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Nelson College London

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 Managing Food &
Beverage Operations

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Contents
Abstract:...........................................................................................................................................4

Introduction:....................................................................................................................................5

P1. Explore different types of business within the food and beverage industry, profiling a chosen
business within each area of the industry........................................................................................6

P2. Explain different rating systems used for the food and beverage industry nationally and
internationally..................................................................................................................................8

P3. Discuss the current and future trends affecting food and beverage business............................9

P4. Demonstrate professional food and beverage management 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

P6 Compare and contrast different operational and marketing technology for a range of different
types of food and beverage businesses..........................................................................................14

P7 Investigate the factors that influence the consumers’ decision on which food and beverage
outlets they choose:........................................................................................................................16

P8 Analyze strategies used in a range of food and beverage outlets to attract and build a loyal
customer base:...............................................................................................................................17

Conclusion:....................................................................................................................................22

Works Cited...................................................................................................................................23

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Abstract:
The following paper looks deep into the food and beverage industry of the hospitality sector. It
goes on to explain how dynamic the environment is in this industry and how this industry could
be conjoined with other industries in the hospitality sector. The industry is significantly
influenced by changes in tastes of consumers and trends from the past which were established
and the likely trends in the future are discussed briefly. The paper also brings up the whole
industry framework and the legal constraints that whole industry is impacted with. Furthermore,
it looks into feasibility with bringing change in the operational and marketing techniques to the
food and beverage industry.

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Introduction:
The hospitality industry is one of the most prominent industries throughout the globe. Worker’s
employed in such an industry focus on satisfying their customers by adding superior value to the
products and services that they serve. Therefore, their development along with sustainability
heavily relies on how effectively the workers of the industry create value to its customers and
excel in achieving customer satisfaction. This Industry comprises of four broad sectors. Lodging,
Travel and Tourism, recreation and the Beverage and food sector. The latter i.e. Beverage and
food sector plays an immense role for the whole industry and is inter-connected with the rest of
the sectors present in the industry. The Beverage and food industry acts as a support and energy
by being in the value chain for areas in catering establishment, airline meals, stadiums, cafeterias
lounges etc. There are some ways of measuring and evaluating the quality of the Beverage and
food industry. The evaluation process operating systems of the Beverage and food business
organizations help the customers to decide and choose from the best quality services from
different hospitality service businesses. There are trends of the past that are extrapolated and
future trends often which are predicted, that have affected the Beverage and food businesses of
the industry.

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 Factsheet 1

P1. Explore different types of business within the food and beverage
industry, profiling a chosen business within each area of the
industry
There are several types of business units within the beverage and Food Industry that serves a
critical role for the Hospitality industry as a whole. Different types of Beverage and food
companies are affiliated with the different sectors of the hospitality industry, restaurants different
type of fast food items for the visitors, beverage, facility services including the catering services,
health including hospital meals, hotel services offering breakfast lunch and dinner, airlines
providing flight meals, entertainment, and sports facilities including refreshments to the
customers and so on.

Here we look into some of the most common types of business units that operate within the
Beverage and food industry.

Hotels: Hotels often create strategic alliances with restaurants often with various signatures such
as Brasserie, Themed restaurants, lounges, to create more value to the hotel guests and their
residing time worthwhile. These businesses end up making a lot more money than individual
restaurants if the hotel had selected on the right service mix. The Hotel King Palace has a USP of
offering a variety of services targeted at different segments i.e. based on the package the guests
are opting for. The different restaurants services are able to generate a great deal of profit by
providing luxury services to hotel guests and visitors

Cafeteria Services: Originally intended on serving the industrial working population but over
time had come up in new themes and versions where refreshments and quality Beverage and
food are served. Cafeterias too end up selling different food items and beverages from a variety
of suppliers. These small specialized food suppliers are the facilitators of providing the
customers with a variety of options to choose from. For example a convention hall’s cafeteria
services.

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Fast food: The concept and theme of a cafeteria and a steakhouse but then improvising it to offer
with modern day snacks with chicken and burgers, keeping the option of takeaways and targeting
various markets. These fast-food chains often end up with a great brand name and reputations if
it manages to consistently keep the customers satisfied with their services.

There are other popular types of business organizations within the food industry which we are
familiar with such as cultural food service, theme parks and golf clubs where they come up with
various ways to make the customers available to different Beverage and foods.

