Heathrow Airport Restaurants: Managing Food & Beverage Operations

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Heathrow Airport
Restaurants
Managing Food & Beverage Operations

Table of Contents
INTRODUCTION........................................................................................................................2
ACTIVITY 1................................................................................................................................ 3
THE MODERN F&B INDUSTRY...............................................................................................3
DIFFERENT TYPES OF BUSINESSES IN THE F&B INDUSTRY................................................3
RATING SYSTEMS IN F&B INDUSTRY.................................................................................5
CURRENT AND FUTURE TRENDS AND THEIR ADAPTATION..............................................6
ACTIVITY 2................................................................................................................................ 8
AN ANALYSIS OF CUSTOMER MOTIVATIONS AND BEHAVIOUR IN SELECTING F&B OUTLETS
............................................................................................................................................. 8
THE CONSUMER DECISION MAKING IN THE CONTEXT OF F&B OUTLETS.........................8
FACTORS INFLUENCING THE CONSUMER’S CHOICE OF AN F&B OUTLET.........................8
STRATEGIES USED BY F&B OUTLETS TO ATTRACT AND INFLUENCE THE CUSTOMERS.....9
BUILDING CUSTOMER LOYALTY........................................................................................9
ACTIVITY 3.............................................................................................................................. 11
A COMPARATIVE STUDY OF WAYS F&B OPERATIONS USE TECHNOLOGY TO IMPROVE
EFFICIENCY......................................................................................................................... 11
OPERATIONAL MARKETING TECHNOLOGY.....................................................................11
ACTIVITY 4.............................................................................................................................. 13
1: VISIT TO HAZEV.............................................................................................................. 13
2. PROFESSIONAL FOOD AND BEVERAGE STANDARD QUESTIONNAIRE.............................13
REFERENCES........................................................................................................................... 17
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INTRODUCTION
Food and Beverage Industry is one of the largest industries in the world. It consists of all the
organisations that process raw food items, package and distribute them. The food items
include prepared, fresh and packaged foods along with both alcoholic and non-alcoholic
drinks (Martinez, 2013). The current assignment explores the F&B industry and its various
aspects such as types of F&B businesses, rating systems, and current and future trends in
the activity one. In the second activity, the focus is on customer behaviour within the F&B
outlets and ways of altering and influencing them. In the third activity, the use of technology
within the F&B sector is examined along with ways in which digital technology can be used
to enhance the operational efficiency of F&B business. The activity four includes an
observation record of Hazev Restaurant, a partner restaurant of Docklands Academy London
and answers to the questionnaire on professional food and beverage standards.
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ACTIVITY 1
THE MODERN F&B INDUSTRY
DIFFERENT TYPES OF BUSINESSES IN THE F&B INDUSTRY
The different types of businesses in the F&B sector can be categorised as Commercial and
Non-commercial businesses (Davis et al., 2018). The commercial businesses within the F&B
sector are the ones with F&B services as their primary business such as hotels, restaurants,
pubs, bars, clubs, and lounges (Davis et al., 2018). The non-commercial F&B businesses are
the businesses which have F&B services in a secondary role aligned with a primary business
operation. These provide limited beverages and food choices to their customers and are
often contractual. These include the F&B services provided at prisons, hospitals, and hostels
(Davis et al., 2018).
Operation Type Business Type F&B Services/ Profile Examples
F&B –
Accommodation
Hostels  Takeaways on request,
vending and snack bar.
 Smart Hyde Park
View Hostel
B&B
 Breakfast and a limited menu
to order from at prescribed
periods.
 Safestay London
Elephant & Castle
Hotels - Budget
 Bar, employee dining,
Breakfast buffet and vending
machines
 Hotel ibis budget
London City
Airport
Hotel - 4 Star
 Coffee shop, Bar, Lounge,
Speciality Restaurant, Room
services (Fixed Time),
Banquet and conference
rooms, employee dining,
Minibar and Guest
Amenities.
 Hilton London
Paddington
 Mercure London
Kensington Hotel
Hotel – 5 Star
 F&B services of 4 Star Hotels
along with 24 hours room
services, Fine Dining
Restaurant, Pastry counter,
coffee lounge, outside
catering, Executive lounge
F&B services, Karaoke,
nightclub, pool café, cigar
room, and delicatessen.
