Reducing Operational Cost via F&B Management: A Case Study of ABF Plc

This case study investigates the impact of food and beverage (F&B) management on reducing operational costs, focusing on Associated British Foods Plc (ABF Plc). It examines the concept and role of F&B management within UK organizations, highlighting its significance in the hospitality industry and its contribution to economic growth. The study identifies strategies employed by ABF Plc to minimize operational costs, such as managing food waste, improving staff productivity, and implementing effective inventory control. It emphasizes the importance of portion sizing, kitchen preparation lists, cross-training employees, and establishing clear job descriptions. The research also explores methodologies for assessing grocery bills, maintaining supplier relationships, and maximizing the use of daily specials to prevent food waste. Ultimately, the case study aims to provide recommendations for optimizing F&B management strategies to achieve operational cost efficiency within ABF Plc.

Research Proposal 2
(Topic - The impact of food & beverage management in
reducing the operational cost of an organisation: A case
study of Associated British Foods Plc.)

Table of Contents
Topic - The impact of food & beverage management in reducing the operational cost of an
organisation: A case study of Associated British Foods Plc...........................................................3
Introduction......................................................................................................................................3
Research aim & objectives..............................................................................................................3
Literature Review............................................................................................................................4
Research Methodology..................................................................................................................11
References......................................................................................................................................16

Topic - The impact of food & beverage management in reducing the operational cost of an
organisation: A case study of Associated British Foods Plc.
Introduction
In this fast running globe, it is determined that F & B administration is described as the study of
management concerned with food transportation & service. It is determined that Budgeting &
menu preparation, for example, as well as ordering & inventory management. It also manages
human resource management, such as hiring experts for all of the firm's divisions. Head office,
backroom, financial, innovation, client service, promotion sales, administration, kitchen, supply
chain, & many others are among the departments. It is critical for the restaurant industry to
concentrate on operational costs, which are primarily caused by food waste & other cooking
materials (Bairagi and Munot, 2019). As a result, the following debate will be focused on the
notion & role of F&B management in UK businesses. The following study offers insight into
foodservice management solutions for lowering operational costs. It also considers how
foodservice management strategies affect operating costs. Associated British Foods Plc is the
subject of the entire investigation. It is a significant worldwide food processing firm with
headquarters in the United Kingdom & was founded in 1935. It deals with a variety of
international ingredients, as well as other goods & services. It is regarded as the 's largest
producer of sugar & baker yeast. Emulsifiers, enzymes, & lactose are among the other
constituents.
Research aim & objectives
Aim
To identify the impact of food & beverage management in reducing operational cost of an
organization: A Study on Associated British Foods Plc
Objectives

 To understand the concept & role of food & beverage management within UK
organizations.
 To determine the strategies of food & beverage management to reduce the operational
cost in Associated British Foods Plc
 To make recommendations on strategies of food & beverage management strategies on
operational cost of Associated British Foods Plc
Research Question
 What is the concept & role of food & beverage management within UK organizations?
 What are the strategies of food & beverage management to reduce the operational cost in
Associated British Foods Plc?
 What are the recommendations on strategies of food & beverage management strategies
on operational cost of Associated British Foods Plc?

Literature Review
Concept & role of food & beverage management within UK organisations
According to Mangla, Sharma, Patil & Xu, (2019), revealed that the restaurant industry
contributes significantly to the hospitality industry's substantial revenues. It’s because corporate
meetings, individual & social gatherings, & caterers are all on the rise these days. All of these
factors increase the demand for restaurants significantly. Furthermore, it leads to increased
profitability & profits production in the food industry. It eventually leads to an increase in the
economic growth gross domestic product & unemployment rate. Such a commitment will only
be useful if it has a low running cost, low food waste, & is properly maintained (Chowdhury,
et.al, 2020).
This Food & Beverage Manager position spelled correctly offers a list of the most significant
task & responsibilities of a Food & Beverage Manager. It's editable & ready to put on job sites.
Save time, attract competent candidates, & hire the best personnel by using it. This Food &
Beverage Manager job description template offers a list of the most significant activities &
responsibilities of a Head chef. It's editable & ready to put on job sites. Save time, attract
qualified candidate, & hire the best personnel by using it (Bresler and Stake, 2017). Job
Description for a Food & Beverage Manager determined that when a manager is a hospitality &
tourism specialist that is responsible for anticipating, managing, & controlling food & beverage
orders for a hotel. He also oversees the financial aspects of the entire purpose of buying food &
beverages for the hotel. The term "shopping" refers to the process of locating, purchasing, &
conveying food & beverages. It is critical to establish a clear & exact Food & Beverage Manager
job description in order to recruit the finest Food & Beverage Manager for your demand,
Obligations & obligations of a Food & Beverage Manager is responsible to manage the whole
food & beverage department of the hotel. it is determined that Food & beverage orders should

