Food Service Management Report: Procurement & Performance Review

This report provides an in-depth analysis of food service management, using Vapiano as a case study. It explores various food supply chain approaches, including direct, short, and outsourced models, and strategies for predicting demand and optimizing distribution. The report also examines procurement strategies like total quality management, risk management, vendor development, and green purchasing. Furthermore, it delves into analytical tools such as SWOT analysis to assess strengths, weaknesses, opportunities, and threats. Management practices, ethical considerations, and performance review techniques are also evaluated, with recommendations for performance improvement and strategic planning. The report concludes by emphasizing the importance of ethical practices and providing a comprehensive overview of effective food service management principles within the context of the restaurant industry.

FOOD SERVICE
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................4
LO 1 ............................................................................................................................................4
P 1 Range of different food supply chain approaches........................................................4
P 2 Range of procurement strategies which enhances the effectiveness of the organization. 5
LO 2.............................................................................................................................................5
P 3 Different analytical tools and management practices..................................................6
P 4 Different management practices..................................................................................9
LO 3...........................................................................................................................................10
P 5 Ethical practices in restaurant and impact of these practices.....................................10
LO 4 ..........................................................................................................................................11
P 6 Assess management techniques and performance review techniques.......................11
P 7 Recommend and implement the plan to improve the performance...........................14
CONCLUSION..........................................................................................................................15
REFERENCES..........................................................................................................................18

INTRODUCTION
Food service management are responsible for the daily operation of restaurants or other
establishments that prepare and serve food and beverages. They direct staff to ensure that
customers are satisfied with their dining experience, and they manage the business to ensure
that it is profitable. Vapiano is a German restaurant franchise company headquartered in
Cologne. The chain's restaurants offer Italian food adhering to the fast-casual principle.
Vapiano was established in 2002 in Hamburg established restaurant in 31 countries who has
over 10,000 employees. Its largest shareholder since 2011 is the private equity firm. This
report gives a brief description about how the restaurant business is managed and how it
achieves growth in the market.
LO 1
P 1 Range of different food supply chain approaches
Farm to food is an approach for food supply chain. This is a system in which food
production, processing, distribution and consumptions are integrated so that Vapiano can
improve the environmental, economic, social and nutritional health of its products for its
employees.
Some of the techniques of Food Supply Chain are as follows-
Direct Supply Chain
This is type of food supply chain which consists of a company, a supplier and customer
is involved in the supply chain (Ciulli, Kolk and Boe-Lillegraven, 2019). Vapiano in this type
of supply chain deals directly with supplier of the product, no other party is involved.
Stakeholders – Supplier and Management of Vapiano
In this are supplier and management dealing with them are stakeholders because only two
parties are involved in the process of supply chain.
Short Food Supply Chain

This type of food supply chain consist of less people, this is a broad range of food
production-distribution-consumption and configuration this includes farmers’ market, farm
shops and Vapiano which is the purchaser of the product (Canfora, 2016).
Stakeholder – Farmers, Community
Involved in this are, farmer, Vapiano and community because farmers supply their products to
other suppliers and community and from that suppliers and community people Vapiano can
buy products.
Outsourced Supply Chain
In this type of supply chain Vapiano contract third party so that it can fulfil the needs
of Vapiano in relation with its supplies (Utomo, Onggo and Eldridge, 2018).
Stakeholders - Third party firm and Vapiano management
Outsourced supply chain consists of two stakeholders one is management of Vapiano dealing
with the outsourcing organisation and other is organisation to which the process of supply
chain has been outsourced. Vapiano do not contact any other party and stakeholder but the
organisation who has been outsourced and other responsibilities remain with the outsourcing
firm.
Other than this customers are major stakeholders in every type of supply chain
technique of Vapiano as they are ultimate beneficiary of success of the supply chain of the
Vapiano.
Predicting launch and early stage demand-
Vapiano restaurant can use the strategy of data analytic to measure their sales
performance for the last few years. Apart from this they can look out for other residential area
to serve and increase more of their operations. This will help the restaurant to decide the level
of production and follow up according to the information they have gathered. They can gather
the information by using different sources such as consumer demographics, consumer
segments, retailers, channel segments, weather forecasting. (Mei, Amyrisah and Abdullah,
2017).
Minimize the time of pipeline-
Restaurant must deal with those suppliers who keeps their channel of distribution and
pipeline as short as possible (Elmasry, M., 2018). This will help them to reduce the factor of