 The Stafford
London
 The Ritz London
F&B –
Independent
Quick Service
Restaurants
 Minimal table service
 Fast food cuisine
 Macdonald’s
 Burger King
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Operations
Restaurants
(QSR)
 Limited menu
 Food kept hot or partially
prepared
 Food prepared in bulk
 Food finished/ packaged to
order.
 May offer to seat
 Takeaway available
 Fish & hips
 KFC
Full-Service
Restaurants
 Sit down eatery
 Broad Menu
 Waitstaff
 Food served at the table
 May offer takeout's
 May serve alcoholic
beverages
 May offer live entertainment
 Ranges from casual to fine
dining.
 The Ledbury
 Chick 'n' Sours –
Casual
 Seven Park Place by
William Drabble –
Fine Dining
Themed
Restaurants
 Based on a central theme
 The chosen theme defines
the appearance and
ambience
 The central theme can be
based on a variety of
subjects such as Ethnicity,
Music, and Entertainment.
 Rainforest Café
 Circus
 Hard Rock Cafe
Catering and
Banqueting
 Venue food services
 Large scale
 Bulk food production
 Defined menu
 Cavendish
Banqueting
Colindale
 Jamies Catering &
Events
Beverages
Businesses
 Businesses focused on
Beverages alcoholic or non-
alcoholic as their primary
product
 Includes Bars, Cafeterias, etc.
 Beverage services offered by
Hotels, Restaurants, Bars,
Night clubs, etc.
 Black Rock
 The Gibson
 Café Below
 Jazz Cafe
Public Houses Known as Pubs  The primary product is
beverages
 Food items are also offered
 Moderate food menu
 Usually, the kitchen is
outsourced to chef
entrepreneurs
 The Mayflower Pub
 Prospect of Whitby
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 Relaxing and comfortable
environment for individuals
and groups to enjoy
beverages.
Transport
services
Rail F&B
 Services ranging from fine
dining to trolley
 On-board kiosks with a
limited F&B menu
 Depends upon the length of
routes and chosen class
 Virgin Trains
Air F&B
 Offered during flights
 Ranges from snacks to
gourmet set menus
 Mass-produced off-site
 Depends upon the length of
routes and the chosen flying
class
 Virgin Airlines
 British Airways
Sea F&B
 Ranges from snacks to fine
dining
 Depends upon the length of
routes and chosen sea
transport
 Prepared off-site as well as
on-site
 Regent Seven Seas
Cruises
 Viking Cruises
Table 1: Different Types of F&B Businesses.
Source: (Davis et al., 2018; ExploreUK, 2019)
RATING SYSTEMS IN F&B INDUSTRY
AA RATINGS AND AWARDS
The AA Plc rates self-catering sand guest accommodations and hotels in the UK. The rating is
based on the quality standards defined by AA Plc and UK tourist Authorities like
VisitScotland, VisitEngland, and VisitWales (ExploreUK, 2019).
AA HOTEL RATING
Under this, AA rates Hotel, Budget Hotel, Metro Hotel, Country house and Town House
hotels, and Small Hotels (ExploreUK, 2019)
 Star rating – One to five Stars is awarded based on the score of the hotels or self-
catering and guest accommodations.
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 Merit Score – Facilitates comparison of similar rated Hotel and accommodations
providers. This is provided in addition to the Star Rating
 AA Inspectors Choice award and Red Star – Hotels with Exceptional scores
 Silver Star – Highly recommended within their star rating
 Black Star – High standard of facilities (ExploreUK, 2019).
B&B AND GUEST ACCOMMODATION RATING
Under this AA rates Room only accommodations, Guest Accommodations, Restaurant with
rooms, Farmhouse, Guest House, Inn, and B&B (ExploreUK, 2019).
 Gold Star – guest Accommodations and B&B’s that stand out within 3, 4, and 5-star
ratings
 Silver Star – Highly recommended within their rating
 Black Star – High facility standards in the B&B (ExploreUK, 2019)
RESTAURANT RATING
 AA rosettes – A zero to five system of rating the restaurants (ExploreUK, 2019)
Examples
AA Rated F&B Businesses in the UK
Business type Name Rating
Hotel Park Plaza London Park Royal London 4 – star
 45 Park Lane London
 Claridge’s London
5 star and Red Star
Restaurants  The Five Fields London
 Seven Park Place By William Drabble
London
4 Rosettes
 Claude Bosi At Bibendum London
 Restaurant Story London
5 Rosettes
B&B and Guest
Accommodation
 The Windermere London
 Best Western Mornington London
Four Star (Gold)
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Table 2: Examples of AA Rating
Source: (ExploreUK, 2019)
Many a Country like the US has its rating system however most of them use the star rating
system with similar or different criteria. There's no standard global rating system for F&B
Industry. Various websites, search engines, tour operators and travel companies have their
rating system based on customer reviews.