be planned, forecasted, & executed (Dopson and Hayes, 2019). Patiently handle client problems.
It is analysed that prepare different recipes for customers who have particular dietary
requirements. it is necessary to check the supply of food & beverages & place orders as needed.
it is also necessary to track shipping & place orders, mmaintain open lines of communication
with vendors & cultivate excellent working relationships, follow all food, medical, & safety
requirements, plan, hire, subway, closely monitor, & manage employees. Supervise & closely
monitor customer greetings, consistently strive for the exceptional client experience & also
competencies & criteria for a Food & Beverage Manager.
According to Okumus, Taheri, Giritlioglu & Gannon, (2020), defined that management in the
hospitality sector & businesses is known as F & B business. It is a component of the hotel
industry that mostly focused on activities in hospitality industry, as well as resorts & food
outlets. It also contains hospitals & a variety of other facilities. This is the industry in which all
businesses participate in operations such as the processing of raw food materials. It is also
engaged in the processing & packaging of the final product. Fresh & prepared foods are included
in this category, which is further separated into drinking & quasi liquids. There is no charge for
the trial, & no credit card is necessary & many other & the main role of the food & beverage is to
reach out to over 250 million prospective candidates,pposition Description Template for a Food
& Beverage Manager, join our team, we're seeking for a dedicated & inventive food & beverage
manager. The casual dining supervisor's tasks include overseeing food & beverage operations &
standards, sticking to budgets, employing & training food & beverage employees, & also
respond to customer concerns. company need have outstanding customer service & problem-
solving abilities, as well as expertise planning menus, to be a successful food & beverage
manager. Finally, a leading foodservice manager must be able to purchase just the correct
amount of goods to keep the business running until the next delivery (Grekova and et. al., 2016).
Food & beverage management is responsible to providing assistance with marketing
events & also developing & implementing restaurant policies, objectives, & key performance
indicators (KPIs) & also recruiting, developing, & supervising food & beverage employees.

Prerequisites for a Food & Beverage Manager, A maximum of 4 years of experience in the hotel
business, with a focus on food & beverages is required.
Food & beverage management need to focus on the food & beverage operations & pay more
attentions on some activities such as Food preparation, there is a need for someone who has
worked in a kitchen before. The cooks are familiar with kitchen vocabulary, equipments, &
fundamental preparing food skills. The main role of the F & B management is to focus on the
Sanitation, safety & hygiene in which basic hygiene, security, personal grooming, & general
food handling knowledge are required. Take a look at the logical legislation for the food service
sector first. it is determined that Food science & nutrition is more important in case of
management. it is necessary to use scientific method, as well as the chemical & physical changes
that occur during the manufacturing, manufacturing, & storage of food products, will be
introduced, as it will basic principles of nutrition & micro biology, such as those linked to
chemical reactions to food (Igwenagu, 2016).
Food & beverage management is necessary to control the cost of food & beverage
products & it is determined that the aspects look at how food & beverage, personnel, facilities, &
machinery are managed. Managers will be introduced to standards & processes that will boost
the likelihood of completing F&B tasks in the firm while keeping costs under control &
maximizing sales. Procurement methods will also be scrutinized. It is necessary to focus on the
Purchasing & materials management & Events & also conference management (Jagtap and
Duong, 2019).
Strategies of food & beverage management to reduce the operational cost in Associated
British Foods Plc
According to Dopson & Hayes, (2019), revealed that company uses methodologies for
assessing grocery bills so that gaps can be detected & appropriate precautions can be done to
avoid excessive costs. When it comes to inventory calculations, the business has always been
reliable & has a good relationship with the suppliers. The organization seeks to manage food

