Food Service Management Report: Strada Restaurant Business Analysis

This report provides a comprehensive analysis of food service management, focusing on Strada restaurant, a UK-based Italian cuisine chain. The report delves into various aspects, including food supply chain approaches, such as fine dining and themed restaurants, and highlights the roles of key stakeholders. It examines effective procurement and sourcing processes, emphasizing purchase specifications, price factors, and supplier credibility. The application of analytical tools like SWOT and Porter's Five Forces is discussed to evaluate the competitive landscape and inform strategic decisions. Furthermore, the report explores management practices that support business operations, including human resource and capital management. Ethical practices and their impact on food service organizations are also defined. Finally, the report offers recommendations and alternative strategies for improving the performance of Strada restaurant, focusing on enhancing profitability and customer satisfaction.

FOOD SERVICE
MANAGEMENT

Table of Contents
TASK 1............................................................................................................................................3
P1 Identify various range of food supply chain approaches with highlighting the key
stakeholders in the overall process .............................................................................................3
P2: Principles of effective procurement and sourcing processes for a food service operation...4
TASK 2............................................................................................................................................5
P3 : Application of various analytical tools which will help in supporting management
strategies......................................................................................................................................5
P4: Different practises of management which support the business practises: ..........................7
TASK 3............................................................................................................................................8
P5 Define various ethical practises and their impact on food service organisations:.................8
TASK 4 ...........................................................................................................................................9
P6: Management services in a specific food service operation...................................................9
P7 Recommendations and alternatives for improving the performance:..................................10
CONCLUSION..............................................................................................................................12

INTRODUCTION
Food service management is a industry which is used to define the the Companies,
business and institutions which are providing food services outside the comfort of home. This
industry is growing very fast because of changing food habits of people and also because of
changing trends in market. In the food service industry all Companies have to understand the
supply channels which is used by them in procurement of raw materials. There is also a need to
consider the sourcing and procurement process which will help in procurement of raw materials
easily and effectively(Ahmad and et. al., 2017). This report is based on Strada restaurant, which
is a chain based food outlet in UK and they specialise in Italian cuisine having four sites of starda
and five coppa clubs which are mostly present in southern England. Various topics discussed in
this report are principles of effective procurement, process of sourcing, evaluation of
management practises which help in the business operations in more effective way. Lastly,
recommendations are provided which can help in improving the business practises.
TASK 1
P1 Identify various range of food supply chain approaches with highlighting the key stakeholders
in the overall process
Food system or the food supply chain is referred to a procedure which is used in
identifying how various food items are offered to customers. It is identified that that it is
important for the owner of the restaurant to maintain the whole quality of food. It is essential for
the owners of restaurant that they are bale to consider the time factor also which is helpful in
creating benefit for both customers and owners(Kafetzopoulos, Psomasand Kafetzopoulos,
2013). There are various approaches related to fool supply chain in the industry which is
discussed below:
Fine dining: The ambience is a factor which plays a very important role in to provide a
good ambience to the customers. This is one factor which helps the customers in having a
different experience as compared to the competitors. This approach is related to the clean
atmosphere, good music and various other factors which are related to providing a overall good
experience to the customers. Strada restaurant is a Italian restaurant which is having a fine
dining arrangement.

