Food and Beverage Operations Management: Skills, Trends & Compliance

This report provides a comprehensive analysis of food and beverage operations, focusing on various business types within the industry, national and international rating systems, and the impact of current and future trends. It explores how businesses adapt to these trends, emphasizes essential professional management skills in restaurants, and discusses the legal and regulatory standards that restaurants must comply with. The report also examines the importance of meeting these requirements and the implications of failing to do so. Furthermore, it compares operational and marketing technologies, investigates factors influencing consumer decisions, and outlines strategies for attracting and retaining customers. The impact of digital technology on both operations and consumer behavior is also assessed. Desklib offers a platform for students to access this and similar solved assignments to aid in their studies.

Managing Food and
Beverage Operations

Table of Contents
PART 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Explanation of different types of businesses within the food and beverage industry............1
Examination of different rating systems used for the food and beverage industry nationally
and internationally..................................................................................................................2
Discussion and analysis of how the current and future trends are affecting food and beverage
businesses’ products and services to meet business objectives..............................................3
Determination of the ways that will be adopted by different types of food and beverage
businesses to adapt current and future trends for meeting business objectives......................4
Presentation of the professional food and beverage management skills within a restaurant. 4
Discussion and explanation of the legal requirements and regulatory standards that a
restaurant must comply while operating business operations................................................5
Analysis of importance and value of meeting legal and regulatory requirements and
implications of failing to meet those requirements upon overall operational performance...5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7
PART 2............................................................................................................................................8
Introduction............................................................................................................................8
Comparison of different operational and marketing technology for a range of different types
of food and beverage business................................................................................................8
Investigation of the factors that influence the consumers’ decision on which food and
beverage outlets they choose..................................................................................................9
Strategies used in a range of food and beverage outlets to attract and build a loyal customer
base.......................................................................................................................................10
Impact of digital technology on operations of f&b and consumer buying behaviour..........12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

PART 1
INTRODUCTION
To start any business, there is requirement of research about the market and conditions prevail in
industry. This not only help to grab the opportunities but also help in determination of risks and
viability of new business idea. This further aid in development of effective level strategies that
possibly aid in development of business in positive direction through elimination of identified
risks. Food and Beverage industry is wide and consists of large number of varied businesses. In
overall manner, this is the part of hospitality sector where organisations provide food and
beverage related services to consumers (El Demerdash, 2017). The main of this report is also to
ascertain the conditions present in food and beverage industry for the purpose of successful
running of business activities. Currently, local business owner is having the urge to start new
restaurant in London. In this regard, contract is provided to freelancer researcher to collect
information about food and beverage industry.
The aspects covering in report includes explanation of different types of businesses within
the food and beverage industry, examination of different rating systems used for the food and
beverage industry nationally and internationally, discussion and analysis of how the current and
future trends are affecting food and beverage businesses’ products and services to meet business
objectives, determination of the ways that will be adopted by different types of food and
beverage businesses to adapt current and future trends for meeting business objectives,
presentation of the professional food and beverage management skills within a restaurant,
discussion and explanation of the legal requirements and regulatory standards that a restaurant
must comply while operating business operations and analysis of the importance and value of
meeting legal and regulatory requirements and implications of failing to meet those requirements
upon the overall operational performance.
Explanation of different types of businesses within the food and beverage industry
Food and Beverage sector is the part of hospitality industry. This includes the operation of
different types businesses. All these have main purpose related to earning profit through
satisfying the demand of consumers. The scope of food and beverage industry is wide where
differential segment businesses operate their business to earn livelihood. The large numbers of
opportunities exist in market along with risks. Skills, knowledge and capability of an
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entrepreneur are the only aspect that helps to grab success in market. There are numerous
number of businesses exist in this sector such as restaurants, cafeterias, fast food joints, catering,
pubs, dairy, beverage, fruits and vegetables, grain, meat, poultry & seafood and sugar %
confectionery. In all these different kind of businesses numerus nature functions will be
performed according to their requirement and nature such as packaging, preparing,
manufacturing, transporting and serving food and beverages (Erbas, 2019). The detailed
description of all the different businesses under this sector is provided below for the purpose of
understanding the scope of operations along with chance of success;
Restaurants: One of the best and most opportunistic businesses under this sector. As per
the current trend in society, the number of opportunities is large for such businesses. This
includes the providence of dish and drinks as per the demand of consumers.
