Food and Beverage Operations Management: A Comprehensive Report

This report provides a comprehensive overview of managing food and beverage operations. It begins with an introduction to the sector, defining its scope and importance, and then delves into the different types of businesses within the food and beverage industry, outlining their advantages and disadvantages, with examples. The report then examines various rating systems used in the industry, such as Score on Doors, AA Rosettes, and Hotel Stars, highlighting their significance in assessing quality. It also explores current and future trends impacting food and beverage businesses, along with essential professional management skills. Furthermore, the report covers legal requirements and regulatory standards for maintaining quality, operational and marketing technologies, factors influencing consumer decisions, and strategies for attracting and building customer loyalty. The report concludes with a summary of the key findings and a list of references.

MANAGING OF FOOD AND
BEVERAGE OPERATIONS

Table of Contents
INTRODUCTION:..........................................................................................................................3
P.1 Different types of business engaged within the Food and Beverage sector: ......................3
P.2 Different rating systems used for Food and Beverage Industry:..........................................7
P.3 The current and future trends affecting food and beverage businesses:...............................8
P.4 Professional food and beverage management skills:............................................................9
P.5 Legal requirements and regulatory standards of maintenance of quality:..........................9
P.6 Different operational and marketing technology for food &beverage businesses............10
P.7 Factors that influence the consumer decision regarding food & beverage outlets.............11
P.8 Strategies used by Food and beverage outlets to attract and build the loyal customers . .13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Food and Beverage operations means the various varieties of food and beverages
provided by the business throughout the world. The international food service industries provide
thousands of meals a day and several dishes or varieties of food services operation. Although it
pertains the multiple activities like purchasing the raw material, preparing food and beverage,
keeping the inventory of material, maintaining quality of food and services, management of
catered events and after all analysation of business activities and outcomes for the future growth
and policies. The food and beverage sector growing up along with the growth of travel and
tourism sector, growth of business sector and mainly because of increasing use of internet by
people (as there are several food and beverage online order and delivery apps are available) all
these sector's growth helps the food and beverage sector to grow up with the full potential.
(Mellentin, J. and Heasman, M., 2014).
This study pertains the managing of food and beverage operations and types of rating
systems of food and beverage outlets, trends that affects the food &beverage businesses, legal
requirement and regulations maintained and followed by the food and beverage outlets and some
explanations regarding the food and beverages businesses.
P.1 Different types of business engaged within the Food and Beverage sector
Sectors Description Advantage disadvantage Example Employer
Hotels Commercial
established body
providing the
meals, lodging
facilities, and other
guest services. In
general terms
known as hotels
and categorized on
the basis of size
and services,
(mainly on the
Lodging
facilities helps
the tourism and
travelling sector
to engaged at
great level and
supplies food
for outdoor
also.
More
expensive now
a days or extra
charges not
according to
the customer’s
demand.
Inter-Continental hotel
groups(IHG) in United
Kingdom originated in
1777, around 5000 hotels
across 100 countries.
Patrick Jean executive
chairman of Inter
Continental group and
operates the business from
Denham,
Buckinghamshire, United
kingdom. IHG operates

basis ratings of
1star to 5stars or
7stars hotels).
from various hotel brand
names like
Intercontinental, Crowne
plaza, Hotel Indigo,
Holiday inn etc.
Fast food
centres
Fast food centre
operates at small
or High levels. S it
refers to the
centres provide
dishes only of fast
food nature like
Burger, pizza etc.
It provides the
wide variety of
fast food and
also provides
home delivery
at reasonable
prices (Hill, A.
and Hill, T.,
2017).
In some cases
the centres
operates at
small level
doesn't
maintain the
food and
beverage
quality.
Dixy chicken is a fast food
centre for halal chicken.
The company was founded
in 1986 by two British
Pakistanis. In early 2008
it was owned by the
Church's chicken and later.
It was currently owned by
Shakeel Arshad since
2008.
Golf clubs Big or small food
services or quick
services, burger or
vegan, smoothies,
CPS food and
beverage are the
perfect addition
provided by the
individuals or
groups or may be
fast food centres at
golf clubs for the
members of club.
It provides as
the
refreshments or
lunch items to
the players at
golf clubs helps
them to get food
easily and of
good quality at
reasonable
prices within
the club
campus.
In some clubs
where the food
and beverage
items are
provided by
fast food
centres at price
more then
reasonable rate.
Food and beverage
provided at Muswell Hill
Golf club London.
established in mid of 19
century and providing
food and beverages after
its establishment.
Hospital
catering
Hospital catering
services provides
Hospital
catering
Sometimes the
bad quality of
The Pie Man catering and
Events established by

