Food Service Management Report: Costa Coffee, Food Service Management

This report provides a comprehensive analysis of food service management, focusing on the types of food service, the food supply chain, and procurement processes. It delves into operations management strategies, utilizing tools like SWOT and PESTEL to support effective business practices. The report examines management practices crucial for successful food service organizations, including an analysis of ethical practices within a specific food service company (Costa Coffee) and their impact on overall business success. The report covers sourcing and procurement procedures, various management practices to support operations, and the importance of ethical practices for overall success. It also includes an improvement plan for the company, offering valuable insights into the industry's key components and strategies.

Food Service Management

Contents
INTRODUCTION...........................................................................................................................2
TASK1.............................................................................................................................................3
P1 Types of food service and range of food supply chain within the food service industry..3
P2 Principles of effective procurement and sourcing processes for a food service operation5
TASK 2............................................................................................................................................7
P3: Tools supporting operations management strategies within food service.......................7
P4 Management practices that support successful business operations in food service
organisations...........................................................................................................................9
P5 discuss Ethical practises in a specific food service organisation and the impact of these
practices on overall business success...................................................................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
Food industry is one of the thriving and critical sectors across the world. It is the largest
manufacturing sector in UK contributing a big percentage in the GDP and provides employment
opportunities to a large number of people. The restaurant and food service industry is one of the
fastest growing market segments and includes large number of people such as waiters,
bartenders, chefs, manager and dishwasher etc. It includes menu planning, daily operations,
marketing and merchandising etc. It has different type of food service outlets in the form of
buffet, family style service, food trucks, cafeteria, mobile food service, etc. Thus, it has different
range of food services which includes fine dining, casual dining, fast food and take away, pop-up
food services, conferences and events, themed food services etc. in these outlets (CHON and
MAIER, 2010). Costa Coffee is a British coffeehouse outlet which has a global presence with
operating chains in different countries. It is headquartered in Dunstable, England. It is second
largest coffee outlet in the world. In this report it includes sourcing and procurement procedures
with different management practices used to support operations in an organisation and operations
management strategies. Also, the importance of ethical practices for overall success with an
improvement plan for company.
TASK1
P1 Types of food service and range of food supply chain within the food service industry
Food industry is composed of diversified chain of service which helps in serving different
categories of specific foods to its target customer. This help in providing effective structure and
shape within an outlet by differentiating as per the need of people. Also, it helps in delivering an
authentic desired experience to its targeted customers. It is consist of following types-
1. Fine dining- It is also called as white tablecloth restaurants which caters an upscale
clientele and delivers supreme quality of food. It has a dressing code with classic formal
touch for high class gentry.
2. Casual dining- It is a place where full service is provided for casual dining. It has
comfortable atmosphere and affordable price menu for upper and middle class clientele.
It has relaxed décor with casual dress code for target customer to have fun.

3. Fast food and take away- In this food is prepared and served with less time consumed. It
is targeted to young and working people fulfilling needs of quick ready food. Take away
is an outlet which serves food in disposable container to take it along with in a packaged
form. It is formed for satisfying immediate prepared food for eating or takes out.
4. Pop up service- These are stands for testing new concepts and introducing different
cultural foods to serve local and tourist people. It is mostly open for a short time span at
an unconventional location. It is structured in trucks, shipping containers and obsolete
buildings and rooftops etc. It is a creative, contemporary and unconventional concept. It
includes different services such as counter, food stand or food truck service
(HANNAGAN, 2008).
5. Conferences and events- These are planned and organized meetings of several people for
a predetermine subject or issue. For this food service is offered and provided in the form
of dining with self and semi services such as in buffets with catering staff.
6. Theme based restaurant- A restaurant is designed and planned deliberately around a
specific style such as based on history era, past cultures, sports, entertainment, music and
other cultural specific designs etc. These are also based on specific cuisine for example,
Asian inspired cuisine, Italian and Chinese cuisine etc.
Range of different food supply chain approaches within food service industry
Supply chain management is one of the essential processes required to be well consider
for delivering goods and services in a business. It is one of the effective methods for establishing
competitive advantage in a business. This helps in robust supply of finished goods to reach
customers effectively. Food supply chain or food system define as the processes in which farm
production is transformed into finished goods and reaches target segment customers. It is
consists of various core activities such as sourcing, processing, manufacturing, distributing and
management of all these activities. It focuses on managing costs at every step and connects
agricultural, food processing and distribution sector. It includes various stakeholders such as
farmer, processor, transportation, warehouse, retailer and consumers etc. Consequently, it
involves different products and companies operating in different markets. Following are the food
supply chain processes and its key stakeholders-

