Food and Beverage Management: Krina's Restaurant Case Study Report

This report presents a comprehensive analysis of Krina's Restaurant, a case study focused on its operations, marketing, and expansion plans. The analysis begins with a brief overview of the restaurant, followed by an identification of key issues and problems using PESTLE analysis, covering political, economic, social, technological, legal, and environmental factors. The report applies SWOT analysis and identifies critical success factors to evaluate the restaurant's strengths, weaknesses, opportunities, and threats. Furthermore, the report suggests alternative strategies for improving operations, including menu engineering and recommendations for mitigating the negative impacts of expansion. The report concludes with actionable recommendations for Krina's Restaurant to achieve sustainable growth and address its operational challenges.

Food And Beverage
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Brief summary of the case study.................................................................................................3
Identify key issues/problems with the operations, marketing, competition, menu etc...............3
From the points identified what theories can you apply to analyse the operations.....................5
What other alternatives can you suggest for the operations........................................................7
CONCLUSION................................................................................................................................7
REFERENECES..............................................................................................................................8

INTRODUCTION
Food and beverage sector is determined as one among the fastest growing sector
worldwide. Its management simply means that effective planning, forecasting, controlling
overall orders made within hospitality sector (Davis and et. al., 2018). It highly important for the
management team of this sector to handle overall procedure of the respected company in order to
complete their work. The present assignment will be performed on case study of Krina's
restaurant operating its business in Winchester, Hampshire, UK. It will provide brief information
on overview of case study, identification of problems and issues through PESTLE analysis,
Application of SWOT and Critical success factor in order to analyse overall operations of
restaurant. At last suggests will be provided in detailed manner for improving operations of the
company effectively.
Brief summary of the case study
Krina is 100 cover restaurant located at Winchestar, Hampshire operating its business
from last one year. The respective restaurant is performing well from last one year as it is getting
support from localise as well as tourist which is influencing its sales performance in rapid
manner. After observing effective one year performance the management team of this hotel has
planned to expand its business by taking loan of approx £ 100,000. The respected management
team of this restaurant wants to expand this restaurant with 50 covers for enhancing space for
more customers at the same time. Overall decision for performing this is an good but still
expansion process will consume at least 20-30 days which means that restaurant will closed for
this time period. This will directly hamper their trading activity. Also, for competing the
competitors effectively its management team is planning to revise their menu for attracting
maximum number of competitors with its uniqueness.
Aim:
“To determine the strategies through which Krina restaurant can undergo growth”.
Objectives:
 To ascertain main issues that can be encountered by Krina restaurant while expanding.
 To identify the alternatives that must be complied by Krina restaurant during expansion.

Identify key issues/problems with the operations, marketing, competition, menu etc.
Businesses dealing in Food and beverage sector is going through range of issues and
challenges at marketplace. These issues can be seen associated with operations, marketing,
competitions as well as menu. In order to analyse this in detailed manner PESTLE analysis has
been taken into consideration (Agwa, Aziz and Khalifa, 2017). This framework is supportive in
analysing overall macro environment in detailed manner. It mainly includes 6 factors such as
political, economical, social, technological, legal and environmental. Application of this
restaurant is performed below:
PESTEL analysis
Political factors: Food and Beverage sector within UK is stable in terms of political
stability. Moreover level of corruption within is quite high which could adversely affect
functioning of Krina's restaurant within the nation (The UK is becoming more corrupt and our
democracy is at stake. 2019).
Economical factors: The strong political condition of UK is providing effective support
to food and beverage sector and also contributing in improving its performance with the passing
time. Also, BREXIT has increased inflation rate which have developed worse conditions for the
restaurants. Also, unemployment rate within the nation is around 3.9% which states that
restaurants within Food and Beverage sector has to hire labour at higher wages.
Social factors: This factor is mainly consist of consumers trends, values, lifestyles etc. It
has been acknowledged that currently social media marketing trend is going on in UK as
approximately 45 million of people are using social media at regular basis with the usage of
mobile or technology (THE LATEST UK SOCIAL MEDIA STATISTICS FOR 2019. 2019). From
this, it can be said that social marketing can be determined as the main marketing methods that
could be adopted by restaurant dealing in this in order to reach huge number of population in
effective manner. Apart from this, factor could also work adversely for Krina's restaurant as
customers might perceive closing of restaurant for 20-30 days in negative manner. This is so
because, social active people of UK might place negative comment on social site. This will
influence sales performance of restaurant in negative manner.
Technological factors: UK is technology advanced country which is having adequate
resources in implementing new technology in any sector. Food and beverage sector of this nation
especially restaurant are making use of advance technology like food storage, production,

