Managing Food and Beverage Operations

INTRODUCTION

Foods and Beverages services are one of the largest sectors in terms of preparing, producing and serving of food. There are many skills required to sustain in this industry by understanding the commercial advantages and its effects. This report is going to put insights on various types of businesses, rating systems, current trends of this sector, management skills, legal regulations and requirements established here, use of operational and marketing through digital technology.

MAIN BODY

P1. Explore different types of businesses within the food and beverage industry, profiling a chosen business within each area of the industry 

P2. Different rating systems used for the food and beverage industry nationally and internationally

There are many rating systems used for showcasing the quality parameters of services such as location, price, hotel size, staff, design etc. of this industry.

Michelin Stars: This is a grading system where the basis of quality checking is on three stars, where the highest one signifies “exceptional cuisine and must have on the list”, two stars mean excellent cooking and must be a visit and one star is very good restaurant. This lists those restaurants in many countries and gets updated once a year. For e.g: The Araki, Alain Ducasse at the Dorchester and many more.

AA Rosettes: This scheme is an award, which is purely based on meal served by the restaurants in more than one visit. This provides an insight with a direction to enhance the tastings, make food health and more (Tefera and Govender, 2015). 

Hotel Stars: This is the most common system to measure the high degree of services involved in hospitality sector. In this, one to five is the numerical scale,  

P3. Current and future trends affecting food and beverage businesses

Current trends include Mergers and acquisitions regarding fusion cooking, changing consumer’s behavior due to lifestyles, transformations due to digitalization and touch screen technology; and food safety and sustainability with corporate responsibility. Recently, acquisitions are done at lower costs to avoid spending time, energy and resources for R&D internally to innovate newer products with better techniques, methods and quality (Brotherton, 2014). As there is a radical change in consumer’s preferences due to cultural disparities in lifestyles has witnessed 360 degrees behavioral shift for food safety and overall sustainability. This will provide a platform for companies to inculcate this sense of responsibility to promote health awareness by supporting campaigns for leveraging green systems for cost effective tax credits such as food donation deductions etc.

Future trends hold emergence of organic and healthy food products, snacks etc; fuss-free flexibility and convenience and no priority to pricing. Due to globalization, use of social media platforms and technological advancements, there will be a rise in the flexibility of current system of eating out. Everything can become virtual by harnessing Internet of Things and big analytics. Since customers are getting aware about the benefits of following nutrition, diet for increasing strength that regulates sleep patterns by promoting “wellness” in the mainstream order. Along with this, pricing will also take a backseat because of booming economic growth, high standard of living towards plant based diet.

Figure 1. Survey on eating pattern of population in UK
(Source: Griffith, T., 2018)

M1. Analyze how current and future trends are affecting food and beverage businesses products and services to meet business objectives

Trends can keep any enterprise of any sector on toes to analyze and understand the ongoing competition in the labor market. It also helps in building fusion cooking at multi-dimensional image with growth opportunities on global level by keeping up with the ever changing lifestyles, preferences and tastes of customers, which has boosted the overall economy in terms of GDP (Tanford, Shoemaker and Dinca, 2016.). The phenomenal interest in touch screen technology has led the consumer driven convenience that has been combined. The effects of such trends are progressive and streamlined the manufacturing processes by bringing improvements in the cold chain facilities for enhanced shelf life.

D1. Critically analyze how different types of food and beverage businesses have adapted to current and future trends to meet business objectives

These trends have made lives convenient, customer friendly with easy accessibility towards the choices prevailed in the market. Fusion cooking adopted by Radissons by adding environmental friendly packaging without compromising the quality and safety has brought revolutionized change. However, on the other hand, people are becoming guilty pleasure, and are adopting the home delivery offer and more available such choices frequently that affect their health adversely. Thus, Wimpy got rebranded after acquisition to match with the lifestyles of UK people. Also, there has been acceleration at J.B.Cole for driving profitability based business due to touch screen technology, which led to sometimes frauds and scams on basis of cultural ethnicity by compromising on quality.

P4. Demonstrate professional food and beverage management skills within a food and beverage organization

The following managerial skills are needed within any F&B organization:

Problem-Solving Skills: This involves quick solving ability and conflict resolution power between employees. Examples are insufficient stock in inventory, ill behaved customers and wrong orders etc.

Speaking Skills: The entire staff must be well spoken to convey their specialties, facilities etc with clarity. Along with, they also must have knowledge in multilingual languages for better presentation of their business (Battour and Ismail, 2016.). The cited company must hire efficient managers so that they can accurately and easily communicate standards and cooking methods to staff, to take orders and speak with customers clearly.

Endurance and strength: Hospitality sector members must be on their feet always as it is one of the most uncertain jobs without any time or schedule so one can expect long days around hot cooking elements, or treating people proficiently.

Customer-Service: Food and beverage employees interact with customers on daily basis, so there is a necessity for them to be professionally well behaved, courteous and welcoming.

