Comprehensive Report: Managing Food and Beverage Operations & Trends

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This report provides a comprehensive overview of the food and beverage (F&B) industry, encompassing various aspects of its operations and management. It begins by categorizing different types of businesses within the F&B sector, including entertainment, accommodation, and lodging. The report then delves into the different rating systems used in the industry, from one-star to five-star hotels, and discusses the criteria for each. Furthermore, it analyzes current and future trends impacting the F&B industry, such as changing consumer tastes, the rise of e-commerce, mergers and acquisitions, and the influence of technology. The report also outlines the professional skills essential for success in the F&B business, including customer service, organizational skills, and communication. It further examines legal and regulatory requirements, including food safety regulations, labeling policies, and import regulations. Finally, the report explores operational and marketing technologies used in the industry, such as advancements in technology and online ordering systems. The report concludes by investigating factors influencing consumer decisions and the strategies employed by companies to attract and retain customers.
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Managing Food and Beverage
Operations
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Types of business in food and beverage industry.................................................................3
P2. Different types of rating systems used in Food and Beverage industry...............................3
P3. Current and future trends which affect food and beverage industry.....................................5
TASK 2............................................................................................................................................6
P4. Professional food and beverage skills required in Food and Beverage business..................6
TASK 3............................................................................................................................................6
P5 Legal and Regulatory requirements required in food and beverage industry........................6
P6 Different operational and Marketing technology used in Food and Beverage industry........7
TASK 4............................................................................................................................................8
P7 Investigation of various factors that have influence on consumers’ decision while choosing
a food and beverage outlet.........................................................................................................8
P8 Strategies adopted by companies in food and beverage outlets for attracting customers &
having loyal customers................................................................................................................9
CONCLUSION..............................................................................................................................10
Reference.......................................................................................................................................11
Books & Journals...........................................................................................................................11
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INTRODUCTION
Food and Beverage industry is composed of some basic activities, which are composed of
different products and services the company is dealing into. This is among fastest growing
industries in these recent years because preferences of people are changing because of changing
lifestyle. This report is based on different business which are operating in food & beverage
industry, various types of rating systems used by restaurants across globe, present and future
trends which affect this industry, professional skills needed by people who re part of this
business. Also, there are some legal acquirements which have to be taken care of by companies
working in food and beverage industry and lastly comparison is made between various
operational and marketing technology which are used by food and beverage industry.
TASK 1
P1. Types of business in food and beverage industry
There are different sectors which re present in food and beverage industry which helps
this industry in growth and increasing of revenue. This industry is successfully catering to the
needs of consumers with relation to their demands for food, beverages etc.
There are some sectors which are part of this industry mentioned below:
Entertainment: In food and beverage industry, entertainment sector offers large variety
of facilities which are used by companies to attract consumers. In changing scenario consumers
are looking not just for accommodation but they also want some entertainment facilities such as
clubbing, gaming, cruise, stores and many others (Wood, 2018).
Accommodation and Lodging: This sector helps in luxurious hotels and further
facilities includes complementary breakfast, snacks etc. there has been a complete transformation
which has helped travellers in enhancing their experience of staying in hotels.
Food & Beverages: This is one of important segment this industry posses, they are
belonging to a sector that is having large customer base. This sector is also offering various food
services such as catering business, restaurants, retail stores, quick establishments etc.
P2. Different types of rating systems used in Food and Beverage industry
There are some rating system which are used by companies operating in this industry
both at international and global level this rating system is applies to different types of brand who
belong to this industry:
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One star rating: Any hotel operating in food and beverage industry which provides
basic necessities to their customers. They do not believe in luxury and just want to satisfy their
customers by offering them the most basic requirement they need in a hotel. They are not
offering any special amenities or extra service top their customers. Mostly target customers of
such rating hotels are middle class people who cannot afford luxury.
Two star rating: This is somewhat similar to hotels who belong to one star rating
category. There are somewhat more facilities which such hotels provide to their customer such as
they are able to provide television apart from bed, wash room to their customers. Those
customers who are looking for basic amenities along with some source of entertainment go for
hotels who re of two star rating. Such hotels also provide restaurant and dining area. This denotes
that such hotels provide some extra facilities and their prices are also little higher then one star
rating hotels.