Themed restaurants: This is a service based restaurant which is based on a particular
theme so that customers can be attracted and they can experience something new. These are
made with the help of interiors, architecture of the restaurant, overall ambience is designed
according to that theme(Karaman, and et. al., 2012).
Take away: This is a trend of fast food which has become very trendy as people have
shifted towards eating from external sources. They tend to avoid the home made food. This is
helping the customers in saving their time as this is the main distinguishing feature of these take
away outlets(Yamjala, Nainarand Ramisetti, 2016).
Pop up food services: These are those type of food services with the help of mobile
kitchen which are food trucks. The major factor of this pop up food service is providing one
specialised service, which can help in satisfying the special needs of their customers.
Role of stakeholders: There are many stakeholders who are part of the restaurants such
as suppliers, employees, customers, policy makers and many others. All together constitute the
total stakeholder in the company. They all together constitute the smooth functioning of all
operations in a particular food outlet. All stakeholders such as employees, managers,
government, community, competitors play a very crucial role in the smooth functioning of any
food service outlet.
Approaches related to food supply chain: There are various different types of suppliers
which are responsible for effective running of the overall supply chain of business. This
management of supply chain is very important for effective demand and supply taking place in
the restaurants.
P2: Principles of effective procurement and sourcing processes for a food service operation
Food services are depended on the delivery and quality of the suppliers. The operations
of food service can be improved and by enhancing the sourcing
& procurement processes(Schmelcher and Loessner, 2016). This will help in increasing the
profits and saving of costs as some element can be eliminated from this process:
Procurement processes:
 Purchase specifications: Before the raw materials are procured the materials have to be
prepared according to the order specification only. This will help in provident various
specification related to the products which are to be ordered. Savings in terms of cost
will be done as there will be material in accordance with the requirements.

 Factors affecting the prices: While the goods are being procured there are many factors
which are affecting the procurement in terms of cost associated with such products. These
factors can be change of season, prices of commodities, transportation cost etc. these all
have a effect on increase in the prices which can have a effect on availability of funds.
 Credibility of the suppliers: In this step the procurement process has to be in according
with the various suppliers which has to be in accordance with the quantity and quality of
products which are required. Also, the credibility of suppliers can be checked in terms of
their overall capability which is helping in effective functioning of the operations and
functions of company(Osés and et. al., 2012).
Sourcing process:
 Making correct choices: While the process is being undertaken there are various
quotation which have to be analysed with various offers. This will help in selection of
best offer which can provided maximum benefits.
 Focussing on after sale services: It is important that all the suppliers who are able to
provide better after sales services. This will be beneficial for restaurants as there will be
savings in terms of cost and maintenance which otherwise have to be borne by the hotel.
 Types of payments option: There are many different options which can be used for
making payment to various suppliers. At the time of making payments it has to be
considered that suppliers are able to provide with the trade credit and this will help in
reducing the cash requirements. This will also help in effective maintenance of payment
cycle by companies.
Above mentioned strategies will help strada restaurant in determination of opportunities which
will help in increasing of the profitability. This will lead to reduction in the direct & indirect cost
which is associated with it(Motarjemiand Lelieveld, , 2013).
TASK 2
P3 : Application of various analytical tools which will help in supporting management strategies
To make various strategies it is important that company is able to apply various analytical
tools. This will help in determining various changes which are happening in the external
environment and will also help in understanding of various environmental changes taking place

and having a effect on the business. In context of Strada restaurant, SWOT analysis is done and
Porter's five force model is being applied. These two approaches will help in analysing strengths,
weakness, threats and opportunities so that competitiveness of the industry can be analysed.
Strength Weakness
 The strength of strada restaurant is that
they provide excellent quality of taste
in the food which they are offering at
their restaurant.
 They specialise in providing best Italian
taste to their customers.
 Timely changes has to be made in the
menu of the restaurant so that regular
customer get some new tastes to try on,
in case of strada restaurant it becomes
important for them to make such
changes which can help in creating
some new experience for their
customers.
opportunities Threats
 There are many opportunities which
can help in increasing profits of the
restaurant which are they can include a
healthy menu as people are becoming
more conscious for health this is the
reason why strada restaurant can add
new variant to their existing Italian
menu which will help the new segment
of customers in approaching this
restaurant.
 Competing restaurants can be a threat
for strada restaurant as it may lead to
shifting of customers from other
competitor.
 Another threat which can be harmful
for Strada restaurant is that prices of
raw materials can be raised which can
lead to increase in cost of them as
result the overall profit margin will
decrease.
To make an analysis of Strada restaurant five force model of Porter is applied which will
help the organisation in making timely decisions. This model was founded by Michael Porter
which will help business in understanding various impacts of factors:
 Competitive Rivalry : This factor is related to number of competitors which are present
in an industry. In case of strada restaurant also there are many competitors which are

