Strategies for Managing Food & Beverage Operations & Customer Loyalty

This report provides a comprehensive overview of the food and beverage industry, focusing on different types of businesses, rating systems, and current and future trends. It uses The Lighthouse Restaurant in Aldeburgh, UK, as a case study to illustrate operational and marketing technology, factors influencing consumer decisions, and strategies for building customer loyalty. The report analyzes how socio-cultural factors, service styles, outlet branding, and digital presence impact food and beverage businesses, emphasizing the need for adaptation to meet business objectives. It also compares and contrasts operational and marketing technologies used in the industry, such as point-of-sale systems, payment technology, social media marketing, and customer database management. The report concludes by investigating factors influencing consumer choices and analyzing strategies for attracting and retaining customers in the competitive food and beverage market.

Managing Food and
Beverage Operations

Table of Contents

Introduction......................................................................................................................................1
TASK 1............................................................................................................................................1
Explore different types of businesses within the food and beverage industry.......................1
Explain different rating systems used for the food and beverage industry nationally and
internationally.........................................................................................................................2
Discuss the current and future trends affecting food and beverage businesses......................3
M1 Analyse how current and future trends are affecting food and beverage businesses
products and services to meet business objectives.................................................................4
D1 Critically analyse how different types of food and beverage businesses have adapted to
current and future trends to meet business objectives............................................................4
TASK 2............................................................................................................................................5
Covered in PPT.......................................................................................................................5
TASK 3............................................................................................................................................5
Comparison and contrast of different operational and marketing technology-......................5
TASK 4............................................................................................................................................6
Investigation of the factors which influence consumers' decision on the food and beverage
outlets they choose-................................................................................................................6
Analysis of strategies used in a range of food and beverage outlets to attract and build a loyal
customer base-........................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
The report aims to present a whole understanding about the food and beverage sector.
This industry plays a major role in the current market as, food and beverage become the most
vital need for customer to experience great quality and taste. There are different kinds of food
sector that has different purpose and management functions to operate in distinct market. This
industry has wide operation and ways of various legislation to be covered (Nikolovski, 2021).
The report will go to demonstrate the operations of The Lighthouse Restaurant in Aldeburgh,
UK. The restaurant was first established in 1995 with the aim to provide a great experience of
dance, music and delicious food. It is mainly known for the sea flag which represents the great
pride towards fisherman. This report is going to present various kinds of food sectors which
have unique ways of serving foods globally. Also, how the rating system differs in large market
is also necessary to analyse at both national and international level. Apart from this, the report
will be focus on current and future market trends that impact on the growth of food sector and
how digital technology contributes in it. So that, there will be analysation of different strategies
and to meet with business objectives.
TASK 1
Explore different types of businesses within the food and beverage industry
Food and beverage industry is scattered at worldwide level. There are various types of
food sector which has their distinct features to acquire large market and gain customer trust. The
different kinds are described below:
Fine dining: At this food outlet, people experience a range of food menu and great dining
facilities. They have formal rules and professional ways to serve food life authentic dress code.
These restaurants come other 5 stars or Michelin which have great service and table clothing.
Casual dining: these are the average rated restaurants that provide great food and taste to
provide good experience of different kinds of dishes and beverages. They mostly opened for the
purpose for fun and entertainment in which people could spend great time enjoying. The
Lighthouse Restaurant has its casual dining with a relaxing and fun environment.
Counter service: These kinds of food outlets are also come under take away categorise in
which customer experience self service to pick the order from counter generated with code or
token number. They ensure quick delivery like McDonald.
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Bars and Pubs: This category belongs to the most liked and visited outlet. As people
experience fun and dance with both alcoholic and non-alcoholic drinks (Wu, Mohammed, and
Harris, 2021). Therefore, the main aim is to attract large customer through free entries and
discounted coupons.
Coffee Culture: These outlets are mainly known for serving coffee in different taste and
flavours. Coffees are the best beverage which emphasize in great talks and spending time with
relatives and friends. Therefore, people likely to experience the taste of these outlets in day to
day activities.
These are the different kinds of food and beverage sector which has a common feature
that they influence on providing great customer satisfaction with both product and service.
Explain different rating systems used for the food and beverage industry nationally and
internationally
Rating system is a crucial element which helps the customer to classify among different
food sector present in the market. These ratings have different meanings and values which
showcase the review upon the product and service of the organisation. To maintain good ratings,
the food sectors require acting within the limitation and boundaries of food health and safety
legislation of the country.
Star rating: this type of rating system is well known and performed by almost all the
organisation. Customer provides rating as per their likes and dislikes of product and service of
the organisation by clicking on stars. This system used for both national and international level
as it global presence in the market. Every star means different information and perception of
customer which are defined below:
One star: The Restaurants do not have much space and facilities like great food menu,
less infrastructure and poor facilities are comes under one star rating which shows that there is
requirement of great investment and customer satisfaction.