CURRENT AND FUTURE TRENDS AND THEIR ADAPTATION
The Following are the trends within the F&B Industry (Williams and Nestle, 2017; Davis et
al., 2018)
 Enhanced sophistication of guests
 Sanitation and food safety has become a major consideration
 Focus on organic food, sustainability, and eco-friendly practices
 Customers focus on healthy food
 An upsurge in convenience food
 An upsurge in-home meal replacement and take-out meals
 The popularity of coffee culture
 Increase in Co-branding leading to outsourced outlets in F&B businesses like Hotels
 Increase in casual dining places and environment
 Customer's preference for ethnic food and restaurants.
Many an F&B business have adapted eco-friendly practices to establish themselves as a
preferred destination for customers with environmental inclination. They have made it a
part of their marketing activities to attract such customers. However, the percentage of such
customers is currently low with a potential increase in future. The organic and healthy food
has become a significant part of the offering of many a restaurant to fulfil the needs of
health-conscious customers that are on the rise. However, the focus on health
consciousness has not affected the business of fast-food chains. The increase number of
coffee chains has become visible to benefit from the popular coffee culture (Williams and
Nestle, 2017; Davis et al., 2018).
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ACTIVITY 2
AN ANALYSIS OF CUSTOMER MOTIVATIONS AND BEHAVIOUR IN SELECTING
F&B OUTLETS
THE CONSUMER DECISION MAKING IN THE CONTEXT OF F&B OUTLETS
The food choices of an individual are usually based on their past experiences that define
their current food palette. However, the changes in the surrounding environment influence
their food choices significantly. Many of the choice patterns remain the same but certain
important personal and societal events and aspects like relationships yield considerable
influence on the food choices of an individual (Kemp, 2013). The food choice of a person can
be considered an important aspect of them choosing the F&B outlet. The basic decision
making in choosing the F&B outlet can be understood by considering the consumer
decision-making process. The first stage of the decision-making process is when the
consumer realises that they need something. In this case, the need could be going out with
friends and family, or any other occasion (Kemp, 2013). The occasion in question can define
the choice of F&B outlet. Once the consumer recognises their need, they start seeking
choices within their budget and the chosen occasion. At this time, they seek information
regarding F&B outlets in their preferred location after which they consider various factors
like the rating of the F&B outlets, Online reviews, Location, etc. Based on these steps, they
finalise the F&B outlet they seek to visit. The future visits to an F&B outlet are defined by
their experience and the feeling of satisfaction they gain from the experience (Kemp, 2013).
FACTORS INFLUENCING THE CONSUMER’S CHOICE OF AN F&B OUTLET
The following factors play a significant role in the consumer's choice of an F&B outlet
(Williams and Nestle, 2017)
 Purpose: The purpose of seeking an F&B outlet is a significant factor that defines the
type of F&B outlet that will be chosen. For example, a customer seeking an F&B
outlet with accommodation will look for Hotels, B&BS, and Guest accommodation
and will not go after a pub or a restaurant.
 Budget: The next factor that plays a significant role is the customer’s budget. The
customer will consider F&B outlets that fall within their budget
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 Rating and Review – The rating of an F&B outlet such as AA rating and the feedback
regarding them through various mediums like online reviews, friends and family
input, and social media information sharing influences the consumers choice of the
F&B outlet.
 Location – The location of the F&B outlet is another significant factor.
 Past Experience – The experience of a customer with an F&B outlet influences future
visits to the said outlet.
 Food Palate – The taste favoured by the customer as well as food and beverage type
preference is another important factor.
STRATEGIES USED BY F&B OUTLETS TO ATTRACT AND INFLUENCE THE CUSTOMERS
The F&B outlets have shifted their focus on online marketing as a tool for attracting
customers. The online medium like social media has become a source of customer
information's and various platforms like Facebook allows F&B outlets to market themselves
(Wearne and Morrison, 2013; Scrinis, 2016). Also, various online review websites are easily
accessible to the customer from where they get the feedback of the F&B Outlet. These
factors have promoted the F&B outlet's inclination towards enhancing their social media
and online presence (Wearne and Morrison, 2013; Scrinis, 2016).