services food in hospitals
for the staff and
patients admitted
in hospitals.
Services are
provided on the
contractual basis.
services
provides the
good quality in
hospitals for the
patients. It also
helps in
reducing the
burden of
hospital
management
and helps them
to maintain
focus on the up
gradation of
patient's
treatment.
food is reported
by the hospital
management
and it affects
the patients
condition
sometimes.
Murray Tollemache in
1984 in London, providing
catering services in
hospitals. A reputed
catering services provider
maintaining quality of
food and beverage and
operated the business
within London.
Theme
parks
Theme parks are
the perfect
destinations to
enjoy the week
holiday and food
and beverage
services are also
provided by the
management at the
resort campus.
It helps in long
time stay of
people at the
theme parks and
increase the
earnings also
and not only
this it provides
the food and
drinks with in
the enjoyment
ground.
The Food and
beverage
outlets at theme
park leads to
more expensive
product, not at
right prices and
also leads to
dirtiness in
park campus.
Shrek' s Adventures in
London established in
1997. ensures the great
adventure sites in London.
Restaurants Restaurants are
operates at
Restaurants are
essential in
Restaurants
operates at high
North bank Restaurant
in London is the famous

medium or at big
level. Provides the
several varieties of
food and beverage
to customers.
order to meet
the requirement
of different
varieties of food
at reasonable
prices.
level leads to
affects the
earnings of
contact
caterings and
also of hotels.
restaurant provide wide
varieties of food like
Japanese Chinese, Italian
and operates in London.
Prison
catering
services
Prison catering
services are the
food and beverage
providers for the
prisoners in jail.
Services are
provided on
contractual basis.
It helps in
reducing the
burden of the
jails and
prisoners as
earlier when
prisoners
cooked food for
themselves it
involves some
murder cases by
mixing poisons
in food and
other violation.
Government
spends very
less amounts
on prisoners
and leads to
low quality
foods to
prisoners
HM Prison service
caterers in south London
provides the catering
services in jails for the
prisoners on the
contractual basis and
operates the business
within the London.
Contract
catering
Contract catering
are the food and
beverage providers
at contractual basis
in wedding
receptions, parties
and for other
events.
It helps in
providing food
at the customers
occasion
destination
accordingly
customer's
desired
destination.
It affects the
earnings of
hotels,
restaurants
other fast food
centres.
Eden Caterers provides
the food and beverage
services in London on
occasional events at the
desired event destination
of the customer.
Culture and Culture and It helps the Some different Aqua London provides

heritage
food
services
Heritage food
services are the
services providers
of traditional food
of different
country in any
other different
countries.
person to get
traditional food
of his/ her
country which
he/ she belongs
to in other
country.
traditional food
restaurants in
different
country charge
high prices for
the food.
foods of different
countries at their different
restaurants like Aqua
Japanese, Aqua Italian
etc.
Casual
dining
It is said to be one
of the effective
restaurant that
used to serve
moderately food in
casual atmosphere.
Instead of buffet
style restaurants,
casual dining
restaurant typically
provide table
services to the
customers.
Convenient:
This seems to
be much
effective to
cook food for
whole family in
the streets or
cities. Eating
and getting a
full mean is not
a big issues
because anyone
can be move to
street for the
food.
Shorten quality
time with most
of the teenagers
those are going
out with their
friends and
eating in fast
food chain at
the dining table
has reduced if
not provided
appropriate
services.
One of the effective
example of casual dining
is Ruby Tuesday
restaurant owned by
Samuel E.beall. They
operates in 724 restaurant
with 646 companies owing
and rest franchises.
P.2 Different Rating and Grading systems used for Food and Beverage Industry
Ratings and Gradings for food and beverage industry based on their food and services
quality. Although ratings are allotted accordingly the food quality and services level provided by
them. The ratings are allotted by score on the doors(Local environmental health officers), AA
Rosettes, Michelin stars, Hotel stars (Bakalis and Fryer, 2015). Basically the ratings given by the
Hotel star are acceptable worldwide. Star rating technique is the most common technique used to