Cafeterias: This includes mostly the providence of beverages to consumers on the basis of
their choice. They also provide the ready to eat food like pastries, patties and baked biscuits. The
scope of this business is also quite significant in market.
Fast food joints: These provide food to consumers in accordance to their demand. They
generally deal in such food items that will prepare instantly in few minutes of time period. The
amount of investment is less in such business but have similar kind of trendy opportunities in
businesses.
Catering: his includes the business related to providence of food to large number of on
single time at diversified nature of functions.
Dairy: They have the main business related to creation of dairy products from raw
materials such as processed milk and bread to meet the different needs of consumers.
Pubs: They have the main work related to providence of beverages i.e. hard and soft
drinks, bottled water and ice to meet the demand of consumers (Hossen, 2019).
Examination of different rating systems used for the food and beverage industry nationally and
internationally
There is numerous number of rating systems prevail that were used under the food and
beverage industry nationally and internationally. The main purpose of such rating is to
differentiate their service and quality of food on the basis of rating criterion. This help to decide
the consumers that where they get good quality food, service and appropriate level of hygiene.
Currently, local business owner has an idea about the opening of a restaurant in London. So, the
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different rating system which was basically used to rate the restaurants nationally and
internationally along with common in food and beverage industry to use are defined below:-
Michelin Guide: This is the rating system which was used at worldwide level. This is one
of the common and famous criterion of rating. Here, stars are providing to restaurants in the basis
of their functioning. These stars vary in three categories such as 1 star, 2 star and 3 star. It is the
duty of professional inspector to check the service of each and every restaurant before
providence of rating. The aspects which are commonly seen under this include level of hygiene,
speed of service, staff behaviour, quality of food and environment within restaurant. The one
who get 3 stars is the best and meet all the preferred criterions of testing (Kasavan, Mohamed
and Halim, 2018).
Harden’s: This is the rating system that only uses in UK. This was provided through
annual level of surveys among the restaurants. Here, rating was provided out of 5. The aspects
that will be seen for providence of rating are same from the above such as level of hygiene,
speed of service, staff behaviour, quality of food and environment within restaurant. The one get
the rating of 5 is best in town and meeting the all specified creators of testing.
Discussion and analysis of how the current and future trends are affecting food and beverage
businesses’ products and services to meet business objectives
All the businesses have one common objective about earning of profits. To attain same,
management has to focus over current and future trends prevail industry and market. The
detailed description in respect to this is provided below for better understanding;
COVID 19: This situation of pandemic has largest negative impact over food and
beverage sector specially the operations of restaurants, cafes and pubs. Currently, there is no
scope of growth in market till the medication will not be identifies. Afterwards, operations can
be continued with the aid of high level sanitation facilities.
Trend of fast food and outing: There is hue trend regarding consumption of fast food and
outing on holidays and weekends. This clearly depicts the positive impact over the business
operations of restaurants, fast food joints and pubs where they will earn maximum amount of
profit from quality operations (Mohammad, 2017).
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Determination of the ways that will be adopted by different types of food and beverage
businesses to adapt current and future trends for meeting business objectives
The ways which are needed to adopt by different types of food and beverage businesses to
adapt current and future trends for meeting business objectives are defined below:
Sanitisation: This help to eliminate the impact of COVID 19. Also, satisfies the customers
that they can go and enjoy their offerings at restaurants and cafes.
Diverse and differentiated services: The competition is large in industry. To grab the
expertise in trend of fast food and outing needed to provide focus over diversification. This help
to gain market and competitive edge (Weber, 2019).
Presentation of the professional food and beverage management skills within a restaurant
There were many kind of skills that made a person professional within food and beverage
management operations within a restaurant. All these are defined below;
Restaurant Manager are answerable for driving and overseeing eateries. They might be
liable for various errands, for example, eatery advertising procedures, enrolling and recruiting
staff, preparing, supervising food quality, creating menus just as welcome and serving visitors.
Leadership: Solid authority aptitudes and the capacity to encourage a group arranged
condition can help decrease probably the most concerning issue restaurant face: high turnover. A
drew in group diminishes turnover by 24 percent in high-turnover enterprises. A drew in
administrator who shows others how it’s done and tunes in to his group's needs, while provide
clear guidance can assist keep with staffing cheerful and locked in.
Communication: Clear correspondence is a major piece of being a compelling pioneer.