Two stars: The restaurants have two star ratings are also does not have much facilities
but they have food standards regarding health and neatness which are liked by customers (Nakat,
and Bou-Mitri, 2021). But they are required to provide good taste and high class facilities to
capture large market.
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Three stars: These restaurants or hotels have updated technology and attractive
ambience which are liked by guest. Wi-Fi, telephones and health and safety protocols are the
main facilities of these restaurants with average taste of food.
Four stars: These hotels restaurants and bars provide great facilities and products to
serve among customer. They operate for 24/7 and enable great customer service during any
hours. People could experience good infrastructure, casual dining, bars and entertainment and all
the rooms facilities in these hotels.
Five stars: These hotels are the top rated ones. They have high prices and modern
infrastructure which attract the guest to give a standard appearance in market. They provide
luxurious stays, fine dining, spa and suite, ensure health and safety standards with great room
services.
Discuss the current and future trends affecting food and beverage businesses
Modern form of food and beverages industry is affected with current and future trends in
the industry. As technology, trends, dynamic factors have major impact on the business. Some of
these trends are discussed below:
Socio-cultural factors: the business world is becoming dynamic which enables regular
change in demand of the customers as businesses are surrounded with the implementation of
different culture and society values which demands for indifferent products and services as per
their requirement (Karamustafa, and Ülker, 2020). Therefore, these trends must be fulfilling by
Bulrush Restaurant which will make a recognisable presence into market.
Service style: the trend of service style is also facing growth in current and future
market, as these services represent the way of providing facilities to the customer. People crave
for good and effective service while paying a high cost for it. Therefore, different hotels and
restaurants have distinct styles to serve food, greeting guest and enable room assistance.
Styles of outlets and brand growth: People have different demands due to rise in market
factors and opportunities. There are different and creative styles through which restaurants and
bars could attract customers. So that, it is necessary for Bulrush restaurant to enable great
services to decorate and present servicing style in unique way. It will catch customer attention
and keep them happy and satisfied.
Digital presence: The digital technology is the most vital trends that will shape the future
of food outlets (Laurio, 2021). It opens gate for expansion and reaching to customers in most
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frequent way. Digital technology will help the bulrush restaurant to present products and service
in social media and launch promotional techniques for better awareness in market.
M1 Analyse how current and future trends are affecting food and beverage businesses products
and services to meet business objectives
Current and future trends help in shaping future of the food service sector. As there are a lot of
trends which emphasise on operations and productivity of the organisation. The analysation is
presented below:
Socio-cultural factors: it has analysed that these trends are the crucial which impact on
business functioning, As Bulrush restaurant need to take food and service decision as per the
different culture and market demand of different people. It will undertake high cost and much
market research to understand what is going in market.
Service style: the presenting service style is necessary as it attract customer and fulfil
their requirement of taking good experience (Patiar, and et. al., 2017). Therefore, it has analysed
that these styles require much skills and training to create these environment.
Styles of outlets and brand growth: the styles of outlet has also much relevance in the
market for business and brand growth and reputation is required to enable large customer
engagement and people could build trust on restaurants for frequent arrival and mouth publicity.
D1 Critically analyse how different types of food and beverage businesses have adapted to
current and future trends to meet business objectives
The critical evaluating shows that, different types of food and beverages have adopted
trends in unique ways. As fine dining does not involve any classic or showcasing trend a they
represent a professional and decent way to serve food. Whereas, casual dining like Bulrush
restaurant tries to be unique in serving food by presenting it with different style, launching
concerts and shows to attract customer(Zainol, and et. al., 2017). Whereas, the counter service
outlets believes in digital presence to take food orders and provide quick and fast mode of
payments as well as enable pick up services. All these food sectors adopt trends in unique and as
per their potential so that, they would keep their presence as per current market.
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TASK 2
Covered in PPT
TASK 3
Comparison and contrast of different operational and marketing technology-
Operational technology-
 Operational technology used within organisations is strategic in nature. Using the point of
sale system helps the organization in processing the payment in a digital manner. The
lighthouse restaurant has benefited with the high level of convenience and customer
satisfaction by using the advanced technology and digitization.
 Payment Technology is the latest operational Technology used in the lighthouse
restaurant for better comfort to the customers by giving different options of payment as
per their needs and requirements (Rutherford, 2021).
 Touch screen operational Technology is important for the lighthouse restaurant so that it
helps the company to manage the needs and requirements with the customers in a more
essential way.
 Mobile technology for quick service ordering is important because it is required by the
lighthouse restaurant for the purpose to attain their important goals and objectives. This
operational technology is important to make sure that the needs and requirements of the
organization can be fulfilled according to the targets of the organization.
 Management of the food delivery system is significant in the lighthouse restaurant so that
the function from the planning to the implementation can be successful to accomplish the
targets of the company (Okumus, Taheri, Giritlioglu and Gannon, 2020).