excess stock as they have to maintain FMCG consumables which needs to be served fresh in
order to maintain the quality of the restaurant. Monitoring the sales immediately after
completion of service will help them to maintain the lot of their inventory.
Leverage multi channel fulfillment
Restaurant has a option to choose omni channel as it will help them to reach their
consumers to as quick as possible and exceed the expected results. They can take the help of e
commerce as it will help them to give orders online and they will get their orders by express
delivery or through wholesalers through drop shipments. Multi channel fulfillment ensures
that products of the firm are separated on the basis of the type of their requirement whether
they are required for physical fulfillment or they are requirement for commercial use (Kim,
Kim and Yeon, 2017).
Organize strategically-
This aspect states that restaurant must segments the customer and deal with the
suppliers for goods according to that. This will help them to save time in communication and
recognize the buying pattern of people and demand in the market.
Vapiano restaurant can use the strategy of data analytic to measure their sales performance for
the last few years. Apart from this they can look out for other residential area to serve and
increase more of their operations. This will help the restaurant to decide the level of production
and follow up according to the information they have gathered. They can gather the information
by using different sources such as consumer demographics, consumer segments, retailers,
channel segments, weather forecasting (Mei, Amyrisah and Abdullah, 2017). This is helpful as
sales data of past can reflect and help in predicting future trends of sales. For example, last year
data in particular time of the year can help in predicting what will be the sales in current year.
P 2 Range of procurement strategies which enhances the effectiveness of the organization
Restaurant has to choose an optimum no. of suppliers who can provide them the goods
at the best price in the overall market so that they can save money for other departments. This
process will help the company to select only those suppliers who does not compromise with
quality and deliver the goods without missing the deadline.

Total Quality Management-
Vapiano can use this technique as it will help them to reduce the errors in the
management of supply chain and offering high quality service. Apart from this restaurant must
ensure that their supplier is aware of uses of tools such as six sigmas so that they can offer the
best of the services at low cost (Heikkilä and et.al., 2016).
Risk Management-
Most of the businesses deals with the suppliers which are either from China or India as
they are more concerned with managing the risk of supply chain. These countries distribute
the goods at less prices, but the businesses are concerned that any calamity or natural disaster
will affect the flow of supply chain.
Vendor Development-
Vendor development refers to developing vendors and suppliers. This is an activity
which is undertaken by buyer and is a popular technique of strategic sourcing. Through this
activity buying firm undertakes to improve a supplier’s performance and capabilities to meet
the buying firm’s supply needs. This vendor development includes four stages which are
Survey Stage, Enquiry Stage, Negotiation and Selection Stage and Experience and Evaluation
Stage (Abhinaya, Muddukrishna and Pai, 2019). Vapiano firstly needs to identify who can be
its suppliers, later enquiry stage includes enquiring about the suppliers and their policies and
prices and products they are capable of supplying. Negotiation and selection includes where
Vapiano negotiate with the suppliers and put forward its terms and conditions. Experience and
Evaluation stage is where Vapiano acquire experience from its selected suppliers/vendors and
later evaluate this experience on the basis of the quality and services they are providing. In
case experience with the supplies and services of Vendor are satisfactory then Vapiano can
continue getting supplies from that Vendor in case they are not satisfactory Vapiano can the
vendor (Yi, 2017).
Green Purchasing-
This is considered as one of the most common strategies for procuring the goods as it
helps to preserve the factors which affects the environment as these materials are recyclable
and can be used again. This method will help the restaurant to gain a better public image and
support from the government (Jaiswal and Kant, 2018). Green purchasing includes
procurement of the products which have less effect on human health and the environment

