Report on Managing Food and Beverage Operations: Industry Analysis

This report provides a detailed analysis of managing food and beverage operations, encompassing various aspects of the industry. It begins by exploring different types of businesses within the food and beverage sector, including agriculture, food processing, and retail outlets, along with profiles of specific companies like British Sugar plc and Sisters food group. The report then delves into the rating systems used nationally and internationally to evaluate food quality and hygiene, such as the UK's Food Standards Agency and the USFDA. Furthermore, it discusses current and future trends affecting the industry, such as food safety, innovation, and sustainability. The report also covers essential professional skills for food and beverage managers, including leadership, organizational skills, and communication. It outlines legal and regulatory requirements that food and beverage outlets must comply with, such as the Food Safety Act and workplace health and safety regulations. The report examines various operational and marketing technologies used in the industry, like touchscreen terminals and self-order kiosks, and their impact on business efficiency. Finally, it analyzes factors influencing consumer decision-making and strategies used by outlets to attract customers, concluding with a comprehensive overview of the industry's dynamics.

MANAGING FOOD & BEVERAGE
OPERATIONS
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
Explore different types of businesses within the food and beverage industry, profiling a
chosen business within each area of the industry. (Sheet1)........................................................3
Explain different rating systems used for the food and beverage industry nationally and
internationally. (Sheet2)..............................................................................................................5
Discuss the current and future trends affecting food and beverage businesses. (SHEET 3)......6
LO2..................................................................................................................................................6
Professional food and beverage skills within organisation.........................................................6
Legal and regulatory requirements that are to be complied by food and beverage outlets.........7
LO3 .................................................................................................................................................8
Various operational technologies for food and beverage business. (SHEET 4).........................8
Different types of marketing technologies in food and beverage business. (SHEET 5).............9
LO4..................................................................................................................................................9
Factors that influence decision-making of consumer's...............................................................9
Strategies used by food and beverage outlets to attract customer's..........................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12
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INTRODUCTION
Hospitality industry is one of the major field that involves various businesses like food and drink,
theme parks, lodging, traveling etc. The industry depends upon disposable income and available
leisure time. Food and beverage sector consist of organisation that are involved in processing,
distributing and packaging food materials. The Report will outline various types of businesses,
major rating systems, the impact of present and future trends on business. Further, it will
describe operational and marketing tools used by organisations. Moreover, the Report will
explain management skills required within food and beverage outlet. At last, report will describe
factors that affects choice of consumer's and strategies used by companies to attract buyers.
MAIN BODY
LO1
Explore different types of businesses within the food and beverage industry, profiling a chosen
business within each area of the industry. (Sheet1)
Food and beverage business is one of the fastest growing domains in the UK. Tourism is one of
industry that is growing at rapid rate and contributing a lot to the nation GDP. Growth in tourism
industry lead to elevation of growth rate in food and beverage industry. There is different type of
business in food industry which are given below.
 Agriculture: In agriculture business crops are grown and produced items are sold to the
food processing firms which further is used to produce varied edible items like chips,
Pizza burger etc.
Profile of British sugar plc.
It is a Subsidiary of Associated British Foods. It belongs to Sugar beet processing industry and
offer products like Sugar and Cannabis. British Sugar is purchase sugar beet from all farmers in
UK and also supply Cannabis to pharma firms.
 Food processing: In this segment agriculture inputs are processed to prepare final edible
items. With passage of time many new players come in food processing business and it is
technology advancement which pave a path for their growth. Some of giant firms
consistently making huge investment on R&D projects so that healthy food items can be
made available to the end user. Thus, food processing business is quite competitive.
Sisters food group -
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It is a type of Private company. It belongs to food manufacturing industry and offer products like
Fox's Biscuits, Goodfella's Pizza, Holland's Pies, and Matthew Walker Christmas Puddings. It
has operations in UK, Ireland and Poland.
 Retail outlets: It is another segment of food industry where final item are made available
for consumption to the customers. Retail outlets can be classified in multiple categories
like large, medium and small size outlets. Type of edible items served by these businesses
is quite different. In large outlets highly priced and unique edible items are available like
pizza etc. In medium size retail outlets medium priced and easily prepared food items are
available. On other hand, in small retain outlets day to day used edible raw items like
pulses, floor and sugar etc are available. Thus, these type of retail outlets serve different
requirements of customers.
