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Nelson College London

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MFBO

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Contents
Introduction:....................................................................................................................................6
L01 Explore the food and beverage industry including different styles of food and beverage
service outlets, rating systems and current industry trends.............................................................7
P1 Explore different types of business within the food and beverage industry, profiling a
chosen business within each area of the industry........................................................................7
P2 Explain different rating systems used for the food and beverage industry nationally and
internationally..............................................................................................................................9
P3 Discuss the current and future trends affecting food and beverage businesses....................10
LO2 Demonstrate professional food and beverage service standards in a real working
environment...................................................................................................................................11
P4 Demonstrate professional food and beverage skills within a food and beverage organization
....................................................................................................................................................11
P5 Explain the legal requirements and regulatory standards that food and beverage service
outlets must comply with, giving specific reference to the maintenance and cleaning of
equipment...................................................................................................................................12
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:..............................................................................................................12
D2 Analyse the implications of failing to meet the professional food and beverage legal and
regulatory requirements upon the overall operational performance:.........................................13
LO3 Compare the ways that different and food and beverage operations use technology to
improve operational efficiency......................................................................................................16
P6 Compare and contrast different operational and marketing technology for a range of
different types of food and beverage business...........................................................................16
M3 Evaluate how digital technology enhances business performance for a range of different
types of food and beverage businesses to meet business objectives:.........................................16
P7 Investigate the factors that influence the consumers’ decision on which food and beverage
outlets they choose.....................................................................................................................18
P8 Analyse strategies used in a range of food and beverage outlets to attract and build a loyal
customer base.............................................................................................................................19
M4 Evaluate the effectiveness of strategies used in a range of food and beverage outlets to
attract and build a loyal customer base......................................................................................19

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 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 behaviour:....20
Conclusion:....................................................................................................................................25
Bibliography..................................................................................................................................26

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Introduction:

Food and beverage hospitality industry is worlds one of the largest industry, It plays a massive
role in a countries domestic arena. This industry is very vital to a lot of people who are willing to
join in the hospitality sector. Pubs, Restaurants, coffees, lounges, fast food outlets etc. are
included in this. This are all service sectors of business, the better quality and service the better
result it brings out.
Local, international all kinds of customers are target market in this type of business. This type of
business present one countries tradition to others, thus it creates a friendly environment.
(Jack D. Ninemeier, 2014)

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L01 Explore the food and beverage industry including different styles of food and beverage
service outlets, rating systems and current industry trends.

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

SL Sector Description Advantages Disadvantages Example

. Employer
1 Kimpton It is a San They care a Their growth By staff
Hotels & Francisco,California lot about their opportunity is
Restaurants based restaurant and cusotmers limited,
hotel. It is one of the and especially
biggest chain employees, internationally.
boutique hotel their
environement
is extremely
friendly.
2 Hilton It is McLean, They have a Though they several
Hotels & Virginia based hotel high brand have a good
Resorts company. They perception. brand
possess 15 brands in perception
different market they possess
segments. limited market
share.
3 Four It is a Toronto, They possess Their financial Several
Seasons Canada based the biggest position is
Hotels & company, they have market share. over
Resorts more than 100 leveraged.
hotels in different
countries.
4 The It is a Calabasas, They have a They possess a By staff
Cheesecake California based powerful mere
Factory restaurant company. appearance in international
They manage 210 nearly all appearance.
whole service states of USA
restaurants.
5 Accor It is a Paris, France Their They are By staff
Hotels based hospitalitypresence is struggling in
company. It is the perfect online
biggest hotel group according to business.
in the earth. their
segments.
6 KFC It is a Louisville, They are the They have a Several

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 Kentucky based 2nd best in fast high employee
company. It holds food based turnover.
the number 2 rank restaurant.
restaurant chain in
the world.
7 Marriott It is a Bethesda, They research Intention to By staff
International Maryland based a lot to get make it
company. competitive worldwide is
advantages. placing a
negative
impact.

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P2 Explain different rating systems used for the food and beverage industry nationally and
internationally

The different rating system used for the food and beverage industry worldwide are given below:

Food safety rating: There is no country who is not concious about food safety. There are food
expert authority they research, investigate all the food and after fulfilling their work, they release
safety ratings according to their measures.

