Strategic Food and Beverage Management Assessment 1: The Wolseley

This report provides a comprehensive analysis of The Wolseley, a UK-based restaurant, within the food and beverage industry. It begins by classifying the restaurant's sector and its key characteristics, highlighting its casual dining nature. The report then delves into market segmentation using the STP model, identifying target audiences and customer profiles. Furthermore, it evaluates the impact of the current business environment using the PESTLE framework, considering political, economic, social, technological, legal, and environmental factors. Strategies implemented by The Wolseley to maintain a competitive advantage, such as cost leadership, differentiation, and focus, are investigated. Finally, the report offers recommendations to help the business adapt to evolving consumer expectations, ensuring continued success in the dynamic food and beverage market.

Strategic Food and
Beverage Management
Assessment 1 (A1)
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Discuss which sector the operation belongs to and investigate the characteristics of the sector.
................................................................................................................................................3
Analyse the operations market segment, who are the target audience?.................................4
Suggest the customer profiles of the operation......................................................................5
Evaluate the impact of the present business environment......................................................5
Investigate strategies the operation implemented to maintain competitive advantage in the
current business environment.................................................................................................8
Provide 3 recommendations for the business to adapt to meet today’s consumer expectations.
................................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
The food and beverage industry is made up of many segments such as groceries, food
items, health or natural food, functional food, beverages, packaged foods, and several others. The
industry is driven by customer demand and management of several activities that are related with
concerned industry or sector (Cha and Borchgrevink, 2019). It is a sector that processes as per
completion of different activities such as food preparation, quality and service management,
event management and many others as well. The present report consists of The Wolseley which
is a UK based restaurant which offers food and beverages to its customers being established in
year 1921. The following report is based upon food and beverages industry that consist of sector
analysis along with several characteristics of it, the analysis of its market which targets potential
customers through STP model. The report also includes the present business environment of
restaurant, along with certain strategies that can investigate the operations which is maintained in
order to have competitive advantage in current business environment. Further few
recommendations are being made for the restaurant to meet today's customer expectations.
TASK
Discuss which sector the operation belongs to and investigate the characteristics of the sector.
The Wolseley is a restaurant based on UK being established in year 1921. The operations
of The Wolseley belong to European restaurant or cafe within industry. The sector of European
restaurants comprises of several cuisines that includes cutlets, meat, steak, grape wine, or other
seasoning food items. The sector belongs to a casual dining sector that offers food of moderate
prices along with a casual and healthy atmosphere within a restaurant. The casual dining
restaurant chain offers table services to their customers with an option of having either breakfast
lunch, afternoon snacks or even dinners. The sector presents seamless services along with
availability of classic foods for their customers throughout the week.
The various characteristics of the sector are mentioned below:
 The food and beverages sector offers tasty foods and beverages with high range of
options available to the customers catering different varieties of taste that is loved by the
customers in market (Chou and et. al., 2018).
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 The sector of food and beverages such as restaurants offers an healthy atmosphere of
hospitality to the customers such as supportive an co-operative staff members, music in
slow or medium voice, absence of behaviour that distracts staff or gives rise to irrelevant
noise.
 The next characteristics of food and beverages sector maintain high quality of hygiene or
cleanliness which attracts customers. This involves clean wiping of every eating area
instead of leaving table dirty, adequate storage of food and maintaining proper standards
for preparation of food. This helps them in maintaining brand image of their restaurants
and safeguarding them from any kind of damage or food spoiling and even from any kind
of accidents or risks (Kim, Tang and Bosselman, 2018).
 The staff of restaurants is trained very well along with a requirement of balancing of food
selling prices combined with some overhead or labour costs that are being indulged in
preparation of foods. They follow a policy of happy staff-happy customers in their
restaurants by adopting handsome management skills.
Analyse the operations market segment, who are the target audience?
The analysis of operations market segment along with a target audience is done by
applying STP model that stands for Market Segmentation, targeting and positioning which is
mentioned below:
Segmentation:
This involves identification of various customer groups that are segmented on the basis of
geographic location, demographic, psycho graphic as well as behavioural aspects (Liu and Tse,
2018). In relation to The Wolseley caters customers who possess various needs or having
different requirements having propositions of tailored features with flexible order options. The
The Wolseley has customers from the regions of UK, Switzerland, US as well as Denmark.
Targeting:
This involves target market in which the organisation is going to sale its products or
services. This gives an analysis of customer group to which a company focuses and markets their
products so to have high and regular sales. The targeting of market depends upon several factors
such as market from where the company can generate high profits, easy to measure and identify,
accessible to buyers as well as making different marketing form various segments. The Wolseley
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caters such market where it can increase its share of wallet, attract more and more customers
with new every time and regaining trust of those customers which are lost by restaurant in past.
