Food & Beverage Industry Analysis and Trends Report - Unit 6

This report delves into the multifaceted world of the food and beverage (F&B) industry, examining various business functions, current and future trends, and rating systems. It explores different types of businesses within the F&B sector, including entertainment, accommodation, and lodging, highlighting their roles in enhancing customer experiences and driving revenue. The report also investigates different rating systems used globally and nationally, such as one- to five-star ratings, to help customers make informed decisions. Furthermore, it analyzes the impact of changing customer preferences, mergers and acquisitions, and technology on the industry. The report also discusses the professional skills required for success in the F&B sector, including customer service, organizational skills, and communication. It also covers essential legal and regulatory requirements, such as food safety regulations. The report also investigates consumer decision-making factors and strategies for attracting and retaining customers. The assignment aims to analyze the food and beverage industry, covering operations, trends, required skills, legal, and consumer behavior.

Food & Beverage

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different kind of business within food & 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
P5 Legal and Regulatory requirements required in food and beverage industry........................6
TASK 3............................................................................................................................................7
P6 Different operational and Marketing technology used in Food and Beverage industry........7
TASK 4 ...........................................................................................................................................7
P7 Investigation of various factors that have influence on consumers’ decision while choosing
a food and beverage outlet..........................................................................................................7
P8 Strategies adopted by companies in food and beverage outlets for attracting customers &
having loyal customers................................................................................................................8
CONCLUSION................................................................................................................................8

INTRODUCTION
In today's world food & beverage industry plays very essential role which consist of
ample number of opportunities to the whole sector. From past few years, it has been recognised
that this is the industry which is growing at the fastest possible way on a continuous basis. Apart
from this, it has been analysed that the present report is based on different number of business
functions which mainly operates its functionality in food & beverage industry, both current and
future trends mainly influence the overall industry (Bakalis Knoerzer and Fryer, 2015). Apart
from this, it consider various types of rating systems used by business entities at global as well as
national level. It has been said that there are some high quality professional skills needed by an
individual so that they can perform their functionality in an appropriate manner. Furthermore,
some essential legal requirements are needed to be considered by the management team while
doing business operations in food & beverage sector.
TASK 1
P1. Different kind of business within food & beverage industry.
There are various sectors which are composed in beverage and food industry which are
beneficial in order to enhance business growth and earn high revenues. This industry mainly
focuses on fulfilling the demands of their customer’s in most effective manner. There are various
sectors which plays a very important role in the working and these are evaluated below as:
Entertainment: In F&B industry this factor plays a very effective role as to offer
various entertaining facilities to all their guest in order to capture their attention and achieve
growth (Belyakov, 2015). In this era customers not only focuses on good accommodation service
but also they want entertainment sources in order to enjoy their valuable time and this consist of
cruise, clubbing, games etc.
Accommodation & Lodging: This subdivision in mainly found in those hotels which are
providing pleasant and luxurious facilities such as breakfast, complimentary snacks, drinks etc.
All these factors have helped visitors in order to make their stay pleasant, their trip is memorable
which leave a positive feedback which result in growth of industry
Food and Beverages: This sector plays a very important role in the industry as it is the
customer base because traveller want good range of food products when they are travelling to

