Restaurant Field Research Report: Food and Beverage Industry Analysis

This report, based on restaurant field research, provides a comprehensive overview of the food and beverage (F&B) industry. It begins by exploring the industry's structure, encompassing various business types such as commercial operators, catering, and non-commercial establishments, while also examining rating systems like Michelin and Zagat. The report then delves into current and future trends, including changing customer preferences, food safety concerns, innovation, and mergers. The second segment analyzes customer motivations and behavior, focusing on consumer decision-making factors, strategies to attract customers, and building a loyal customer base. The report concludes by discussing how digital technology improves operational efficiency and evaluating the effectiveness of various strategies. The report is a detailed analysis of the F&B sector, suitable for students studying hospitality management, and is available on Desklib, a platform offering AI-powered study tools.

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Restaurant Field Research
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Contents
Introduction................................................................................................................................2
Activity: 1..................................................................................................................................2
The Modern F&B industry (Overview).....................................................................................2
Different type of businesses.......................................................................................................3
Rating systems...........................................................................................................................4
Trends........................................................................................................................................4
Customer preferences:..........................................................................................................5
2. Food safety and transparency:..............................................................................................5
3. Innovation and differentiation:.............................................................................................5
4. Mergers and acquisitions:.....................................................................................................5
Activity: 2- Analyzing Customer Motivations and Behavior....................................................5
Consumer decision.....................................................................................................................5
Factors........................................................................................................................................6
Attract customers.......................................................................................................................6
Loyal Customer base.................................................................................................................7
Effectiveness of strategies.........................................................................................................7
Digital Technology....................................................................................................................7
Activity: 3..................................................................................................................................8
Conclusion.................................................................................................................................9

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Bibliography............................................................................................................................10
Introduction
The food and beverages industry divided into the two major parts that are production and
distribution of eatable goods. Through this report, there will be a discussion on the food and
beverages businesses. Food and Beverages industry refers to various companies involved in the
operations of food materials, packaging and distributing process. This industry includes fresh,
packaging and prepared. This report has three segments, first segment discussed upon the types
of businesses, rating systems, and trends of future and current in the food and beverages industry.
The segment of this report discussed the analysis of consumer and behavior in selecting the food
and beverages businesses. The third segment discussed the ways food and beverages operations
use technology to improve efficiency (Avron , 2017).
Activity: 1
The Modern F&B industry (Overview)
Food and Beverages industry refers to various companies involved in the operations of food
materials, packaging and distributing process. This industry includes fresh, packaging and
prepared foods. Alcoholic and non-alcoholic beverages are part of this industry that human
consumes from this industry. The food and beverages industry divided into the two major parts
that are production and distribution of eatable goods (Beverly, 2019). The production division of
this industry involves the processing of packaged foods, soft drinks, meats, and cheese and
modified goods but does not includes the goods of farming and any form of agriculture. The
distribution segment of the food and beverages industry involves the transportation of finished
food products with the consumers. This industry produces more value-added food products and
focuses on emerging technology compared with the agriculture industry (Considine, 2012).

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Different type of businesses
The type of business that engaged in food and beverages industry is commercial operators
(Quick and full-service restaurants), Catering and Banqueting, Soft-drink sector, and non-
commercial (Hospitals and cafeterias). The commercial operators are a chief segment of the
food and beverages industry as they hold 80 percent market share in this industry. The
restaurants held 35.4% of the total food sales in the United Nations. The food production systems
used in the restaurant business are conventional, centralized production, cook-chill, and Sous-
vide production methods (Hendricks, 2019).The management of the restaurant needs
management responsibilities, as a restaurant must focus on the customer's taste and preferences
and maintaining the food safety standard. In restaurants, total quality management is the major
segment as it helps to attract the larger segment and give satisfaction to the customers. The
Catering and Banqueting hold 6.8% in the food and beverage industry in the United States. The
company maintains the food quality standards at the banquets and special events, which served
to them individually, and in small groups. Catering and banqueting business faces challenges
with different types of events and concerns of food handling and safety with the bigger groups.
Catering and banquets include the companies, centers, hotels, venues and food coordinators that
run the operations. The soft-drink industry held 3.5% in the food and beverage industry and runs
businesses according to the Liquor control and licensing act (Kalin, 2018). The major players of
the soft drink industry are Coca-Cola, Pepsi and Snapple group and this business are divided into
the two parts liquor primary and food primary. The liquor primary operates in a business of
selling alcohol and food primary engaged in the preparation of the food. Hospitals and cafeterias
come under the non-commercial business, which holds 20% market share in the food and
beverages industry. The automated services are important for both small and large foodservice
and accommodation providers (J Am Diet , 2010).
Rating systems
The different types of rating systems that used nationally and internationally in the Food &
beverages industry are Michelin Stars system, Zagat rating system, and AAA diamonds system.
The Michelin rating systems have one, two or three stars, the reviewers are anonymous, and they