Positioning:
This comprises of position of company's product that has a difference with rival firm’s
product in market in order to assists customers in identifying their product (Ouyang and et. al.,
2018). The Wolseley sets its market positioning in a way that allows their customer to
differentiate them with other restaurants in market and identify their unique offerings.
Suggest the customer profiles of the operation.
The customer profile refers to brief information about the customers of a company being
collected or enquired in order to make them connect with business and attracts them to shop
more with them. This involves information or data from demographic region, geographic
locations, social structure, psycho graphics, behaviour as well as presence.
In relation to The Wolseley, the restaurant has a option for all income group through its
moderate pricing for food, for all age group as well as gender such as birthday parties,
anniversary celebration, regular food, children friendly environment as well as arrangements for
special events or occasions. In terms of geographic location The Wolseley offers its services to
the market of London, UK through its physical outlet as well as home delivery services. When
looking to the customer profile of The Wolseley customers on the basis of social structure the
restaurant offers its food for all such as family, friends or children. The Wolseley also its food
which is mostly liked by their customers based upon their interest likes or dislikes hobbies, etc.
Evaluate the impact of the present business environment.
The impact of present business environment can be better evaluated through an
application of PESTLE framework that stands for political, economic, social, technological, legal
and environmental. The impact upon The Wolseley is evaluated below: Political: This involves some forces from government according to which a business has
to modify its policies (Raab, Baloglu and Chen, 2018). The Wolseley has to face huge
changes in regulations that are concerned with health of customers; UK government has
implemented tough food regulations for the restaurants to maintain.
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 Economical: these talks about various factors that are concerned with economy of a
country as a whole. For The Wolseley the disposable income of customer can have an
impact on business that is high disposable income will attract more customers whereas as
vice-versa. Fluctuation in prices of menu due to the presence of inflation also impacts the
present business environment. Social: This comprises of society's thoughts or preferences. In case of The Wolseley the
restaurant sometimes faces a negative impact due to non-placing of order for junk foods
or oily foods which sometimes are an attraction for young age people especially children. Technological: This involves use of technical hardware's or software's to make the
services better (Skinner, Chatzopoulou and Gorton, 2020). Online acceptance of food
orders or use of several accounting software’s by The Wolseley impacts positively to the
restaurant and brings more profitability for them. Legal: This comprises of some forces which are imparted by law or through legislations.
In case of The Wolseley, the restaurant has to follow all rules and regulations in terms of
maintaining hygiene or not offering such food which got expired or is not meeting the
quality standards.
 Environmental: This is concerned about the nature and its surrounding taking care of
which is a prior concern for every business. For The Wolseley, the restaurant is required
to have effective management of their wastes or should take care of cleanliness along
with use of recyclable products.
Internal environment analysis
Strength
 High stage of client pride – the
agency with its committed client
dating control branch has capable of
gain an excessive stage of client pride
amongst gift clients & true emblem
fairness a few of the capability
clients.
Weakness
 Financial making plans aren’t always
completed nicely and effectively. The
contemporary asset ratio & liquid
asset ratios recommend that the
agency could utilize the coins extra
effectively than what its miles doing
at gift.
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 Highly professional body of workers
via a success education & mastering
programs. The Wolseley is making an
investment big assets within the
education & improvement of its
personnel ensuing in a body of
workers that isn't always handiest
surprisingly professional however
additionally encouraged to gain extra.
 Limited achievement out of doors
middle business – Even though The
Wolseley is one of the main
companies in its enterprise it has
confronted demanding situations in
shifting to different item segments
with its gift culture.
Opportunities
 The new possibilities would develop
a stage gambling subject for all of the
gamer’s within the enterprise. It
represents an extraordinary possibility
for The Wolseley to power domestic
its benefit in new era & advantage
marketplace proportion within the
latest product category.
 Decreasing fee of transportation due
to decrease transport fees also can
carry down the fee of The Wolseley
merchandise for that reason imparting
a possibility to the agency - both to
enhance its profits or by skip at the
advantages to the clients to advantage
marketplace proportion.
Threats
 The growing fashion towards
isolationism within the national’s
financial system could cause
comparable reactions from different
governments for that reason
negatively impacts global sales.
 Latest technology advanced via way
of means of the competitor or
marketplace disruptor may be a
critical hazard to the enterprise within
the medium to long time future.
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Investigate strategies the operation implemented to maintain competitive advantage in the
current business environment.
