Food Service Management: Nando's Case Study and Business Operations

This report provides a detailed analysis of food service management, examining various aspects of the industry. It begins by exploring different food supply chain approaches, including fine dining, casual dining, fast food, and themed food services, highlighting key stakeholders in the process. The report then delves into the principles of effective procurement and sourcing, discussing the stages involved and important considerations such as traceability, value for money, and payment options. Furthermore, it evaluates different management practices that support successful business operations, focusing on human resource management and its key functions. The report also analyzes different analytical tools supporting effective management strategies and examines ethical practices, using Nando's as a case study. Finally, it addresses specific questions related to the topics covered, providing a comprehensive overview of food service management principles and practices.

FOOD SERVICE
MANAGMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................4
LO1..................................................................................................................................................4
P1 Examine a range of different food supply chain approaches in the food service industry ....4
P2 Discuss the principles of effective procurement and sourcing process for a food service ....7
LO2 .................................................................................................................................................9
P4 Evaluate different management practices that support successful business operations in
food service companies ...............................................................................................................9
P3 Different analytical tools supporting effective management strategies................................10
P5 Different ethical practices in Nando and its impact on the success of the business.............12
LO4................................................................................................................................................13
Question 1..................................................................................................................................13
Question 2 .................................................................................................................................13
Question3: -................................................................................................................................14
Question 4 : - .............................................................................................................................15
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17
Nando’s Slammed Over Its Animal Welfare Standards. 2019. [Online]. Available
through<https://plantbasednews.org/culture/nandos-slammed-over-animal-welfare/>................18

INTRODUCTION
Food service management is the approach of managing daily operations of the restaurants
and other located franchises that prepare and offers food and beverage services. They guide
individuals to ensure that customers are satisfied with the dining experience so that company gets
profit in return. There is an example of Nando’s restaurant company which is fast food or casual
dining industry. It has established strong brand image in UK’s market due to it’s high quality
food products like chickens and related cuisine. It operates in multiple countries across the world
and offers it’s services to the customer. In this report will discuss about wide range of different
food supply chain approaches in the food service industry and will highlights key stakeholders in
the process.
LO1
P1 Examine a range of different food supply chain approaches in the food service industry
There has wide diversity of food service in the context of food services which are
mentioned below:
 Fine Dining: Fine dining restaurants is also known as tablecloth restaurants. These are
fully-serviced restaurants with particular dedicated meal course. It is highly popular
during holidays or in special occasions. Fine dining restaurants are not the place to
become loud and place to go in informal dresses. It requires proper dressing code of
employees. For example, Gordan Ramsay, Chelsea.
 Casual dining: A casual dining restaurant is a full-service (Full bar service) restaurant
with comfortable and affordable priced menu. Generally, the menu of these restaurants is
costly rather than fast food restaurants. There is no need of dressing code while offering
services to customer. Nando’s is the great example of casual food restaurant (Bashir and
et.al., 2019).
 Fast food and take away: It is another food service wherein fast food is a commercial
term-limited to sold food in restaurant or stores. Fast food can be defined as the food that
can easily prepare and serve within in minimum time. In such restaurant places customers
can sit down, take out the food easily. While take away means food normally serve or
pack in disposable container that can be eaten immediately or can take away in packaged
form.

 Pop-up food services: Such restaurants, bars and stands allows owners, guests and chefs
to try creations, restaurants concept and new food. Such restaurants or bars opens in
unconventional location for a month in summer season. Pop-up food services includes
food stand, food truck services, counter service and full table services and increases
awareness in customers through modern technology like social media, Internet etc.
 Conference and events: Food services are highly required in conference and events for
example conferences is like a meeting wherein number of people discuss over a specific
topic or exchanges innovative ideas among experts. While event is planned or organized
program such as sports match. Themed food services: Themed food services are those food services that organized or
designed on the basis of particular subject like Asian-inspired Cuisines. Nonda’s is not
theme based restaurant but it is famous for British food while Hard Rock Café is a theme-
based restaurant.
Planning product range and suppliers in accordance with company’s brand and theme
The range of product is the set of different types and kinds of products that offers by the
organization or it’s franchises. Most of the companies like Nando’s offers different range of
products and services in multiple countries with the supports of franchisees in order to improve
purchasing behaviour of individuals and builds good brand image in the food service industry.
Food supply chain processes and key players
It is a food system that defines how food starts from farm to end up on guest tables. Food
supply chain is also known as the ‘Farm to Fork’ because it comprises various activities that
involves in the transformation of food materials into user’s ready food stuff i.e. from souring to
processing, conducting, distribution and sales. In addition, management and documentation are
also considered one of the major activities that involves in food supply chain. Food supply chain
supports to move food from producer or consumers in precise manner and in return, money pays
by consumers for the food goes to people who offers their services at different stages along with
food supply chain (Berti and Mulligan, 2016). However, food supply chain composes wide range
of food products and organization operates in different markets and sells a variety of food
products. It connects three major sectors such as agricultural sector, food processing industry and
distribution sectors like wholesale and retail. In food supply chain, food products move from
producer or the consumer through the process of production, processing, distributing, retailing

