Managing Food & Beverage Operations: Industry Trends and Analysis

This report analyzes the food and beverage (F&B) operations, focusing on the industry trends and technologies impacting the sector. The report starts with an introduction to the F&B industry, including different business types such as restaurants, casual dining, and contract catering, along with their advantages and disadvantages. It then discusses various rating systems like hotel stars and Michelin stars. The report explores current trends such as the impact of the COVID-19 pandemic, emphasizing the importance of safety and hygiene, and future trends, including artificial intelligence and robotics. The analysis covers how these trends affect commodities and services. Operational and marketing technologies used in F&B businesses are also assessed. The report examines consumer decision-making factors and tactics used by F&B outlets to attract and build customer loyalty. The report concludes with a critical assessment of the impact of digital technology on F&B operations and consumer buying behavior.

Managing Food
&Beverage
Operations

Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................3
P1 Different businesses in food and beverage industry.........................................................3
P2 Various rating systems for food and beverage industry....................................................5
P3 Current and future trends affecting F&B industry............................................................6
M1 How current and future trends affect commodities and services in F&B industry.........7
D1 Different F&B business current and future trends...........................................................7
Task 2.........................................................................................................................................8
Covered in PPT......................................................................................................................8
Task 3.........................................................................................................................................8
P6 Operational and marketing technology for F&B businesses...........................................8
M3. Assess how digital technology improves business implementation for a range of
various kinds of F&B organisations.......................................................................................9
TASK 4......................................................................................................................................9
P7. The factors which influence decision of consumer..........................................................9
P8. Assess tactics adopted in a range of food and beverage store in order to attract and
build a loyal base of customer..............................................................................................10
M4. Assess the appropriateness of tactics used in a range of food and beverage outlets to
attract and build a loyal customer base................................................................................11
D3. Critically assess the effect of digital technology both on the operations of food as well
as beverage organisation and that impact it has upon consumer buying behaviour............11
CONCLUSION........................................................................................................................11
References................................................................................................................................12

Introduction
Food production is one of the major divisions when considering all the different type
of businesses in hospitality industry. There are a number of different procedures through
which raw material is transformed into a delicious dish which can be served to the
consumers. There are a number of documentations and health reports which are to be fulfilled
by such organisations when they are entering into business (Salim and et. al., 2018). The
following report is based upon Heathrow Airport restaurant and Lounge Limited. It is a chain
of food production running across United Kingdom. The report consists of various
information regarding different food and beverage services provided by them according to the
trends in market. Professional food management and various legal requirements along with
operational and marketing technologies used in food business are also explained.
Consideration upon various effects and determination of different consumer plant derived to
enhance consumer base are also described in this.
Task 1
P1 Different businesses in food and beverage industry
Business Detail Advantages Disadvantages Examples
Restaurants Restaurants
The business of
a restaurant is
popular in
today’s world. It
is because they
observing the
targeted
audience
charging them
with limited
prices in order
to stay in the
market.
Major benefits
of a restaurant
business are that
they are serving
a number of
different options
to the
organisations
consumers.
They are
successfully
providing
discounts in
packages in
order to deal
with the
competition in
the market.
One of the
limitations of
restaurant
business is that
they are creating
Example can be
taken of oil
which is Aizle
of the restaurant
providing food
and beverages to
the consumers
throughout the
United Kingdom
successfully.

and also
modernising
their offerings
from time to
time which is a
high investment
task for the
business.
Casual Dining Casual dining is
an essential part
in providing
food and
beverage to the
consumers
which is
successfully
providing a
great ambience
to the consumer
where they can
enjoy their food.
One of the
major benefits
of casual dining
is that it is
attracting huge
number of
customers to the
services they are
providing. It is a
great way to
make sure that
consumers are
Contract
catering is
successfully
assisting their
customers with
providing them
with food and
beverages at
their own places
(Sukortpromme,
2019).
One of the
disadvantages of
casual dining is
that the charges
price for the
consumer is
very high which
is not cost-
effective.
There are a
number of
different famous
restaurants and
casual dining
present
throughout the
world. Mr. Bao
is one of the
famous casual
dining in United
Kingdom.