Three star rating: Such hotels are those which are more stylish and far better than those
coming in the category of two star and one star. Their rooms are much larger in size, having high
quality, they offer contemporary furnishings, extra facilities such as fitness centres, flat TV
screens, conference rooms, valet services and many other additional benefits. All such services
make this hotel different and attracts customers from other segments. Location of such hotels are
also on major express way and in central locations of the city which makes it easier for their
customers to having a reach to other places.
Four star rating: They are also considered by the name as superior hotels, they are large
having up scale establishments. There are spacious rooms which such hotels provide with
luxurious facilities such as lavish beddings, branded bath product. They cater to the needs of
those customers who are willing to pay a slighter high prices but they prefer luxury and comfort
together. Such hotels offer loads of special and unique services such as fine dining, high class
centres of fitness, valet parking, spa centres, multiple pools, limousine services. They treat their
customers as guests and believe in targetting those segment which is ready to pay high prices for
ensuring their comfort and luxury.
Five star rating: They are the most luxurious hotels present in the world. Most high
class customers who belong to the upper class of society are customers of such hotels. They
provide their guests with facilities such as premium lines, fresh flowers, high definition cable
services, internet access, best interiors and furnishings, architectural work of art, opulent
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services. All this makes such hotels to get five start rating and this helps them in attracting more
customers. Innovation is a tool which is used by them so that they are able to get a differentiation
advantage.
Above mentioned are a set of criteria which used by customers in making a judgement
and selection of a hotel whether it is according to their expectations and requirements.
P3. Current and future trends which affect food and beverage industry
There are many factors influencing business of food and beverage industry and some of
them are mentioned below considering current and future scenarios:
Changing Taste and Preferences- This factor is always present in market influencing
businesses environment. Nowadays, consumers are getting more and more concerned about their
health and being fit. Therefore, Rosewood Hotel kitchen staff have to be very innovative with
setting food menus for different customers. New inventions can attract more guests towards it
increasing customer base with happy and satisfied consumers.
E-Commerce- Today, 36 percent of speciality food and beverage sale is taking place on
online platforms. With changing technologies e-business is rising very fast as people are
grabbing and getting attracted towards it due to new schemes or discount offers. Rosewood
Hotels, have to consider this influencing factor and make their strategies accordingly for smooth
and effective running of business. Having an online presence will also help Rosewood Hotels, in
better branding.
Mergers and Acquisitions- Many new inventions are taking place in food and beverage
industry, still new emerging companies are acquiring those businesses that are producing type of
food with required ingredients by guests. Rosewood Hotel's competition is increasing day by day
due to this changing market situation, affecting past and predicted trends.
Technology- Most influential factor of all is changing technology, this factor has
influenced consumers buying preference and also impacting on choices of customers. Today
people do research before buying anything including food and beverage, therefore they first
check on their smartphone and then decide. Rosewood Hotel's, online presence ensures that no
guests are missed by them and they serve best to their customers, according to their given
instructions or guidelines for preparation of their order. Branding through E-Commerce will also
help them here to make good standing in market and gain competitive advantage over others.
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TASK 2
P4. Professional food and beverage skills required in Food and Beverage business
In present time, every single food and beverage business organisation or a hotel like
rosewood required to have arrange off skills that are aligned with food and beverage. Range of
skills that are presented underneath :
Customer serving skills: every single person whether he or she is a customer or not
looking forward to have proper attention today's market. Beautiful, for a restaurant for a hotel
like rosewood it will be required to have customer centric approach so that consumers needs can
effectively be fulfilled (Svensson and Wagner, 2015).
Organisation skills: if it is talk about a manager within a restaurant or in a hotel, is
required to have duties to deliver the best to customers with the help of shipment schedules,
cleanings and costs of the product that they are selling. Considering these points a manager could
effectively help customers and satisfying their needs.
Good communication skills: the help of effective communication skills, a manager could
effectively make consumers understand what they are selling and why it is different from other
restaurants and hotels. Two way communication basically leads to to enhance loyalty among
buyer and seller.
TASK 3
P5 Legal and Regulatory requirements required in food and beverage industry
In present time, not only in UK but in all over the world there are legal and regulatory
substantial made by government within the food and beverage industry so that to keep up the
quality of food and to maintain the distribution food materials among customers and other
people. Present contacts, it is vital for business organisations like restaurants for hotels like
rosewood to follow legal laws and regulations which has been built by government (Singh and
et.al 2017).