rate the industry. Hotel rating system pertains five levels of ratings are decided under the Food
act 2006. besides this there are four types of rating systems namely,
Score on doors: The score on doors proms of ratings provides consumer in NSW food
Authority in order to indicate how well food services businesses comply with food hygiene
standards during inspections with an aim to improve the food hygiene compliance and to reduce
food borne illness in NSW.
AA Rosettes: The AA rosettes grading system is an award and is the consistent
approach throughout the U.K. The rating are based on the meal visit or visits by one or more
hotels and restaurants inspectors, who had great experience in assessing quality. The ratings are
allotted according to quality standards followed by the industry. Such as one rosettes(average of
quality standards are followed), Two rosettes (Higher standards are followed regards with food
quality), Three rosettes (Outstanding restaurants who uses high quality ingredients in food), Four
rosettes (Top restaurants where cooking demands national recognition), Five rosettes(where
cooking compares with the best in the world). (Davis and et. al., 2018).
Michelin stars: Michelin stars is a grading system used by the red Michelin guide to
grade their quality. This rating system was introduced in 1926 as a one, two or three stars
according to the standards of restaurants. One star(to very good restaurants), Two stars(For
excellent cooking restaurants), Three stars(to Exceptional cuisine that is worth a special journey).
Hotel stars: Hotel star rating are allotted according to the standard of foods and services
quality provided by the hotels to there customer. The ratings are given according to the standards
are as follows;
Rating system according to Hotel stars ;
 Five stars: The Excellent performer will gets the Five stars in ratings, because overall
very high standard of food safety management practices perform by the industry.
 Four stars: The very good performing industry gets the Four stars in ratings because
overall good standard of food safety management practices perform by the management
of industry.
 Three star: The industry maintain the good level of compliance with the food will get
Three star as acceptable standards of food safety management policies followed by the
management of the industry.

 Two star: The industry doesn't maintain the good level of compliance with food and
having low quality of food standards will get two stars as non-acceptable standards of
food safety management practices performed by the management.
 No star: Non-compliant performer industry will get no stars as no quality of food
standards followed by the industry (Georgios and et. al., 2014).
P.3 The current and future trends affecting food and beverage businesses
No doubt that some trends occurs and affects the businesses of food and beverages. There
are some trends of past and future which are occurred or may occurs in future and affects the
workings of businesses engaged in Food and beverage industry.
 Street Food: In present times the Street food affects the earnings of small food and
beverage outlets and lower class or some middle class people prefer street food instead of
going in small restaurants in order to save money. But some famous street food shops
affects the earnings of restaurants and hotels as the shop maintains quality standards and
the awesome food taste influences the choice of consumers. The consumer trust
regarding the quality of the food supplied is most important thing for the growth of the
street food shop as well as restaurants and hotels.
 App based services : No doubt the digital transformation changed the trend of food and
beverage businesses as in present times, various online food ordering and delivering apps
are available which affects the earnings of other businesses. For example, Uber eats or
other app based services etc. (O'sullivan, M., 2016).
 Gourmet Fast Food: They are the culinary arts of the food and drink or Haute cuisine,
engaged with the preparation and presentation of aesthetically meals tended to be rare for
the region and also have the impacts of religious customs and local states. These are basic
ally associated practices performed by people of refined taste and passion. Gourmet food
tends to be served as smaller, more expensive but provides rare items for a region. For
example Trout fish which is found at small restaurants in Manali (india) and only in
Switzerland.
P.4 Professional food and beverage management skills
Professional food and beverage management skills followed by the manager and the
employees working within a food and beverage organisations.

 Skills for managing multiple tasks and meet Quality of food with quality standards and
meet the financial targets.
 Comply with all health and safety regulations.
 Good communication and leadership skills.
 Ability to solve the issue or problems efficiently.
 Identify customer's needs and respond proactively to all of their concerns
 Design attractive menus and continuously make necessary improvements.
 Managing food and beverages operations according to budget and to highest quality
standards.
 In order to create or expand teams in F&B department then must recruit, train and
appraise the skilled people.
 Preserve the Excellent levels of internal and external customer services provided by the
industry.
 Reporting the information regarding sales and productivity.
 Up gradation in food and beverages trends and best practices.
P.5 Legal requirements and regulatory standards of maintenance of quality
In order to maintain the health of the people the Food and Health council of U.K made it
mandatory for all food and beverage industry to follow the rules and regulations and quality
standards in order to secure the interest of customer and maintain the quality of food and
beverage(Pillai, S. and Shayanfar, S. eds., 2014). Food and beverage businesses are regulated by
several laws regarding health and safety of people. the activities performed by these businesses
like preparation of food are production, processing, packaging, labelling, transporting,
distribution, retailing are regulated and executed according to the provisions set up by the
International regulatory bodies. International regulatory bodies for governing Food and
Beverages businesses are:
 World Health Organization- Food Safety
 FAO- Food Quality and Standards
 International Portal on Food Safety, Animal and Plant Health (IPFSAPH)
 Food and Agriculture Organization of the United Nations
Laws relating to food and beverage outlets are Nutrition Labelling and Education Act of
1990 (NLEA) and Food Safety Modernization Act of 2010 (FSMA). Primary concerned areas of