Food standard agency: This sector is under non-ministerial government department in UK. It
works for food safety and human health safety regarding food. There is strategic way to follow
the correct standard.

Alcohol rating: The demand of alchohol is different in different countries, and different
persons. Each and every country of the world follow a specific rule to maintain alchoholic
product and its percentage. Food and bevarage companies test their drinks and give ratings
before giving it to the people.

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P3 Discuss the current and future trends affecting food and beverage businesses

For the growing food and beverage business, there are a variety of opportunities. The current and
future trends affecting food and beverage business are given below:

1. Changing customer preferences: Bold flavour and foreign flavour get the most appreciation
from the customers. Customers choice are not constant, they vary time to time. They are always
looking for new update flavours and test. They prefer most of the time home delivery, very eye
catchy packaging and high quality food.

2. Mergers and acquisition: There are companies who have existing food and beverage in the
market. They will produce new tasty and healthy product to get the leading position in the
market. These process help the business to get engaged with the customers. The company has to
do a lot of research to develop a product according to present market demand.

3. Food safety: In a research it was found that 61 % Americans are certain about the food
supply. So in that case assuring food safety is one of the major issue.

4. Digital Transformation: At the present age customers want their product at a time and stores.
To fulfill customers demand Amazon has taken some steps. Customers order their choices from
their devices staying at their home, and delivery is provided within shortest time at their
neighboring locations.

5. Food sustainability and corporate responsibility: Every customer wants to know the rate or
method of productivity and delivery expectations. While this necessary sustainable measure may
be expensive to operations, companies should leverage proficient green system and aware of the
cost-saving tax credit (Peter Jones, 2004).

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LO2 Demonstrate professional food and beverage service standards in a real working
environment

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

In hospitality sector food and beverage is a major issue. People visit a hotel or restaurant to get
exceptional environment and food that he will remember. Greeting the customers or guests, take
their orders, prepare their required service, take their bills, wish them while they are leaving ect.
Are some of the efforts needed in food and beverage organization.

Food and beverage service in the hotel:

All the Star ranked hotels have many F&b services in their hotel which is given below:

 Bar
 Lounge
 Coffee shop
 Restaurant
 Room service

Leadership skills: A perfect manager is needed for a perfect business. Who is passionate about
his work and lead his fellow employees with greatness. They have to manage food and beverage
quality, manage customers, manage employees ect.

Organizational skills: This skill is needed because there are many plan and math is required to
perform in food and Beverage Company. They have to maintain suppliers, work schedule, foods,
beverage, costs, pricing etc. So, organizational skills are very crucial.

Customer Service skills: This skill is one of the major key fact of F&D sectors. In hospitality
business you have o give customer a reason to come back in your restaurant. That can be done by
caring more about customers or guests. Get the exact thing what they require. A friendly
atmosphere, delicious food, eye catchy environment they are all vital.

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

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:

Each and every business has its issues. It is not easy establish a business in any country. There
are rules and regulations to follow. Food and beverage hospitality companies also need to follow
some standards it is quite same in every country but it has dissimilarities also. There are
consequences if these regulations are not maintain well. They are given below:

Food and bevarage law USA:

Legal issues in food safety: Food safety is the basic work of food and beverage law, food
adulteration, food poor quality is not safe for customers. USA. Is working on making food
supply more safer.

Consumer product safety commission(CPSC): This agency work for consumer product safety
and for people don’t get unreasonable injury or death. They are ready to protect consumers. In
the past 30 years they have worked superbly.

Department of health and human service(HHS): This departments main work is to protect the
health of Americans. They also provide essential services for those specially who need it the
most.

Food and drug administration: FDA is a agency under the command of HHS, but their work
is very important. Food and drug administraion(FDA) works for human safety.

Food labeling policies: It gives the permission to labeling a poduct and introduce to the market.
This is guide federal food labeling aspects.

If any company does not follow law and order they will have to face bigger issues, it contains
imprisonment, or a big amount of penalty.