comparing to other products which serve the same purpose. For example, using organic
products than chemical products where it is possible to do so it does not impact health of
human.
The most efficient and suitable strategy of procurement for Vapiano restaurant will be green
purchasing because the restaurant deals with lot of customers and implementing this process
will help them to save lot of the resources and preserve the environment. This will help them
to enhance the effectiveness of work.
Three factors which affect the management of procurement are managing suppliers,
meeting the demands which is necessary to cope up with the level of requirement of organic
foods and the most important to keep the things in mind which are seasonable and perishable
(Gregoire, 2016).
LO 2
P 3 Different analytical tools and management practices
SWOT Analysis
This is a tool which is used by companies to identify what are its strengths, weaknesses
which exist in the company (Sarsby, 2016). Later as all the businesses have some type of
opportunities and threats in its environment and this tool also helps in identifying those
opportunities and threats. Through this company can identify and understand its impact on the
business and its operations. Some advantages of SWOT to be used in Business are as follows-
 It helps the business to plan strategically, this is because firm know what are its
strength which it can use and what are the weaknesses which can affect its planning
negatively (Anggraeni, Lin and Azizah, 2019).
 Increases the strength of the restaurant, after identifying the strength of the firm it can
work on advancing the strengths.
 Reduce the impact of weaknesses, as it get to know its weaknesses firm will look for
ways through which it can reduce its weaknesses and if not than it can look for the
ways in which it can reduce the impact of the weaknesses.

 Helps the business to focus on the existing as well as the upcoming opportunities,
when firm know what can be its opportunities and what opportunities are available to
it. In such case firm will look for the options and develop tactics to take advantages of
those opportunities.
 With this tool the restaurant sets their objectives so that they can increase their
goodwill in the market (Hammann, GoalAssist Corp 2019).
Some of the weaknesses of the SWOT Analysis are-
 It does only help in identifying strength and weaknesses and opportunities and threats
which are available to it and does not provide any strategy regarding them.
 Opportunities and threats are not accurate as they are more like assumptions unlike
strength and weaknesses.
Strength-
Strength of the restaurant is to offer Italian food with the help of those people who are
professionals and qualified for the job. Apart from this location of the restaurant is easily
accessible by local people. On week days the restaurant is open since 9 in the morning till 11
in the night and on weekends it is open till 12 AM which makes it convenient for people to
stay late out from their work schedule and adjust their timings according to that (Sarsby,
2016). Also they offer other services such as WiFi for their customers.
Weakness-
Restaurant needs more space to match with the level of demand currently they can
occupy approx 100 people at a time but in case of banquets or parties the space is less for
people which leaves the room for expansion into different area (Fiore, Stašys and Pellegrini,
2018). Apart from this they also require investments to match up the level of expansion.
Opportunities-
Currently the restaurant serves only Italian food but due to the level of competition and
the diversified market. They can add variety of Italian food and can mix and blend the flavor
of other type of food as well to crate and develop new products.
Threats-

There is a high level of competition in the market as there are many restaurants which
are serving Italian food. In order to reduce the level of threat the restaurant is going to focus
more on the opportunity so that they can increase their customer base and reduce the impact of
this issue (Lee, 2017).
PEST Analysis
Like internal organizations have forces which exist in external market and these have
significant impact on the operation and functioning of the business (Perera, 2017). The factors
which have capacity to significantly impact the functioning of the business have been
developed through PEST. This includes impact of Political, Economical, Social and
Technological factors on the business.
Political Factors-
These factors are concerned with the interference made by the government in the
business for the safety of the people. Government of the country keeps a check on the
ingredients that the restaurant is using and if or not they are matching upto the required
standard (Kwon, 2017). This is very important as restaurants have to follow the standards of
the food safety and use ingredients which are allowed by the government.
Economical Factors-
These factors are concerned with rate of inflation, growth of economy, rate of taxes. If
the government increases the rate of taxes it will lead to rise in prices of ingredients and that
will affect the business as the restaurant will have to increase the prices of the dishes in order
to earn a level of their margin.
Social Factors-
These factors are concerned with the culture and beliefs of people. In order to achieve
growth Vapiano needs to sell their services according to the taste and preferences of people.
Currently people are shifting and focusing on being more health conscious and restaurant
needs to offer something in that category (Griffith, Jackson and Lues, 2017).
Technological Factors-