Correspondence gives the sentiment of having a place and feeling of association with
representatives working in the association. This is valid for any industry. Clear correspondence is
particularly significant in eateries, where the pace is snappy and feelings of anxiety can run high
(Muteshi and Awino, 2018).
Problem solving and conflict management: Talking about feelings of anxiety running
high, critical thinking and peacemaking abilities assume a significant job in the restaurant
supervisor position. Each contention costs an association about $255,000 in lost time, lower
efficiency, poor dynamic, and even whittling down. On the off chance that manager can impart
obviously and assemble a feeling of camaraderie, then manager will prone to decrease the
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quantity of contentions in your restaurant. Keeping a composed mind, tuning in to the two sides
and arranging a reasonable arrangement is critical in this nature.
Discussion and explanation of the legal requirements and regulatory standards that a restaurant
must comply while operating business operations
The legal requirements and regulatory standards that a restaurant must comply are defined
below;
 Handling of hygiene
 Ascertaining licenses
 Adhering the regulation of FDA
 Adhering the principle of HACCP
 Implementation of effective food waste management system
 Adhere the provisions of Health and safety Act 1994
 Fulfilment of labour laws
Analysis of importance and value of meeting legal and regulatory requirements and implications
of failing to meet those requirements upon overall operational performance
There are large number of importance’s associated with the meeting of legal and regulatory
requirements by a restaurant. All these are defined below:
Creating good image: Fulfilment of all legal and regulatory requirements aid in
development of effective image within the market because all the consumers have belief that a
restaurant will never perform such activities that has negative impact over their expectations.
Help to attain effective rating: Fulfilment of such standards help in simultaneous
improvement of service along with ascertaining the support of society. This further contributes in
attaining high level of rating that provides competitive edge in market (Najafi, 2019).
In case a restaurant failed to meet the legal and regulatory requirements they have face the
negative consequences in the form of penalties, low level of brand image, and low of level of
rating and unsupportive behaviour of society. Ultimately, this reduces the operational
performance where no will looks serious in performance of their own duties.
CONCLUSION
It has been concluded from the above report that analysis of market is must for the
purpose of ascertaining information about associated opportunities and risks. In food and
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beverage sector, large numbers of opportunities are present and viable to start new business in
same. Here, main benefits associated with opening of new themed restaurant that aid in attraction
of many potential consumers from different segments. There are numerous number of businesses
exist in food and beverage industry like restaurant business, dairy business, fruit and vegetable
business etc. All these have their own different purpose and objective behind carrying business
activities. Also, the nature of market is different in respect to all that simultaneously impacting
the business in diversified manner.
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REFERENCES
Books and Journals
El Demerdash, J. M., 2017. Waste management in food and beverage operations: The case of
Alexandria. International Journal of Heritage, Tourism, and Hospitality. 10(2/2).
Erbas, E., 2019. Operational Design as a Framework for Developing Diligence-Based Strategy in
Food and Beverage Operations: A Case Study Approach. Co-Editors, p.196.
Hossen, M., 2019. Managing Front Office Operation of a Study on Hotel Eastern Residence.
Kasavan, S., Mohamed, A. F. and Halim, S. A., 2018. Knowledge and Attitudes of Hoteliers in
Langkawi UNESCO Global Geopark towards Sustainable Food Waste Management
(SFWM). Pertanika Journal of Social Sciences & Humanities. 26(3).
Mohammad, A. A., 2017. Approaching the Adoption of Lean Thinking Principles in Food
Operations in Hotels in Egypt. Tourism Review International. 21(4). pp.365-378.
Muteshi, D. C. and Awino, Z. B., 2018. Strategic alliances and performance of food and
beverage manufacturing companies in Kenya. DBA Africa Management Review. 8(1).
Najafi, A., 2019. Comparison between staff outsourcing and in-house staffing in food and
beverage operations at hotel Kämp.
Weber, C., 2019. Operational Efficiency in the Food and Beverage Industry Through Sustainable
Water Consumption.
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PART 2
Introduction
Food and beverage is regarded to be one of the most prominent sub sectors of hospitality
industry. This sector is concerned with preparation, production and provision of food and
beverage items to customers by way of online or offline operations (Radzi, Saidon and Ghani,
2016). This section of the report seeks to throw light over the operational and marketing
technology taken into use for distinct food and beverage businesses. Also, it includes description
of the factors that place impact over the decision making of consumers in relation to selection of
food and beverage outlet. Further, strategies used for the capturing the attention of customers are
covered. Lastly, it talks about the influence of digital technology over the business operations of
food and beverage entities and decision making process of consumers.