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 Factsheet 2

P2. Explain different rating systems used for the food and beverage
industry nationally and internationally
Rating system is a crucial factor for all the business units operating in the hospitality industry.
With the access to internet customers know where they would be offered with the best hospitality
services at the best prices by having a gaze at the ratings by independent enterprises to the
hospitality service providing enterprises. There are a number of rating systems out there. Some
of the most popular systems are as follows. The star rating system, Michelin star rating, Trip
advisor rating system etc.

Michelin rating: Michelin stars are known throughout the world for their rating of fine dining
by many of the world’s top and elite chefs. It has positioned itself well in the review reader’s
perceptions well to look out first for the stars Michelin rating had evaluated them with. Michelin
star rating system is a guidebook that provides a summarized evaluation process on the basis of
the performance of the service organization by starring them. Maintaining the minimum rating
system provided by the star rating system in terms of operating business enterprises to provide
consumers with food and drink is very important for the Beverage and food business enterprises.
Based on the quality of business enterprises in the hospitality service providing sector, there is a
spectrum between one and three Stars. If it points out with one star, it implies that the restaurant
is has quality menu some value to offer its customers but still lack in some aspects which is all
perfect to stop for a meal and get it from there. Two star implies, the food service and quality is
very good and has something exceptional to offer its customers and is worth for a detour. Three
star implies, it is extraordinary and visitors could go actually visit the place and must try
different cuisines out there.

Star rated evaluations: When trying to evaluate the beverage and food industry it is one of the
most common rating systems in the world. In 2006, the motoring organizations working with the
tourist boards for the various regions of the United Kingdom and Ireland introduced specific
quality standards. Each region uses the same criteria and ranking categories. Star ratings from

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one to five stars are provided to hotels, guest accommodation, self-catering and serviced
accommodation.

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 Factsheet 3

P3. Discuss the current and future trends affecting food and
beverage business
The whole of the Beverage and food industry is very sensitive to the trends that the market for
the industry adapts. Trends in such an industry could be a key decision making factor in the way
it markets its products and services to its customers. Some of the current trends in the Beverage
and food are vital to be taken into account when serving the customers. Business organizations
have to be very market oriented with their product and services according to the contract and
future demand and preference of the potential customers [ CITATION Moo13 \l 1033 ]. A
product in the Beverage and food industry, despite being of great quality and price, it may still
fail to be marketed to the end customers just because it doesn’t tag along with the current trends.
Hence, Beverage and food business organization must take into account of the future and the
current Trends of eating the Beverage and food the purchasing decisions of the customers. Below
are some current Trends that are discussed briefly:

 Street food is a very viable option for tourists and outsiders all over the world. They get a
chance to enjoy the outer environment when having options of trying out different types
of meal in the street lights. This has become trendy over the years and its acceptance by
the youth has been great due to its lower prices in comparison to restaurants and other
cafes.
 A huge demography of the market is increasingly shifting to being conscious about their
health through making changes in their food diet and lifestyle trying to incorporate a
healthy lifestyle.
 One of the recent trends that is going on with restaurants and café right now is Geo-
tagging which takes place with the involvement of the social media. Internet celebrities
and pages with huge follower base go to different places and tag themselves that they
have been there which is viewed by internet users all over the world then go on following
to those restaurants and places to try out their food.

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 To look more into trends lets extrapolate the past and try to predict some of the future
trends. Below are discussed some of the likely future trends

 A larger proportion of the market has grown habit of using home delivery services and
prefer enjoying their meals at home. This certainly had relieved many small businesses
who cannot afford big spacious outlets for their customers. Over time as people are going
to be busier, they would demand for home delivery options.
 Robotics lately play a role in serving Beverage and food in malls at different parts of the
world which have got the attention of food lovers and get them an experience an
environment which is automated with robotic technology is likely to take over the
process of serving customers with their ordered meals and drinks
 Touch screen Technologies along with app interfaces based services provided by the
business organizations, for better service quality is a common trend amongst the food
lovers, visitors and tourists. Smart screens and servers are now offered to customers at
order point and this trend is likely to increasing in the first-world countries.
 Chef’s cooking in the home could be a future trends as many enthusiastic cooks now
offer home-made dishes and there are apps which try to connect individual customers
with these home chefs. Over time this could turn out to be an important segment of the
hospitality market for customers who prefer to have home-made dishes being offered at
their doors.