Regulations regarding Food safety: It has been found that different range of laws or
regulations are required to be e followed by a business organisation which is dealing within the
sector for concerns. It is a requirement for Hotels and restaurants that they ensure they are
providing food with required labelling and tempering. Also, if any restaurant is willing to offer
liquor they need to obtain a legal license for offering such services.
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Food Labelling policies: Appropriate directions and measures are required to be e
labelled on food. This is what government has built and it has Bean required for every single
business organisations that is dealing within the sector to follow the rules. Failure to compliance
them can lead to levying of heavy penalty a licence can also be cancelled of a company
(Mohammad, 2017).
Food import regulations: Excise duties and other import and export related taxes are
basically being applied by government of United kingdom there a a restaurant holder or owner of
the hotel would required to have licence so that he or she could effectively purchase or sell
products across the countries.
P6 Different operational and Marketing technology used in Food and Beverage industry
In present time, there are many operational and marketing technologies available that can
be utilised by food and beverage industry. In this context, some techniques which are given
below related to food and beverage sector are given underneath:
Operational technology:
Advancement of Technology: AGV technology and some of other technologies has
helped business organisations that are dealing at food and beverage industry to improve their
operations and efficiency level as well. This could be understood with a good example where,
automatic cars are being utilised within the warehouses in order to manage the stock or to
maintain the standardization of of stalking food within a warehouse. Step has been taken to
reduce all the errors and to maintain the operations cost as well.
Online ordering: Since the technology has changed, internet has taken over many things.
is the traditional marketing has been taken over by online marketing, it has also brought change
among food ordering as well where a person used to order food after reaching to a restaurant but
now it has changed with the help of e-commerce where a person basically orders from his or her
mobile phone with the help of an application and within one hour or half an hour the food
reaches to him which is being provided by food companies (Jones, Comfort and Hillier, 2017).
Marketing technology:
Usage of social media: If it is talked about food and beverage industry then social media
has brought change among marketing a product. Basically, in traditional way marketing manager
used to to promote food with the help of billboards and many more other approaches like face to
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face marketing and so on. But social media has helped covering a high customer base from all
over the world with the short investment and in a short time frame.
Hosting events: Basically, companies has changed way of promoting themselves and
starts hosting number of events so that to gain competitive advantages (Gibson and Parkman,
2018). They also try to provide free beverages, snacks in such events to attract large number of
people to attend that event. These events help companies in approaching large number of
customers at particular point and then persuading them to buy the products and service they are
dealing with. This helps in increasing overall sales and productivity of various hotels, cafes,
restaurants etc.
TASK 4
P7 Investigation of various factors that have influence on consumers’ decision while choosing a
food and beverage outlet
In present context, it has been found that there are multiple elements or factors available
in the market which impacts or influences decisions of customers while going through a
beverage outlet for a food restaurant. Here, it can be said that there are a range of factors like
quality, loyalty, choosing a brand, physical environment and so on and regards to a particular
product that is available in the market. But, majorly there are two factors which main impacts
upon decision making of customers and these are given underneath:
External environment: It has been analysed that, a physical environment majorly has
range of physical facilities, combination of people, quality and material which has been utilised
by buy food and service providers. In present context, it has been found that mainly amenities
and facilities with high food quality are said to be the two major elements that changes the
decisions of a customer while purchasing food that could satisfy his or her needs. If a restaurant
or hotel is offer in customers with quality food and a good environment it will directly help them
in gaining competitive advantages from their rivals. (Demerdash, 2017).
Affordability: Over the years, customers has this sense to pay less but to get more from
it, which means that a consumer do not will to pay a more for a product or for quality if
substitute are available in the market. Particularly, the aim of customers is to satisfy their needs
with a little amount and this is where food and beverage industry should keep their focus on
because in present time there are ample number of substitute available for the food in all over the
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market. Keeping low prices with best quality will help them and sustaining within the market for
a longer period of time.
P8 Strategies adopted by companies in food and beverage outlets for attracting customers &
having loyal customers
In order to survive or to sustain within the market it is vital for or a hotel or a a restaurant
to to enhance customer loyalty. But, it is not an easy thing to do because customer somehow find
a substitute for a particular food product or any other thing that he or she is looking for. But, if
customers are are buying or purchasing food products from a a specific store then it directly
denotes the the high customer loyalty that people are having towards a brand (Dopson and
Hayes, 2015). In order to keep the profitability and the productivity e it will be required for food
and beverage industry's restaurants and hotels to promote themselves and perform a range of
marketing activities every quarter in both directly and in an indirect manner. Bringing
modifications as per the requirements of customers which has been given on feedbacks, and
taking them into consideration would directly help firm in maintaining their goodwill. This helps
in further planning of company's operations and functions (Bohari, Hin and Fuad, 2017).