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rate the services and products on quality of ingredients, consistency of food service, and quality
of cooking ingredients. Michelin rating systems have minor coverage in the United States
compared with the other countries. This rating system is suitable for the food & beverages
company in Europe. Reviews of the rating systems depend on the extensive system that helps the
restaurants in enhancing the description. This rating system helps in the product development of
the establishment (Madriz, 2016).
Zagat rating systems is allied with the traditionally personal taste with the customers and one of
the popular rating systems in the food and beverages industry. In this rating system, the editorial
management sources their recommendations, Food and Beverage company can only submit the
venues. The procedure of the Zagat rating system is it based on the three aspects food, décor and
service and the food and Beverages Company fulfill plentiful reviews to come up with these
averages. In the Zagat rating system, the editorial team includes all the smaller and large venues
as other rating systems do not consider. This rating system is found in 2011, which bought by
Google as they focus on international coverage such as American cities. This rating system helps
to improve the operations of company. This rating system mostly adopted the US Food and
Beverages companies in its external and internal management. The rating system takes review
from 2,70,000 individuals in a financial year ( Marković, 2010). Zagat rating system provides
strong brand in a restaurant after the acquisition of Google. AAA rating system commonly used
in the United States in which ratings depends upon the checklist that 80 percent emphases on the
food and service and 20% focus on the décor and ambiance (Morley, 2019).
Trends
The current and future trends that affecting the food and beverages industry is changing customer
preferences, food safety and transparency, rising uncertainty, innovation and differentiation, and
mergers and acquisition.
1. Customer preferences: The customer preferences are changing in 2019, as their
preference is more shifting towards healthy food and wants functional foods that promote
gut health. Consumers want food that reflects positive impact on physical appearance and

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provides additional functions to the bodies. To achieve the business objective current
businesses added the salad and less oily food such as kombucha (Nancy , 2010).
2. Food safety and transparency: The food safety issues in the food & beverage
industry becomes a trend that costing the business billions in a financial year. The
Heathrow Airport Restaurants and lounges ltd use the current technology such as block-
chain to manage the food safety issues in the management. The 12% businesses in food
and beverages industry use the block-chain technology to pinpoint the safety issues
(Nazlina, 2013).
3. Innovation and differentiation: The innovation in the food and beverages industry
is increasing with the multitude of channels such as farmer’s markets, social media, and
product innovation will be important to middle-market food and beverage companies.
The businesses in order to achieve the objective opened an innovative digital hub to
generate the business-powered models with entrepreneurial ideas (Nichols, 2018).
4. Mergers and acquisitions: The food and beverages companies make use of new
product lines to use the resources in an efficient manner. Private-equity used by the
companies for investment.
Activity: 2- Analyzing Customer Motivations and Behavior
Consumer decision
The consumer decides the food and beverage is depends upon the consumer to consumers.
Consumers majorly choose food and beverage outlets according to the taste such as some
consumers will override taste to choose foods, which benefits their health. Consumer’s select
food and beverage outlets on the issue of convenience, availability, cost that plays a major role.
Consumers before selecting food and beverage outlets check the cultural tradition, price of
substitutes and nutrition in the food. Consumers check the cultural tradition that can influence
the decision and will compare the prices of substitutes where they can get the cheap product.
Consumers become more health-conscious these days and centered towards healthy food so they
will reject the outlets that providing unhealthy food ( Nicolopoulos , 2019).

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Factors
The common factor that affects the customer decision is quality, price and location and other
significant factors that influence the consumer’s decisions in choosing a Food and beverage
outlet are time, taste, nutrition, affordability, customer service, and location. The time factor
influenced by the time they would save because of purchasing fast food instead of home-cooked
meals. The taste factor is main factor that influences the consumer’s decisions, as quality of food
must be efficient and must provide healthy food (Noorwali, 2016). The nutrition is also the main
factor that affects consumer decision, as people are more health-centered and appealing for
nutrition food. To fulfill customer satisfaction there must be efficient customer service because
unorganized customer service will dissatisfy the customer. Affordability and location is main
factor for the customer as customer compares the prices and chooses which that suited best for
customer. Customers choose the outlets that more affordable compared to its competitors that are
more affordable. Location plays an influential role with the customer (Saeideh, 2014)
Attract customers
In the food and beverage business customers plays a crucial role in the business as it affects the
revenue of the business. The food and business should enter into partnerships with the local
businesses and must execute the innovative promotions for vast customer base. Companies must
use modern strategies that will maintain the success and attract customers. Food and beverage
must include E-mail marketing in its business because it is the easiest and fastest way to attract
customers and should offer discount codes to the customer. The company must have its online
ordering application it will attract 5% more customers. Food designing of packaged product also
attracts the customer so it should be attractive with good graphics designs. Branding of the
products attracts potential customers and spread awareness about the business ( Suomi Oy,
2017).
Loyal Customer base
Food and Beverages Company can build a loyal customer base by making the customer service
effective such as serve appetizer in the winter. Educate the staff that essentials that customer
prefers and must ensure the taste and preference of customer such as ensure customer is not

