Food Service Management Report: Unit 25, Food Service Operations

This report provides a detailed analysis of food service management, focusing on the practices of Michelin 3-star restaurants. It begins with an introduction to the industry, emphasizing the importance of customer relationships and the significance of food quality. The report then explores the intricacies of food supply chain management, including production, storage, processing, and planning, as well as the distinction between short and direct supply chains. Key stakeholders such as farmers, suppliers, customers, and retailers are identified and their roles in the supply chain are examined. The report also delves into sourcing and procurement processes, discussing the importance of supplier selection, traceability, reputation, and financial considerations. Furthermore, it highlights the significance of quality and quantity control in maintaining customer satisfaction. The report then transitions into an examination of analytical tools, specifically SWOT analysis and Porter's Four Corners, to support effective management strategies. The strengths, weaknesses, opportunities, and threats of Michelin 3-star restaurants are analyzed using SWOT, while Porter's Four Corners is used to assess competitor strategies. The report concludes by summarizing the various management practices that underpin business operations in the food service industry.

FOOD SERVICE
MANAGMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
Explain range of various food supply chain aspects and highlight stakeholder in
process..................................................................................................................................4
LO2.............................................................................................................................................6
Examining various types of sourcing and procurement processes.............................6
LO3..................................................................................................................................................8
Explain various types of analytical tool to unpin management strategies..................8
Specify different management practices that unpin business operations in food
service industry..................................................................................................................12
CONCLUSION.............................................................................................................................14
REFERNCES...............................................................................................................................15

INTRODUCTION
In service industry, management play important role in managing and handling
the customers and process of food service. In this type of business customer's
feedback, preferences perception and behaviour are important for business. So, it is
crucial for firm to maintain relationship with customers. Food and taste are main source
and priority of business as well as customers. Michelin 3 -star restaurants most oldest
and reputed restaurant headquartered in US. This restaurant is famous for its unique
invention. This report includes approaches of food supply chain management,
procurement and sourcing processes, analytical tools in management strategies and
various types of management practices.

LO1
Explain range of various food supply chain aspects and
highlight stakeholder in process
Food supply chain management is a process through which implementation,
distribution, production and processing of food take place and output reaches to end
users or customers. This is complex and time consuming process because in service
industry quality matters and it is difficult to maintain various kinds of expectations of
different people. Therefore, there are different kinds of food supply chain system which
is adopted by Michelin 3 -star restaurants restaurant which are discussed below-
Food supply chain management refers to how food reaches to the customers
with demonstration. In relation with Michelin 3 star restaurants, they use this
management is proper manner so that all the resources, money, distribution process,
etc. in appropriate manner so that positive output is gained. Aspects in food supply
chain management are-
Production- In this, food which is in the process and how the food is made by using
ingredients and raw materials are involved at this stage (Falkowski,, 2017)

Storage- Further, it is necessary to kept raw materials and resources into storage. So,
they are used in near future.
Processing & Packaging- In this, food processing as well as packaging food is done
via machines and manpower (Moser, 2019.
Planning Product-
Planning product is essential for business because to survive in market product needs to
be change according to product as well as requirement by the customers. New ideas, methods
and strategies are implemented in product planning process. Thus, Michelin 3 -star restauarants
uses their product planning with proper decision making and management team.
Food Supply chain-
Food supply chain refers to processing of foods into final output which includes several
stages such as distribution, processing, retailing etc. It is of two types such as short food supply
chain and direct supply chain.
Short Food supply chain- This refers to food chain in which less number of intermediaries are
involved between producers and end users. Michelin 3 -star restaurants uses short food supply
chain because it assists them satisfying customers’ needs within time period. In this, process of
food supply chain is short and which increases the relationship between both the parties. Also, by
adopting this, it becomes easy to analyse market situation as well as cost of mobility of goods is
also low (Accorsi, 2018).
Direct supply chain- It refers to supply chain in which producer and consumers have direct
contact in process. This is short process of selling of products in market as compared to other
form of supply chain. Also no intermediaries are present in process which makes allows
customers to give feedback about the product.
Supply chain is important in FMCG sector because without any chain or network
running the business is difficult task. This is the every individual extend their supply
chain so that resources as well as market is acquired in effective manner.
Role of key players-
 Farmers- Farmers play important role in food supply chain management because they
are responsible for delivering the quality of foods to producers and retailers. They use
supply chain because by using it they are able to produce and access the market for their
distribution of goods and services.