these laws in food and beverage industry are product safety claims, appropriate labelling and
advertising, regulations of food import etc.
Some legal requirements made mandatory by the regulatory Authorities of food and safety are;
 Food should be fully as well as accurately described.
 The packing medium should be specified.
 The scope of standards which applies nationally must be indicated.
 Chemical and physical indices and tolerances for defects must be specified.
 The quality factors should be specified and must include both optional and mandatory
ingredients according to level of use must be clearly stated
 Protecting the health of consumers and avoid the unfair trade practices in food trade.
 Promote and follow the all food standards work undertaken by the international
governmental and non governmental organisations.
P.6 Different operational and marketing technology for food &beverage businesses
With the technological growth of other sectors the growth of Food and beverage sector
increases, by increasing use of internet and it promotes the marketing through advertisements on
social media and on television. There are various operational and marketing technology modes
which boosts the growth of food and beverage sector. Some of them are as follows.
Operational technologies:
 Web/ App mode: Web App mode refers to the online app used by consumers through
mobile phones in order to make the food order online according to their desire. This
online app system facilitates the modernization in food ordering and its delivery. It is the
most easiest form of food ordering system. It is useful in ways like Ordering food from
suppliers according to customers convenience also helpful in making online payment by
using payment technology like paytm, google pay etc.
 Streamlined ERP & FSMA system: The various food and beverage processors improve
their internal controls and compliance systems. It involves investments in a modern ERP
software solutions. ERP system pertains special functions regarding FSMA provisions
and helps to achieve the compliance with all provisions of the FSMA and other
regulatory mandates. In order to requirements of Food and Safety Modernization Act
(FSMA) the food processors engaged and required the food and beverage ERP solutions

that provides more traceability, also is useful in stock taking and valuation and
monitoring of cooking equipments etc.
 Food and beverage control and IT system: Food and beverage system and IT system
comprises with computerising best practices with restaurant and catering operation. It
provides the efficient control over the flow of food by restaurants, ensuring plan cash
flow and controlling stock more effectively. Moreover, the IT system is helpful in quick
reporting the allergen information and also provide a large network for transferring
information.
Marketing Technologies :
 Social media: Increasing use of social media helps in establishing the open worldwide
network for marketing and advertisements. It provides the cheapest and strongest source
of advertising the Brand and helps in creating the goodwill and awareness among the
public. Some of social media community sites are Facebook, Instagram and youtube etc.
 Television: The most popular source of the marketing and advertisement the product is
television as because of its worldwide use for entertainment. But, now a days the
advertisement costs on television network channels are too expensive that only some
financially sound businesses (like UBER) can effort the marketing through TV network
channels. But it is the most effective source for advertisements and creating awareness
among the public.
P.7 Factors that influence the consumer decision regarding food & beverage outlets
The consumer wants to consume food from the outlet according to his wants, needs ,
desire and financial condition. The consumer's choice may be influenced by many factor. these
factors comprises need, availability of money, appetite and many other reasons that influence the
consumer's decision regarding the food outlet.
Influencing factors Description Caffe Nero North bank
Restaurant
Intercontin
ental hotel
Picture of
establishments
Take a 'selfie' of 9/10 8/10 6/10

your group outside
the restaurant that
shows the front of
the restaurant and its
name in the pictures
also
Tariff
Board/Menus
Does the business
have a full menu or
tariff board at the
entrance, or above
the counter?
Yes, they have full menu
and tariff board at the
entrance or above the
counter.
9/10 7/10 6/10
EPOS System
1. Does the business
have an EPOS
system?
2. What
manufacturer's name
appears on the
system terminal?
3. Does the system
look easy for the
staff to use?
Yes, they have EPOS
system
Bleep UK Plc
Yes, the system easy to
use for staff
8/10
6/10
6/10
7/10
7/10
5/10
8/10
8/10
7/10
Card Reader
1. Is there a credit
card payment
facility?
2. Does it take
contactless
1. Yes, they have many
types card payment facility
2. Yes, they take
contactless payment.
8/10 8/10 9/10

