.
Cafes, hotels and restaurants ask customers to fill a feedback form so that the outlets can
understand the satisfaction of customers from the services given (Bresciani, 2017.
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Cafes and restaurants use different strategies to market and promote their products and
services in front of the customers and increase consumer awareness. The hotels, cafes, etc.
keep the customers updated with the new information about the outlet through emails,
newsletters, blogs, etc. and provide information like festive discounts, special dishes, change
in interior, membership offers, etc. restaurants make use of mobile ads that are a cheap
source of marketing as the customers search for dining options nearby and these ads get
displayed on the screen which may be attractive enough for the customer to make a visit.
Almost all the restaurants, cafes and hotels use partnered online delivery services such as
Uber eats, Deliveroo, FoodPanda, etc. Therefore, the businesses in the F&B sector use and
must use different marketing technologies in the business to promote their offerings and
boost the sales and profits of the business (Bresciani, 2017).
USE OF DIGITAL TECHNOLOGY TO IMPROVE OPERATIONAL EFFICIENCY
The increased use of digital technology in businesses such as using artificial intelligence for
analysing data and increasing the accurateness of the data helps in achieving efficiency in
operations of the business (Stephen, 2016). The use of digital technology has made
decreased the workload of labours and managers and there is a reducing in errors on a
manual basis. Internet helps get access to information, booking and paying online at any
time from anywhere. The use of digital technology is beneficial to the businesses in reducing
cost, increasing sales and revenues, building brand image, enhancing trust and loyalty of the
consumers and thus, leading to growth (Stephen, 2016).
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ACTIVITY 4- DEMONSTRATING PROFESSIONAL F&B SERVICE
STANDARDS
Observation record by visiting Docklands Academy London’s Partner Restaurant, Hazel:
Food safety: The hygiene sand safety maintained at the restaurant was good and it was
awarded by Tower Hamlets Council in 2019.
Cleanliness: The restaurant was clean and a wonderful place to have lunch or dinner. The
staffs were focused on maintaining cleanliness near and around the seating area. The tables
were cleaned as soon as the customer left the table. The manager was quite concerned
about the hygiene of customers therefore, took great care of the cleanliness of the place.
Customer service: The place provides excellent services to the customer. The restaurant is
located on the waterfront in the heart of the financial district. The venue comprises of a
fancy bar, elegant restaurant and the customers are provided with quick deliveries and the
customers mostly like the ambience of the place. The menu includes a great variety of
dishes and the staffs are often very polite with the customers and it was noticed that the
customers felt satisfied with the restaurant service.
Quality: The quality of food offered at the restaurant is of the finest quality and it gives a
taste of Anatolian cuisine. While having a visit to the kitchen, it was ensured that the chefs
use fresh ingredients for preparing the dishes that are served in the restaurant. The chefs
only use extra virgin olive oil in the food as it is the purest one. They try to use most of the
organic ingredients while preparing the food.
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Professional Food & Beverage Service Standards:
Checklist and Questionnaire Form
Food Service Skills:
1) What are the 5 skills that an effective Restaurant Supervisor or Restaurant Manager must
have to run an efficient business?
1) Good communication skills
2) Time management
3) Multitasking
4) Effective decision-making
5) Conflict resolution
2) What are 5 important skills for maintaining standards and projecting a professional image in
the F&B industry?
1) Positive attitude and behaviour
2) Intellectual skills
3) Effective presentation skills
4) Confidence
5) Honesty and Integrity
Beverage Service Skills:
1) What are the 3 different types of beverage service encounters?
a) Phone encounters
b) Face-to-face encounters
c) Remote encounters
2) What are 3 pre-service and 3 post-service duties?
a) Arrange seating arrangements
b) Taking orders
c) check all equipment and furniture
d) Present the bill
e) Receive the payment
f) Greet the guest
Equipment Management Skills:
1) How should equipment be cleaned and maintained pre- and post- service?
The kitchen manager must ensure that the utensils used for cooking are cleaned properly
before use. The dishwashing team must take care of the cleanliness of the utensils
considering the practice of good hygiene and sanitation. The service staff must:
a) Wash hands before touching any utensil or serving to the customers.
b) Do not eat tobacco while providing service.
c) Keep nails and hair trimmed
d) Use hand gloves
e) Wear a clean uniform
2) Why is it important that the equipment should be cleaned and maintained?
Cleanliness and hygiene are very important to avoid diseases like food poisoning, diarrhoea,
vomiting, etc. happening to the guest as it would affect the reputation of the business.
Legal and Regulatory Requirements:
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