 Suppliers- Suppliers are crucial because they help farmers to distribute food to the end
users and other distribution channels. Without vendors it is not possible to access to
supply chain. Bargaining of power takes place between buyer and the seller.
 Customers- Another important key player in food supply chain management is
customers who purchases the food and consumes it. Without customers other players
cannot achieve their target (AWADALLAH, 2018).
 Retailers- Another key role player is retailers who are responsible for selling all types of
products in the market directly to customers. They are the source through which demand
of food is driven in appropriate manner (Daghfous, 2019)

LO2
Examining various types of sourcing and procurement
processes
In food service industry, it is important to analyse and determine purchasing and selling
process as activities of food and its resources. Thus, procurement process is a method in which
managing of goods as well as services at affordable prices are evaluated. Adoption of this
process by Michelin 3 -star restauarants has improved business activities and their cost of
production has been managed properly which has a positive impact on business productivity.
Supplier: Suppliers are also known as vendors who manufacture/ make goods and
services and sells it to different buyers of various regions. Michelin 3 -star restauarants mostly
uses online suppliers and retailers to fulfil their needs and demand. Due to their high creditability
suppliers/vendors provide restaurant with additional services as delivering of product, extra
guarantee and warranty, offers etc (Bag, 2020). Several factors are important in context to
suppliers which are mentioned below-
 Traceability- In this factor, important credentials are recorded such as distributors,
producers, suppliers etc. These information are important to track down which are used
in future whenever needed (Buhalis, 2018).
 Reputation- Organisation mostly target those suppliers who have image in the
organisations for their operations and activities. Michelin 3 -star restauarants have been
able to maintain with such suppliers and operating their business with them.
 Quantities of food- It is important factor to be considered in which large and short
quantities of foods are involved. It depends upon entities to choose which type of
quantities of suppliers.
 Distance from supplier- In this, organisation chooses those supplier who are reside
within there are range. Michelin 3 -star restauarants target those supplier who are nearby
and mobility and transportation cost does not exceed.
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 Retailers- Retailers are one who directly sells products and goods to the end users. In
relation with Michelin 3 -star restaurants, they have the large distribution network which
sells their products directly to the customers.
 Finance: Finance is important in every firm for running smooth business
activities and functions. Capital is required for operations, growth and development of
business. Different sources funds are available such as long term and short term, medium
term etc. These types of sources of funds assist business expand and grow without any
obstacles and hurdles. In context to Michelin 3 -star restauarants, they have various
source of fund such as businessmen, financial institution, banks etc. (Morales-Contreras,
2019).
Quality and quantity control: In restaurant, services and goods traits are based upon
their value and quality. Quality and quality control is essential in service industry because these
are main element which customer looks for in service industry. Customers mainly focus on
quality of goods and services and which affect their behaviour at broad level. Michelin 3 -star
restauarants uses good and efficient quality of food which is maintained by their expertise
management. Quality is important because in hospitality industry it is necessary to provide
quality of food and quantity control is essential so that resources and manpower are used
efficiently and in proper manner. (Sánchez-Flores, 2020).
When selecting the supplier, most important factor which need to be considered is
reputation factor. Because such types of vendors often know how to deal with buyers and at what
price. This assist firm in managing the resources in effective manner.
Thus, after a brief analysis of above procurement processes, it can be said that services
industry require procurement process so that distribution and managing of food raw materials
and resources are done in proper and effectively. Michelin 3 -star restauarants uses procurement
and sourcing process with help of their decision making expert and management team.
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LO3
Explain various types of analytical tool to unpin management
strategies
SWOT Analysis-
It is management tool used by firm to analyse different strength, weakness,
opportunity and threats which help firm to examine market situation and trends.
Michelin 3 -star restauarants uses this tool to track and monitor business situation so,
SWOT has been discussed below-
STRENGTH
 Michelin 3 -star restauarants
restaurant biggest strength is that it
is the oldest and well known
restaurant in UK due to its historic
invention and structure.
 Restaurant is filled with skilled
employee and expertise chef so
management of Michelin 3 -star
restauarants is strong.
WEAKNESSS
 Every business need change in
their activities so, Michelin 3 -star
restauarants is using their old style
of handling customer. This makes
affect their growth of business.
(Nakano, 2020)
OPPORTUNITY
 Due to other rise in demand and
service of their restaurant they have
the opportunity and chance of
THREATS
 Many other restaurant have
established their business with
affordable prices thus, they affects
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expanding business at wider level.