different location according to their requirement. The services include quick establishment,
catering, restaurant services and many more.
It has been recommended to the food and beverage sector that they must provide unique
services to their customers so that there needs and wants will be satisfied and they become loyal
towards such hotels and restaurant. Along with this, one of the most essential suggestion which
is given to the management team is that they must examine the needs of customers so that they
can retain them for a longer period of time period.
P2. Different types of rating systems used in Food and Beverage industry.
There are different type of rating systems which are used by the F& B industry at both
the global and international scale and these are evaluated below as:
One-star rating: This rating is given to those hotels which are providing basic
accommodation services to their guest. Their main aim is to satisfy their potential customers by
offering them basic necessities. They do not make plan in order to provide any additional
amenities to attract customers. These hotels mainly target the middle class group who can easily
afford to stay in these hotels (Bohari, Hin and Fuad, 2017). In first star rating hotels, it has
been identified that the restaurant and hotel generally provides very good services to their
customers.
Two-star rating: This type of rating is mainly similar to that of one star. Their plan is to
provide extra amenities to their guest apart from the basic facilities of dining, Television etc.
They are mainly focused towards targeting those individuals who are willing to take basic
facilities with some type of benefits such as gambling, drink etc. These type of hotels are mainly
located near public transport areas. In this context, generally two stars shows that the place, hotel
or restaurant is worth to detour.
Three-star rating: This type of hotels provides large size rooms, valet parking,
conference rooms and so on. They are much better than the one and two star ratings. These type
of hotels are mainly focusing on providing effective services in order to achieve satisfied
customers which can increase growth and revenues. They also offers extra facilities to their
customers such as club house, fitness centres etc. that attracts the customers from different
segment. The location of this hotels is in the central of the city and convenient for the customers
to reach. In this reference, company or hotel get Micheillin 3 star rating as they provide quality

foods and services. There services mainly composed of complimentary breakfast which helps in
retaining customers as they are satisfied with their services.
Four star rating: These hotels are mainly focused towards offering comfortable and
luxurious services to all their potential clients. These hotels are also classified in superior hotels.
The facilities offered by them are valet parking, gym, swimming pool etc. They also offer
luxurious bathing products to their customers. They are mainly targeting upper class people who
can pay higher prices for the services offered by hotel.
Five-star rating: These hotels are categorised into luxurious hotels as they are proving
luxurious facilities to their guest. High class customers prefer to stay in these type of hotels. The
services which are offered by the hotel are club housing, Wi-Fi, Spa and quality food services to
their customers. This help them in gaining competitive advantage in the industry. In this context,
a five-star rating system mainly used by various independent business entities such as AAA to
rate a hotel at the competitive marketplace.
The classification of the hotels according to different ratings help customers in order to
select the hotel according to their budget, facilities and expectations. With the help of rating
system, it has been said that every hospitality organisation must have some rating system so that
they can attract large number of customers towards them. This as a result accomplish their goals
and objectives in an effective manner.
P3. Current and future trends which affect food and beverage industry.
The F&B industry is mainly affected by the trends which are prevailing at the market
place. These trends are affecting sales and profitability of firms. The current and future trend
which are affecting the industry are evaluated below as:
Changing customers taste and preferences: This factor is responsible for affecting the
overall business operation of an industry. In the present era customers are more focused towards
their health and hygiene thus plans should be formulated according to the requirement. In this
relation the members of Hotel Rosewood need to prepare innovative and tasty dishes in order to
capture attention of customers (El Demerdash, 2017). This is valuable factor in order to retain
customers thus enhancing profitability ratio.
Mergers & Acquisitions: There are different inventions which are taking place in the
food and beverage production unit. The companies which are having their operations on large
scale develop plans to acquire or merge within those units who are providing quality food

products to their customers. It is analysed that Rosewood is gaining competitive advantage which
results in executing change in the situation which are arising at the market area thus affects the
present and future trends.
Technology- In today’s era the most important factor in F& B industry is technology
which are affecting preference of customers. In relation with the Hotel Rosewood they have used
online method for providing information to their potential client about the facilities offered by
them (Gibson and Parkman, 2018). The effective E Commerce system helps in saving time of
customers and they can easily select hotel according to their requirement and this in turn helps
firms to achieve competitive gains.
Recommendation which is given to the management team regarding current and future
trends is that they must follow all the basic requirements in order to beat the level of competition
arise at the marketplace. This as a result help managers of food and beverage sector in
enhancing their goodwill and brand image at the competitive marketplace. But on the other
hand, it has also been identified that continous changes in the trends and perceptions of
individual affect the business profitability in a negative way.
TASK 2
P4. Professional food and beverage skills required in Food and Beverage business.
It has been analysed that, in the present competitive world each and every individual
required highly skilled employees so that they can attain various competitive advantages. In
context of current chosen organisation which is Rosewood, it is required by the management
team to have skilled workers so that they can gain various positive advantages. Some of the
different type of skills are going to be discussed as follow:
Customer serving skills: It has been said that in the today's competitive environment,
every individual requires to gain proper attentions when they visit in a hotel or restaurant. Hotels
like Rosewood adopt approaches like consumer centric approach where they can perform their
business functions by maintaining effective and strong relations with their clients and guest.
Organisation skills: If we talked about managers of a restaurant or hotel, organisational
skill is essential as it will help in delivering goods and services in an effective manner. It is
required by the management team of an organisation to satisfy all the requirements of individuals