Customer Feedback: Modifications is a necessary part for every single business
organisation in present time. If it is talked about food and beverage industry as well then
modifications plays a crucial role but it is also necessary for or restaurants or hotels to bring right
changes as per the requirements of customers. Because, failure into this may lead both wastage
of investment and mislead customers as well (Belyakov, 2015). This could impact negatively
upon reputation of a restaurant or a hotel. Therefore, it is much required to make alterations as
the best ones considering the actual modifications that customers are looking for within the food
or any other sort of things like operations and so on.
Loyalty Program: It can be said that, loyalty programs over the years has given ample
number of benefits to both hotels and restaurants of food and beverage industry. Basically,
loyalty programs deals with providing free beverage, complementary breakfast, using loyalty
cards, discount vouchers, memberships in club are also some very good options which can be
used by companies in enhancing their satisfaction level of their customers.
Engagement of customers: Engaging customers to bring modifications can be
considered as something which a company within food and beverage industry don't perform
well. This is because it it usually cost much to the company but if it is thought in a long-term, it
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can be said that this decision taken by restaurant or a hotel will help them and sustaining within
the market for a longer time frame, where they could effectively satisfy needs of customers
(Bakalis, Knoerzer and Fryer, 2015).
CONCLUSION
Considering the above information it is being summarised that, food and beverage
industry carries innovative approach in present time and new trends come on daily basis in this
sector. Business owners that I looking forward to open their business in this sector what
definitely get high range of benefits from any other business sector. Communication,
organisational skills and customer service skills are required to for a manager or the employee
who is performing tasks within hotel or a restaurant. Serving food online has been one of the
crucial step for business holders and this has given ample number of benefits like enhancement
among productivity and profitability in a short span. On the other hand, it is required for a
restaurant to follow all the rules and regulations from health and safety act or food product
related policies, as it is required for companies to to maintain the quality and standardization of
food.
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Reference
Books & Journals
Bakalis, S., Knoerzer, K. and Fryer, P.J. eds., 2015. Modeling food processing operations.
Elsevier.
Belyakov, A., 2015. From Chernobyl to Fukushima: an interdisciplinary framework for
managing and communicating food security risks after nuclear plant accidents. Journal
of Environmental Studies and Sciences, 5(3), pp.404-417.
Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and
Space, 9(1).
Dopson, L.R. and Hayes, D.K., 2015. Food and beverage cost control. John Wiley & Sons.
El Demerdash, J.M., 2017. Waste management in food and beverage operations: The case of
Alexandria. International Journal of Heritage, Tourism, and Hospitality, 10(2/2).
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.
Jones, P., Comfort, D. and Hillier, D., 2016. Water stewardship and North America's food and
beverage companies: a case study in corporate sustainability. International Journal of
Corporate Strategy and Social Responsibility, 1(1), pp.26-43.
Lelieveld, H.L., Holah, J. and Gabric, D. eds., 2016. Handbook of hygiene control in the food
industry. Woodhead Publishing.
Mohammad, A.A., 2017. Approaching the Adoption of Lean Thinking Principles in Food
Operations in Hotels in Egypt. Tourism Review International, 21(4), pp.365-378.
Singh, B. and Ryan, J., 2015. Managing fertilizers to enhance soil health. International Fertilizer
Industry Association, Paris, France, pp.1-24.
Starbird, S.A. and Amanor-Boadu, V., 2017. Managing Food Supply Chains for Safety and
Quality. In Trends in Food Safety and Protection (pp. 205-237). CRC Press.
Svensson, G. and Wagner, B., 2015. Implementing and managing economic, social and
environmental efforts of business sustainability: propositions for measurement and
structural models. Management of Environmental Quality: An International
Journal, 26(2), pp.195-213.
Wallace, C.A., Sperber, W.H. and Mortimore, S.E., 2018. Food safety for the 21st century:
Managing HACCP and food safety throughout the global supply chain. John Wiley &
Sons.
Wood, R.C., 2018. Strategic questions in food and beverage management. Routledge.
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