Strategies, Trends, and Technology in Food & Beverage Operations

This report examines the management of food and beverage operations, focusing on industry trends, technology, and customer loyalty. It begins by outlining the types of businesses within the food and beverage sector and explaining rating systems used to assess quality and hygiene. The report then analyzes current and future trends impacting the industry, such as social trends, sustainability, and emerging technologies like virtual reality tours and robotic delivery. A comparison of operational and marketing technologies highlights their roles in enhancing efficiency and customer engagement, using Costa Coffee and Starbucks as examples. Furthermore, the report identifies factors influencing consumer decisions, including menu variety, taste, and price. Finally, it explores strategies used by food and beverage outlets to attract and build a loyal customer base, emphasizing the importance of digital technology in improving business performance. This analysis provides a comprehensive overview of the dynamics shaping the food and beverage industry.

Managing Food &
Beverage Operations

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
LO1& LO3& LO4...........................................................................................................................1
• The types of businesses in the food and beverage industry......................................................1
• Explanation of rating systems used by food industry................................................................2
• The current and future trends that impacts on food and beverage business..............................3
• Compare and contrast of operational and marketing technology..............................................4
• Determination of factors influenced the consumers’ decision..................................................5
• Analyse strategies used in a range of food and beverage outlets to attract and build a loyal
customer base...............................................................................................................................6
• The current and future trends are affecting food and beverage businesses...............................7
•Digital technology enhances business performance...................................................................7
• The effectiveness of strategies used in a range of food and beverage outlets...........................7
• Types of food and beverage businesses in relation to current and future trend........................8
• Impact of digital technology both on the operations of food and beverage businesses............8
CONCLUSION................................................................................................................................8
LO2..................................................................................................................................................8
Covered in PPT............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Food and beverage management is defined as segment of hospitality industry that involve
restaurants, hotels, café, resorts, and catering organizations that understand people’s requirement
and provide them better quality of food. To prepare the food there is need of raw material and
finished products that are possible through import and exports which provide good taste and
comfortable environment (Manurung, Effrida, and Gondowonto, 2019). In other words, food and
beverage is responsible to providing food and drinks to their guests at a place which can help to
develop the organizational productivity. It has seen that when people comes from other country
for the purpose of visited and business deal then they need a proper place to stay, getting food
and others that can help to make feel them more comfortable. To understand about digital
technology in food and beverage industry, Costa Coffee has been selected that is British
Coffeehouse chain, headquarter in England, Dunstable. The company is planning to open its
shop in Japan and Italy by understanding environment and needs of people. This was founded in
London in 1971 by Bruno Costa and Sergio Costa. This is global chain restaurant that understand
customer requirement and provide kind of products and services in market. The report covers
food and beverage industry involving style of food and beverages, different food and beverage
operations uses technology to improve operational efficiency and customer motivation that used
to maximise business success.
LO1& LO3& LO4
• The types of businesses in the food and beverage industry
Food and beverage can be explained as process of understanding needs, preparing,
presenting and serving of food and beverages to the customers which can help to develop the
business productivity. This is important for hotel and food industry to know what people wants
and how they can be satisfied that can help to provide the products accordingly. F&B services
are categorised in two types such as:
On premise: This means a place where food is prepared on demand of customers and
visited by them to select their favourite food. The premises are well equipped and structured that
attracts customers (Abubakar, and Mohammad, 2019).
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Off premise: This mean food services are provided at the customer’s premises involving
partial cooking, preparation, and managing delivery on special occasion that helps to fill
customer needs.
Costa is multinational chain that covered under premises services as customer visited to
avail food services at such place.
Different types of food and beverage are explained below:
Assisted service: The customers who wants food enter in dining area and help himself to
the food, selecting from buffer counter and getting served partly at the table by waiters. In other
words, eating may be done at table, in lounge, and banquet hall.
Coffee culture and coffee shops: This means a place which is famous for coffee and
specific snacks is consider in coffee shop. It stated as enjoyment of coffee in a social setting and
people comes to share their ideas with friends. For example, Costa coffee is well known coffee
shop which is likely by people and enjoy a lot (Zuliyati, and Delima, 2019).
Pop up restaurant – As needs of people changing where business concern has to come
with new ideas in order to attracts customers. The Pop-up restaurant allowing owners, guests
and chefs to try something new. This can be open anywhere by selecting a location for specified
period that will help to develop organizational performance.
• Explanation of rating systems used by food industry
The rating is a marks or way of perception which given by top authorities after checking
products, quality, services, hygiene, structure and many more. This rating helps to improve the
business position in competitive environment and increase productivity. There are different types
of rating system that used for food and beverage industry are explained as:
Michelin Star: This refers to annually publish Michelin guide where three Michelin stars
are introduced for the purpose of stating excellence by selecting few establishments (Paiano,
Crovella, and Lagioia, 2020).