Thermal Food preservation, antimicrobial preservation systems etc. which supports them in
storing food for longer period of time (Overview of food preservation technologies. 2019).
Upcoming trend of new technology can directly place negative impact over the restaurant
industry as it might be expensive for them to acquire latest technology according to the changing
trend.
Legal factors: Legal as well as local bodies of UK might influence performance of
restaurant businesses as regulatory authority supervises all businesses dealing into this at regular
basis and also place random visit over it. Several areas of restaurant does not acknowledged or
meeting quality criteria in terms of staff, hygiene and expiry then it might develop issues for the
restaurants (Renton, Daellenbach and Davenport, 2016).
Environmental factors: Restaurant of UK are required to maintain their internal as well
as external environment in terms of cleanliness and hassle free for sustaining longer for longer
period of time. Non compliance with food waste management policy by the restaurants of the
UK might create problem for this restaurant as they wont be able to develop effective image
among their customers and perform their business activities in rightful manner.
On the basis of overall information developed from this framework, it can be said that
social factor could become major problems for Krina's restaurant as it might create negative
image of restaurant at social site (Del Chiappa, Martin and Roman, 2016). Apart from this, it can
be said that if this restaurant wants to add on more dishes in its menu then they are required to
comply with the quality criteria otherwise they might come into trouble.
Away with this, it can be further said increasing competition within the food and
beverage sector is increasing problem for the restaurant as their customers might move to it's
competitor that will directly hamper their sales performance as well as profitability in negative
manner. Also, it has been determined from the case study that capacity of this restaurant while
serving its customers on Saturday and Sunday is quite low (Jung and Yoon, 2017). Annual
profitability of restaurant is around 15% which is quite low as compared to the expectation of the
owner that coyuld be considered as the another issue. Also, production cost of the product is
relatively high which means that there margin is low. At last, it can be said that Krina's restaurant
is taking loan of £ 100,000 which is quite big. Thus, it would be difficult for its owner to repay
whole amount at constant basis. If they will be not able to repay it on the allotted time frame then
they might get bankrupted which will also hamper their brand image in negative manner.

From the points identified what theories can you apply to analyse the operations.
In order to analyse overall operations of Krina's restaurant in detailed manner,
management staff of this restaurant has made use of SWOT analysis as well as critical factors
which are stated as below:
Critical Success Factors (CSF) for Krina's Restaurant
For a restaurant to function in an effective manner and gain growth in due course of time,
it is important to take into consideration certain Critical Success Factors. In this regard, the
Critical Success Factors for Krina's Restaurant are presented as follows:-
 The quality of services provided to customers should be capable of meeting their needs,
demands and expectations. Guests should not derive any kind of dissatisfaction after the
consumption of offerings of this eatery.
 The execution of customer services should be effective enough to derive maximum
satisfaction from them. Strong execution ensures retention of customers for a long period
of time.
 Regular feedbacks should be obtained from customers in order to determine the areas of
shortcomings of the restaurant and thereby, introduce changes through which adversities
can be decreased (Weber and Saunders-Hogberg, 2018).
 Timely training should be provided to employees pertaining to Krina's Restaurant so as to
fulfil any skill, knowledge or competency gap. By enriching their personality with
required skill set, the entity paves way for delivery of superior services.
SWOT analysis
Strength Weakness
100 cover restaurant can be seen as the main
beneficial point for this company.
Huge variety of dishes in its menu which
becomes another strength of this restaurant and
attracts more number of customers towards
them in effective manner.
Lower capability of handling extra customers
in weekends this develops negative image of
restaurant among customers.
Instantly closing restaurant functioning for 20-
30 days which create financial trouble for the
restaurant negatively.
Opportunity Threat

The restaurant can gain higher opportunity by
expanding the present restaurant services and
areas according to the core requirement of its
customers.
Management of Krina's restaurant could
approach more number of customers by
opening up few more branches in periphery
area in order serve customers in better manner.
Increasing competition within the same area
could be seen as the major threat for Krina's
restaurant as their customers could move to
competitors.
Also, the restaurant is taking huge loan of £
100000. If the restaurant fails repay whole
amount then there are probable chances that
they might get bankrupt. This will also affect
reputation of the the company in negative
manner.
What other alternatives can you suggest for the operations.
From the overall analysis, it can said that Krina's restaurant could also improvise its
operational performance effectively. According to the overall analysis, there are few
recommendations provided to Krina's restaurant that will support them in improving their
operations. These recommendations are specified as below:
 At first, it is recommended to the this restaurant to not close whole operational work for
20-30 days at the time of expanding with 50 covers. By continuing few of the restaurant
service, it would be easier for the staff to remain in touch with its customers and could
tell them actual reason for minimising restaurant services. Here, it can be said that Krina's
restaurant must provide take away facilities for its customers which will maintain their
relations with its customers.
 Apart from this, by analysing overall low profitability of this restaurant it is further
advised to this restaurant owner to close this business and look for the new one in order
to manage whole situation effectively and attain higher profits from the new business in
near future.
Menu engineering
Menu engineering is determined as the effective study two most essential factors of menu
that is popularity of each item and its profitability and influence of both factors over the placing
those items in the menu. It is an effective menu of increasing profitability by adding most
popular item in the menu. In context of Krina's restaurant it can be said that its top management