served in an
effective
manner.
Contract
Catering
Contract
caterers are
providing
services to their
consumers at
doorsteps of
consumers.
One of the major
advantages of
contract catering
is that they can
run their
business in a
small office as
they required
providing
services to the
consumer at
consumers
place.
The requirement
for tools and
assets for the
organisation is
high which one
of the costly
affairs for such
organisations is
(Mohammad,
2017). The
maintenance in
their tools and
assets are also
high.
There are a
number of
different
catering services
throughout
United
Kingdom‘s
market.
Aramark is one
of the well-
known
organisations
providing
contract catering
in UK’s market.
There are a number of different businesses which are connected to hospitality industry
in food and beverages providing services. The rivalry for these businesses is also very high in
the market due to which it is required by organisation to make sure that they are successfully
serving all the consumers.
P2 Various rating systems for food and beverage industry
When taking the organisation into context there are a number of different rules which are to
be effectively managed in order to manage the quality of food and beverages which are
provided to the service audience. It is necessary to evaluate various degree of execution of
different techniques in the industry. There are a number of authorities which are successfully
developing some rating system for food and beverages industries which are to be followed by
organisation. Some of the standards which are describing the quality of food and beverages in
this industry are mentioned below:
Hotel stars: Hotel stars rating system is utilized in a number of nations in order to describe
the rating for food and beverages. In this rating methods various remarks are offered to the

organisation through which they are rated from 1 to 5 stars. The stars are successfully
determining the service level of hospitality organisations. Four star denotes that formal
services are provided in advanced nature with better service quality. The quality of services is
necessary in order to make sure execution of all the activities in the organisation are
successfully done according to requirements of the guidelines. In Heathrow airport
restaurants and lounges Ltd the targeted audience are required to be provided with good
quality services in order to make sure they can be retained.
Michelin stars: This is another rating system which is very crucial in order to understand the
quality of food and beverages which is provided by the organisation. The red Michelin guide
is considering only three stars and the hotels and organisation about the stars in order to
provide them with Michelin stars (Lodolo, 2020). The benchmark and hallmark for these kind
of services require quality dining. It is necessary to determine the excellent cooking and good
services for mission in star. Extraordinary cuisines and food facilities are also provided in
such restaurants.
P3 Current and future trends affecting F&B industry
Food and beverages industry have a number of opportunities but due to the emerging
technology of block chain and various modifications in taste and preferences of customer it is
necessary to manage the rising cost so that the industry can successfully run. The demanding
customers and various changes in the trains are necessary to be adopted by the industry.
There are a number of different trends which are also setting the future expectations of the
consumer. It is necessary for such businesses to take into consideration all these current and
future trends as mentioned below:
Current trends: When taking the current situation into context the world is facing pandemic
Covid-19 due to which it is often seen that the food and beverage industry is losing its
customers. It is necessary for such organisation to focus upon safety and hygiene methods so
that they can serve all their guests without any danger. An organisation like Heathrow Airport
restaurant and lounges limited required to focus upon the services in order to make sure that
they are maintaining hygiene in their business. It is necessary that they are inventing a
number of ways in which contact between the staff and Guest can be minimized. In order to
do so contactless payment is also one of the major activities which can be followed by
organisation. There are a number of technologies which helps the guest to take the menus
online and also order online (Han, Lee and Kim, 2019).