Marketing technology-
 Marketing Technology used in the organization is also strategic in nature.
 The lighthouse restaurant uses social media and multimedia platforms in order to promote
and market their food items to the target audiences. It helps the company to reach the
customers in a more effective and efficient manner in terms of cost and time (Widyastuti,
Asandimitra and Artanti, 2018).
 The lighthouse restaurant captures feedback and supports the customer database
management. This helps the organization in better records management of each and every
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customer along with the suppliers as well. This further helps in the decision making
process and future considerations.
 The lighthouse restaurant displays its advertisement and generally promotes online. The
supports the organization in gathering the relevant feedback and immediate resolving of
their issues. It attracts customers and also gains the attention towards the brand.
Computing devices are used to attain this marketing Technology.
TASK 4
Investigation of the factors which influence consumers' decision on the food and beverage outlets
they choose-
 Location is one of the important factors for the consumers. This is because it is related to
the comfort and convenience to the customers which can be easily accessible for them. It
helps the customers ensure a good level of satisfaction and support them in easily
locating their work. Lighthouse restaurant is located at Aldeburgh which helps the
restaurant in attracting the customers in large numbers (BAHRAINI, ENDRI,
SANTOSO, HARTATI and PRAMUDENA, 2021).
 Price is another important factor because every customer first researches the price of the
food item and then visits. If they find high prices and low worth in paying then they will
never visit again. This satisfies the customers to visit again and again and encourages
them to be loyal customers. The lighthouse restaurant has reasonable prices which helps
them to attract different types of customers towards the brand.
 Variety of food items offered is also one of the factors which provide a variety of options
of food items which every customer wants. The lighthouse restaurant has a limited
number of alternators and options therefore it is suggested that they should take the right
steps to increase the food items portfolio for better attraction of customers towards the
restaurant.
 Quality of services offered is also another factor which helps the customers to visit again
and again. Quality of services are necessary which is considered the most important
factor in order to attract the large number of customers for better satisfaction level
effectively and efficiently. The lighthouse restaurant has good servicing of the customers
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because they take care of different needs and requirements in order to achieve their goals
and objectives. They always try to improve the quality of services.
 Offers and discounts is one of the factors which attract the customers towards the
restaurant. This is because it helps the customers in reducing their prices and helps the
restaurant in increasing the number of customers. The lighthouse restaurant makes sure
that they can properly approach the customers with their effective offers and discounts so
that they can maximum invite customers into the restaurant. This also helps the restaurant
in better reaching out to the targeted customers (de Bruyn and Chibili, 2019).
 Behavior of staff members is another factor which helps the restaurant with better
functioning and working towards the customer satisfaction and maintaining the long term
relationship with the customer. The lighthouse restaurant has good customer loyalty
which is a very important factor to maintain.
Analysis of strategies used in a range of food and beverage outlets to attract and build a loyal
customer base-
 There are various strategies which are used in the range of food and beverage outlets to
attract and build a loyal customer base.
 Making the use of digital marketing is one of the strategies which are most effective
nowadays in order to reach the target customers of different segments. The lighthouse
restaurant uses digital marketing techniques so that they can manage the wide range of
needs and requirements of the customers which is necessary and crucial in nature
(Awasthi and Awasthi, 2021).
 Increasing the number of food items in the menu is another strategy which increases the
food items portfolio and attracts the target customers of various segments. The lighthouse
restaurant has essentially a good product portfolio with the specific purpose of
Management for better description of the customers’ demands.
 Offering reasonable prices to the customers is also one of the strategies so that the
customers can feel worthy of paying for the food they have purchased from the
restaurant. The lighthouse restaurant has attained success with the help of pricing
strategies and increased the overall revenues in an appropriate manner with good profit
every year.
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 Targeting the right group of customers is also another strategy which is the important one
for better reaching out the customers in bulk. The lighthouse restaurant has carried out
the strategy in order to manage the right decisions towards the right customers so that
maximum audiences can be attracted towards the restaurant (Wood, 2018).
Conclusion
It is concluded that the management of food and beverage operations is an important
concept to learn and study for hospitality Management. This is because it supports the
organisation in the actual time operations with good performance and functioning in the
marketplace. Therefore it is important to analyse the different types of businesses within the food
and beverage industry. It is essential to examine the different rating systems used for the food
and beverage industry nationally and internationally. It is necessary to determine the current and
future trends affecting food and beverage business. It is significant to gain the knowledge about
professional food and beverage management skills to handle the restaurant. It is crucial to assess
the legal standards of food and beverage service outlets along with the importance and
implication of failing to meet the regulatory standards. It is imperative to investigate the
comparison and contrasting of different operational technology and marketing Technology. It is
vital to study about the factors which influence customers' decision on the food and beverage
outlets they choose. It is required to find out the strategies used in the range of food and beverage
outlets to attract and build a loyal customer base. Hence, this report covers all such areas in order
to better understand the conception of managing the food and beverage operations.
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