orders in order to prevent food waste, as well as to maximize the use of daily specials. It is
necessary to control the operational cost in case of the food & beverage management activities.
There are some effective strategies are identified which can helpful to reduce the operational cost
of the company. Even though companies sales are large, these high costs may not have been the
cause of your earnings. As a result, it's critical that you maintain these costs under control!
You're probably aware that some expenses are set in stone. Fixed expenses are those that you
can't change, but production costs are those that you can change monthly or quarterly. A rise or
decrease in operating costs is directly tied to an increase or drop in sales. Food costs, beverage
ends up costing, straws & handkerchief costs, & wage costs are just a few examples
(Meyers,Schmitt, Chester-Jone and Sturm, 2016). Some effective strategies such as watch food
waste, staff productivity, lower food costs, food presentation, first in, first out, review your
menu, stock management, reduce utility cost & also budgeting. In order to reduce the
operational cost, it is necessary to reduce the food waste & focus on the Portion sizing in which,
if clients never finish their meals, the portion control may have been too large. To avoid leftover,
use amount control methods to provide reasonable-sized servings. company need to focus on the
Kitchen preparation list in which , have the cook create a daily cooking prep list that specifies
how much of each ingredient must be produced. Cooks who don't have this tend to over-prepare,
resulting in excessive food waste.
As per to reduce the operational cost, company need to improve their staff productivity, it
is necessary to pay more attention on the cross-train employees so they may fill different tasks &
assist when needed & company need to improve the scheduling & also reduce the amount of
employees throughout slow times or close off portions of the restaurant that aren't in use. Apart
from this , company need to focus on the job summaries & also it is determined that everyone
should be given job descriptions & expectations, along with defined & comprehensive
performance measures, so that everyone underst&s what is expected of them are in order to
improve their performance (Nair, Rashidi and Dixit, 2017).
According to Raimo, de Nuccio, Giakoumelou & Vitolla, (2020), defined that
Aassociated British Foods Plc has a number of food & beverage management techniques in place
to lower operational costs. This company, for example, is concerned about food waste. They

keep an eye on foods & lean towards them. This is done to ensure that the maximum amount of
food natural resources is used while minimizing waste. It also cuts down on the expense of
operations. The company also focuses on employee performance, which leads to cost savings.
Furthermore, the company concentrates on menu demonstration & inventory control, as well as
power cost reduction & financial planning. in order to control cast, it is necessary for the
company to tracking & monitoring the food that comes into restaurants is the first step in
lowering food prices & waste. Many businesses order food in bulk quantities, but using all of
that food before it spoils can be challenging. Here are some suggestions for reducing bacterial
growth (Okumus and et. al., 2020).
Company should calculate the food costs & determined that in a restaurant, determining
meal expenses can take quite a long time, but remaining on budget & keeping track of your
finances can help you save period, effort, & meal in the long run. Inventory, cost of goods &
food cost % are all factors that should be considered when computing a food cost %. These
elements can assist you in sticking to your budget & also keeping track of your profit & loss
statement.

Recommendations on strategies of food & beverage management strategies on operational
cost of Associated British Foods Plc
According to Sovacool, Bazilian, Griffiths & Rooney, (2021), explained that Food &
beverage management techniques also have a detrimental impact on Associated Foods Plc's
operational costs. As an example, a corporation is experiencing delays in decision-making as a
result of time-consuming cost-cutting plans. This necessitates maintaining just & operational
management program, which can further absorb the company's current cost, time, as well as
energy. It is determined that the packaged goods like products industry, particularly food &
beverage companies, faces certain specific issues price increases & fragmented & preoccupied
workforces. Our sales & logistics leaders have developed the following recommendations to help
you get through this difficult time. It is necessary to focus on the forecast the demand to best
ability in which current-year sales should not be used as predictions, having started in March
2020, they are an outlier (Omar and Zallom, 2016). Estimate the growth by doing some research.
Using data from Statist, for example, it becomes evident how so much interest in the F & B
industry has increased in the recent time. Consumers have purchased significantly more edible
commodities, particularly packaged food, wine, & drinks. In regards of food & beverages, sales
of vegetarian items increased the most: oat milk sales increased by 347 percent, while revenues
of fake meat increased by little over 200 percent. Non-perishable food sales, in particular, have
increased in March. Overall, sales of food & beverages have increased. It is determined that
apply the determined rate of growth to the following few months based on previous year monthly
sales. If your company is in the relevant category, factor in the predicted increase in demand.
Consider the likelihood that demand will drop if COVID-19 lasts longer & shelter in place
becomes the "norm today." Plan your week, season, & quarterly ahead of time. It can be include
consumption levels in your calculations, & project a drop in demand once the consumer has
stocked up upon that goods, assuming a low level of consumption. Prepare for a drop in the price