1. Food generation- This is the first stage which is essential for sourcing quality and enrich
raw material for processing it. It is used for validating food quality and safety concerns of
authorities. Farmers use various synthetic or natural chemicals for overcoming diseases
and controlling pest, insects and animals. This stage is vital for generating quality
harvested produce by the farmers. Health conscious consumers only prefer organic
processed food or from natural farming developed products.
2. Processing- In this stage harvested food is stored in refrigerators and other processing
activities for preservation for delivering it to consumers. It is used to maintain and control
the safety and edible condition of processed food. It includes refrigeration, drying,
heating, fermentation, smoking and additives for preserving the quality of the food.
3. Transportation and Storage- In this logistic system is included for distributing products at
far places. Transport help in closing the gap between producer and consumers. Product
quality is ensured with controlling techniques to eliminate contaminated inventory. It is
vital to monitor various factors affecting the quality of a product. These are temperature,
humidity, atmosphere and storing conditions (HILL and HILL, 2012).
4. Consumer- This is the last stage in which manufactured food is delivered to the final
consumers in a market. It is achieved with the help of various intermediaries such as
wholesalers, agents and retailers. Delivering of products in safe manner due to its
sensitivity is the responsibility of every person in the supply chain. For this it requires
strong partnership between the intermediaries to ensure quality of product with safety and
edible condition.
Types of Food supply chain
A supply chain can be shorter or longer depending on the number of people involved in
delivering final or finished product. There are three types of supply chains based on number of
members involved:
1. Direct supply chain- In this there is only one supplier which can be a company or
manufacturer who sells directly to the final consumer.
2. Extended supply chain- In this type more people are involved for delivering finished
product desired by consumers. These members are various suppliers of raw material,
company, retailers, wholesalers and buyer.

3. Final supply chain- In this type it includes all the members which help in the flow of
goods, services, information and investors etc. It starts from first supplier to the final
consumer with various individuals aiding in the supply of goods.
Supply chain efficiency is assed with the measuring of performances of every individual
involved in the delivering of final product.
P2 Principles of effective procurement and sourcing processes for a food service operation
Procurement is the process of buying goods or services which includes various activities
such as planning, solicitation and payment procedures etc. It is managed by a team which frames
strategies for reducing expenditure and optimal sourcing. It involves acquiring of quality raw
material within a stipulated budget. It includes sourcing, ordering, accelerating, inspection and
reconciliation activities. Following are the key stages of procurement process:
1. Identifying goods or services needed- In this food service manager purchase products or
raw materials which are of right quality available at the most cost effective price in the
most economic quantities. It involves various techniques to determine whole life cost of
ownership with quality standards. This helps in calculating value for money of the
purchased product.
2. Explore and selecting vendors- In this supplier are identified with the help of scanning of
alternatives and their ability to provide quality products at best value. This help in
procuring high quality product at fair price with a strong reputation in the market.
3. Submit purchase requisition- In this request is given after receiving permission from
finance department. It is consist of a document in which request is made with all the
details required to make an agreement.
4. Create purchase order- In this actual purchase occurs after approval of purchase
requisition. Finance department issues a purchase order to the vendor with company
stamp and payment method (PAYNE-PALCIO and THEIS, 2016).
5. Receive Invoice and Order- In this vendor sends an invoice to the company which
includes amount of purchase and number of goods. It confirms the sale and frames
accountability of payment due on the purchaser. It includes documents with stamp such
as purchase order, receipts, and vendor invoices.