Attention to Detail: This is the key step of presenting their signature style in the best possible outcomes in context to food standards, costs, safety, etc. in order to attract their customers’ attention to make them coming back again.

Management Skills: This consists of operational costs, scheduling of work, pricing, and more, which must be done by the managers or administrative unit to work in smooth manner during heavy shifts, festival time and more.

Organizational Skills: these are necessary to keep the establishment’s working in proper conditions by organizing various tasks like assigning people their duties, scheduling the staff on cyclic rotation, following up on inventory and shipments, etc which helps in overall management of operations.

P5. Legal requirements and regulatory standards that food and beverage service outlets must comply with, giving specific reference to the maintenance and cleaning of equipment

The legal requirements vary on the type of food businesses such as hotels, cafes, restaurants’, bars etc as scale of production might differ and preparation and handling of food processes must be safe. Registering the food business is the first step which includes premises of food preparation, storage, and retail and delivery area with vehicles (Lakhtina, 2015). The local authorities should be updated with all the latest details with respect to the place, equipments used, hiring process of staff, food handling methods, future changes to the business, etc. Food hygiene authorities like FSS (Food Standards Scotland), FSA (Food Standards Agency) etc. can visit premises to examine whether they are in compliance with legal requirements. It can include taking samples for scientific analysis and inspecting records. In UK, authorities issue hygiene ratings in public or sometimes exhibit it in front of the premises, which can improve or damage business reputations, along with put a pressure to provide high quality food.

There are many legalities and regulatory standards such as The Health and Safety at Work etc Act 1974 to provide and maintain safe plant and equipment and to ensure a healthy environment for employees. The requirement to maintain plant, machinery and equipment is also present in other regulations, including the Provision and Use of Work Equipment Regulations 1998, the Pressure Systems Safety Regulations 2000, the Control of Substances Hazardous to Health Regulations 2002 and the Electricity at Work Regulations 1989.

FDA has also recommended Process Approach for hazard controlling and balancing out the complexity arises between staff while preparation of food; refer figure for better comprehensive understanding.

Figure 2. Steps involved in Process approach
(Source: Food safety for hotels and restaurants, 2013)

M2. Discuss the importance and value of having to meet professional food and beverage legal and regulatory standards on operational performance and the consequences on performance if they are not adhered to

When F&B sector follows all regulations legally and appropriately then it includes many benefits for proper movement of their businesses. It is significant as the following:

• Implementing HACCP System effectively
• Risk assessment and management can be controlled and also prevent, before hand when things can turn towards wrong direction.
• Maintenance costs will be minimized by following a proactive and planned plan of routine check-ups.
• Health and safety of customers and employees can be kept in line by ensuring proper implementation of environmental rules 

D2. Analyze the implications of failing to meet the professional food and beverage legal and regulatory requirements upon the overall operational performance

Any mis-happenings or accidents can take place resulting in putting dangers to people lives at workplace. In addition to, unsafe wet cleaning methods after cleaning, use of hazardous chemicals, faulty plugs, cables etc; incorrect and poor maintenance of gas appliances and guards leads to slips or machinery accidents can result in electrical injury or fire and explosion. These can be expensive, both in economic aspects and pain or suffering. Such poor standards of maintenance are major causes of failing to meet professional requirements. 

P6. Compare and contrast different operational and marketing technology for a range of different types of food and beverage businesses

Both operational and marketing technologies go hand in hand for sustainable performance of the food and beverages businesses.

Order taking is an art; one must understand the nuances attached to it in order to attain maximum gain by making their customers and suppliers satisfied with their services. Large hotels or restaurants’ must take initiatives to crack deals with suppliers first, rather than focusing on their clients so that their emphasis is to cut their budgeting on initial steps through bargaining (Setiawan, Emvalomatis and Lansink, 2012). However, cafes focus on their customers while taking orders as their capital generation s depended on it mostly. Personal records are great tool to keep a track of all the investments and work done manually. Along with it, pricing sheets are also good way to maintain records but it is time efficient and easier way to conduct these calculations.

Marketing is one of the functional units used for promoting or advertising products in a more unified and personified manner. These days, traditional methods like word of mouth, TV, newspapers have been replaced with use of information technology and internet as well. E-mail or E-brochures can be used but it might be effective when done at an individual level. Rather, it is better to use social media platforms as it is more reachable, convenient and just a click away. For e.g. Facebook is the best platform to showcase or promote any offers or new innovations.

M3. Evaluate how digital technology enhances business performance for a range of different types of food and beverage businesses to meet business objectives

Digital Technology has both tangible and intangible benefits to make money as per the customers’ demand. A Technological infrastructure has stirred the culture, efficiency and relationships of a business in a more translational aspect (Öğüt and Onur Taş, 2012). Its inclusion has added positively to the growth and development of this sector by improving customer service through delegating all tasks efficiently, increasing revenue, generating ideas for promotion, renovations etc and reducing operational costs and distractions as well.