so that they can retain them for a longer period of time (Jones, Comfort and Hillier, 2016). For
this, managers need to take care about the cleaning, cost of services and many other factors.
Effective communication skills: For doing business functions or attracting large number
of customers towards the organisation, it is essential to have effective communication skills. This
will assist in maintaining sustainability of the company at the competitive marketplace for a long
period of time. Along with this, two way communication is required to conduct business
activities so that pre defined results will be attained.
P5 Legal and Regulatory requirements required in food and beverage industry.
There are some rules, regulations, laws as well as legislations need to be adopted by the
management team in order to conduct their business functions in an effective manner. With the
help of these laws managers will be able to maintain the standards and quality of food products
which they sell to their customers (Lelieveld, Holah and Gabric, 2016). In reference to
Rosewood, laws define by the government of UK adopted by the managers in an effective
manner. These regulations and laws are discussed in detail as follows:
Regulations regarding Food safety: There are ample number of laws developed by the
government in order to maintain positive working environment in an effective manner. For
example, it is essential for the management team of a hotel that they must get licence from
government in order to sell liquor to their guest. This will provide them safe and secure working
environment so that large number of customers will be attracted towards the hotel.
Food safety regulations: It includes all the regulations related to food product which
must be followed by each and every hotel and restaurant owners. These regulations must be
adopted by the management team as they increase the overall trust and loyalty of customers. It
has been said that there is a regulatory authority which is Foods Standards Agency, conduct
audits along with local authorities to identify the food and safety standards used by employees of
the hotel. It is essential for the management team to ensure that there must be proper production
process, packaging of food products, high quality raw material and so on so that requirements of
customers will be fulfilled (Mohammad, 2017).
Food import policies and regulations: It has been said that there are some export and
import associated duties formulated by UK government which need to be followed by them to
create positive result. For every hotel or restaurant owner who mainly deals in national as well as
domestic level need to adopt all the policies properly so that adequate result will be developed.

TASK 3
P6 Different operational and Marketing technology used in Food and Beverage industry.
In the present age of competition, it is identified that there are different operational and
marketing techniques which are used by the F& B unit in their business operations. The tools and
techniques which are linked with this industry are described below as:
Operational technology:
Technological advancement: The industry which are performing their activities in food
sector are mainly assisted by AGV and other technology in order to enhance their efficiencies
and their staff members for long time. Example: Nowadays automated cars are commonly used
at warehouses in order to keep a balance with the existing stock thus ensuring standardization of
food products within their warehouses (Singh and Ryan, 2015).
Online ordering: As the technology is rapidly changing so internet is becoming one of
the most active element. Online form of marketing is highly used by business as it results in
leaving positive impact at work place. On the other side it results in changing the process of
ordering food as they can easily order food online according to their choice and convenience.
The mobile app is useful for both customer and Food industry as individuals get good discount
and firm is able to maintain effective communication thus retaining them for long time by
solving all the issues and problem faced by them.
Marketing technology:
Use of social media: The use of social media tool has brought huge change in the food
and beverage industry as the connectivity among people have increased. Traditional method of
marketing is being used by F&B industry such as Hotels in order to promote their valuable
services with the help of billboards and pamphlets. In case of online marketing social media tools
are used effectively for enhancing business growth (Starbird and Amanor-Boadu, 2017). The use
of this tool result in attracting huge number of potential clients who wants to use their services.
Hosting events: This tool is mainly used by firms in order to host their business
activities thus achievement of competitive edge at market area. Apart from this they also ensure
to provide their customers with Complimentary tea, coffee and snacks and these events are