It is a type of Private company. It belongs to retail industry and offer grocery products along with
canned goods, confectionary items and chilled items..
Different type of business in beverage industry are as follows
 Energy drinks and soft drinks: There are number of firms that prepare energy drinks and
soft drinks so that those who feel less energy in body can energize themselves. Number
of firms like PepsiCo operate in this industry.
It is a type of Public company. It belongs to beverage industry and offer products like Juice and
soft drinks as well as snacks.
 Caffeine products: Under this firms that serve tea and coffee to customers comes. Firms
like Costa coffee operate in this segment in UK.
It is a type of subsidiary. It belongs to beverage industry and offer products like Hot and cold
drinks as well as pastries.
 Beer and wine: In this segment firms manufacture and serve beer and wine to customers.
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Explain different rating systems used for the food and beverage industry nationally and
internationally. (Sheet2)
Food rating system is adopted almost in every nation of the world. Time to time relevant
agency check food quality in restaurants and colony shops to ensure that quality edible items are
available to consumers. In UK there is quality checking agency named Food Agency Standard
which operate in England, Wales and Northern Ireland. Food standard agency main task is to
evaluate quality of food items in restaurants, take ways, food shops and café. Scotland also have
similar system known as Food Hygiene Information System. Rating scale is used by agency in
UK to evaluate food quality. Rating remain between 0 to 5. Meaning of rating is given below, 0: Score of zero is given when significant beach is observed in food quality and its
hygiene security. Zero score means that owner of business need to urgently pay attention
to handle current situation. 1: In case major improvements are required in respect to food quality score of 1 is given
to the restaurant owner. 2: In case necessary improvements are required score of 2 is given. 3: When hygiene condition is satisfactory score of 3 is given. 4: Assigned when performance is good
 5: Assigned when performance is excellent
In USA USFDA implement food hygiene rating system under which it gives rating to both state
and restaurants. Rating assigned to state reflect hygiene condition in entire state within USA. On
other hand, in case of restaurant rating is given on multiple factors. Thereafter, by considering all
factors rating individual rating is given to all restaurants. Thus, it can be said that in USA rating
is given on wide scale and assist government to identify area in which there is need to pay due
attention so that hygiene level can be improved further across all states.
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Discuss the current and future trends affecting food and beverage businesses. (SHEET 3)
Food safety and transparency.
Nowadays, consumers are giving more importance to food safety. They are demanding
more information from food and beverage business regarding the food consume by consumer's.
Therefore, firm should maintain transparency in marketing and production of food items.
Innovation and differentiation -
There are different types of products available for purchase through different channels.
Therefore, importance of differentiation and innovation has increased for food and beverage
outlets. Firms are making efforts for differentiating the packaging of food items etc.
Sustainability -
Nowadays, customer's want those food items that are not only good for themselves but
also good for others. Therefore, companies should ensure that the packaging of food materials is
environment friendly.
LO2
Professional food and beverage skills within organisation.
There are various types of management skills that are required in Manager of food and
service business. These are as follows -
Leadership skills
It is one of the major skill that should be present in manager of food and beverage
establishment. The skill helps to influence other employees to make efforts to perform various
tasks in effective way. Such as encouraging the team members during heavy shifts, resolving
conflicts between various parties etc.
Organizational skills -
It refers to the ability of person to remain focussed on various tasks and using mental
capacity, strengths for achieving different objectives. Manager of food and beverage organisation
should have this skill for keeping work schedules, cleaning schedules etc (Noe, Tews and
Michel, 2017).
Problem solving skills -
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It can be defined as the skill of solving complex problems in difficult situations. New
issues happen everyday in food and beverage organisation such as employees not showing up for
shifts to dishwasher springing a leak etc. Manager should have problem solving skills to solve
various issues.
Communication skills -
This is another major skill that should be present in manager of the organisation of food and
beverage. They must be able to communicate clearly, consistently and in open manner with staff
members as well as with guests.
Legal and regulatory requirements that are to be complied by food and beverage outlets.
Food and beverage outlets have to comply various legal and regulatory requirements. These are
as follows -
Food Safety Act, 1990 -
It provides the framework related with all food legislation in Wales, Scotland and England.