. They can also pay for their services online which is helping the organisation to make sure
that they are maintaining proper distance with their guest and providing them required
services.
Future trends: There can be a number of different changes in preference and requirements of
consumers when considering the future aspect in hospitality industry. It is necessary to make
sure that all the technologies are successfully used by the organisation. Some of the major
trends which are expected to be coming in food and beverages industry include artificial
intelligence, robots in hotels as well as delivery at home by the organisation providing better
services to the consumer. It is necessary for organisations to make sure that they are
successfully dealing upcoming technologies in the market and also fulfilling all the
requirements of providing the consumers with services at their doorstep when they are
delivering the services at their place. It is required by organisation to make sure that they are
using artificial intelligence which will help them in serving food to the consumer without
making any personal contact with them. However it is a high investment strategy which will
require huge capital by these businesses. The company should start saving for it in order to
make sure that they are successfully providing the consumers with whatever trend that may
come in food and beverages industry in future.
M1 How current and future trends affect commodities and services in F&B industry
Due to the pandemic caused by COVID-19 there are a number of changes which the food and
beverage industry is seeing. Hygienic services and maintaining contactless delivery and
services is one of the major changes in order to make sure that safety measures are provided
for the entire guest. The national authority is also executing various rules and regulations to
maintain this. When taking future trends into context it is seen that robots in the restaurant
and use of artificial intelligence will be improved in the coming time (Chen and Voigt,
2020)It is necessary for organisations to make sure that they are successfully taking all these
future trends and expected requirements into their strategy. It will help the organisation to
make sure that they are successfully enhancing their revenues and dealing with the changes
that market may see.
D1 Different F&B business current and future trends
There are a number of different businesses involved in food and beverage industry. All these
business required to fulfil the need of current and future trends that are developing business.
They require to consider this trends in order to sustain and survive in the competitive
environment for a longer period of time. The venture needs to consider all the current and

future trends which are mainly safety and hygiene for guest, contactless payment, use of
robots, artificial intelligence and so on. Any unfavourable aspect must be avoided by business
in order to make sure that they are not negatively affected.
Task 2
Covered in PPT
Task 3
P6 Operational and marketing technology for F&B businesses.
When taking food and beverage industry into context there are a number of different
techniques and tools which are used in order to prepare and serve good food for the
consumers. It is necessary that they are provided with delight and experience which is
helping organisation to gain competitive advantage (Were, Miricho and Maranga , 2019).
With the help of operational and marketing technology restaurants like Heathrow airport
restaurants and lounges Ltd is gaining competitive benefit in the market. Some of such
benefits are mentioned below:
Operational Technology Marketing Technology
Operational technology is the use of various
hardware and software in order to assess the
organisation so that positive modifications
can be brought. There are a number of
different equipment’s which are used by
business in order to successfully obtain best
results for their consumers (Davi, Lockwood
and Alcott, 2013).It is necessary that
efficient food and beverage organisations are
using various operational technologies which
can help them to fulfil the demands and
needs of consumer. A cashless transaction by
restaurant is one of such operational
technology which is helping the
organisations to provide convenience to their
When taking the orders and endorsing
services provided by the organisation
operational technology is playing a major
role. In today’s environment the orders are
also taken online due to which no formal
contact between employees of the
organisation and guest takes place. It is
required by the organisation to successfully
use all these technologies so that they can
utilize it in a better way and make sure that
their guest are served better with better
quality services by them.

organisations customer.
Marketing technology is major characteristic
in today’s world which is used by businesses
in order to enhance their consumers
optimistically. It is often seen that various
social media platforms are providing the
organisation to contact with their consumers.
It is also one of the major consumer touch
point used by the organisation in order to
make sure that they are successfully
providing their consumers with all the
information of their products and services. It
also helps the organisation to deal with
competitive advantage in the market.
Marketing technologies in food and beverage
industry helps them to successfully distribute
all their services to their consumers.
Feedbacks can also be received by the
customer using this technology. There are a
number of social media accounts with
consumer can post their experience which
also helps in enhancing the brand value of the
organisation (El Demerdash, 2017). With the
help of these tool organisation can attract a
number of customers and make sure that
consumers are satisfied with the services
provided by the organisation.
M3. Assess how digital technology improves business implementation for a range of various
kinds of F&B organisations.
Digital technology is very important for development and performance of business
organisation related to food as well as beverages organisation. The company focuses on
appropriate use of digital tool, the management team can increase awareness regarding
innovative goods and services of restaurant. For instance, the business venture adopts
innovative technology in process of production operational activities such as digital menu,
online payment and marketing of goods and services by adopting social media as well as
other tools. It helps in increasing performance of organisation in achieving objective in more
appropriate manner.
TASK 4
P7. The factors which influence decision of consumer
In food as well as beverages sector service is very important that help in a satisfying is
customer. In context of chosen restaurant, they focus on different aspect that helps in making
in their determination that is going to be mentioned below:
Product quality it is very important for user because they focus is on health of
individual person during particular phase of time period. In context of selected hotel, they