6. Payment- In this amount sanctioned by the finance department is used by the accounts
payable team. They start processing the invoice by matching it with Purchase order and
delivery details for following best approach. This helps in maintaining all the records and
usage of actions for payment within specified time.
7. Recording for Audit- This is the final stage in the procurement cycle which includes good
auditing practices. In this bookkeeping is maintained for storing purchase documents at
one place. This helps the auditor to analyse all the relevant data in one location.
TASK 2
P3: Tools supporting operations management strategies within food service
Operations management in an organisation is a core function which helps in transforming
inputs such as people, material and money into desired outputs which can satisfy needs of
customers. Various tools are used for analysing and aiding strategies in food service industry.
These tools are:
SWOT- This is one of the most effective strategic analysis model. It includes both internal and
external analysis which directs ways to capitalise on strengths of a company. It helps in
minimising effects of weaknesses and making the best of opportunities available while reducing
and combating impacts of threats. SWOT analysis is popular in framing strategic planning in
following ways-
 It is a great source of collecting key information required in planning.
 It helps in enhancing strengths also reducing weaknesses with optimum utilisation of
resources.
 It provides core information which helps in coordinating resources and aligning
capabilities with its micro environment for building competitive advantage.
 It helps in tapping market opportunities and overcoming threats of a company in most
efficient manner(REYNOLDS and McCLUSKY, 2013).
Limitation of SWOT analysis
 This can create ambiguity due to lots of information to consider which is not useful for
current scenario in a business.

 There are some factors which are not in control of management such as inflation,
availability of raw materials, rules and legislation and fluctuations in the economic
environment etc.
 This analysis can provide so many ideas or alternatives which makes it difficult to choose
the best due to uncertainty of markets.
PESTEL- In this analytical tool for strategic business planning various external factors are
analysed which helps in tracking market trends and changes. It is used when launching a new
product, project into the market. It helps to minimize threats while maximising opportunities by
scanning macro environment leading to effective strategic planning. It includes following
factors-
 Political factors- This factor influences operations of a business due to changes in the
political market of a company. It influences the economy of a country and businesses.
This include changes in government policy, political stability or instability with other
countries, foreign trade policy, tax policy, trade restrictions, labour laws and various
grants and initiatives etc.
 Economic factors- This factor helps in determining performance of an economy
influencing decision making in a business. This leads to impacting capabilities as well as
profitability of a company. This include fluctuations in the economic growth, interest
rates, exchange rates, inflation, wages rates, financing capabilities and disposable income
of consumers or public etc (HANNAGAN, 2008).
 Social factors- This factor influences consumer behaviour due to changes in the socio-
cultural beliefs, attitudes, and taste of the population. This affects the market and
businesses as well as community socially. It includes factors such as age, gender, growth
of population, career attitudes, cultural trends and health consciousness etc.
 Technological factors- In a world of technological advancement and its versatile usage
in the market, it affects the functioning of an organisation. Also, it offers a threat of
obsolete leading to high cost in short period of time. There are various factors which
impacts production, maturity of technologies, distribution, training to use advance
technology, potential return on investment and copyright infringements etc.
 Environmental factors- These factors consider biological and environmental aspects
which impacts the operations and working of a business. It can hamper as well as prosper

company’s growth. It includes factors such as pollution, decline of raw material, climate
and weather conditions and environmental legislation etc.
 Legal factors- It considers governmental laws and regulation in its operating
environment. These are uncontrollable and have to be abiding by leading to changes in
business operations. It includes various areas such as advertising standards, consumer
rights and laws, product labelling, product safety, labour laws and safety standards,
competitive legislation etc. These should be reviewed continually to be safe from large
fines, imprisonment, and business closure.
P4 Management practices that support successful business operations in food service
organisations
Food service industry undertakes various management practices which helps in
successful business functions. All organisations consist of various people known as Human
resources. These people helps an organisation thrives and achieve success with providing
effective performance. It is because of the capabilities of human resource which leads to high
performance of its business activities. Human resource department which deals with people of its
organisation and procurement of fresh talents within stipulated budgets. It recruits, manages,
develops and trains employees with employing various appraisal techniques. It tracks and
records level of performance and provide salary, incentives and wages. In food service industry
to assess level of service deliver to customer (HILL and HILL, 2012).
. This can be measured for finding customer satisfaction by associating level of cost with
expectation of customer service received. Following practices are used in the food service
industry to support successful business operations:
Branding
Brand is an image customer build which differs from other brands in the same industry. It
provides unique personality to the business which shapes the perception of consumers. A well-
built brand helps in connecting with customers emotionally. It is important for Coasta coffee to
promote desired image of its business through branding. This helps the company to establish
brand loyalty among its customer and leverage long term benefits of branding. Brand
expectations are the perceived value and image customer holds of company’s brand. With the
help of proper research find out what are customers thinking and feelings for the brand. This
helps in meeting customer expectations from company’s brand.