(Costa, 2020).
 They have the opportunity of
acquiring more customers and
market area by giving more food
choices of different regions.
Michelin 3 -star restauarants
business (Arif, 2016).
Thus, Michelin 3 -star restauarants uses SWOT analysis so that market situations can be
examined. SWOT assists business to expand and grow with use of proper research,
information and figures. With help of this tool they determine decisions in future
prospective and also elimination of errors are and conflicts are reduced.
Advantages-
Swot helps firm to analyse their business position in market. Thus, through this tool firm
is able to deal with market uncertain situations in effective manner. It leads to use of resources
and manpower appropriately.
Disadvantages-
 It requires market analysis use of research which is time consuming. This is
because collecting and comparing the information to get the result in difficult task. So,
high level of skills and knowledge is required to carry out properly (Paramadita, 2019.
Porter Four Corners-
Porter’s four corners is a kind of analysis which is used by firm to analyse and
determine competitor’s objectives, strategies, and tactics in market. Michelin 3 -star
restauarants uses this analysis to track the rivals in the market and their USP in same
business line. Porter four corners has been explained below-
 Drivers/Motivation- Drivers are those in porter four analysis which help in
determining competitors point of view, strategies and tactics which they are going
to used in their business. They act as motivation for industry because rivals make
different plans and decision about their goods as well as services so, to defeat
competitors drivers motivates firm to be ahead in market. Michelin 3 -star
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restauarants uses this as defensive strategy so that their business operation
does not stops.(Knowlton, 2020)
 Management Assumption- Each firm has heterogeneous assumptions about
business and competition in market. It depends upon entities perceptions to
decide whether the competition is high or low or else it can affect the business at
what level. In relation with Michelin 3 -star restauarants, they use this corner
because there are ample number of restaurants in UK with same line of
business and can affect market and profit share/ growth of firm (Aksu, 2019).
 Action/Strategy- Another corner is strategy which is used as action move by
firm to determine competitor’s new strategies and tactics in market. Different
strategies are used by rivals in market such as new product development
process, cost leadership etc. In context to Michelin 3 -star restauarants, they use
this strategy as action in the business to tackle their rivals and increase their
demand across the region. This also makes them aware about changing demand
and behaviour of customers.(Tumalanov, 2020)
 Action-Capabilities- The last corner of porter analysis is Capabilities in which
ability of competitors is determined how they react and overcome with external
forces as well as threats. Following this strategy by Michelin 3 -star restauarants,
helps business to manage and respond to its rival’s action in smart and effective
way.
Main impact of this tool on firm is that it stimulates and assists business as
well as firm to be pre-ready for market uncertain situations and react accordingly.
Advantages-
With help of porter corner analysis it track and identify the rivals & competitors actions
by implementing effective strategies & tactics.
Disadvantages-
It is a time consuming process and requires high level of skills as well as knowledge.
PESTEL Analysis-
Political factors- These are those factors which incudes in which labour law, tax policy
etc. are involved. Michelin 3 -star restauarants focus on these factors to operate in smooth
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manner. This is important to be applied in business because it assists elements which affect the
business operations and slow down the overall growth.
Economical factors- Economic factors those which includes wages, governmental
activities, affecting the economy. Michelin 3 -star restauarants remains active in government
activities which has impact on their business.
Social factors- These are those factors which includes demographic variables, size,
psycho-graphic etc. Michelin 3 -star restauarants focuses on these factors which helps in
targeting their customers.
Technological factors- Technology factors are those which includes use of advanced
technology, tool etc. Michelin 3 -star restauarants has improved their management system with
use of technology (Shang, 2020).
Environmental factors- These are those factors which comprises of climate, weather
etc. Michelin 3 -star restauarants uses proper market research to track these environmental
factors.
Legal Factors- Legal factors comprises of antitrust, employment etc. These factors affect
the organisation and slow down the growth of business. Michelin 3 -star restauarants properly
maintained and manges such types of factors so that productivity of business does not get
affected.
Advantages-
It assists simple business to determine factors and prepare strategies accordingly.
Also, it prevents business from being affected by external factors.
Disadvantages-
To conduct this effectively, accurate information and data is required which is not easy
task (Lima, 2019).
Value Chain Analysis-
It is the analysis in which business examine aspect and procedure of activities through
which product is formed/created. Importance of this framework is that it helps organisation to
carry put their business activities and operations in proper manner so that conflicts and errors do
not arises. Thus, adoption of this framework helps entity in managing and monitoring the process
of production appropriately.
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