and consumption. At the same time money that users pay for food products that moves from
users to producers in reverse process.
Types of supply chain
 Direct: In this process, only three type stakeholders are involved a supplier, a central
corporation and a purchaser.
 Extended: In this chain involves supplier’s supplier, the major supplier, organization and
the buyer. Final supply chain: It is a traditional supply chain wherein involves supplier, central
corporation, final supplier, final buyer and the consumer.
Food supply chain processes and key players in the process
It is a terminology that is used to refer different processes in food chain from agricultural
production to consumption. It also involves the ability to track food products as they transport
through supply chain. Different operators in supply chain is expected to analyse and control their
practices to ensure food safety for the users (Casino and et.al., 2019). Every stage of supply stage
is systematically supervised to avoid contaminated food supplying to the unsuspecting users.
There are various key players in the supply chain such as farmer, processor, transportation &
storage and consumer whole plays effective role in food supply chain. Different stages of food
supply chain have discussed below:
 Food Origin: It is a potential source of the food safety concern wherein farmers play vital
role such as they use synthetic and natural chemicals to promote harvest. Currently,
consumers have become health concern so they are more likely to prefer food products
which drives from organic or natural farming method.
 Processing: It is another stage that is responsible for preserving and processing food so
that consumers get the food products in safe and edible condition. However, food
processors plays significant role in this stage because they involve in different processing
activities like drying, refrigeration, smoking, fermentation etc.
 Transportation & Storage: It is another essential stage of food supply chain wherein
distributors supports to close the gap between food manufacturers and consumers. It is a
final opportunity stage in the context of determining and eliminating contaminated
inventory. This stage has certain issues like temperature, humidity, atmosphere, handling
conditions so it is required to monitor effectively.

 Consumers: It is final stage that is referred to “the Fork”. It is a vital stage wherein food
to this point. It is absolutely safe for consuming purpose.
P2 Discuss the principles of effective procurement and sourcing process for a food service
Procurement is the procedure of buying goods or services while business procurement
needs preparation, solicitation and payment processing that may be involved in certain areas of
business (Martin-Rios and et.al., 2018). There are various stages of procurements process that
are discussed as follows:
 Identify goods or services needed: It is essential stage of procurement process wherein
food service managers require to purchase those food stuffs which are available in cost-
effective price, right quality and ensures that they are presented whenever required.
 Explore and select supplier: Sourcing highly skilled and talented vendors who can
provide best value as well as quality for the food and services. This stage helps food
service company to gain competitive advantage.
 Submit purchase requisition: This stage is a type of approval documented process
wherein stakeholder takes approval from internal department for purchasing from the
vendor.
 Create purchase order: It is another stage of procurement process wherein buying occurs.
Once, stakeholder gets approval of purchase requisition then internal department deals
with financial issues a purchase order to vendor (Ojo and et.al., 2018).
 Receive invoice and orders: In this stage vendor sends a invoice to the buyer that clearly
defines what the order has exactly included. However, buyers receive order into three
documentation forms like purchase orders, order receipts and vendor invoices.
 Pay for good and services: In this stage, finance management plays vital role because
they process on the invoice wherein matches invoices against approved product order and
delivery brief to analyse that order follows all best practices or not. If everything matches
up as pe the guideline then finance team sends payment to the vendor directly.
 Record for Audit: It is last stage wherein auditors analyse all documents related to
purchase requisition to invoices so these documents must be stored in one central
location.
These above-mentioned stages are the principles of procurement process that improves
effectiveness of food service companies like Nando’s.