Brand strategy is a long term plan which helps in developing a successful and reputed
brand to achieve overall goals of the company. In this company is able to connect with consumer
through assessing their needs and competitive environments. For designing successful brand
strategy following points need to be considered:
 Purpose of the company- This gives company motivation and inspiration to continue its
operation aligned with mission. Costa coffee desires to achieve big market share in the
coffee drinks target market segment.
 Consistency- It is required to stick around with the purpose to deliver consistent
qualitative and quantitative performances. It is achieved through consistent efforts to
provide familiar identity to customers.
 Emotional connection- In this a connection is developed which help in building strong
relationship with customers. This help in enhancing engagement and building a
sustainable relationship.
 Employee empowerment- In this company culture and values are reinforced with the help
of applying tools and techniques. It helps in developing employees in an organisation.
These activities can be showed to outer world through websites, pages, which
demonstrate company’s behaviour (PAYNE-PALCIO and THEIS, 2016).
P5 discuss Ethical practises in a specific food service organisation and the impact of these
practices on overall business success.
What is Ethics: ethics are the moral judgements about right or wrong. These are the
moral rules and principles of behaviour that guides an individual to deal honestly and fairly with
each other and with their customers. An individual or a group made decision in an organisation
but whoever make the decision will be influenced by the companies culture.
Restaurant review: The Clove Club restaurant is situated in London. They serve moderb
British cooking which involves thoughtful, precise and elegant food. They serves a best produce
tasting menu from around the world.
Ethical practises in food services management: Ethical practise is not a black and
white issue. But the reality is that many ethical problems are grey and choices are difficult. There
are three basic motivations of mind which include- wanting, feeling and thinking. Evaluate
decision and choices are the essential element of ethical foundation. So, if there is a lack of
personal ethical foundation or limited ability to think critically, this may directly lead to those

actions which can only fulfil first two motivations that is feeling and wanting. Valid critical
thinking involves integrity, courage, fair mindedness, honesty, empathy which can make better
ethical decision and actions (REYNOLDS and McCLUSKY, 2013).
There are five ethical practises used in restaurant which are:
Develop ethical standards: The first practise by the restaurant is to make clear that
which behaviour is correct and which not. They create code of ethics section that outlines proper
business conduct. This eliminates any confusion among employees about company’s ethical
practices.
Encourage community involvement: Restaurant involves community involvement and
creates positive impact on the world. Whether it is donating in charity, raising money to local
causes or establishing volunteer programs for employees.
Be diligent: Not everyone is going to hold ethical at 100 per cent. There can be some
rules which can be broken. Company should hold employees accountable so that it can prevent
perpetuation of any unsavoury behaviour.
Praise positive behaviour: it is important for the restaurant to praise its employees
positive behaviour. This leads to best practices.
Ensures leaders: Leaders should act virtuously and be an example for other staff
members. When leaders upload a high standard of ethics then this creates positive impacts on
other peer members.
These practises help the restaurant in achieving its business success like:
 By developing ethical standards employees need to know what correct behaviour in the
organisation and what is not. This leads to give a better environment to employees in
which they can work efficiently.
 By encouraging customer’s involvement in the business leads to restaurants growth. Like
giving training to the employees and taking feedback and experiences from customers.
 To increase business success, praising positive behaviour of employees is must.
Restaurant ensures that employee should have positive behaviour.
These all business practices results in the success of Costa coffee.
CONCLUSION
It can be concluded from the above report that food service industry involves range of
sourcing and procurement processes which help in quality services to customers. It involves vital

operations which should be monitored and timely evaluated for keeping standards. Due to the
critical nature of food service industry various measuring tools are used to protect health of
customers. For this ethical practises are essential to implement which impacts business
operations in a positive manner leading to success. Costa coffee is recommended to use various
management practices with performance evaluation techniques which help the company in
achieving success.

REFERENCES
Books and Journals:
CHON, K. and MAIER, T. (2010) Welcome to Hospitality: An Introduction. 3rd ed.Delmar, New
York: Cengage Learning.
HANNAGAN, T. (2008) Management Concepts and Practices. 5th ed. Harlow: Pearson.
HILL, A. and HILL, T. (2012) Operations Management. 3rd ed. Hampshire: Palgrave
Macmillan.
PAYNE-PALCIO, J. and THEIS, M. (2016) Foodservice Management: Principles and
Practices. 13th ed. Harlow: Pearson.
REYNOLDS, D. and McCLUSKY, K. (2013) Foodservice Management Fundamentals.
Chichester: John Wiley & Sons Inc.