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

Business is for brave heart people, there will be problems a lot of problems. Problems bigger
than we ever thought, but with solution. They just need to be found. There food and beverage
law in the world to protect customers health. There are bad cosequences if those are not followed
as they should. There some other consequences in the whole business operational performance
lets see what are they:

Reputation: Reputaion is the biggest asset of a company, reputaion can be earned with time but
it wont take too many event for you to lose it. Any issue regarding your restaurant will ofcourse
impact on its reputaion.

Competitive advantage: If the company fail to maintain regulation for food and bevarage law it
will lose competitive advantage and other competitors will than take the advantage. It is hard to
get the number one position but it is harder to hold that position.

Lose customers: There won’t be any reason for customers to visit your restaurant. So, you will
lose most of your customers only the loyal ones may survive this event. Losing customers mean
losing the business. Customers are the main key to run a business.

Get marked by the law agency: If your restaurant did not maintain law it will get marked by
the law agencies like FDA. They can cease your license and send you to court. This agencies are
serious about their work they are ensuring customers health issue.

Losing business: In the worst case scenario you may lose your business because of not
following the rules and regulations. So, retaurants must follow the food and beverage law.

Food Safety Checklist

Ingredients Source Personal garden herbs
To demonstrate the ingredients
came from a safe and reputable
source, list all the places where
you purchased ingredients for
your dishes?

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Storage Temperatures Depends on the Product or food
When you brought the
ingredients to your house, note
where these were stored and
the temperatures at which they
were stored?
Personal Hygiene At its best quality
What safety measures did you
put in place to ensure that you
avoided contamination, and
cross-contamination, from
your hands?
Preparation Methods 3 times a day cleaning progress goes on
How did you ensure that your
working surfaces, chopping
boards and cooking utensils
were cleaned and sanitised?
Cooking Expert chef
What cooking methods were
used?
What was the temperature that
the food was cooked to?
Cooling and Storage Take them to refregarator
How did you cool and store
the items that you cooked?
Transportation With truck
When transporting the foods to
the college how did you ensure
that the cold items were kept
cold, and any items
transported hot stayed hot?
Reheating With micro oven
If the items were reheated at
the college, how did you
ensure that they were
satisfactorily reheated?
Other Measures Yes, termites killing
List any other Food Safety
measures that your Group took
D2 – Part 1 Outocme was very pleasant
Use the internet to research
companies that been
prosecuted for serving unsafe
food, or causing food
poisoning.
What was the outcome for the

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Company of this (fines,
imprisonment, loss of
customers, etc.)

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LO3 Compare the ways that different and food and beverage operations use technology to
improve operational efficiency

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

M3 Evaluate how digital technology enhances business performance for a range of

different types of food and beverage businesses to meet business objectives:

There are different types of food and beverage businesses in the market. All of them are actualy
producing service to the customers. A lot of thing related with a business. Marketing is one of
the biggest process of business. Marketing technology is very important now a days. Because our
world is going fully technology based. It is not so far when all the works will be done by our
computers or phones through the internet. Food and beverage hospitality business need heavy
marketing. Everyone is now thinking about their competitive advantage in the market. There are
four forces of marketing operations and technology. They are given below:

Efficiency: It means global and standardized data.

Innovation: This are general or local data.

Brand: Globally reached missions and trust worthiness.

Authenticity: Concentrate on single or individual customers.

Below there are technologies trend that are similar to create a fit environment:

Flow-through Sortation: Companies are trying their best to get maximum return. Companies
are retaining bevearge and food stocked, Numerous operations were taken under to go throw
arrangement system and make the chore simpler. It is like a mechanized place and solution to
transfer around automatically.

Equipment Innovation: Equipment innovation is a must thing for progress. New innovation
new area of work, innovations make the work easy, less costly, and less time consuming. The
more a company is technologicaly enrich it will grow up faster.

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New Era of Voice Technology: This is the new era of technology, where the future is fully
automated. Now, voice technology is emerging. It is a fascinating technology, Like voice
command technology. Machines are automatic they just need voice command to off them go.
Even now we have television with voice command, robot working on voice command . Use of
motion scensor is increasing also.

Increase in AVG Technology: AVG technology is highly used world wide. It is vehicle that
will take your product one place to another. It is mainly for inhouse use, not for long root use. It
makes work easier, it can carry heavy instrument very easily. In port areas they are mainly
visible or in big warehouses. They are easy to carry tools for any business.