These factors help the restaurant to simplify and advance their work. With the help of
these factors the restaurant can achieve publicity in less cost. They can develop their own
website and apart from this it helps the restaurant to note and maintain the level of inventory.
With the help of these factors the restaurant offer clients incentives and additional benefits for
those who are regular (Geldes and et.al., 2017). This factor is also used while providing
service and marketing online and on digital mediums.
Advantages-
 To carry out this analysis only time and effort is needed which is beneficial for the
restaurant as it is cost efficient.
 It helps the restaurant to develop their act and new strategies according to the laws for
the consumers (Perera, 2017). With the help of this analysis they can also know the
needs and wants of the market and come up with that in order to increase their
customer base.
 This analysis helps the restaurant to get an insight of external environment and that
helps them to assess their opportunities and reduce the area which is a threat for them.
Disadvantages
Technology and other factors which are concerned in the dealings of restaurant business is
evolving rapidly which is making it difficult for them to analyze the development which
affects the prospects of growth for the business.
 The results which are extracted through this analysis is not complete or useful every
time. It is important for the restaurant to focus on internal factors which affects them as
it will help them to improve their quality of service (Lee, 2016). External factors are
uncontrollable and this is why there not much scope to do anything regarding them and
only internal factors can safeguard company from the impact of external factors and
this is why it is important to focus on internal factors.
P 4 Different management practices
Management Practices-
Reward Effort

This approach makes employees of the restaurant feels recognized and valued. They
stay motivated and put more of their to achieve more (Schrage and Rasche, 2019). Through
this practice company can ensure and encourage its employees to remain loyal for the
company and loyal employees are valuable resource that company can have. For Example,
company reward its employees for their efficient performance in customers service which
result is satisfied customer for the company. In such situation they will do their work with
more diligence and will try to provide enhanced service to its customers and also will remain
loyal to company as they are considered important and their efforts are rewarded by the
company.
Advantage
 Reward efforts has benefit as they motivate employees and this not just motivate
employee who is receiving the reward but others too so that their efforts can also
receive the reward.
 Rewards are effective and tried strategy to improve performance of the employees.
Disadvantage
 On the other hand difficulty in measuring performance can affect the performance of
rewards.
 It is easy to measure performance which can be measured in quantitative form but
which cannot be measured in quantitative form create difficulty in determining
employees for rewards.
Clarity in work-
Many restaurants has to face this issue as the managers are not clear with their
employees which creates confusion and conflicts among employees. Manager of Vapiano
needs to be clear and concise so that each and every employee must be clear about their role
and work efficiently (Park and et.al., 2017). For Example, front office employees know
exactly what they are required to do and those in customer service know what they are
required to do.
Advantage
 This gives clarity for employees in order to what their role is in organization.

 This also help in avoiding duplication of task as everyone in organization is aware of
what they are required to do.
Disadvantage
 Properly defined job roles in organization have possibilities that employees do not help
and support other employees.
Performance Management-
This is also an important management practice that all the employees know what they
are required to do and along with they are told the quality and standard of their work. Along
with this also includes how their performance will be measured. After performance
measurement they should also provided feedback to understand where they need to improve in
their performance. In context of Vapiano for performance management they first determine
objectives of the company later these are divided on the basis of departmental objectives
which can contribute to organizational objectives (Schrage and Rasche, 2019). Later these
objectives are divided on team and individual objectives on completion of all these objectives
organizational will be able to achieve its final objectives.
Advantage
 This allows employees to understand their role in organizational goal achievement and
this enhance their motivation.
Disadvantage
 This is difficult and time consuming practice.
Communication
This is one important management practice, and this includes that management share
and communicates its decisions and policies to its employees. This includes that management
share all its information which is necessary for employees to do their work effectively. For
examples it is important that management at Vapiano communicate what roles and duties are
employees required to play in order to achieve its objectives. Along with this Vapiano also
required to communicate rules and standards of performance to employees (Gulbrandsen and
Just, 2016).
Advantage
 Improves coordination in management and employees and this also improves
coordination in team and coordination of employees with other employees in Vapiano.

Disadvantage
 This contains threat to security to information of organization which needs to be
protected.
CONCLUSION
From the above studies it has been concluded that Vapiano restaurant is an established
restaurant in 31 countries who has over 10,000 employees but they require to adapt change
and bring change in their culture and strategies so that they can improve their performance. It
is advised that restaurant must work on the taste and preferences of people not on providing
what they can. This will reduce the chances of failure and increase the chances of success.
This report discussion over various type of food supply chain and what are the managerial
practices to improve overall performance of the organization.

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