Major responsibility of all food and beverage business is that they have to ensure that
organisation should not include anything in food or treat food items in a way that would be
harmful for health of consumer's. Food should be labelled and presented in a way that it must not
be misleading.
There are various legal requirements that have to followed by food and beverage
establishments such as regarding cleanliness of equipments, cooking etc (Effing and Spil, 2016).
The Food Hygiene (England) Regulations 2006 -
As per the regulation, equipments and food premises must be clean and equipments should be
maintained in good condition. Different types of facilities should be in good condition and
cleaned daily.
Workplace health, safety and welfare -
It contains requirements related with working conditions of people in the organisation.
Workplace should be fresh and adequately ventilated.
The health and safety at work act, 1974-
The act provides duties to person who is in control of premises who make themselves available
for others at the place of work to take measures to ensure that plant and equipments, premises
etc. are safe and there is no risk to health.
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Importance of meeting legal and regulatory requirements -
Compliance of the above regulations will help business to promote health and safety of workers,
better quality of food items etc. This will improve reputation of business in the mind of
customer's (Moustafa, 2016).
Impact of non compliance -
In case food and beverage establishment fails to comply these laws, they have to pay penalty for
infringements. This will also create negative impact on performance of organisation.
LO3
Various operational technologies for food and beverage business. (SHEET 4)
Nowadays business can offer great food, unbeatable effeciency and impeccable service
with the help of modern operational technology. Such as-
Touchscreen terminals -
Generally, these terminals are equipped with softwares that are designed with interface. It helps
the new employees to take customer's order effortlessly and immediately. Further, it provides an
efficient process of taking orders. There are some terminals that also have attached credit card
reader to swipe card in seconds.
Self order kiosk -
It has become popular in various outlets like Wendy's, McDonald's etc. These are touchscreen
systems that helps customer to enter the order on their own.
Kitchen display screen -
There are various organisations like restaurants that uses kitchen display system. It may be
possible that printed tickets are not a viable option for some outlets. It makes things more
organized.
Effectiveness of these technologies on business.
The above technologies help to increase effeciency of food and beverage business. Technology
like self order kiosk is very easy to operate and free up employees to perform other important
tasks. It shows all the open orders at the back of house team at a single place.
Critical evaluation of these technologies.
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All the technologies help in smooth functioning of the organisation. They also helps to take
orders of customer's in efficient manner. Negative thing is that, it requires highly skilled
personnels for maintenance and huge investment of funds for new technologies.
Different types of marketing technologies in food and beverage business. (SHEET 5)
Nowadays, organisations are using various tools and technology for effective marketing of the
products or services. Such as -
E mail service providers -
One of the major tool is email marketing. It is one of the best way to provide information
regarding products or services, promoting new food and beverages. Firms should ensure that,
marketing through e mail should make consumer's feel special not annoyed.
Social media -
Nowadays, the importance of social media has increased as more and more people are using
internet. Food and beverage business may use social media platforms for promoting special
meals like charity dinners. Further, these technology also help to offer special deals to existing as
well as new customer's.
Effectiveness of these technologies on business.
Effctive marketing tools help businesses to promote the sales of various products. Technology
like social media helps organisation to develop own identity. Further, it also promote brand
loyalty, promotions and offers etc. This will help to improve performance of business.
Critical evaluation of these technologies.
Marketing technologies assist food and beverage outlets to reach mass audience and also help to
influence consumer behavior. E mail helps customer's to take decision regarding whether to visit
or not to visit particular food and beverage organisation. This helps to improve sales and
profitability of company.
LO4
Factors that influence decision-making of consumer's.
Consumer decision-making refers to the process of taking decisions that is used by
customer's related with market transactions before, at the time and after purchasing a particular
product or service.
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For consumers choosing the place where to eat is very complex decision. There are
various factors and forces that impact the decision-making of consumer's while choosing food
and beverage outlet. These are described below -
Food Quality -
Another important factor that motivates consumer to choose a particular outlet is the
availability of high quality of food items. It impacts the decision-making of customer while
visiting outlet like restaurant etc. There is direct relationship between behavior of clients and
quality of food items offered by food and beverage businesses.
Healthier options -
Nowadays, most of the consumer's look for healthier options when they dine out. Eight
out of ten restaurants are focusing on content of nutrition of their food items today as compared
to two years ago.