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P7 Investigate the factors that influence the consumers’ decision on which food and
beverage outlets they choose

Normally people think about restaurant from starvation, but there are many more reason to visit
there. Feeling hungry is not the only reason o visit a restaurant, To change the environment, to
offer someone a dinner, to have some special moment etc. Restaurant foods are more delicious
than our usual house meal because expert chefs are making food their and drinks are coming
from the Branded companies. So, it gives a different experience and taste every restaurant you
go.

Monetary Factors: The fact here is people don’t want to visit a restaurant when they don’t have
enough money. People visit restaurant according to their buying capacity. Most of us have
limited wealth to spend. Spending money takes no time but earning it is gives a hard time.
People like restaurants in their buying capacity.

Mental Factors: These factors are like, food quality, status of the hotel, product necessity etc.
Mental issues are very vital int the matter of purchasing choice. When people have money they
will do everything to cheer up their mind.

Spiritual Factors: In some religion there are boundaries of eating habit. Like in Hinduism you
can not have cow meat, in Islam you can not have pork, in Cristinity there is no such boundaries.
So, this are the spiritual factors. It depends on what a person is believing and have faith on. This
factors change the whole purchasing habit of a customer.

Meal Forms: This factor is focusing on food, the form of food can determine the customer. If
some one is looking for chicken wings the first he may think about is KFC. Because KFC meal
form is based of mostly chicken. KFC is brand with that tagline on themselves. So, if any
restaurant is at it best with something specific and popular than people will go there only because
of that restaurants meal forms.

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

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

Food and beverage companies are popular to he customers, they are friendly towards their client
and so they get good response normally. There are some ways that can be used to build a loyal
customer base:

Upholding Moral Value: Deliver what you have promised. People will come to your restaurant
because they have learn this from your advertisement, your posters, banners, pictures of your
food. Deliver them that you have promised to, with the same and best quality that is posssible for
you. So, in here they have to uphold their moral value.

Improve earliest period customer package: It can be a part of courtesy, the manager can offer
a deduction on the price, they can give something extra to the customer so that he can come
again. This are very useful specialy when someone is first time in your restaurant. So, for them
the product package can offer something more that they were not expecting.

Client maintenance: Handling client should a vital key. Clients are sensitive so they need to get
well treatment from the restaurant. Maintining client will impact heavily to customers mind and
that will set a brand image in customers mind.

Become complex in the native civic: Restaurants can arrange football match, or beach
vollyball, or any games for their customers. They can offer food and beverage with some
discount in this kind of occasion. Customer will be in jolly mood here and they will enjoy you
service and will remember it for a long time.

Upselling Methods: Customers sometimes get confused in choosing their products or services.
A restaurant employee, slaeclerk can help the customer to make his/her decission. That send a
message to the customer that the resaturant is caring about him/her. That works as a great push
towards customer satisfaction and come back to your restaurant again.

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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 behaviour:

Digital technology or digital marketing has a great effect on consumer bying behaviour. Because
of internet everything is infront of customer. Nothing can be hide, its not possible to fool
customers this days. Digital marketing changes the marketing traditional process. Now, facebook
boosting, youtube advertisement, advertise in websites, sms marketing, email marketing all are
under digital marketing. Lets see how they are affecting consumer behaviour:

Product price: Customers have price access of any product in the world, they can learn the real
price of a products by researching in the marketing. So, they can judge a product from their
home and decide either the price is suitable or not. They are making decission from the product
price point of view.

Product review: Product review is available in evrywhere in online. Anyone can justify that
product or service either its good or bad. If the maximum review is bad still everyone will know
where not to go. If its good than many of the customers will spend some time in yor restaurant.
So, customers are taking decissions from online product review.

Internet shoping experience: Shoping experience in internet is changing customers buying

behaviour. Customers are judging the product just by seeing its picture online and paying for
that.

Consumer trust: Consumers are not trusting online products now, in offline store you have an
interaction with the seller you know the store address. In online store you don’t know anything it
can be a spam, can be hacker who is trying to reach. So, for this issues customers are getting
influenced by the digital market.

Information satisfaction: Customers can get more information from their house than going to
visit the store live. They can get free reviews of that product of service. They don’t even need
any help to learn how to run any product. Because there is youtube for that. You will get

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everything online. Customers are satisfied that all informations are in his handwith out spending
anything.