focus on providing safety as well as hygiene services that help in providing superior quality
services to its user in order to satisfy them.
Ambience in context of F&B industry, the environment is very important to attract
large number of user in an appropriate manner. The hygiene services are very important to
generate appropriate atmosphere where individual person can include organisation as well as
self-improvement. In addition to this, in reference of food and beverage, the facility related to
food and beverages, there are different kinds of services that help in providing pleasant
experience to user.
Staff services they focus on providing different kind of facilities that help in attracting
large number of audience during particular phase of time period. It assists in increasing sales
and productivity level in future period of time.
On the basis of above mentioned factor, it is significant for food as well as beverages
sector to meet existing & emerging facility of organisation that remain competitive at market
place.
P8. Assess tactics adopted in a range of food and beverage store in order to attract and build a
loyal base of customer
Strategy as well as tactics is significant for organisation to remain competitive at
marketplace. In context of food as well as beverages sector, the focus is on maintaining
appropriate kind of tactics to remain achieve competitive advantage over rivalries at
marketplace. There is different kind of sector which is adopted by business organisation in
order to attract large number of audience during particular phase of time period. In addition to
this, there are different kinds of techniques which are going to be mentioned below:
Discounting and offer The Company provide discounting and offer to its user in order
to attract customers in order to satisfy them during particular phase of time period. In context
of chosen organisation, they focus on providing discounting to its user so that different kind
of advantages facility is given during the period of time. Therefore, it is appropriate to offer
different kind of services to audience in order to remain rivalry at market place.
Local events it is significant for food as well as beverages sector to improve choice of
customer in an appropriate manner. The focus is on improving faithfulness of target audience
in addition to these providing appropriate services to its user during particular phase of time
period.
E-mail marketing is the most important factor of food as well as beverage Industry
that help in targeting large number of audience during particular phase of time period

(Cousins and Weekes, S., 2018). In context of business organisation, the management team
focus is on increasing knowledge of an individual person that help in achieving favourable
outcome in future period of time.
M4. Assess the appropriateness of tactics used in a range of food and beverage outlets to
attract and build a loyal customer base
On the basis of above mentioned tactics it is analysed that it is helpful in getting
attention of an individual person and also offer discount to its buyer that help in attracting
large number of buyer during particular phase of time period. With the organisation offer
discount as well as cash back provided to user then they take advantages or related to services
of organisation. They convert into a loyal or trustable user and increasing services within
business organisation.
D3. Critically assess the effect of digital technology both on the operations of food as well as
beverage organisation and that impact it has upon consumer buying behaviour
Digital technology generates an appropriate effect on operations related to food as well
as well as beverages organisation and behaviour of consumer (Olajide, 2020)It helps
organisation in adopting technology in relation to manufacturing organisation manufacturing
in appropriate way that increases profit margin as well as sales of organisation in an
appropriate way. In addition with this, by using appropriate use of technology in relation to
online delivery that imposes positive influence on purchasing power of user.
CONCLUSION
On the basis of given information, it has been analysed that food as well as beverages is
most important industry for financial system. Within forecasting as well as evaluation, taste
& preferences of audience is very important to meet need and want of customer in an
appropriate manner. In addition to this, it is significant to appropriately provide coordination
facility related to food and beverage sector that is the superior facility provided to target
individual person in order to reach retain them for a longer period of time and increase profit
margin in future period of time. It is also helpful in achieving competitive advantage over
rivalries at Marketplace. To manage quality as well as adopt rules and regulation to satisfy
need and wants of its user in order to satisfy them. In addition to these, there are different
kinds of plan which is important to take large number of user and maintain customer base.

References
Books and Journals
Davis, B., Lockwood, A. and Alcott, P., 2013. Food and beverage management. Routledge.
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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.
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ENCOUNTER: A REVIEW OF CUSTOMER QUALITY CONTROL ON
RESTAURANT FOOD SERVICE. International Journal of Management,
Innovation & Entrepreneurial Research, 5(2), pp.01-10.
Olajide, O.T., 2020. Effects of Business Process Reengineering on Organisational
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Cousins, J. and Weekes, S., 2018. The City & Guilds Textbook: Food and Beverage Service
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