Eco-friendly dining -
There are nearly two third of the consumer's who also think about earth as much as they
thnk about themselves. Nowadays, consumer's are more likely to choose that food and beverage
outlet which has adopted eco-friendly practices for producing and delivering food items.
Technology -
One of the important factor that is considered by consumer's while choosing an outlet is
technology. Customer's also consider the convenience in buying food materials through online
apps, self sevice kiosks etc. Technology highly impact the decision-making process of
consumer's. The result of this comparisn affects the level of satisfaction of buyers. It can be
divided into quality and price of the food item. Price is the major factor that impact decision of
customer while choosing an outlet of food and beverage (Davis and et.al, 2018).
Perceived value -
It is defined as the difference between cost of the product and evaluation of customer in
respect of the benefits of the product when compared to with other products.
Strategies used by food and beverage outlets to attract customer's.
There are various techniques that may be adopted by owner of food and beverage outlet
to attract and retain loyal customer's. Such as -
Social media presence :
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Nowadays, everyone operates internet. Therefore, one of the best way in which
companies can promote their products is through social media platforms such as Facebook,
Instagram, Twitter etc. This will help to attract large number of buyers towards the outlet by
providing relevant information through social media (Collins, 2015).
Providing offers and happy hours :
Another best way to attract and retain consumer's is by offering offers on special
occasions. For Example – Dominos has provided offer navratri combo that has provided
customer's unique ingredients during festival. Further, organisation may offer complimentary
donuts or cakes during christmas to attract clients.
Hosting events :
Further, owner of the outlet may also organize events like karoke nights, comedy nights
etc so that, this will motivate consumer's to visit the organisation on that particular day. Hosting
events not only attracts existing buyers but, this will also influence potential customer's to visit
food and beverage outlet.
Right pricing :
Outlets should fix the price of food and beverage correctly. While deciding the rate,
management should consider target audience, food cost, location etc. If, target customer's are
college students then, prices of items should be kept low.
Effectiveness of strategies.
The above strategies will help outlets to attract and retain existing as well as new
customer's towards the product by offering the food and beverages at right price with right
quality.
Role of digital technology.
There are various organisations that are focusingfg on digital technology and make efforts for
digital transformation in supply chain. Many firms ae developing mobile applications that help
consumer's in ordering food items. These are becoming more and more popular due to wide
range of benefits. Further, technologies such as contactless payments etc. provides a clear insight
into the transactions that helps to increase the revenue of the organization.
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Further, digital technology also help food and beverage businesses to improve customer
satisfaction. Implementation of digital technology requires huge investment of funds. Moreover,
skilled employees are required for developing applications (Bharwani and Talib, 2017).
Changes in technology have influenced behavior of consumer's in respect of products or services
offered by food and beverage companies. Social media platforms help organisation to provide
information related with products like discounts etc. that helps business to increase sales by
influencing perception of customer's towards price and product benefits.
CONCLUSION
The above Report has outlined that, managing the operations of food and beverage is is
very important for the business operating in food and beverage industry. Food standards agency
is responsible for evaluating the quality of food items offered by food and beverage
establishments. In UK, organisations are being provided rating from zero to five. The Report has
described that there are various current and future trends like sustainability, innovatin and
differentiation etc. Further, manager of food and beverage outlt should have skills such as
leadership, organisational, problem solving skills to perform various tasks effectively. Moreover,
it has explained that food and beverage organisation have to comply regulations like Food Safety
Act, 1990 etc. If they do not follow they have to pay penalty. Operational and marketing
technologies help business to attract customer's and increase sales. Moreover, quality of food,
perceived value etc. are important factors that are considered by consumer's while choosing an
outlet.
REFERENCES
Books and Journals -
Bharwani, S. and Talib, P., 2017. Competencies of hotel general managers: a conceptual
framework. International Journal of Contemporary Hospitality Management. 29(1). pp.393-
418.
Collins, B., 2015. Food hygiene, deprivation, types of premises and rates of gastrointestinal
illnesses in the UK. Public health nutrition. 18(1). pp.160-166.
Davis and et.al, 2018. Food and beverage management. Routledge.
Effing, R. and Spil, T.A., 2016. The social strategy cone: Towards a framework for evaluating
social media strategies. International journal of information management. 36(1), pp.1-8.
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