Comparison of different operational and marketing technology for a range of different types of
food and beverage business
Technology has brought transformation in each and every sector of the corporate world. In this
relation, it has been acknowledged that entities operating within the bounds of food and beverage
industry seek to make use of different kinds of technology in order to leave an impeccable
impression over the customers prevailing in market place. This provides assistance to the entity
in retaining them for a considerably longer period of time (Weber, 2019). The employment of
technologies within the business allows the entities to pace their business operations and achieve
operational excellence. There are a number of domains whereby the company can make use of
technologies. Out of these, marketing and operations are regarded to be the two most important
domains whereby technology can be applied to achieve service excellence.
Operational Technology Marketing technology
Operational technology provides assistance
to the food and beverage organisations to
carry out the day to day activities in a
streamlined manner.
Personnel Records: The food and beverage
organisations need to maintain the record of
its employee base for further use. For this
Marketing technology is the technology which
is applied by the company for the purpose of
establishing healthy customer relations and
creating brand awareness amidst the public at
large (Sandaruwani and Gnanapala, 2016).
CRM System: This technology is put into use
by business functioning within food and
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purpose, cloud technology is used by several
corporations across the globe so as to reduce
the chances of discrepancies.
Payment Technology: The food and beverage
outlets provide customers with the facility of
making use of debit & credit cards, hi tech
personal service system, apple pay etc.
(Gordon and Brezinski, 2016).
beverage sector to manage the clients in an
effectual way.
E-mail & E-Brochure: These technologies are
constantly used by food & beverage outlets for
the purpose of publicising about the brand and
its offerings. This helps the entity in providing
detailed information about the current and
future offerings of the restaurant.
Social Media: This is a kind of internet driven
technology used by restaurants whereby social
media platforms are leveraged to create direct
interaction with the clients and inform them
about the unique and new offerings of the firm
(Chen and et. al., 2015).
Investigation of the factors that influence the consumers’ decision on which food and beverage
outlets they choose.
There are diverse kinds of variables which influence a client choice when they pick eateries,
bistros along with other different units inside the food and beverage industry. A portion of those
elements incorporates perceived value, accessibility of food, brand value, administration, quality,
physical conditions and faithfulness. Below are explained some of those factors that place
influence over the decision making process of consumers:-
Affordability: This aspect is characterized as a consumer choice based on the pricing at which
products and services are offered by an eatery or cafe. Client adequately decides the affordability
for an item. In this way, the price of a food item or refreshment on a menu card fundamentally
impacts on the decision making process undergone by the clients. As cost mirrors an individual
ability to take decision regarding whether or not to make a purchase, it is considered as the he
most basic factor impacting on consumer purchasing pattern. Accordingly, clients carry out
comparative analysis of the prices ranges of menu of different restaurant offering similar types of
items. Pricing of an item also reflects the quality or value of food or beverage item, along these
lines it is significant for businesses in food and refreshment industry to exploit best pricing
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policies for developing an effectual relation amidst perceived value and affordability. Alongside
this if an eatery charges higher price for food and drinks and do not conform to the quality
standards, it will result in dropping of loyalty of customers which would place impact over the
revenue figures (Davis and et. al., 2018). Also with this, client faithfulness can be expanded if a
brand maintains price range in alignment with the quality offered by it (affordability).
Physical environment:
Physical environment can be alluded to as the synthetic physical setting which is constrained by
restaurateurs. It has the capacity to modify human conduct in relation to choice of restaurant. It is
widely seen that people react to the physical conditions of an eatery in two different ways:
approach & ignorance. The former implies positive reaction exhibited by the customers towards
the overall aura of the restaurant while the latter depicts disappointment encountered by the
clientele in relation to the environment of food and beverage outlet. The researched conducted
over this has depicted that physical conditions of a place tend to place a positive influence upon
the practices and behaviour of customers, implying the critical role played by physical
environment in the decision making process of consumers (Martin-Rios and et. al., 2018). The
consumers are increasingly worried about the general environment of food and beverage outlet
as this tends to influence their feelings along with their conduct intentions within the bounds of
an upscale eatery. What's more is that the physical attributes like interior, decor, artifacts and
layout tend to affect the mindset of consumers along with their purchase intent. Pleasant and
positive environment imply high customer satisfaction along with long term relationship
establishment between the client and restaurant.