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P4. Demonstrate professional food and beverage management skills
within a food and beverage Organization
The beverage and food industry had evolved over the years due to the changes in trends and
tastes of consumers in the market as depicted in the previous section. It has become a subject of
great challenge for new firms in the market to establish themselves as a brand to the customers.
There is high competition other constraints that come in the way of establishing a brand image in
the perception of customers. Therefore it requires certain positioning and other strategies to be
set to achieve survival and growth in this industry. It is crucial for the businesses organization to
catch the attention of customers in a market that is already saturated and gain customer
satisfaction with quality service. Hence, these organizations focus on developing and promoting
professionalism and new efficient managerial skills in the workplace.

 The Beverage and food company organization's strategic planning is very critical in suppl
ying consumers with professional management skills. Regular staff appraisal of
employees with feedback would be important to improve service quality and efficiency to
gain customer satisfaction.
 For communication to take place effectively within that is within the organizational
hierarchy, backward (suppliers) or forward (customers), there should be fluency on how
messages are communicated between these channels to prevent miscommunication and
interrupt business activities.
 Effective communication skills are very important for employees when it comes to team
work.
 Certain Leadership styles and qualities is another requirement for the professional
management of beverage and food business services. For example democratic or
autocratic leadership styles
 The workers having emotional intelligence i.e. understanding their surrounding and
emotions of customers, having interpersonal skills are some organizational skills which
businesses in the beverage and food industry could tend to look for recruiting as these
will certainly benefit them in achieving their objectives and goals.

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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.
Every year, The United Kingdom, attracts a lot of tourists from all over the world as it has a very
rich history and culture and almost everyone would think of visiting the kingdom once in their
lives. Therefore the UK hospitality and tourism sector is very specialized in serving its customer
with good hospitality and abides by strict rules and regulations in Beverage and food industry for
the wellbeing of the native and foreign societies.

Some of the main Acts and laws passed to regulate the Beverage and food industry are:

I. The UK law Food Safety Act 1990- For all companies that manage, process, store or
serve food, food safety policy should be a key priority. A form of environmental
legislation is in place to ensure that the manner in which their food has been processed
never affects the health of customers. This in fact is the first regulation that all units in the
Beverage and food industry in the UK, have to take into account before starting to
operate as a unit.
II. Gas safety (installations and use) regulations 1998- The 1998 Gas Safety (Installation and
Use) Regulations are supported by the Code of Practice of the Health and Safety
Executive, which provides practical guidance on what the regulations mean and how to
comply with them. The regulations provide the public with increased legal protection and
place significant responsibilities on public and private landlords. [ CITATION She18 \l
1033 ]
III. The UK law 1996 waste management regulations- Waste management laws govern,
among many other aspects, the transportation, processing, storage and disposal of all
kinds of waste, including municipal solid waste, hazardous waste and nuclear waste.
Waste laws are generally intended to minimize or eliminate the uncontrolled dispersal of
waste materials into the environment in a way that can cause environmental or biological
harm.
Theseinvolve legislation aimed at reducing waste generation and promoting or mandating 

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recycling. Regulatory measures involve recognizing and classifying categories of waste a
nd requiring transportation, care, and storage and disposal practices.

This was availed from the instruction from which we could perceive how strictly the UK
focuses on preventing underage people from indulging in alcohol. These are just some of
the few UK laws and there are other hundreds of laws which have been passed such as
The Health and Safety act. The hotels and other businesses have to bear with these laws
and any amendments made in the following years.

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 Factsheet 4

P6 Compare and contrast different operational and marketing

Operations and supply chain. Employees and managers of the operations department could
introduce ERP systems and other automated technology which helps run operation smoothly and
prevents from running out of stock of raw materials and food ingredients. These could also help
with the process of order taking from customers and stock ordering to suppliers as well when
running on buffer stocks.

Stock ordering: When stock of ingredients and raw materials are frequently being consumed in
the making of meals and other items and stock gets running out. To keep track of stock level and
not completely run out of stock, buffer stock level is set and when stock has reached the
minimum level, signals from the ERP database are automatically sent to suppliers that they need
another supply of the following stocks.

Pricing Sheet: customers should be able to know the prices of meals.

Payment technology: different payment methods and could be offered to the customers for their
convenience and make sure these payment options are in no way a window for losing out on
sales. It could be cash or digital cash payment systems with the help of mobile banking, e
banking etc.