payments?
3. Will it accept
Apple pay, Google
pay, Samsung pay
and similar
applications?
3. Yes, they are accepted
7/10
8/10
6/10
7/10
5/10
8/10
Product Display
1. Are products
Managing Food &
Beverage operations
displayed in a logical
order?
2. Are they
attractively
displayed?
3. Do they look
delicious?
Yes, products managing
foods & beverage
operations in a logical
order
yes, it's looking
attractively
Yes, it's look delicious
7/10
5/10
7/10
6/10
7/10
7/10
8/10
9/10
8/10
Purchase Boosts
1. What does the
business do to
encourage customers
to purchase and
tempt them to spend
more?
2. Are all items
individually priced?
3. Are there impulse
purchase items near
the till?
4. Do members of
They provide offers and
deals to customers on
specific meals. They are
provide games and music
for spend more.
Yes, all are individually
priced.
Yes, they have impulse
purchase items.
Yes, through fun and
8/10
7/10
8/10
7/10
6/10
6/10
9/10
8/10
7/10

staff up sell? games staff up sales. 7/10 7/10 8/10
P.8 Strategies used by Food and beverage outlets to attract and build the loyal customers
The Food and Beverage outlets used several types of the strategies and techniques that
helps them in gaining the attractions of consumers and creating the loyal customer base. Because
their earnings depends on the customers and so that's why they updates the strategies according
to the market conditions and by identifying the consumers needs (Wood, R. C., 2018).Some of
their strategies are as follows.
Strategies Description Caffe
Nero
North
bank
Restaura
nt
Interconti
nental
hotel
Posters and
Advertisements
1. Are there
posters and
advertisements?
2. What are they
promoting?
3. Are they
appealing and
likely to succeed?
1.Yes, there are Posters and
advertisements which are essential in
order to create the awareness among
people.
2.There are promoting their brand name.
3. Yes, they appealing regarding
promotion of the brand and building
loyal customers.
6/10
5/10
7/10
7/10
7/10
7/10
9/10
9/10
8/10
Pricing
1. Write down
four or more
typical items and
their prices?
The four typical items are coffee(100£),
Burger(145£), capocollo(250£),
Soba(400£)
8/10 8/10 10/10

2. Do the prices
represents good
value for money?
3. Are there any
special offers,
discounts and
meals?
there are too high as the outlets charge
the prices according to their brand name.
Yes, there are special offers, high
discount for regular or loyal customers
and meals patterns are also available.
7/10
5/10
5/10
5/10
4/10
6/10
Repeat Business
1. What is the
business doing to
encourage
customers to
return?
2. Are there
loyalty cards
available?
3. Do staff
encourage
customers to
return?
4. Are there any
advertisements
promoting
forthcoming
events or soon to
be launched
products?
The business provides them special
offers, discounts and meals patterns to
build the base of loyal customers.
Yes, loyalty cards are available only to
regular or loyal customers an ton non
regular customers discounts are allowed.
Yes, staff encourages the customers to
return by providing them good or
luxurious facilities and quick services.
Yes, there are some advertisements
regarding the embrace of big event and
advertisements regarding the new
services and new dishes of different
country to be launched soon.
6/10
4/10
6/10
4/10
7/10
6/10
5/10
7/10
6/10
8/10
9/10
9/10
Other
observations

1.What else have
you noticed, that
is relevant to the
operation of the
business, during
your visit?
The relevant thing for business growth
that I noticed, that they provide the foods
according to culture, family, peers etc.
that is cultural influences amenable to
change when moving to a new country
individuals often adopt particular food
habits of the local culture.
0/10 5/10 9/10
Websites/
Advertising (Before
or after your visit, go
to the company's
website and look at
this)
1. Is it inspiring,
informative and
professional?
2. Does it provide all
the information that
customers might
need?
3. Do they advertise
their business in any
other way?
No, it's not
Yes, they provide some information
Yes, they apply different way
8/10
7/10
8/10
7/10
7/10
7/10
9/10
9/10
8/10
CONCLUSION
From the above study and analyses pertains the brief description regarding the food and
beverage businesses and the business strategies and intelligence can help in enlarge the profit
margins and reduce costs. Customer information regarding needs and wants can ensure loyalty
and return business. This will helpful in trying to win over new customers from competition and
also it is cost effective. Besides this the new technological development help the to improve food

services at operational and managerial level and also makes easy for customer to order the food
online. After all the most amazing technology utilised in the food service sector is still the human
being.