hosted by large number of individuals in order to retain their cost thus enhancing their overall
profitability index.
TASK 4
P7 Investigation of various factors that have influence on consumers’ decision while choosing a
food and beverage outlet.
There are ample number of factors available at the marketplace which might affect the
overall decision making process of customers. These factors need to be considered by the
management team of an organisation deals in food & beverages restaurant. Some of the factors
consists of food offerings, physical brand, service quality, affordability and many more. These
elements are going to be discussed in detail manner:
 Food offering: A hotel or restaurant provide range of food items to their customers
according to their needs and requirements (Wood, 2018). It is very essential to satisfy the
needs and wants of customers so that they can remain loyal towards the company. It has
also been analysed that it might affect the decision making process of customers in both
positive as well as negative manner.
 External environment: It has been said that external environment consist of all those
factors which need to be considered by management team of the company as it highly
affects the overall procedure of decision making of customer. In reference to food and
beverage industry, it is said that family, friends, religion and many other factors available
at the marketplace might influence the overall procedure of decision making.
It has been said that above mention factors highly affect the decision making process of
customers as in today's world consumers are the king and the overalln profitability of company
highly depends upon the customers.
P8 Strategies adopted by companies in food and beverage outlets for attracting customers &
having loyal customers.
For every business organisation it is essential to attract new customers and retain their
loyal customers so that they gain competitive advantages at the marketplace. It is not easy for a
company to retain their customers as they have large number of substitute available at the
marketplace. It has been analysed that if an individual buy products and services of a specific
brand on a continuous basis, then the customer is loyal towards the company. In order to attract

new customers, Food & Beverage industry adopt effective promotion techniques. The methods
which is adopted to attract customers are going to be discussed as follows:
Customer Feedback: It is very essential for the management team of a hotel and
restaurant that they satisfy the requirements of customers. Therefore, modifications and
customization need to be maintain by the managers as per their needs and wants. If their wants
are not fulfilled effectively this might affect the reputation of company (Svensson and Wagner,
2015). For this, feedbacks from customers is required so that there reviews towards the products
and services will be analysed.
Loyalty Program: Along with this, there are various offers provided by the management
team to their loyal customers so that they can retain them for a longer period of time. They offer
special gifts, discount vouchers, loyalty cards, buy one get one free, memberships and so on to
their regular visiting customers. In reference to Food & Beverage industry it has been said that
managers adopt such policies so that they can beat the competition available at the marketplace.
This will assist the company in order to attract large number of new customers towards them as
well as retain their loyal customers for a long period of time so that they can enhance their
overall sales and profitability at the marketplace (Wallace, Sperber, and Mortimore, 2018).
it has been recommended that by having different types of skills and capabilities
managers will be able to serve their customers in an appropriate manner so that they can fulfil all
the requirements of there clients and guest. Apart from this by having organisational skill,
different strategies and policies need to be developed so that goals and objectives will be attained
in an effective manner. This as a result influences customers interest towards the organisation
and help them in gaining positive results. In addition to this, with the help of communication
skill, large number of people will be attracted towards food and beverage industry.
CONCLUSION
With the assistance of above stated report, it has been identified that food & beverage
industry requires to do innovations on a regular basis so that they can maintain their
sustainability at the competitive marketplace. It has also been identified that top management
team of a food industry gain various advantages as compared to other sector. Furthermore, it is
seen by lot of people that with the help of effective communication skill an individual will be
able to perform their business functions appropriately. By providing food through online medium
creates various opportunities at the marketplace which helps in enhancing overall sales as well as

profitability at the marketplace within short tenure. Managers need to follow each and every
regulations in an appropriate manner so that they can perform their business operations
effectively. In order to maintain set standardization, management team decides to adopt health
and safety act in an effective manner.

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