These enhances the business operation process and ensures quality production on time without
having to turn down any customers for running out of stock and reduce chances of serving poor
quality meals to customers.

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 Factsheet 5
For the part of marketing technologies
CRM software- which makes managing customer relations very handy. Customer relationship is
often the most vital factor in gaining customer loyalty. Businesses requires a healthy customer
base. CRM software makes it possible for them who have a lot of customers and is literally
impossible to know each customer personally or even their names and keeping track of their
purchasing behavior. This is where this software comes in handy.

Loyalty systems: different loyalty programs and card system could be introduced where
customers receive certain privileges and discounts over time on the meals and drinks they order.
These help hugely in earning their loyalty to specific brands. For example platinum card and
gold card customers.

E-mail and E-brochures: these could be different Medias and channels to reach out customers
with the help of the internet technology. Nowadays a lot of restaurants and other food service
outlets often create content in the social media to reach out to new viewers and convert them into
potential subscribers of their food services.

Websites: A lot of customers often go on to checking different websites of restaurants and food
places for reviews and want to see beforehand the meals and dishes that are being offered to
them and even room for FAQs and to leave complaints. These are all factors that add value
through customer assistance.

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P7 Investigate the factors that influence the consumers’ decision on
which food and beverage outlets they choose:
No matter how much study we carry on this issue, it would be impossible to know the exact
particular reason and insight data to know why a customer chose a certain meal, drink or outlet
over the other. This is often referred to as ‘the consumer black box’. However, there were certain
common insights shared by customers about the reason on why they chose to have the particular
meal or drink from the place that they ordered from.

Here are some of the common insights:

Environment and experience: They liked the environment and experience they had in having
their meal on that place.

Perfectionist in taste: they sold the best meal of that category in the whole town and so they
would not have those dishes from other restaurants.

Price: Many of the customers chose the meal of a particular because they found the item to be
budget friendly and believed they are were getting good value out of the price that they are
paying for those items

Hygiene factor: Many of the customers claimed that hygiene was their first priority as they are
very conscious about their health.

Social media advert or content: this is one of the common reason shared amongst the
youngsters when asked about why they chose to go to a particular food place and their reason
was they saw things on the social media and how everybody was liking and commenting, rating
on that content in the media. This motivated them to actually try out their meals.

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P8 Analyze strategies used in a range of food and beverage outlets to
attract and build a loyal customer base:
Managers over time due to increased competition try to strategize and come up with new ways to
increase efficiency and specialize at what they do to stand out from its competitors. Here are
some of the key factors and strategies that management takes into account:

Market Research: businesses have to be market oriented specially in the beverage and food
industry as it is dynamic because the taste and trends tend to change frequently. Therefore
market research is mandatory to know if the customers are wanting what the business is offering
them. If the food and service quality is superb but the customers of that location don’t demand
such meals then there is no point. Therefore proper research methods and the data must be
carefully analyzed to know the market.

Friendly environment: Many of the restaurants and food service outlets today work on how to
build friendly relationships with customers which would allow the customers to open and give
them honest feedback on their service. Customers are the king and whatever they say is right-
this is the notion that is accepted by service based businesses world-wide. If the customers are
satisfied or delighted with their services, then it gives the place an advantage of winning these
customer’s as loyal customers.

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Conclusion:
In this task, it is talked about all the essential themes nourishment and drink activities. How a
few business associations are associated with this industry or the diverse rating framework is
talked about in the report. Indeed, even administrators' abilities and characteristics are
additionally examined. What's more, in this task, finally, how another outlet can use the
information or examine the positive components to accomplish the consideration of the customer
towards their outlet is also legitimately discussed and it will be useful to anyone who seeks on
making themselves aware about the beverage and food industry and how it operates.

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Works Cited
Anon., 2018. Shelter legal. [Online]
Available at:
https://england.shelter.org.uk/legal/housing_conditions/safety_in_the_home/gas_safety/gas_safet
y_regulations_1998
[Accessed 6th July 2018].

Griffin, R. W., 2006. Principles of Management. s.l.:s.n.

Hunsaker, P. L., 2004. Management: A Skills Approach. s.l.:s.n.

Moodie, R. S. D. M. C. S. N. N. B. T. T. L., Casswell & Group, L. N. A., 2013. Profits and

Porter, M., 1980. Competitive Strategy: Techniques for Analyzing Industries and Competitors.
s.l.:s.n.

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