P7. Factors that influence the consumers’ decision on which food and beverage outlets they choose

Cultural factors: Culture can be defined as the set of beliefs, values, ethics and tradition within a group of people and this can be changed but, it is a slow process as it is deeply rooted into a person’s personality. Therefore, it is better to have a flexible viewpoint for marketing food as it is directly linked with culture in a subjective and arbitrary order.

Societal factors: Socio economic classification is the permanent distribution and is measured by combination of diverse factors such as occupation, power, ownership, property, lifestyles, income and many more.

Personal factors: Here, either immediate family members or any reference group are involved (Chen and Chiu, 2014.). They are not exhaustive in nature, yet affect the decision making of an individual while purchasing or buying anything.

Psychological factors: The most important internal elements included perception and motivation. If the buying motive seeks satisfaction that activates goal-oriented behavior and can be of two types: Biogenic (hunger, thirst etc) and psychogenic needs (for recognitions and success).

Economical factors: Consumer buying behavior is strongly influenced by this factor (Rahimi and Kozak, 2017). There are many key aspects that have influenced the customers such as savings, personal and family income, consumer credit and other factors. 

Figure 3. Factors influencing Consumer’s decision making
(Source: Ramya and Ali, 2016) 

P8. Analyze strategies used in a range of food and beverage outlets to attract and build a loyal customer base

Pricing strategy: Family income especially personal income is one of the determinants which affect the buying behavior of customers. Along with, quantity and feasibility with viability plays pivotal role in making decision making of individuals before buying stuffs from it.

Culture and social class: The subjectivity must be clear to make the selectivity for categorization in various available options in the market.

Promotion: Word of mouth or using social media platforms like Facebook, YouTube etc can be used to create the buzz to build a loyal customer base in positive mode.

Quality: The parameters set for maintaining the taste, combination of rich flavors, overall presentation and quantity provided on the basis of price can definitely attract the potential consumers.

Hygiene and sanitation: Cleanliness is considered as the most important strategy to pull individuals towards restaurant or hotel (Cattermole, Johnson and Jackson, 2014). If the food served in appropriate order then through word of mouth, it popularity can gain momentum and become famous.

Professional outlook of staff: The hospitality sector needs professional approaches like formal look, while dealing with clients to make them aware about their facilities effectively in superior manner.

M4. Evaluate the effectiveness of strategies used in a range of food and beverage outlets to attract and build a loyal customer base

All the mentioned above strategies can affect the complex as well as habitual buying behavior that can influence any individual for seeking variety in taste and cuisines. If followed appropriately by putting sincere efforts, then it will lead to positive outcomes that can assist in building a loyal and trustworthy customer base. Overall, when components suh as hygiene, professionalism, promotional mix, pricing and others have been implemented on logistics then it impacts the entire set up in a more valuable and significant way.

D3. Critically evaluate the impact of digital technology both on the operations of food and beverage businesses and the significant influence it has upon consumer buying behavior

With the onset of digitalization, it has brought many pros and cons. The pros comprises of time efficiency, use of high end equipment in kitchen, availability of massive culinary set and methods on how can it be used would be on just a single click. High efficiency facilities are invented too. Besides, it has few drawbacks such as security concerns, easy copying of recipes or ideas, lack of use of authentic spices or equipments which have been replaced by machines.

Consumers have become smart on how to use this technology in their favor. It is interesting and appealing to get attracted towards it, but with patience and intelligence, one can differentiate and develop sense of awareness regarding varied processes involved. 

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CONCLUSION

It is summarized that this sector is prospering at an alarming rate. However, it is essential to bridge the gaps for sustenance and application of new technologies with innovation to provide the customers with better services. To sum up, this sector is going to expand exponentially but is in need of strict regulations for improved performance.

Students Also Like to Read: Business and Business Environment of Mcdonald

REFERENCES

• Battour, M. and Ismail, M.N., 2016. Halal tourism: Concepts, practises, challenges and future. Tourism management perspectives. 19. pp.150-154.
• Brotherton, B., 2014. Critical success factors in UK budget hotel operations. International Journal of Operations & Production Management. 24(9). pp.944-969.
• Cattermole, G., Johnson, J. and Jackson, D., 2014. Employee engagement creates a brighter economic future at Jupiter Hotels. Strategic HR Review. 13(2). pp.81-85.
• Chen, C.M. and Chiu, H.H., 2014. Re-examining the market structure effects on hotel performance using market share inequality. International Journal of Hospitality Management. 41. pp.63-66.
• Lakhtina, K., 2015, April. Value Formation of Loyalty Programs in the Hotel Industry: Starwood Preferred Guest, Marriott Rewards, Hyatt Gold Passport. In ISCONTOUR 2015-Tourism Research Perspectives: Proceedings of the International Student Conference in Tourism Research (p. 59). BoD–Books on Demand.

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