possessing threat for this brand, such as peninsula, prrezo restaurant which provide huge
competition to this restaurant.
 Suppliers Power : Suppliers bargaining power is related to power possessed by the
suppliers depends upon number of suppliers and the switching cost of the Strada
restaurant. There is high bargaining power of the suppliers of Strada restaurant.
 Buyers Power : This factor is related to the number of options available with the buyers
similar to those of Strada restaurant. There are many different restaurants who are
providing Italian cuisine, this analysis helps in understanding of the overall situation of
buyer power(Milios, Drosinos and Zoiopoulos, 2014).
 Threat of substitution : This factor is helpful in identification of various competitors
which can help in attracting customers. This is a tool which is helpful in understanding
how easily a customer can substitute a brand with another. This will help in making a
analysis that what is rate of substitution for the customers of Strada restaurant.
 Threat of new entry : This factor is related to attracting new customers. This factor is
related to new competitors who can enter the industry and can increase the amount of
competition for the strada restaurant. Hence, it becomes important that such threats have
to be analysed before so that restaurant can make changes which can help in
Such strategies will help Strada restaurant in analysing various strengths and weakness
prevailing in the macro environment.
P4: Different practises of management which support the business practises:
Management practises are related to methods which help in effective running of a
business operations(Oses and et. al., 2019). In restaurant it is necessary to follow various
practises to increase the loyalty of customers and make the services more attractive. Some of the
practises are discussed below:
 Management of human resources and capital resources: It is essential that food
industry is able to provide various efficient services to their customers and this is done by
management of human resources of the organisation. This can be done with use of
following practises:
1. Skill assessment & development: In concern with Strada restaurant, This practise helps in
improving overall practises which will help in increasing the satisfaction level of their
customers.

2. Staffing levels & management of cost: This is a practise which is concern with placing
people at various positions in the company which can help in assigning of responsibilities
in an easy way. Strada should ensure that there is no duplication of activities and also
there should be unity of command so that employees are clear in what work has to be
done by them.
3. People oriented: In the context of Strada restaurant it is essential that to establish
effective coordination between the workforce, customers all this will help in achievement
of overall vision and mission of the organisation.
4. Action oriented: This approach is not related to the people but is related to various
functions of Strada restaurant. They must focus on achievement of objectives and goals,
development of various new and innovative concepts. All this will help in management
team of company in development of various new innovation.
 Resource and property maintenance process: This practise will help Strada restaurant
in management of resources and their property so that business can be operated
effectively.
1. Internal & External services: this practise of management is helpful for the Strada
restaurant in managing of the property which has been taken on lease it has been
purchased.
2. Repairing of Property: For strada restaurant it is important that they are able to do repairs
which will help them in attracting more customers and having good condition of
premises(Kirezieva, and et. al., 2015).
TASK 3
P5 Define various ethical practises and their impact on food service organisations:
It is important that every organisation is able to conduct its business in a more ethical
manner. In today's scenario, it is important for the management team of every organisation to
adopt various CSR practises. This activity is beneficial for the company and society. In the
context of Strada restaurant, they try to focus on adopting the practises of corporate social
responsibility which will help in improving the quality if their services:
 Conduct fair trade: In this practise the company has to deal with their suppliers in a fair
manner and try to get better quality of goods. This can be done by increasing the