The various strategies that are implemented to maintain competitive advantage in the
current business environment are as follows: Cost Leadership: The main objective of this strategy is to offer products or services with
at the price which is lowest and is suitable for the firm. This can be achieved through
having production at large level of units or by having economies of scale into production
process (Suarez and et. al., 2019). This allows firms to gain competitive advantage by
offering their products or services at cheaper rate then to rival firms which attracts more
customers in market. The Wolseley offers its products at moderate prices which can be
cut down to the lowest so to have competitive advantage in industry and will be able to
cater more customers even in current business environment. Differentiation: This comprises of a strategy that a company adopts in order to have
some different feature from rival firm (Tantanatewin and Inkarojrit, 2018). The Wolseley
can gain competitive advantage by adopting this strategy through offering unique or some
innovate service with high quality of food being offered to customers.
 Focus: This strategy comprises of company's focus towards market segment by a way of
either cost focus or differentiation focus (Wu and et. al., 2019). The Wolseley can adopt
competitive advantage within present business environment through offering of low cost
food to its small market segment or by a way of offering unique food item with new
technique in serving within its small market place.
In respect to current business environment such as a case of Pandemic or during recession
period it is helpful for The Wolseley to offer its food item at lower cost so that customers can
buy with them along with offering food through home delivery because during or after pandemic
there are very few people who likes to visit restaurants and have food, majorly of the customers
places their order via online platform to have home delivery of it.
Provide 3 recommendations for the business to adapt to meet today’s consumer expectations.
The three recommendations for the business to meet today's customer's expectations are
as follows:
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 It is recommended to The Wolseley that the restaurant should adopt such pricing
strategies which can cater more and more customers in market with its attractive prices
and handsome offers which can appeal customers to visit restaurant.
 The Wolseley can add such items in its menu which are new in market and are trending
with high acceptance along with likings by young generation who loves to visit
restaurants very frequently.
 Another recommendation to The Wolseley is that restaurant should enhance its services
though involvement of latest technologies or innovation so that can get competitive
advantage within industry along with having uniqueness in its operations that can have a
great impact on minds of customers to place their orders with them.
CONCLUSION
From the above report it can be concluded that food and beverage industry offers wide
varieties of services to their customers such as fast food, lunch or dinner, drinks, casual or fine
dining and several others which satisfies customers’ needs and presents them with a feeling of
high satisfaction and happiness. There are several restaurants which are offering food and
beverage services to their customers in market. It is very much essential to analyse market
segmentation, market target and positioning in order to have effective and high sales because of
presence of numerous types of food varieties which attracts different customers. Unlike other
business operations food and beverages industry also has a great impact due to the presence of
various environment such as internal and external (political, economic, social, technological,
legal and environmental) which affects profitability and sales of restaurants within an industry.
The sector or restaurant adopts various different strategies in order to maintain their competitive
advantage within existing business environments such as recession or dynamic behaviour of
customers in market.
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REFERENCES
Books and Journals
Cha, J. and Borchgrevink, C.P., 2019. Customers’ perceptions in value and food safety on
customer satisfaction and loyalty in restaurant environments: moderating roles of
gender and restaurant types. Journal of Quality Assurance in Hospitality & Tourism.
20(2). pp.143-161.
Chou and et. al., 2018. Explicating restaurant performance: The nature and foundations of
sustainable service and organizational environment. International Journal of Hospitality
Management. 72. pp.56-66.
Kim, E., Tang, L.R. and Bosselman, R., 2018. Measuring customer perceptions of restaurant
innovativeness: Developing and validating a scale. International Journal of Hospitality
Management. 74. pp.85-98.
Liu, P. and Tse, E.C.Y., 2018. Exploring factors on customers’ restaurant choice: an analysis of
restaurant attributes. British Food Journal.
Ouyang and et. al., 2018. The influence of food aromas on restaurant consumer emotions,
perceptions, and purchases. Journal of Hospitality Marketing & Management. 27(4).
pp.405-423.
Raab, C., Baloglu, S. and Chen, Y.S., 2018. Restaurant managers’ adoption of sustainable
practices: An application of institutional theory and theory of planned behavior. Journal
of foodservice business research. 21(2). pp.154-171.
Skinner, H., Chatzopoulou, E. and Gorton, M., 2020. Perceptions of localness and authenticity
regarding restaurant choice in tourism settings. Journal of Travel & Tourism Marketing.
37(2). pp.155-168.
Suarez and et. al., 2019. Are restaurant customers ready for tablet-based menus?. International
Journal of Contemporary Hospitality Management.
Tantanatewin, W. and Inkarojrit, V., 2018. The influence of emotional response to interior color
on restaurant entry decision. International Journal of Hospitality Management. 69.
pp.124-131.
Wu and et. al., 2019. Relationships between restaurant attachment, experiential relationship
quality and experiential relationship intentions: The case of single friendly restaurants in
Taiwan. Journal of Hospitality and Tourism Management. 40. pp.50-66.
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