Your Choice
Branded Coffee Bar Café/Restaurant of Hospitality
Business
Places Visited Business Name: Business Name: Business
Name:

Picture of Star Bucks KFC Radison blue

Establishment
Take a ‘Selfie’ of
your group outside
the restaurant that
shows the front of the
restaurant and its
name in the picture
also

Tariff Board/ Yes

Menus No Yes
Does the business
have a full menu or
tariff board at the
5/10 8/10 9/10
entrance, or above
the counter?
EPOS System
Does the business
have an EPOS Yes Yes Yes
system? What
manufacturer’s name
appears on the
system Terminal?
Does the system look 8/10 7/10 9/10
easy for the staff to
use

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Card Reader
Is there a credit card
payment facility? Yes Yes Yes
Does it take
contactless
payments?
Will it accept Apple
Pay, Google Pay, 6/10 8/10 10/10
Samsung Pay and
similar applications
Product Display
Are products
displayed in a Yes Yes No
logical order?
Are they attractively
8/10 8/10 6/10
displayed?
Do they look
delicious?
Purchase Boosts
What does the
business do to No No Yes
encourage customers
to purchase, and
tempt them to spend
more?
Are all items
individually priced?
Are there Impulse
Purchase items near 5/10 5/10 5/10
the till?
Do members of staff
up-sell?
Posters/
Advertisements
Are there posters No Yes No
and advertisements?
What are they
promoting?
Are they appealing 8/10 5/10 6/10
and likely to
succeed?

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Pricing
Write down four or Yes
more typical items, Yes Yes
and their prices.
Do the prices
represent good value
for money? 3/10 4/10 6/10
Are there any special
offers, discounts,
meal deals, etc.?
Repeat Business
What is the business
doing to encourage Yes No No
customers to return?
Are there loyalty
cards available?
Do staff encourage
customers to return?
Are there any
advertisements
promoting 8/10 2/10 3/10
forthcoming events
or soon-to-be-
launched products?
Other Observations
What else have you
noticed, that is No Yes Yes
relevant to the
operation of the
4/10 6/10 8/10

Website/Advertisin
g
Before, or after, your Yes No Yes
visit, go to the
Company’s website
and look at this.
Is it inspiring,
informative and
professional?
Does it provide all
the information that
customers might
need (opening times, 9/10 2/10 9/10
location, menus,

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prices, etc.)?
Do they advertise
their business in any
other way?
D3
How might the
business use digital No No Yes
technology to
improve upon the
things that they are
already doing?
How would you
employ the
technology
differently if this was
your business?

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Conclusion:

Food and beverage hospitality industry is one of the biggest industry in the whole world. This
type of business is very profitable. Restaurants are place where people go to have a nice moment,
to spend some time with special persons, to have a memory that can stay in memory for a long
time. This type of business need heavy investment,it has to create a brand value in customers
mind. It has to follow the rules and regulation by the law inforcement. Digital marketing is very
helpful for restaurants, people are now a day stay in facebook more than anything, they watch
product review, product information, price, facility, charactaristics and than justify if that product
or serviceis for him/her or not. So, food and beverage inustry is an amazing industry for people
for their relaxation and crating some memories.

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Bibliography
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 Alan Clarke, W. C. (2010). International Hospitality Management. Bodmin, Cornwall:

British Library.

 Andrews, B. (2005). Textbook Of Food & Bevrge Mgmt. Tata Mcgrew Hill Publishers.

 Association, N. R. (May 24, 2012). Principles of Food and Beverage Management.

London: Pearson.

 Baweja, B. D. (2001). Food and Beverage ( F & B - Management Technology) with

Revenue Management. Chennai.

 By Bernard Davis, A. L. (2012). Food and Beverage Management. Routledge.

 By Dimitrios Buhalis, J. C. (2005). Global Alliances in Tourism and Hospitality

Management. Amsterdam: Routledge.

 By John Cousins, D. C. (2009). Food and Beverage Management. Pearson.

 By Ron Morritt, A. W. (2012). Segmentation Strategies for Hospitality Managers:

Target Marketing. London: Elsevier.

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