Scores on the doors: This rating system is related to maintaining food hygiene that helps
people in selecting best place to eat out and or shop. This maintain 5 standards such as:
 5: hygiene standards are very good
 4: hygiene standards are good
 3: hygiene standards are generally satisfactory
 2: some improvement is necessary
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 1: major improvement is necessary
 0: urgent improvement is requiring
Star rating: This is mostly like and understandable rating which is used by hotel and
restaurants across the world. This can help customers to make a choice according to their budget
and comfortable. This shown in 5 star where different types of facilities and hygienic room are
provided to guest along with luxury service that can help to increase organizational image.
AA Rosettes: This can be explained as one of the trusted standard used by top hotel and
restaurants for the purpose of influencing high profile of customers. The mainly basis on
common quality standards for inspecting and rating the accommodation services which can help
to maintain high performance (Dai, and Raharja, 2020).
From the above Star rating is followed by Costa Coffee where it gains 5-star rating by
providing better quality of coffee, hygiene and suitable environment to their customers that can
help to develop organizational activities. It will fill customer demand at Italy and Japan by
offering better quality of products.
• The current and future trends that impacts on food and beverage business.
Trend is the general direction which states something is developing or changing that
requires to follow by residing people and manage all functions. As Covid-19 occurred in whole
world considered in current trend and affected the food and beverage industries. There are two
trends that follows by organization to operate their business such as current and future.
Current industry trend:
Social trend: This trend relates to making feel comfortable to society by offering clean
and healthy eating choices, eco- friendly by providing service locally and nationally, sugar free
items, cooking at home that provides home taste, and takeaways which can help to influence the
number of people and develop organizational productivity (shaheera binti Bakhtiar, and et.al.,
2020) .
Environment and sustainability trend: This trend relates to sustainability where food
and beverage industry has to focus over reducing food waste, keeping high quality of products,
using local suppliers and replacing meat with plants that can help to attracts the number of
people and develop the organizational performance. Costa is following the trend by maintaining
high quality, taste and local suppliers which can help to manage all functions and activities
(Nirino, Miglietta, and Salvi, 2019).
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Service style: The current trend of food and beverage also involves fast food, themed
restaurant, airport lounge, coffee shops and bars that used for brand growth and managing all
functions effectively (Irtyshcheva, and et.al., 2020).
Future trend
Virtual reality Tours – As situation are going worst due to Covid-19 where it became
challenging for people to go for tour so that this trend is needed within upcoming period. This is
the simulation of existing location mainly composed of sequence or videos that used to make
right decision.
Mobile check-In & services – The life schedule of people becoming busier where they
do not have time to visit hotel for booking and outing. Within upcoming trend, mobile check-in
and out services should be provided by hotels and restaurants that can help to keep and managing
all functions (Backholer, Sacks, and Cameron, 2019).
Robotics delivery – This trend related to providing robotics food delivery in less period
that influence number of people and encourage to buy. Costa Coffee could be use this trend by
bringing robot delivery which would help to influence people and increase organizational sales
(Reagan, Filice, Santarossa, and Woodruff, 2020).
• Compare and contrast of operational and marketing technology
In food and beverage industry, new technology is defined as concept which is used by
organization for the purpose of influencing more customers and improving performance.
Operational and marketing technology is important for food and beverage industry as it bring
changes in preparing and influencing customers for inviting at the workplace. The comparison
and contrast of operational and marketing technology is explained below:
Comparison
Basis Costa Coffee Starbucks
Operational
technology
This means changes are introduced
in day to day working by using new
process. Costa coffee is using
online booking, touch screen
technology, use of point of sale and
new payment solution, such as
mobile payment that can help to
The companies are responsible to
make effective their operational
activities. Starbucks is the first ever
organization to start offering mobile
payment solution to its customers.
This helped to create a public image
and maintaining high standards to
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make easy operation and reinforce
public images by attracting
customers that develop
organizational performance.
provide best quality of services
(Pellerito, Dounz Weigt, and Micali,
2019).
Marketing
technology
Marketing is used by companies to
promote their products and
services. Costa Coffee is uses E-
mail marketing, Public relation,
customer feedback, advertisement
and others marketing channel that
used to influence number of people
and increase the organizational
sales (Goh, and Jie, 2019).
Starbucks is well known brand that
us using social media, Instagram,
twitter, and E-mails to reach out
their target audience. This can help
to develop the business growth in
challenging environment and
maintain productivity.
Contrast
The Costa Coffee and other businesses aims to increase their customer base as well as
product line in food and beverage industry. The companies understand the requirement of people
and use new technology for providing new services. Thus, sales and productivity of food &
beverage industry could be improving and maintain higher brand image.
• Determination of factors influenced the consumers’ decision
In food & beverage industry customer decision is most important as it share its feedback
regarding product, services and sates that supports to bring changes and managing all functions
effectively. This is important for each organization to understand what factors influences the
customers and how they make buying decisions. In the food and beverage industry there are
many factors which that influence people to make buying decision such as:
Menu variety: When people goes to hotel, restaurants and other places to getting food
then they are looking towards new menu or taste that can help to provide the satisfaction and
develop the business performance. The management of Costa Coffee have proper understanding
about new food items and involve in their menu card that influence people to make buying
decision.