Strategies used in a range of food and beverage outlets to attract and build a loyal customer base
Loyal purchasers can be referred to as the gathering of people or clients who more than once
purchase items along with facilities provided by an organisation. These customary clients are one
of the principle wellsprings of organizational income. These loyal clients can be considered as a
base in accordance with which the conduct of other consumers within the target segment can be
comprehended and experience. To acquire competitive edge in market, it is required for an
enterprise to leverage strategies with the help of which more number of individuals can be
incorporated within the base of loyal customers. Now, it becomes especially important as well as
difficult for hospitality industry to capture the attention of customers as its main intent is to keep
customers at the forefront of the business so as to gain high satisfaction from them. Food and
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beverage sector pertinent to hospitality industry is also required to capitalise on effective
strategies and tactics in order to maximise its revenues as well as profits in the long run (Diaz
and Las Johansen, 2018). Some of the most common techniques or strategies which are opted by
food and beverage outlets to attract and develop loyal customer base is using social media
networking, maintaining healthy relations with clientele, receiving feedbacks from them on a
constant basis etc. However, apart from these, it is important for food and beverage businesses to
make use of some effectual strategies which can provide them with an edge in the hyper
competitive commercial environment. Some of such strategies that can be adopted by the food
and beverage outlets in today’s era are explicated beneath:-
Social networking:
Social media platforms can be leveraged by the restaurant to set interaction with the customers
and gain their attention towards the latest offerings of the eatery (Oyemomi and et. al., 2016). It
is a cost effective way of reaching out to public and creating awareness about the brand within
them. By leveraging this, restaurateurs are able to develop a long term relationship with the
customers, thereby laying down the foundation to development of a loyal customer base.
Giving special offers:
One of the most effectual ways to gain the attention of customers is to provide lucrative benefits,
discounts and loyalty member offers. These possess the potential to appeal to the potential
purchasers and make them undergo a purchase (Susskind, Kacmar and Borchgrevink, 2018).
Customers are rational beings who are attracted to food and beverage outlets which provide
superior quality offerings in reasonable pricing.
Arranging events:
This is yet another effective way of attracting people towards the restaurant and its unique
offerings. Events like music concerts, art shows and dance / cultural events can be organized by
restaurateurs in the wake of appealing to the public at large and making them visit the premises
of the food and beverage outlet (Davis and et. al., 2018). There are many customers who just
visit the restaurant in lieu of their interest towards a particular kind of event. Thus, this acts as a
strategic course of action for restaurants to build their revenues and retain customers in the long
run.
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Impact of digital technology on operations of f&b and consumer buying behaviour
Food and beverage industry in this modern age is passing through High tech transformation as
this industry is largely driven by effective influence of digital technology. Social media
marketing is one of the most prominent trends or technologies that are leveraged by food and
beverage businesses in order to appeal to the public at large and communicate to them about the
brand and its offerings. Further, digital technology is being applied by restaurants for payment
purposes so as to ensure comfort, ease and convenience for the customers. Artificial Intelligence
is yet another lucrative technology which is taken into use by food and beverage businesses in
order to streamline the operations and ensure attainment of extensive revenues as well as profits
in the long run (Braun Santos and et. al., 2016). Further, Pay Per Click is one of the most
effective ways of earning revenues by investing in digital technology.
CONCLUSION
On the basis of above discussion, it can be said that the main intent of companies functioning
within the bounds of food and beverage sector is to gain extensive satisfaction from the clientele
by providing them with dishes of superior quality and awesome taste. Besides this, the
corporations functioning within the bounds of food and beverage industry strive to provide items
of high value to customers so that even the premium prices charged from them seem reasonable
to the customers. In addition to this, it has been acknowledged that businesses pertinent to the
respective industry make use of technologies in different domains like operations and marketing
to attain fruitful outcomes for the business.
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REFERENCES
Books and Journals
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.
Chen, E. and et. al., 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.
Davis, B. and et. al., 2018. Food and beverage management. Routledge.
Davis, B. and et. al., 2018. Food and beverage management. Routledge.
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.
Martin-Rios, C. and et. al., 2018. Food waste management innovations in the foodservice
industry. Waste management. 79. pp.196-206.
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.
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.
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.
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.
Weber, C., 2019. Operational Efficiency in the Food and Beverage Industry Through Sustainable
Water Consumption.
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