Sourcing consideration
There are various sourcing considerations through which company can get advanced
benefits in it’s business such as:
 Traceability of product origin: In the food service sector companies like Nando’s may
have ability to determine source of food, ingredient and origin of food. There are two
method of traceability such as external and internal traceability. According to external
traceability, it is required to trace all available items uniquely and information must be
shared between distributors. On the other hand, internal traceability means processor
should be maintained links of raw material to finished goods within company.
 Value for the money: It is another step that must be considered in the food service sector
because it is one of the most advantageous combination of quality, cost and
sustainability to fulfil customer’s need (Rana and Paul, 2017).
 The range or choice on offer: It is another effective method that can help food service
company like Nando’s to take best decision during sourcing of food stuffs.
 Aftersales services and warrantees: This strategy supports food service company to stay
long in the food sector and builds brand loyalty in customers. For example when food
service organization like Nando’s keeps constant contact with the users who already
have purchased food by asking about food services, quality and improvement that
automatically retain them with company for long time.
 Types of supplier’s payment options and methods: It is another effective way wherein
buyers have multiple option to compensate the seller for the food or service which is also
acceptable for the seller. There are various payment options like payment plans, debit
card, net banking, cashier checks etc. through which food service company can
encourage customers to buy it’s food and services.
The above-mentioned strategies and ways will definitely increase effectiveness of organization
and creates a trustable brand image in the food sector.
LO2
P4 Evaluate different management practices that support successful business operations in food
service companies
Human resource management is the major part of the company which is responsible for
acquiring, developing and cooperating individuals and ensures that they are meeting their roles in

the workplace. There are certain key functions that perform by HRM in the food service
companies like fine dining, causal dining etc.
 Staffing: It is one of the prime role of HR professionals that perform in different food
services companies like employee hiring, screening and selection in order to fill
designated posts.
 Training and development: It is a major subsystem of the company that emphasizes on
the improvement of individuals or groups performance. This practice of HRM helps
company to gain competitive advantage and improves customer’s satisfaction by
enhancing working efficiency of individuals at the workplace.
 Motivation: It is another role of HRM that perform by HR professionals in food service
companies to stay motivated their staff so that they give productive performance in the
workplace (Schmutz and et.al., 2018).
 Maintenance: It is another aspect of HRM that perform by HR professionals to protect
and promote physical and mental health of individuals in the workplace during peak
period.
In addition, HRM department plays another role in the food service industry such as they help to
control costs of food that is essential to improve purchasing behaviour of eateries. They play
significant role in different food companies by offering training individuals on serving and
preparing standard food, keeping control over inventory stocks and sourcing different suppliers
in order to gain highly cost-effective ingredients. HR managers has goal to lead success in the
business so they put more efforts in leading level of customer satisfaction in food service
companies like Nando’s. They always emphasize on business operational activities that are
performed by different employees so that company enables to establish strong brand image in the
business market due to high quality product and services.
HRM manages staffing levels at different food service companies like
A self-service restaurant: In these restaurants have low demand of staff because these are not
prepared food or not deliver. There is require only 1 server, per shift for every 12 tables and 4 are
required for the back-house staff at the same period to handle only 50 customers.
Seated-but casual dining: In this restaurant requires more customers services as resulted need
more staff per guest to ensure that company keep up with logistics of orders.

Fine dining: In this food service company needs more staff in the kitchen and more attentive
servers out front. I server requires for every 3-4 tables per shift and 6-7 employees requires in
back of the house per 50 guests.
Thus, HR managers maintains controlling staffing level in different food service companies.
HR managers also perform role as costs management in food service companies like Nando’s to
control on all over the costs which are involved in a business (Sgarbossa and Russo, 2017). In
addition, they are responsible to make individuals highly skilled and competent in the workplace
through which company gets all projected goals and objectives. Belbin team roles theory
practices by HRM to make individuals skilled and responsible for their job responsibility in the
food service companies like Nando’s. The Belbin model comprises nine roles of team that all are
practised by HR managers so that individuals effectively perform their different functions that
automatically leads effective outcomes in the business.
P3 Different analytical tools supporting effective management strategies
The food service organizations have become the increasingly difficult business to manage
because of the ever-growing competition, decreased margins and rising costs. But they can
effectively control these factors by making use of some modern tools that can help the business
to grow in the direction the owner wants it to (Stadler and et.al., 2016). Along with providing
good food and positive atmosphere, the organizations must use these new tools to attract more
customers as they are much efficient, easier to use and comparatively cheaper. They must use the
following tools to their highest potential and the organization is bound to succeed:
Obtaining Customers
The main goal of every food service organization is to gain more customers which can be
easily done by a cost-effective way that is Yelpwich combined with SeatME. Yelp let the
customers to search and find the restaurant, read the reviews, go through the photos and make
bookings. The second part of Yelp is SeatMe which is basically a table management application
that helps the company to keep a track about the seating of the guest and the vacant seats which
are open to allocate the staff efficiently (Davidson, 2015). On the other hand, the employees and
the managers need to learn the ways in which they can use these tools as they are much complex.