satisfaction level of the suppliers so that the company is having effective long term
relationships which will provide of benefit and maintenance of profit margin.
 Organic produce: This can help in providing organic category of food which will help in
attracting those segment of customer who are more health conscious.
 Transparency in practices: It is very important to have transparency in the operation
and functions of business. This will help strada restaurant in developing trust of their
customers and all other various stakeholders who are related to the company.
 Eco-friendly practices: This practise is related to having concern for environment in
which the restaurant is operating. Having eco friendly practises in the company will lead
to contributing to the overall betterment of the society and people(Matharu, Melo and
Houghton, 2016).
With the help of CSR practises management team of Strada restaurant will be able to
enhance the positivity in the business functions. Such practise also leads to creation of goodwill
in the market which will be beneficial for increasing a brand image for the target segment of
customers and the target market.
 Brand strength: The brand image is something which will help in strengthening of the
overall image of brand. These ways will help in enhancing the market share and making
the overall customer base strong. For Strada this will be a tool which will help in
maintaining and retaining of customers in long run.
 Retention of Employees: It is necessary that employees are being retained in the
company for a longer period of time this will help in reduction of the overall cot of
employee turnover in the company. In case of Strada restaurant the management team is
always focussed in keeping their employees in the organisation for a longer period of
time(Kirezieva, and et. al., 2015).
TASK 4
P6: Management services in a specific food service operation
Performance review techniques used by the managers to evaluate and review the
effectiveness of employees. It is important for hotels and restaurants to monitor their staff
performance because they directly give service to the customers. To review such services, Strada

restaurant uses different methods and techniques which helps in making the services better for
the customer are discussed below:
KPI : Key performance indicators facilitates value that help companies in achieving
business goals and objectives. In context to Strada restaurant, the manager formulated different
strategies to satisfy their customers by serving different and good services. It will help Strada
restaurant to attain goals and profitability(Karaman, and et. al., 2012).
Customers feedback : Now a days, restaurant takes feedback from the customers in
order to improve the services and providing god services to the customers. With reference to
Strada restaurant, they take feedback from the customers after giving the services so that any of
the changes and improvement required in customer taste and preference will be done. This will
lead to increase in customer satisfaction which in turns customer loyalty.
Fixed & set standards : The companies fixed certain criteria & standards so that the
activities can be implemented in a better way. In context to Strada restaurant, the manager set
regular standards in order to evaluate the performance of employees. It also helps Strada to
monitor and review performance of workers. To work in the right direction, employees follow
the standards that help organization to be competitive in the market and increase market share.
Checking & Monitoring of quality : The primary reason of any of the restaurants is to
provide high quality of food and services so that their customers will always be loyal towards
them. With reference to Strada, the manager check the quality of services that is offered by
employees and suppliers to the customer on regular basis. Hence, it ensures customer
satisfaction and effectiveness in the activities of the restaurant.
From the above study, it has been identified that all the hotels and restaurants uses
various tools and techniques to monitor and review the performance of the employees that will
help them to improve and alter the services according to the customers. Restaurants like ZiZi,
Bella and so on also uses some techniques to improve the services and effectiveness of
employees(Kafetzopoulos, Psomasand Kafetzopoulos, 2013).
P7 Recommendations and alternatives for improving the performance:
There are various challenges faced because of technological challenges and external
environment changes such as changing taste and preference of customers.
Management Alternatives :

Recruitment and Talent Management- Strada restaurant have to conduct a effective
process of recruitment which will help them in accusation of competent staff.
Benchmarking- This is a very effective tool which is used by Strada restaurant they can
set benchmarks and according to that their overall functions can be measured against those set
benchmarks.
Implementation Plan
By proper implementation of the management model in Strada restaurant can easily
implement their plan which has been formulated. 7C's are discussed below:
Clarity: This factor is related to the management of Strada restaurant so that they can
focus on overall policies and plans.
Communication: The communication must always be effective which can help in having
positive impact on organisation(Ahmad and et. al., 2017).
Change Management : This factor will help in identification of ways which can help th
organisation in adapting of changes in the restaurant.
Criteria : This factor is related to identification and setting up of guidelines by delivering
quality food to their customers.
Checklist : This checklist is related to various elements which have to be considered by
Strada restaurant while they are performing various functions in the restaurant.
Call on help: In case of Strada restaurant they can take help from those which can help
them in achievement of objectives effectively and efficiently.
Choose the right provider :This factors is related to the management of Strada who can
help in having employees who can have better and improved quality of performance.