Various F&B outlets also utilise Loyalty programs to attract customer. The loyal customers
receive many a benefit like discounted pricing. Also, the focus on quality customer service
and experience has become a focus of the F&B outlets to new attract customers and retain
the existing one. The F&B outlets also utilise the traditional marketing mediums to attract
new customers (Wearne and Morrison, 2013; Scrinis, 2016). The marketing strategy of these
businesses is based upon the target customer population that’s identified through various
means like market surveys. Also, the competitor's approach and activities influence the
marketing approach of F&B outlets. Effective customer communication and engagement is
another avenue worked upon by the F&B outlets. The focus on taste and quality of the food
and beverages is another way the F&B outlets work towards retaining existing customers
and attracting new ones (Wearne and Morrison, 2013; Scrinis, 2016).
BUILDING CUSTOMER LOYALTY
The customer service at the F&B outlet and the quality of the food and beverages as well as
their taste are the building block of building customer loyalty (Tanford et al., 2012; Haghighi
9

et al., 2012). Another aspect of building customer loyalty is effective communication with
the customers and staying connected with them. Brand building and management is
another step in keeping existing customers loyal while social media platforms like Facebook
are used as a marketing and communication tool. The social media presence of the F&B
outlet is carefully monitored and quality content that motivates customers in engaging is
published. Loyalty programs are also effectively used as a tool for garnering customer
loyalty (Tanford et al., 2012; Haghighi et al., 2012).
The abundance of choices available to the customer makes the F&B outlets focus on
building a loyal customer base and attracting new customers a critical part of its survival and
growth. Ensuring customer service quality is an effective way of building a loyal customer
base and promoting their repeat visits. Customer satisfaction is kept at a high level by
keeping customer engagement through effective communication, high quality of customer
service and maintaining and enhancing the taste and quality of the available food and
beverages. It can be surmised that the strategies employed by the F&B outlets are effective
whenever they are diligently followed. For example, the brand management of
MacDonald’s has a significant contribution in retaining existing customers while attracting
new ones (Tanford et al., 2012; Haghighi et al., 2012).
The digital technology is being used by F&B businesses to influence consumer buying
behaviour effectively. The five stages of the buyer decision-making process need
recognition, seeking information, comparing alternatives, purchase, and post-purchase
evaluation are influenced through the use of digital technology. The biggest example of this
is the use of social media platforms like Facebook and Twitter for different purposes like
customer engagement, Information delivery, brand building and enhancing visibility. The
use of digital technology is also apparent in enhancing the customer experience by making
activities like booking, ordering, etc. convenient and fast (Tanford et al., 2012; Haghighi et
al., 2012).
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ACTIVITY 3
A COMPARATIVE STUDY OF WAYS F&B OPERATIONS USE TECHNOLOGY TO
IMPROVE EFFICIENCY
OPERATIONAL MARKETING TECHNOLOGY
The use of smartphones as the room keys has benefitted many hotels in reducing the cost
associated with key card printing and inventorying. Hotels now allow the customers to use
their smartphone to access their rooms. The smartphones act as a key card and customer
can access their rooms without the key card provided by the hotel. This not only helps the
hotel to become eco-friendly by restricting the plastic use but support customer
convenience. Hotels are also using tablets as a part of their room service to enhance
customer satisfaction. A customer can use the tablet placed in their room to order room
service and control the room temperature and internal lighting as well as other electronic
gadgets like the TV (Martinez, 2013; Russell and Kellershohn, 2018).
The restaurants benefit from digital inventory tracking to keep track of their inventory in
real-time. This method not only makes the inventory management effective and efficient
but it also provides greater control over the inventorying. This helps the Restaurant in
preventing over portioning, theft, and wastage. Digital reservations are another tool that
allows a restaurant to enhance customer experience while improving their operational
efficiency. The customer can benefit from pre-booking ensuring their table is timely
prepared while the restaurant benefits from advanced information of the booking and the
customer menu choices that facilitate effective customer service while enhancing
organisational operational efficiency (Martinez, 2013; Russell and Kellershohn, 2018).
Many technological infusions have taken place in the F&B sector. This technology
adaptation has enhanced the operational efficiency of the F&B businesses as well as the
effectiveness of their marketing practices. The branding of F&B businesses has benefitted
from the use of technology such as the use of a technology interface by the restaurants and
QSR like MacDonald's that allow the brands to educate the customers while making their
experience convenient and interesting thereby allowing them to interact with the brand in
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