Prioritizing the customer
The customers are a priority even if they are not served. In order to resolve the issue of
the customers to stand in a waiting line especially when they are aware of the time they have to
wait for. Waitlist Me is the solution to this problem which treats every guest as a regular one.
The customers can check the time they have to wait for and when their table is ready, then a text
or a call notifies them (Salemdeeb and et.al., 2017). The company can also be facilitated by this
application as they can note the guest preferences and other details that helps in attracting the
customers. But this application needs much investment which sometimes become impossible for
the restaurants to afford and the company can lose some customers even after monitoring it
regularly.
Seamless Transactions
SambaPOS, being a versatile system can be customized with the menu and needs of the
restaurant. It helps the company to obtain a clear idea about the sale, things made from that sale,
things which are hindering the sale etc. An updated POS (Point of sale) system can handle the
orders quickly and accurately. Also, it is a far quicker process through which valuable metrics
can be derived. Along with benefits, it also creates security risks and also needs to be updates
regularly which becomes must costly.
Smart Supply
The main concern of the food service organizations like Nando is that the guests must
consume the total amount of food which is ordered from the suppliers in order to make more
money. This is the equilibrium point where supply equals to the demand. This is practically not
possible but the organization strive hard to come closer to it. The management tool named as
Count-n-Control which allows the company to follow the entire inventory through its life cycle
quickly and accurately (Haraguchi and Lall, 2019). Its online interface also allows multiple users
to import the files along with sales analysis. But sometimes following the whole inventory can
make the company careless in order to focus on other aspects rather than supply and demand.
Efficient Workforce engagement

Employees are the one which defines the business and the food service organizations like
Nando must make sure to allocate then the best which helps the business prosper. Time Forge is
the advanced tool that manage the schedules and the labour cost effectively and easily. This also
helps the employees to view their schedules online and also helps the company to make the staff
members available in the restaurant in the peak functionality (Abomaye-Nimenibo, Samuel and
Effiong, 2019). On the flip side, it also creates a mess when many employees need the best but
some get and some do not which creates a sense of distrust among them.
Therefore, the above mentioned analytical tools can helps Nando in developing effective
management strategies which can help it to gain the competitive advantage and also enhances is
progress. The tools made the task easier and quicker to get more customers and to run the
business effectively. These tools can help the company the restaurant to grow the business and
prosper in the right direction.
P5 Different ethical practices in Nando and its impact on the success of the business
Ethical practices refers to systematic rules or principles which helps in governing right
conduct. It is required for every business when entering into the market with the responsibility to
adhere to the standards of ethical practice and right conduct. Nando's is committed to do business
in an ethical and sustainable way where it is being alert to the risks of modern slavery and
human trafficking and doing business in a way that it could be eliminated.
Earlier it was being reported that one of the main suppliers of Chicken for Nando's kept the
chicken in poor conditions where they responded and added that they constantly reviewed their
products to make sure they are being ethically being sourced where it added to the above
statement that chicken welfare is the utmost importance to them adding to consider price at
which there customers are willing to pay. This reviewing of product resulted in time-consuming
and costly process where it increased the price of products resulting in the loss of customer
loyalty and loss in business.
Ethical practices which NANDO's can adapt to there operation is that they should be honest, fair
and do their business with integrity by providing sufficient information to its customers and
others.
NANDO's adapt to high welfare standard where it has been working with a range of independent
experts on strategy to address to complex relationship between high welfare standards,