team emphasizes on analysing its current menu, its preparation cost, selling cost and sales of
each item in order to develop new menu accordingly. According to the overall information
studied in the scenario, it has been analysed the overall profit margin for Champinones al ajillo y
crèma is good but still its sales performance is not that much effective. In order to attain higher
profitability the respected company is required to adopt effective promotional activity like social
media marketing in order to popularise this product among the customers. This will also increase
sales performance of the restaurant and also helps them out in increasing sales for this product
which will maximise their profitability in adequate manner. Also chef of Krina's restaurant must
focus improving presentation of their dishes in order to make it attractive and influence interest
of more customers towards it.
Pricing concept- On the behalf of given data set this can be find out that there is value of
cost, price and sales unit is given.
Selling price = Portion cost x cost mark up
Cost mark up= Given selling price/portion cost
Given
Selling
price (A) Cost (B) Cost mark up (A/B)
4.99 1.75 2.85
4.9 1.6 3.06
4.9 1.75 2.80
4.99 1.9 2.63
5.2 0.99 5.25
4.99 1.4 3.56
Thus selling pricing concept will be as:
Cost mark up Cost Price
2.85 1.75 4.99
3.06 1.6 4.9

2.80 1.75 4.9
2.63 1.9 4.99
5.25 0.99 5.2
3.56 1.4 4.99
Profitability concept:
Price (A) Units (B) Estimated profit (A*B)
4.99 154 768.46
4.9 203 994.7
4.9 180 882
4.99 145 723.55
5.2 96 499.2
4.99 231 1152.69
CONCLUSION
According to the overall discussion made in the above section, it is concluded that food
and beverage sector is one of fastest growing sector. Businesses dealing in this industry are
required to acquire latest technology and serve its customers with the newest and finest menu as
well as services so that they can remain loyal with them for longer period of time. Also, these
restaurants are required to make all the modification in the timely manner for influencing ineterst
of more number of customers towards them.

REFERENECES
Books and Journals
Davis, B. and et. al., 2018. Food and beverage management. Routledge.
Agwa, Y., Aziz, W. and Khalifa, G., 2017. Evaluating Food and Beverage Courses in Higher
Private Tourism and Hotels Institutes in Alexandria: Professionals’
Perception. International Journal of Heritage, Tourism and Hospitality, 11(2), pp.98-
110.
Bresciani, S., 2017. Open, networked and dynamic innovation in the food and beverage
industry. British Food Journal.
Renton, M., Daellenbach, U. and Davenport, S., 2016. Finding fit: An exploratory look at SME
brand orientation and brand management in the New Zealand food and beverage
sector. Journal of Brand Management, 23(3), pp.289-305.
Del Chiappa, G., Martin, J.C. and Roman, C., 2016. Service quality of airports' food and
beverage retailers. A fuzzy approach. Journal of air transport management, 53, pp.105-
113.
Jung, H.S. and Yoon, H.H., 2017. Error management culture and turnover intent among food and
beverage employees in deluxe hotels: the mediating effect of job satisfaction. Service
Business, 11(4), pp.785-802.
Weber, O. and Saunders-Hogberg, G., 2018. Water management and corporate social
performance in the food and beverage industry. Journal of Cleaner Production, 195,
pp.963-977.
Online
Overview of food preservation technologies. 2019. [Online]. Available Through:
<https://www.newfoodmagazine.com/article/4414/overview-of-food-preservation-
technologies/>.
THE LATEST UK SOCIAL MEDIA STATISTICS FOR 2019. 2019. [Online]. Available Through:
<https://www.avocadosocial.com/latest-social-media-statistics-and-demographics-for-
the-uk-in-2019/>.
The UK is becoming more corrupt and our democracy is at stake. 2019. [Online]. Available
Through:<https://metro.co.uk/2019/02/01/the-uk-is-becoming-more-corrupt-and-our-
democracy-is-at-stake-8418561/>.