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suffering from allergies. The company should set a reasonable price that will chase the customers
because high prices will result in losing customers and can cause loss to the business. Food and
beverages companies should maintain the consistency and should provide same quality food on
every visit of the customer. The business should build the customer loyalty program and give
them reward on every purchase that proves the importance of the customer and must listen to the
customer (van denvan den , 2013).
Effectiveness of strategies
The evaluation of the effectiveness of the strategies used by food and beverages outlets to attract
and build a loyal customer base includes the effectiveness of marketing strategies. Outlets for
evaluation should check the competitors and target markets because each target group has
different marketing strategies. Comparison with the competitors shows the strength and
weaknesses of the strategies that used to attract the customers. Evaluation of strategies includes
setting revenue targets through the forecasting tool in beginning of the month and check it at the
end of the month that targets are achieved or not to maintain the customer base. Weekly
meetings are in food and beverages business is an effective tool for evaluation (Williams, 2018).
Digital Technology
Digital technology means online and internet marketing that directly connects it with the
customers. The technology advancements in the food and beverages industry influence the
consumer buying behavior as its convenience for the customers and marketing product online
eliminates the barrier and increases the purchasing power of the customer. The digital
advancement influences customer behavior as their expectations are increasing with the food and
beverages companies. Food and beverages businesses must have unique product as in today’s
world consumers have many alternatives (Tetreault, 2018).
Activity: 3
The current Operational and marketable technology in the food and beverage industry flow-
through system, equipment innovation, voice technology, and AGV technology. The food and
beverages industry in the flow-through sortation bring the distribution center and restock shelve

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every day. This technology brings consistency in the transporting and operations of the company.
It improves the product life and increases customer satisfaction through this technology.
Reliability and flexibility are one of the main advantages of this technology (Tafadzwa, 2014).
Equipment technology increases the flexibility and adaptability in the business and increases the
convenience in ordering the food. Voice technology in the food and beverages industry saves
various costs such as online transaction and higher accuracy in the food industry. There is a
tremendous increase in the AGV (Automated guided vehicles) is operational technology in the
food and beverages industry in this technology it established the communication between the
automated storage and retrieval system. The focus of this technology is on the warehouse's
system that gives food and beverages industry more efficiency and a source of earning money.
(Sinha , 2019).
The three businesses used as an example in the operational and marketing technology is
commercial operators (Quick and full-service restaurants), Catering and Banqueting, Soft-drink
sector. The commercial operators are a chief segment of the food and beverages industry as they
hold 80 percent market share in this industry. The restaurants held 35.4% of the total food sales
in the United Nations. The food production systems used in the restaurant business are
conventional, centralized production, cook-chill, and Sous-vide production methods. The
management of the restaurant needs management responsibilities, as restaurant must focus on the
customer's taste and preferences and maintaining the food safety standard. The operational and
marketing technologies in commercial technology include the In-house technology in which
mobile ordering and accepting orders from outdoor diners include. The In-house technology
creates the flexibility in ordering, reduces the servers in kitchen, and bars. The facilitating
hospitality operations of the commercial operators use to connect the operations of front and
back in the office. The Catering and Banqueting hold 6.8% in the food and beverage industry in
the United States (The Queensland, 2019).
The company maintains the food quality standards at the banquets and special events, which
served to them individually, and in small groups. Catering and banqueting business faces
challenges with different types of events and concerns of food handling and safety with the
bigger groups. Catering and banquets include the companies, centers, hotels, venues and food
coordinators that run the operations. The operational and marketing technology in the catering

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and banquets business includes touchscreen food vendors, which give 96 variations of cool treats
in 40 seconds (Morley, 2019). This technology gives natural fit settings and the advantage of
reduced staffing with the equipment. The tablet restaurant management provides the real-time
views of tables by selection of the dishes. The soft-drink industry held 3.5% in the food and
beverage industry and runs businesses according to the Liquor control and licensing act. The
major players of the soft drink industry are Coca-Cola, Pepsi and Snapple group and this
business are divided into the two parts liquor primary and food primary. The operational and
marketing technology in the soft drink industry is that automation and internet enhanced the
safety that increases automation through smart technologies (U.S commercial service, 2019).
Conclusion
In the food and beverages industry, the two systems handled that is food and service. Food and
service are interrelated in which quality and quality must be ensured by the restaurants. The
current food and beverages industry is facing emerging technological advancement according to
the HACCP principals. Restaurants must give preference to the customers and should value their
taste and preferences. It is concluded that food and beverages must reflect more on customer
satisfaction.

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