& a gradual leveling out of demands. It is necessary to focus on the lower trade spend & also
determined that company brands should halt or suspend promotions within next 30 days,
according to industry analysts. There is insufficient supply at any level of the supply chain, &
there are extensive out on another shelves. It is recommended that company can prevent branded
merchandise driven volume surges that the production process can't handle by minimizing
promotion. Furthermore, eliminating marketing will help to stabilize inventory movement,
resulting in a higher in-stock rate all through the supply chain. As a result, putting a complete
suspension to promotions will allow the marketing budget to be redeployed once things have
calmed down. It is analysed that company already, several retailers are decreasing promotional
campaigns. Failure to do so may result in out-of-stock circumstances on the shelves, as well as
increased spending during promotional work, decreasing ROIs (Pandey and Pandey, 2021).
According to Nirino, Miglietta & Salvi, (2019), revealed that Food & beverage
management solutions have a positive impact on Associated Foods Plc's operational costs. The
corporation's strategies, for example, have profited the activity in a variety of ways. For instance,
an organization benefits from increased production & a significant profit margins due to lower
costs & the same current value as previously. Furthermore, it has decreased food waste while
maintaining CSR initiatives & environmental protection. It is recommended that company need
to increase the market share & it is also determined that ccompanies often increase their market
share through a variety of methods, including innovations, customer relationship improvement,
savvy hiring strategies, & acquisition of competition. However, just now, the most effective way
to grow your market share is to create a distinct br& position, which will necessitate spending
marketing resources. This may seem contradictory, but grabbing share of the market because
when market is declining will result in a big return on investment when the market improves.
Experts advise not investing money on invention at this time; instead, concentrate on your
greatest items & explore how you can improve their market dominance. Examine your social
media marketing plan as well. People would spend even more time in front of screens these days,
whether it's social networking apps, entertainment, the Online, or streaming platforms.

Conceptual framework
Based on current literature review, an expected relationship between variables has been set
out that is presenting the conceptual framework for current study. The current literature review
set out a conceptual framework about the Concept & role of food & beverage management
within UK organisations by the way of depicting and reflecting that it tend to be responsible to
providing assistance with marketing events & also developing & implementing restaurant
policies, objectives, & key performance indicators (KPIs) & also recruiting, developing, &
supervising food & beverage employees. Further, it has been also depicted and reflected by the
current study that the main role of the F & B management is to focus on the Sanitation, safety &
hygiene in which basic hygiene, security, personal grooming, & general food handling
knowledge are required. Apart from this, a relationship between the two variables has been also
presented by current study that is proving the link between the Strategies of food & beverage
management to reduce the operational cost in Associated British Foods Plc. It has been reflected
and supported by current project and investigation that the effective adoption of food and
beverage management strategies supports the reduction between the each thus helpful to reduce
the operational cost of the company. Therefore, it is tend to be critical that a rise or decrease in
operating costs is directly tied to an increase or drop in sales therefore adoption of some effective
strategies such as watch food waste, staff productivity, lower food costs, food presentation, first
in, first out, review your menu, stock management, reduce utility cost & also budgeting are
needed to be adopted to ensure and lead out the reduction within the operational cost of a firm.
Beside this, the current literature review also set a better framework and implication about the
Recommendations on strategies of food & beverage management strategies on operational cost
of Associated British Foods Plc that comprises of having the decreased food waste while
maintaining CSR initiatives & environmental protection. Along with this, supporting higher
awareness in customers and other shareholders through making use of the digital and online apps
also supports and lead to reduction with the operational waste along with supporting reduction in
wastage of food items to support suitable food and beverage management.