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Taste as a factor: In food and beverage industry taste is main factor that should be
provided by organization for the purpose of influencing people and increase sales. This factor
shows food is asked by customers was a result of fast food as it is better in taste than home
cooked food. If taste of food is good, then it became opportunity to grow their business. In
relation to Costa Coffee which is famous for its taste use this factor to influence the number of
people and increase sales. This can help to develop organizational performance and productivity
effectively (Goddard, 2020).
Price and affordable: Price is relatively factor for each sector which is used by business
concern for the purpose of setting right prices of their products and services that supports to
increase organizational sales. Having right prices of products and services is good task for
organization as it helps to accomplish business goals. In relation to Costa Coffee, management
used this factor for the purpose of deciding right and affordable prices of their products which is
beneficial for organization as make buying decision by customers.
Customer services: Customer service is needed in each sector as it used to solve the
customer query resulting smooth organization operation. This is influencing factor which used
by Costa Coffee as it offers pre and post customer services with proper response that supports to
solve people issues and managing all functions effectively.
• Analyse strategies used in a range of food and beverage outlets to attract and build a loyal
customer base
In food and beverage outlets, management plays important role by identifying the choices of
their customers and providing kind of food services. The aim of business is to build customer
loyalty by formulating strategies and implement it at their workplace. In relation to Costa coffee
strategies are used by management to build the customer base that explained below:
Identifying the needs: In hospitality industry, this is first requirement where
management identify needs of their customers and bring products. It is required strategy as needs
and wants of customers identifies by management then provide the kind of products. In context
to Costa coffee management uses this strategy by analysing needs and providing products
accordingly that increases number of customers (Paiano, Crovella, and Lagioia, 2020).
Customer touch points: This means special treatment that can help to make feel good to
customers and develop organizational performance by building customer loyalty. In context to
Costa coffee, different touch points such as advertisement, loyalty programme, customer
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services, feedback facility and other offers are provided that attracts larger customer base which
helps to maintain higher profitability.
Offer free WiFi: Internet is needed thing in changing environment as people work on
this basis and feel good. Costa Coffee is providing free WiFi facility to their customers which
can help to increase customers and attain competitive benefits (Dai, and Raharja, 2020).
Using new technology: It is important to bring the uses of new technology and
innovation for corporation which can help to attracts the customers by offering different services
in less time and become competitor of other hotel that helps to attain the higher customer loyalty
brand and maintain the good business activities.
• The current and future trends are affecting food and beverage businesses
The food and beverage industry is being affected from current and future trends for the
purpose of meeting its objectives and increasing organizational performance. The current trend is
arising pandemic, food and drink products, social trend and service style where it became
important to provide services that influence number of people and manage each function. On the
other side, future trend such as AR, Visual reality tours, robotics delivery and augmented reality
that would support the perform all function and increase customer base by making happy to
customers that helps to increase organizational productivity (Redan, 2020).
•Digital technology enhances business performance
In changing environment technology use is important as it introduces new products and
services which can help to fill customer demand and maintain higher performance. Different
types of businesses such as hospitality, banking, transportation and other are used digital
technology for increasing their sale and providing better quality of services. This can help to
reach the targeted customers and supports to attain business goals (Martin-Rios, Zizka, Varga,
and Pasamar, 2020).
• The effectiveness of strategies used in a range of food and beverage outlets
In food and beverage outlets strategy is important which is formulated by management for
supporting their business that can help to develop the business activities. Costa Coffee is well
known brand that have been used strategy such as identification of needs, offer touch point, use
of new technology and other facilities which fill the demand and supports to build customer
royalty as they select again and again to enjoy coffee (Taylor, and Duodu, 2019).
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• Types of food and beverage businesses in relation to current and future trend
The critical analysis states that different types of food and beverage such as pop-up, casual,
coffee shop, bars and lounge, full service restaurant, quick service, assisted services and others
are following the current trend for running its business in Pandemic smoothly by providing
hygienic and healthy food that influence customers and supports to attain business goals. The
future trend is also followed by organization for managing future needs and getting competitive
benefits effectively (Machmud, and et.al., 2019).
• Impact of digital technology both on the operations of food and beverage businesses
Digital technology helps to make smooth operation as it keeps day to day records of
customers, receiving online or mobile payment, online booking and cancellation facility and
virtual reality that all are followed by Costa Coffee that influences consumer and make buying
decisions.
CONCLUSION
From the report it can be concluded that food and beverage industries considered in
hotels, restaurants, motel, coffee shops and others that fill customer demand and increase
organizational sales. The types of services are pop-up, casual dining, assisted, coffee shops,
counter service, bars and pubs many more. There are different factors which influences customer
decision making such as price, menu, ambiance, Wi-Fi, taste and other that followed by
organization to build customer loyalty.
LO2
Covered in PPT
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